I have $100k. How should I invest it?

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I have $100k. How should I invest it?

Cosmin Iuga
Member since 2019 · 22 posts · 8 votes

I’ve inherited $100k I want to start a nest egg. I’m

Very much interested in investing. How should I start?

1Reply
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Mark Durham
Specialist · Atlanta, GA · Member since 2014 · 179 posts · 100 votes
6y

Are you new? If so, IMO, your first purchase should be a good education before you start buying RE.

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  • Mark Durham
    Specialist · Atlanta, GA · Member since 2014 · 179 posts · 100 votes
    6y

    Are you new? If so, IMO, your first purchase should be a good education before you start buying RE.

    11Reply
  • Logan Freeman
    Specialist · Kansas City, MO · Member since 2018 · 331 posts · 148 votes
    6y

    @Cosmin Iuga, congratulations! I agree that educating yourself is crucial in your investment journey; never invest in anything you don't first understand. With that, also guard against analysis paralysis by understanding that you don't need to have all the answers before you take your first step; most learning comes through the process of landing your first deal. 

    I'd encourage you to begin thinking about who you need on your investment "team", i.e. realtor, financing agent, property manager (if you're not wanting to self-manage), etc. 

    Curious, where are you located? 

    I specialize in helping out of state investors acquire, renovate, lease and maintain real estate properties in Kansas City, which is fantastic market to invest in! 

    I'd love to be of help to you, please feel free to connect

    Logan Freeman, Founder/ LiveFree Investments

    Screen Shot 2020-01-23 at 8.50.52 AM.png
    2Reply
  • Jermell Shavers
    Member since 2019 · 295 posts · 159 votes
    6y

    @Cosmin Iuga. My advice go buy two class c houses for cash if possible in your market or go OOS and find a market you can do that with get your cash flow rolling with no mortgage free and clear has always been the best route especially for beginners with cash. Trust me it’s how I started been the best way if you can do it that way.

    2Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    I would find out what you can borrow from a bank.  This may allow you to use the $100K as a down payment on several rental properties.  Start with one and see how it goes before buying the next one.

    1Reply
  • Cosmin Iuga
    OP
    Member since 2019 · 22 posts · 8 votes
    6y
    Originally posted by @Jermell Shavers:

    @Cosmin Iuga. My advice go buy two class c houses for cash if possible in your market or go OOS and find a market you can do that with get your cash flow rolling with no mortgage free and clear has always been the best route especially for beginners with cash. Trust me it’s how I started been the best way if you can do it that way.


    Thank you for replying. So first step would be selecting an area I’d like to invest in? I know which area I want to retire in. If not, what kid if area should I look for? I will look up what “c houses” and @OOS” means. Thanks again. 

    1Reply
  • Cosmin Iuga
    OP
    Member since 2019 · 22 posts · 8 votes
    6y
    Originally posted by @Theresa Harris:

    I would find out what you can borrow from a bank.  This may allow you to use the $100K as a down payment on several rental properties.  Start with one and see how it goes before buying the next one.


    Thanks for replying to me. Really? I can stretch out $100k on several rental properties? Where and what kinds of properties would these be? 

    1Reply
  • Cosmin Iuga
    OP
    Member since 2019 · 22 posts · 8 votes
    6y
    Originally posted by @Theresa Harris:

    I would find out what you can borrow from a bank.  This may allow you to use the $100K as a down payment on several rental properties.  Start with one and see how it goes before buying the next one.

    Thank you much. Very well put. I will do that. 

    0Reply
  • Michael Heisterkamp
    Member since 2020 · 122 posts · 62 votes
    6y

    You have a few opportunities.  As many have mentioned you can go out and invest in a property in your area or out of state.  You can also partner up with another local investor or you can invest in a syndication.  These are the most popular ways to get involved in real estate.  You learn the most buying your own properties usually, partnering up lowers the risk and the return.  Getting in a syndication is basically 100% passive after you have vetted the syndicator and the deal.  Each has their advantages and disadvantages.

    0Reply
  • Cosmin Iuga
    OP
    Member since 2019 · 22 posts · 8 votes
    6y
    Originally posted by @Michael Heisterkamp:

    You have a few opportunities.  As many have mentioned you can go out and invest in a property in your area or out of state.  You can also partner up with another local investor or you can invest in a syndication.  These are the most popular ways to get involved in real estate.  You learn the most buying your own properties usually, partnering up lowers the risk and the return.  Getting in a syndication is basically 100% passive after you have vetted the syndicator and the deal.  Each has their advantages and disadvantages.

    Wonderful. I will learn about these ways. 

    Thanks 

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y
    Originally posted by @Cosmin Iuga:
    Originally posted by @Theresa Harris:

    I would find out what you can borrow from a bank.  This may allow you to use the $100K as a down payment on several rental properties.  Start with one and see how it goes before buying the next one.


    Thanks for replying to me. Really? I can stretch out $100k on several rental properties? Where and what kinds of properties would these be? 

    Why not.  If you can borrow $500K, that means including your $100K, you have $600K.  If houses in your area are $150K each, you need a minimum of 20% down for each, so could use $30K per property for the down payments, get a mortgage for the remainder.  You need to keep enough for closing costs, but you get the idea.

    0Reply
  • Cosmin Iuga
    OP
    Member since 2019 · 22 posts · 8 votes
    6y

    @Theresa Harris

    Makes sense. I didn’t think I cloud stretch it that far but numbers wise it makes sense.

    Thanks again

    1Reply
  • Jermell Shavers
    Member since 2019 · 295 posts · 159 votes
    6y

    @Cosmin Iuga. Typically you would find a c class area whatever that may be in your area it won’t be where all the high end 100k plus people live it won’t have a Whole Foods maybe a liquor store working class people. You gotta know your area or where you want to invest

    0Reply
  • Jermell Shavers
    Member since 2019 · 295 posts · 159 votes
    6y

    @Cosmin Iuga. OOS out of state

    0Reply
  • Roni E.Pro Member
    Specialist · Earth 2.0 · Member since 2019 · 598 posts · 271 votes
    6y

    I would first as other said read, watch some YouTube videos, use this site and go local meetups to learn. Then check out sites like crowdstreet, real crowd and fundrise to see deals in investing into syndications

    1Reply
  • Robert J.
    Rental Property Investor · Eugene/ Springfield, OR · Member since 2012 · 99 posts · 69 votes
    6y

    @Cosmin Iuga

    -get the knowledge and figure out what style investing you are most interested in.

    -become the guy that can find those deals (generate the leads through marketing) and partner with a seasoned investor

    100k in the right kind of marketing will generate you millions in deals and relationships.

    1Reply
  • Cory LucasPro Member
    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    6y

    @Cosmin Iuga wow how fortunate you are. Congrats, I’m just starting out and trying to put together 10-20K, so you’ve got one heck of a jumpstart.

    I’d highly recommend educating yourself. I’d like to think a year of educating to garner a lifetime of fortune would be better than jumping in without the education in your first year to potentially garner a lifetime of frustration.

    I know that’s all I’ve been doing for the last 6 months or better is educating myself and it’s been eye opening for me. We’re hopefully going to be purchasing our first property here soon and there’s still so much I don’t know. Judging by reading your post and replies education would be a great first place to start. The beauty of that is that you are in my opinion in one of the best places for that right here with Bigger Pockets. Whether it be the forums, podcasts, the guides, reading material, you name it I think they have it here. Best of luck on your journey

    1Reply
  • Cosmin Iuga
    OP
    Member since 2019 · 22 posts · 8 votes
    6y

    @Mark Durham

    I am new Mark. What does IMO stand for?

    0Reply
  • Cosmin Iuga
    OP
    Member since 2019 · 22 posts · 8 votes
    6y

    @Logan Freeman

    I’m in SoCal Logan, very different prices here. My money won’t go far here. What do you think?

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Cosmin Iuga:

    I’ve inherited $100k I want to start a nest egg. I’m

    Very much interested in investing. How should I start?

     I see a lot of discussion on you using this $100k to invest out of state in the turnkey markets. As KC was one that was specifically mentioned I figured I'd drop you a link to The Ultimate Guide to Grading Kansas City Missouri Neighborhoods. Also have similar guides for Cleveland, Ohio and Birmingham, Alabama. Good luck on your investing in whichever market it is that you choose. One thing to note when looking at the individual markets, you can make or loose money in any market. Don't think that one particular out of state market will shoot you to success or abject failure. It's not really that complicated to buy out of state. It only becomes complicated when investors try to over complicate or over think everything. Whenever you are buying a property out of state you should do a few things to ensure it's as smooth as possible.

    • Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
    • Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
    • Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
    • Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
    • Make sure your property manager is a licensed real estate brokerage.
    • Understand you can not eliminate all risk, only mitigate it. If you are risk adverse real estate, (especially out of state) is not for you.
    6Reply
  • Mark Durham
    Specialist · Atlanta, GA · Member since 2014 · 179 posts · 100 votes
    6y
    Originally posted by @Cosmin Iuga:

    @Mark Durham

    I am new Mark. What does IMO stand for? 

    in my opinion

    0Reply
  • Anthony Wick
    Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    6y

    @Cosmin Iuga

    Vanguard VTSAX. 30.8% return in 2019.

    But since you’re on BP, I’m assuming you’d like to invest in real estate as well. I can’t answer your question based upon the very little info from your original post.

    0Reply
  • Cosmin Iuga
    OP
    Member since 2019 · 22 posts · 8 votes
    6y

    @Michael Heisterkamp

    Thanks Michael. What’s a syndication?

    0Reply
  • Cosmin Iuga
    OP
    Member since 2019 · 22 posts · 8 votes
    6y

    @Jermell Shavers

    Thanks...

    1Reply
  • Cosmin Iuga
    OP
    Member since 2019 · 22 posts · 8 votes
    6y

    @Robert J.

    Wow...

    My mind is blown.

    Thank you.

    0Reply
  • Jermell Shavers
    Member since 2019 · 295 posts · 159 votes
    6y

    @Cosmin Iuga. No problem anytime

    0Reply
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