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

Investor Mindset
6yFollow

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
123 views

Most Popular Reply

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
See this reply in the discussion

52 Replies

Jump to latestLatest
  • Cosmin Iuga
    OP
    Member since 2019 · 22 posts · 8 votes
    6y

    @Cory Lucas

    Thank you Cory. I’ve blessed. Not because I’ve done anything special.

    The community I’m finding here is nothing short of a miracle.

    Everyone is so positive and helpful and just nice.

    Thank you everyone.

    Good to be here.

    2Reply
  • Cosmin Iuga
    OP
    Member since 2019 · 22 posts · 8 votes
    6y

    @James Wise

    Wow James. So much learning I’m so little time.

    Thank you...

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

    @Mark Durham

    LOL. Obviously I’m new here.

    Thanks Mark

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

    @Roni Elias

    Wonderful. Thank you Roni...

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

    @Theresa Harris

    Wonderful advice.

    Thanks

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

    @Jermell Shavers

    Thanks for the explication.

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

    @Anthony Wick

    Not understanding the 30% comment Anthony.

    Thanks

    0Reply
  • Holly Williams
    Rental Property Investor · New York City · Member since 2014 · 208 posts · 271 votes
    6y

    @Cosmin Iuga

    I would put it in a money market for 6-12 months while I learned all I could and got to know people personally.

    During that time you should get clear on your investing goals ... risk tolerance, passive vs active, time horizons, is cash flow more important right now than appreciation? what is the rest of your economic situation and how does this money fit into that?...you get the picture.

    At some point you need to take the plunge, so don’t get into “analysis paralysis”. However, take your time and get clear on your objectives first. LMK if you think i can help.

    2Reply
  • Michael Heisterkamp
    Member since 2020 · 122 posts · 62 votes
    6y

    @Cosmin Iuga A syndication is a type of investment where a general partner (experienced investor) goes out and sources a large property to buy.  To purchase this property the general partner will seek funding from a number of sources including but not limited to banks, private money, individual investors, hard money, etc.  

    You would fall under the individaul investor space and would purchase a "share" of the equity pie that is being raised.  Outside of that there isn't really much left to say about the investment from the passive position.  You just need to make sure the syndicator is experienced, has a plan to operate the property (usually means a property management team onboard) and a plan to exit the invetment down the line.

    0Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    Don't rush. Run numbers on lots of deals (also have someone local as well as on BP double check them) then jump in and buy a property. Go for a 2-4 unit these cashflow after all true expenses unlike "most" single families. Stick to A or B class area and you can't go too wrong. Good luck!  

    1Reply
  • Josue Vargas
    Real Estate Agent · San Antonio, TX · Member since 2017 · 814 posts · 466 votes
    6y

    @Cosmin Iuga

    Not all in one basket for sure. REI is very profitable if you know how to handle it. So if you have no REI experience, 50% on REI, the max you can in SDIRA, keep the rest as a reserve or emergency funds. $100K is not that much after all.

    2Reply
  • Cosmin Iuga
    OP
    Member since 2019 · 22 posts · 8 votes
    6y

    @Holly Williams

    Thank you. I’m unpacking what you wrote. I will be reading it a few more times I’m sure.

    Thanks again.

    I will reach out

    0Reply
  • Logan Freeman
    Specialist · Kansas City, MO · Member since 2018 · 331 posts · 148 votes
    6y

    @Cosmin Iuga

    I agree and would love to speak with you on how I might help you. If you’d like to direct message me I can get you my contact info to set up a time for us to talk. Thanks!

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

    @Josue Vargas

    Wonderful. I’ll have to lol up what the acronyms mean.

    Thanks

    0Reply
  • Todd Dexheimer
    Rental Property Investor · St. Paul, MN · Member since 2016 · 3k+ posts · 3k+ votes
    6y

    Start by educating yourself and I would suggest holding on to that money for 6 months +, so ensure you're making sound decisions. 

    For real estate passive investing, there is investing in a syndication/crowdfund or investing as a hard money lender on fix and flips. You could also invest in RE notes, which is fairly passive. 

    For active investing, you could buy a small rental property. I would highly suggest buying something with value add if you go that route. 

    1Reply
  • Ellie Perlman
    Multifamily investor · Boston, MA · Member since 2017 · 281 posts · 521 votes
    6y

    @Cosmin Iuga - it depends if you want to be an active or passive investor. If you buy a single family home or small multifamily property, you'll need to put in time and money to run them. If you want to be passive, then you can invest with a syndicator who will manage the deal for you. So I'd say start with figuring out what type of investor you want to be. Then decide if you want to invest in single family homes, office, mobile hime parks, multifamily, etc. Options are endless. Read books and listen to podcasts. 

    Good luck!

    2Reply
  • Jacob Kline
    Rental Property Investor · St Augustine, FL · Member since 2019 · 74 posts · 47 votes
    6y

    @Cosmin Iuga take your time and educate yourself before buying any real estate #1.

    Are you looking to invest passively?ie. the less time involved the better= usually lower returns)

    In that case you may be best off going with syndication or funding a deal with a partner who does the work. (Disclaimer: partnerships are like marriage, so make sure you want to marry the person lol)

    Or would you rather spend some time to maximize your 100k? In that case I’d work on reaching out to sellers directly to find the best deals, which requires education. (This is what I do personally and its the best decision I’ve ever made)

    Or something in the middle, which would be buying properties with a realtor or wholesaler and managing the rehabs, hiring property manager, etc

    Hope this helps!

    1Reply
  • Jacob Kline
    Rental Property Investor · St Augustine, FL · Member since 2019 · 74 posts · 47 votes
    6y

    @Cosmin Iuga also listen to every Bigger Pockets podcast you possibly can. Huge value and it’s single best resource involved in how I learned the real estate game

    1Reply
  • Tommy Davidson
    Member since 2019 · 4 posts · 1 vote
    6y

    @Cosmin Iuga

    From reading through the post it sounds like your not very experienced. I would definitely read, study, and try to find a mentor before jumping in. Also I wouldn’t recommend a C or D class to invest in without more experience. A nice B class single family or multi family property would be a better route in my opinion. Good luck.

    0Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    6y
    Real estate prices vary so much by region. I'm going to close Friday on two properties, one is a 2/1 house and the other is a duplex with 2/1 on each side. I'll be getting change back from $100,000 even after paying the closing costs. (this is for both). Located in Georgia.
    1Reply
  • Phil Denton
    New to Real Estate · Cincinnati, OH · Member since 2019 · 51 posts · 15 votes
    6y

    @Jermell Shavers Did you find that your Class C properties were more "needy" or time-consuming? There are a lot of attractive Class C rentals near me but I still have a full-time job so I don't have to drive by and collect rent twice a month...

    0Reply
  • Alina Trigub
    Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
    6y

    @Cosmin Iuga

    As many other already stated, don't rush into things. Take the time to educate yourself, decide whether you want to be active or passive investor, how much time you can and want spend on real estate investing:

    https://www.biggerpockets.com/member-blogs/10850/84064-what-type-of-investor-to-be-when-i-grow-up-active-or-passiv 

    https://www.biggerpockets.com/member-blogs/10850/86626-the-pros-and-cons-of-investing-via-real-estate-syndication

    https://www.biggerpockets.com/member-blogs/10850/86621-six-steps-approach-to-getting-started-in-real-estate



    0Reply
  • Mike Krieg
    Investor / Syndicator · Austin, TX · Member since 2015 · 367 posts · 220 votes
    6y

    @Cosmin Iuga I usually deal with lump sum amounts like this, and in this order. 

    1 - Charity - From the top I want to help those causes I care about. Life is about more than money. People first, then money. 5-10%

    2- Debt - Pay off any consumer debt like cars, credit cards, etc.

    3- Emergency Account - 3-6 months of income, depending on your job stability

    4- House - What have I been putting off fixing around this house? There are always a few things

    5- Invest the rest. And for me it's real estate. Within real estate it's going to be multifamily, storage, or manufactured home communities.

    Seven Reasons I Prefer Investing In Multifamily Apartments

    Great thread here. Thanks for posting your question. I enjoyed reading the responses.

    1Reply
  • John FortesPro Member
    Multi-Family Syndicator · Abington, MA · Member since 2017 · 603 posts · 347 votes
    6y

    Hello Cosmin, first of all I'm sorry for any loss that resulted in your inheritance. I hope it was a windfall and hoping not a loss. 

    I think asking the question is good and all and starts to guide you more down a path of educating yourself. Sounds like you want to grow that planted tree you have there in the form of $100k. The idea is to recycle that $100k into as many opportunities as possible. Everyone has provided some great ideas already for you to begin exploring those options so I'll refrain from offering and overloading you with more. 

    The next step after educating yourself on your type of real estate investment is to determine where you want to play and what is your risk tolerance. Lastly, figure out if its going to create another job for you or allow you to be more passive. I really hope this helps and happy investing!

    0Reply
  • Stephen KeigheryBusiness Member
    Rental Property Investor · New Orleans, LA · Member since 2018 · 717 posts · 555 votes
    6y

    @Cosmin Iuga start by investing in yourself and your knowledge. If you want to grow the money you need to know where to put it rather than following what someone tells you that you should do. You are in a great place though and the podcast and articles will move you in the right direction. Enjoy!

    Home Buyer Louisiana4.855 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free