Need help investing large sum of cash money

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Need help investing large sum of cash money

Brandon Gowen
Real Estate Developer, Architect, Agent · Phoenix, AZ · Member since 2016 · 13 posts · 3 votes
New to Bigger Pockets, and oh my gosh, amazing posts and podcasts! Excited to meet like minded investors, and learn as much as I can. I've got two flips under my belt, but want to do bigger things. Have an good friend who just sold his company looking to invest in my business. I'm an architect and do real estate rehabs on the side. I want to maximize his money, so want to do what's best for him even if it's not my company he invests in. Feel safe in single family for now, but open to multi-family flips. Any advice on how to maximize a large sum of cash money!?! I'm in the Phoenix area, and have lived here for past twelve years. Thanks for all you read and comment, best of success to you! Brandon
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
10y

Start making hard money loans.

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  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    10y

    Start making hard money loans.

    Curt Davis - KAIZEN Realty538 Reviews
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  • Anthony Naranjo
    Investor · Prescott Valley, AZ · Member since 2015 · 10 posts · 2 votes
    10y

    I agree with Mr Davis. A lot of investors are doing hard money loans instead of doing fix and flips. They feel it's less stressful than finding a deal, overseeing the rehab and then selling the property while making a good return on investment. 

    1Reply
  • Steve Driscoll
    Rental Property Investor · Baldwin, NY · Member since 2009 · 78 posts · 18 votes
    10y

    Welcome to BP!

    Investment... Short or long term?

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  • Dave Howland
    Northern, NJ · Member since 2016 · 16 posts · 1 vote
    10y

    How can you do that safely as an individual?

    1Reply
  • Judy Rae
    Lender · Sherman Oaks, CA · Member since 2014 · 68 posts · 80 votes
    10y

    I agree with the guys posting here. Trust Deed investors make 9%-12%. Investors can use thier IRA or Pension plans etc. Most of my clients made a lot of money in real estate and are done hearing about toilets breaking, roof leaks and so on. They love the passive income TD's bring them.

    0Reply
  • Manolo D.
    Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
    10y
    Take REOs for better returns. 50-80% annualized.
    0Reply
  • David Faulkner
    Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    10y

    Agree with hard money loans with the caveat that you have to know how to properly underwrite them, or have somebody on your team that you implicitly trust to do this for you (but this is something that I wouldn't personally outsource). If the deal is too thin to support a hard money loan and/or there is not enough borrower skin in the game to recoup your capital if things go awry, then you can lose money just like any other investment where capital is put at risk to earn a return. 

    The problem I see in most hot markets like SoCal (and probably Phoenix too) is that there is more money chasing deals than there are truly good deals to invest in. If you have a pile of investable cash burning a hole in your pocket and don't have the experience or knowledge to separate an investable deal from one that isn't, or how to operate that deal after acquisition, then you are better off keeping that money in your pocket (or your friend's pocket as the case may be) at least until you are educated enough to do this and/or the market cools to where there is a bit more margin for error (and profit). No offense intended, but if you are asking this question in public forum, you may not be there yet. BTW, I'm in a similar boat and taking my own advice.

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  • Brandon Gowen
    OP
    Real Estate Developer, Architect, Agent · Phoenix, AZ · Member since 2016 · 13 posts · 3 votes
    10y

    Thanks all for the advice, really appreciate it. @DavidFaulkner - you're right, Although the idea hard money lending seems simple, it's not my niche' and I certainly don't want to recommend anything I can't back up.

    Best Regards All,

    Brandon

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