How to invest 70k, with a good return?

12 Replies

I flip houses here in south texas, but the competition is getting hard.

I want to know another way to invest my money in real estate market.  (70k) and receive a great return...

Thanks 

There are so many potential answers here. I would maybe consider being a private lender. You probably have some contacts already in place for people who you can trust to loan the money to. 

Disclaimer: I've never done it, so be sure to do your research!

Think about buying multiple cash flow properties or a multi unit. Im not sure what home prices are in your exact area but if you had 70k you could potentially buy two $100,000 properties and then rent them out if you leverage your money correctly and have a solid return each month as well as having 2 assets. 

Thanks for reply.... your answers are very helpfull.

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@Cesar Perales 

I love @Austin Lee  's response, because I love the private route.  The one change I would make is suggest looking at being a private investor, rather than a private lender.  The differences are subtle, but your potential returns should be higher as a private investor.

The major suggestion I have, since you have something of a track record with fix & flips already, is to expand into other markets.  McAllen is relatively isolated.  If you have systems in place already for generating leads, I think some of the more metropolitan areas of Texas would provide more opportunities.  It's a big state!!

Hattie

Fund a loan through a hard money lender, you may be able anywhere from 8-11%. Good return without the headache of tenants, maintenance, etc. 

Tax liens against home and property. 

There are 2 possible outcomes, and they both are positive.

1st possibility, they pay their taxes before the redemption period, and since you bought the lien, the county foward the payment to you, plus the penalty.  The penalties can range up there. Here I believe it is an 18% in washington.

2nd possibility, they don't pay their taxes, and if they still owe on the home and the lender didn't pay the taxes, well you own the lien so the propert is now yours.

So when purchasing liens from the county, make sure it's property that some day you wouldn't might owning, because you just might end up with it.

@Jaccob Heath  

There is a third alternative, the property is worthless, has a federal lien, was a dump site, the property is nearly a quarter acre at 9 ft x 1000 ft, etc.  But those are the exception!  With proper research, those issues can mostly be avoided... 

@Cesar Perales 

As Jaccob mentioned, tax liens could bring in 10-15k per year, but so could an investment property, both would pull in good return...If I were in your position, may try to buy a fixer-upper and get some instant equity on a single family, rent it out then take the excess rent and stick in liens...  I would look for a 100k after repaired value house for 40-60k, put a little $ in it and hope to pull 10k/yr out to put into liens, after about 4 years you would have a house worth about $100k and around $60k in tax liens pulling in $20k, now either buy another property or invest in more lien and in 3 more years should be to 30K/yr...would guess that the 70k is now worth about 250k after 7 years!!! 

Hi everybody...

thanks for sharing your knowledge about real estate investing..

Your responses are very helpful to me. I am rockie in the real estate business. but I am learning every single day. thanks to you.

We are buy and hold investors and I love it! My husband has a transient career so we move around alot since he is Active Duty Navy. We have invested a little over 75k in our 5 houses between pure rentals turned investment and pure investments. They turn a little under 2k in cash flow and are class A investments. 

The only thing everyone agree with on this site is that everyone invests in real estate. Beyond that everyone has a different "niche" and strategy. We personally dont follow the 1%, 2%, or 50% rule. I highly recommend you check out those who's post you enjoy signature. Many including myself have websites about their strategy, business model and niche. This is a great way to find out even more informaition.

I'm an investment real estate agent in the San Antonio area I can help you get some nice roi's with your money

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