looking to invest so i dont have to work anymore
Member since 2018 · 1 post · 0 votes
looking to invest so i dont have to work anymore
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesreal estate is anything but no work yes limited to no physical work but to be able to live off of your investments takes time and frankly more seed capital.
but the biggest bang for your buck with 100k
is going to be using it as a downpayment and do fix and flip... but you need to be very cautious.
depending on your market this could be one or two flips that would make 20 to 30k each and you could do two a year.
not sure if 40 to 60k a year income would do it for you.. some it will some it wont.. rentals NO way no how not in todays markets..at least to start.
you could do the BRRR pay cash and refi.. but yoiu need a job and great income to refi.. ? so it all depends.
10 Replies
- Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes8y
Originally posted by @Kyle Granes:
i have 100k saved up i dont want to work anymore because its trades and i cant do it with my body any longer. can someone please help me on how i can get freedom
It kind of helps to know where you are located and then
Decide which kind of investor you want to be (SFR, Commercial, Land, Tax Liens, Passive, HML, Multi-Family, Notes, Fix & Flip, Buy & Hold, "Subject To", apartments, duplexes, assisted living, REOs, Foreclosures, Short Sales), etc. Decide how much money you have access to, & the zip codes, city or state you want to focus on. That will determine the next step. Outline where you want to be in five years. Put it all in writing. Start working your plan. There are plenty of people around to help you each step of the way. Drop me a line if I can help.
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
real estate is anything but no work yes limited to no physical work but to be able to live off of your investments takes time and frankly more seed capital.
but the biggest bang for your buck with 100k
is going to be using it as a downpayment and do fix and flip... but you need to be very cautious.
depending on your market this could be one or two flips that would make 20 to 30k each and you could do two a year.
not sure if 40 to 60k a year income would do it for you.. some it will some it wont.. rentals NO way no how not in todays markets..at least to start.
you could do the BRRR pay cash and refi.. but yoiu need a job and great income to refi.. ? so it all depends.
- Member since 2016 · 13k+ posts · 12k+ votes8y
Investing in Real estate is starting a business. You may not have to work for someone else after 10-15 years but you will definatly be working. No way you can go from job to investing with 100K and you will need some from of employment to qualify for financing. You will need to change jobs before you will be able to stop working for someone else and no 100K is not enough. Real estate is a get rich slow process, takes a lot of money and time to achieve financial freedom.
If you do not have the time or skill to flip begin by using your money as minimum down payment on the largest number of doors you can finance. Multi units are by far the best investment to grow quickly and generate the maximum cash flow.
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes8y
I would start using that money to do HML. It will grow fast if you keep reinvesting. Then as your cash grows buy rentals for sustained income.
- Cleveland, OH · Member since 2018 · 133 posts · 59 votes8y
@Kyle Granes Real estate is definitely a great path to passive income but should be taken just as seriously. I'd definitely caution you about using all of your money. In fact use as little of it as possible.
How is your credit? Do you have a solid number in mind in terms of generating cash flow that will give you desired lifestyle? Not exactly sure what line of work you're in now but as a caveat if you have no other source of income, do not leave your main stream.
Then you will most definitely eat up your savings. Also have you considered partnering with someone who is already experienced and has skin in the game? That would save a lot of guess work.
Fix and Flips are a good way to take your $100k and turn it into more. Have you studied different property types, investment strategies and what areas of real estate you'd feel comfortable investing? B, C, D class?
Lastly are you looking at real estate as your only source of alternative income. While I know this is a real estate forum, there are lots of other business owners on here that are into more than just real estate as a business and there are other types of businesses that do not require physical labor. Many you can run from the comfort of your home or office and they do not require large capital investment. However I think you are the right path by seeking knowledge and I hope you find a niche in this business and become very successful.
Just make sure you have a solid and proven strategy, use as much leverage as possible and calculate the risk before you invest.
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Alex Price:
@Kyle Granes Real estate is definitely a great path to passive income but should be taken just as seriously. I'd definitely caution you about using all of your money. In fact use as little of it as possible.
How is your credit? Do you have a solid number in mind in terms of generating cash flow that will give you desired lifestyle? Not exactly sure what line of work you're in now but as a caveat if you have no other source of income, do not leave your main stream.
Then you will most definitely eat up your savings. Also have you considered partnering with someone who is already experienced and has skin in the game? That would save a lot of guess work.
Fix and Flips are a good way to take your $100k and turn it into more. Have you studied different property types, investment strategies and what areas of real estate you'd feel comfortable investing? B, C, D class?
Lastly are you looking at real estate as your only source of alternative income. While I know this is a real estate forum, there are lots of other business owners on here that are into more than just real estate as a business and there are other types of businesses that do not require physical labor. Many you can run from the comfort of your home or office and they do not require large capital investment. However I think you are the right path by seeking knowledge and I hope you find a niche in this business and become very successful.
Just make sure you have a solid and proven strategy, use as much leverage as possible and calculate the risk before you invest.
I have a buddy who has 3 subway shops those do well.. not sure what is worse dealing with minimum wage in in the food service industry or working with low end contractors pick your poison
- Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes8yYou’re gonna need a lot more money than 100k to make that work. If you’re lucky probably minimum 750k, probably more like 1-1.5M
- Investor · Hattiesburg, MS · Member since 2014 · 280 posts · 98 votes8y
So many options, find your passion and focus on maximizing return, but there will always be some sort of work required! 100k could pull $10k - $100k through rentals, tax properties, flipping, and on. It will be fairly apparent as to which way to proceed based on location...happy hunting.
- North Bay, Ontario · Member since 2016 · 5 posts · 2 votes8y
Here' how I would do it with $100K using a BRRRR Strategy
buy a 4 Plex for we will say 250K / 20% down = $50K DP
Put $20K into renovations, it helps if you can do some or most of the work yourself (Sweat Equity)Rent out three of the units and house hack by staying in the 4th unit so essentially you would have $0 living expenses if done properly.
Get the property appraised after making the renos, we will say it gets reappraised at 325K.
Refinance for 75% of the new appraised value (325K*0.75)= $243,750K
Pay back the original mortgage of $200K
You end up spending $50K DP + $20K Renos = $70k to get the property and you'd get back $243,750K - $200K (original mortgage) tax free back plus $81,250 in equity in the home that is tax free as well since you'd be getting refinanced at 75% of the total mortgage you'd receive the remaining 25% equity in the newly appraised value of the home ($325K *0.25) = $81,250 in Equity plus $43,750 in cash.
Then you just have to repeat the process 3 or 4 more times on 4plexs with positive cashflow.
On the last property that you refinance take the refinanced money and throw 5500 per year in a TFSA and use that to invest in some preferred shares of a company that declares dividends quarterly and earn an 8% return tax free if you invest from your TFSA. Just diversify your portfolio a bit.
Then youd be able to live off the cashflow from your 3 other 4plexs, since you have no living expenses, yes you wouldnt be rich or anyhting but you could live a comfortable frugal life without having to work.
This way you'd have money thats fairly liquid as well in your TFSA, in case you had to do any repairs or to account for miscellaneous problems that could occur, and in the very worst case you could do a HELOC to pay for any major major disaters that could occur with all the equity youve created in your home by using the BRRRR investment strategy.
These numbers are just examples, however its not unheard of to BRRRR a property and actually come out with more cash than it cost for the DP and Renos, which would help acquire even more property.
And if you can get 50K into your TFSA and get a return of 8% from a dividend then thats an additional $350/month roughly, all while living for free. - Member since 2018 · 25 posts · 3 votes8y
Mortgage lending...you can lend at 12 to 18%...that's OK....however if you lend to people who are not likely to repay you can pickup their property when they default for less than a down payment.
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