All Forum Posts by: Pedro Huichapa

Quote from @Pedro Huichapa:

Hello, 

I recently left the corporate world after 20 years and decided to take a sabbatical. Ideally, I would like to not return to that world and instead, take my savings (2M) and invest it in RE as my primary source of income to maintain my lifestyle and build wealth. What recommendations do you have on how to maximize that money to get best returns? One big property or multiple ones?? other ideas??? thanks 

 The key is : diversification.
Don't risk your money to one asset class, create as much as non-correlated investment, so if one asset class drop, the other asset class could do better and offset the class.

If you want to stick with REI, split the money into industrial , multi-asset funds, small multifamily, residential and also BRRR project that you can handle yourself.You could also invest into debt of mixing debt/equity strategy.

Quote from @Pedro Huichapa:

Quote from @Mark Munson:

@Pedro Huichapa

      I would start with the mindset that you need to leverage your capital and not buy properties all cash. I would stay under 60% loan to value for the best rates. Commercial lenders will want to see you have experience operating a MF property, so if you don't, I would recommend sourcing a good property management company. If you don't currently own any investment properties, I'd be cautious jumping right into the deep end and buying a large MF property. You are in a very competitive market in PHX too, so make sure you are buying right or look out of state to make your money stretch further. Feel free to reach out if you want more feedback and guidance. 

Great advice. Would you buy a tired MF property, fix it up, sell/hold it, or buy a turn key and hold?

I would let the deal dictate the approach. Ideally, you would hold it, but some deals may be better suited towards flipping. You have a lot of capital to start with, so I'd diversify into various asset types and approaches. I just got back from a real estate event in Scottsdale, where I assume you are from. If you need any local connections to larger operators in your area, let me know. 

@Pedro Huichapa

      I would start with the mindset that you need to leverage your capital and not buy properties all cash. I would stay under 60% loan to value for the best rates. Commercial lenders will want to see you have experience operating a MF property, so if you don't, I would recommend sourcing a good property management company. If you don't currently own any investment properties, I'd be cautious jumping right into the deep end and buying a large MF property. You are in a very competitive market in PHX too, so make sure you are buying right or look out of state to make your money stretch further. Feel free to reach out if you want more feedback and guidance.