I’m new to real estate investing but very intrigued about the opportunities it has to offer. I have $100,000 cash on hand and I am looking for a good starting place. I know I need to start small and build my way up but not exactly sure where to begin. I currently work in Germany but eventually I want to move back to the states and do this full time. I know very little about the process but I am determined to make a career out of it. Any suggestions or ideas would be greatly appreciated.
Im going to buy CHEAP and rent. You can enjoy cash flow and sell later down the road if you get tired of being a landlord.
Or you can buy and sell, but I am kind of scared doing this because there are so many homes on the market right now, you will have a hard time finding a buyer unless you know what your doing. This also has a higher risk.
By no means am I a expert,(im only 16) I havent invested in any properties at all. But I hope this helps.
Number 1, treat it as a business. Put together a business plan & strategy. Plans and strategies can change as you get going, but you need to decide if you want to buy & hold as a landlord or rehab, etc. Lots of choices, lots of ways you can go. Pick what you like to do and focus on it.
You have a decent amount of money to invest and if you make a bad choice it can drain you of all your money fast.
Questions you need to answer…
How is your credit now? Over 700 FICO
When you come back to state will you have steady income/job?
What are prices like in the area you want to invest?
Do rentals actually cashflow (not all markets will rentals cashflow unless you put down 40-50% and still buy at deep discount)
Do you want to be a landlord?
Can you do home repairs? Rehabs?
What is your business skill set?? can you negiotate with people
What education do you have in REI?? any books read, classes attended??
I suggest searching out a local mentor and partnering in with some deals with little cash and ask for experience and knowledge.
Do not put all your money in 1 deal either. But do not go overboard and buy 1 home a month in the beginning. You need to learn the business. You just can not open up a car dealership today and in 2 months say money is great and open a 2nd. You need to learn and master your business…
Pick 1 or 2 investing fields and learn them before moving on to other interest.
Maybe you like wholesaling, preforclosures, rehabs or buy and hold…
Buy at deep discounts,… check your market…you may need to buy at 50cents on the dollar to cashflow a home. Multifamily is better than a SFH (IMO) since you have more than one tenant paying if vacancies happen.
learn how to price out a home for rehab cost, carrying cost, debt serviciing, expenses to hold, etc.
And good luck…
andrew