Hi folks,
I have been reading many of the posts here, and have seen some really good advice. Here is my situation. I have started a real estate investment/development company with my father-in-law. We have $200k to start with. We have looked at everything from single family to apartments to duplexes to self storage to get started. There is certainly a strong interest in self storage, but are not sure if we have enough experience and money to get started on that yet. Any suggestions as to a good starting point for us?
Thanks!
You formed a company with your father in law. Do what you formed the company to do.
Since it seems you still have a general idea about different real estate investments, I would suggest you read and study a little more about the pros and cons of each one.
I have a very good report about “The 8 most profitable real estate niches,” which can help you shed some light on what is out there for investments.
Self Storage is a very good option, and I also talk about that in my report, but it does require quite a bit of knowledge and “homework” before jumping into it.
I don’t know what your level of experience is in order to properly direct you. If you are new in the business, start slow by learning the business through wholesaling or buy and hold. If you are more seasoned, commercial could definitely be a good option for you.
Hello!
I would focus on single-family homes right now, since they tend to be very low risk and easier to sell than most other forms of real estate. Also there are tons of foreclosures out there still, so bargains can be found nearly everywhere in the USA. I would buy a a couple homes at a bargain price, fix them up & then either (a) sell them for a profit or (b) rent them out … and make sure you still like the business and ALSO that you like being in the business with your father in law. If everything is still going well, you can then focus on moving into duplexes, triplexes or even larger multifamily units. Multifamily units and commerical properties are harder to sell … typically (though not always) they are bought by investors. And your pool of investor buyers is a lot smaller than your pool of owner occupied home buyers.
Self storage units can be very profitable, but are a whole other animal than residential real estate…and typically requires far more than $1,000,000 for a good sized self storage complex in a good part of a major metropolitan area. I would wait a while before you dive into that, or until you have more capital.
Let us know if you have any questions.
Good luck!
Thanks guys! All are good thoughts! Laura, I would love to read your real estate niche report! Motivate, you bring up some great points. That was the direction I was thinking (starting off with single family & working my way up). You’re also right about self storage. I have done a lot of research on that, it would take a lot of money to get something like that up and going. I’m leaning more towards using that 200k on multiple single family units (as opposed to one big one) and letting the business begin to grow that way! Thanks everyone!
Danny
Land development
Self storage
Just my opinion. Keep us posted!