If you had 100k, how would you invest ? Would you purchase foreclosures ? rental property ?
about $60,000 for a Piper Super cub and then the rest in low risk funds to provide the maintenance and gas money. ;D
But thats just me.
Seriously, There are many ways to get started with little money out of your pocket and I would focus on something like that and keep the cash for reserves and to pay for the inevitable learning curve of REI. That way you can afford to work your way through some of the initial mistakes. The specific plan is more a matter of what you want to do.
100k isn’t that much, but I’d put it in a self-directed IRA LLC, then use it to do flips until I have enough to develop subdivisions and do private lending.
I would use it to buy fix and flip. Save as much of the profits as I could and once I had about 200-250k I would start buying and holding some properties while I continue to buy fix and flip.
Can you put $100k into an IRA all at once? Is there something im missing, I thought there were limits
I dont know about your market but here is what I did with 100k in my market. The numbers went roughly like this
Bought 1 home for 38k and another for 33k, I put about 5-8k into them for repairs, then I refied them for around 130k.
I took that 130k along with the 20k left over on my line and bought 2 more homes 1 for 30k and another for 26k I put around 16k into them and refied them for around 115k.
I took that 115k along with the 58k from the second line and the 20k from the first line (roughly 193k in lines) and bought 3 more homes. One of the homes I am into for roughly 40k and I just sold it for 62k. The other 2 are about to be done and ready for Refinance which should give me another line for 110k.
Most of the properties mentioned above have already been sold for a substantial profit. Essentially what I did is took 100k credit line and turned it into $100,000 profit and still have more homes to redo and continue the cycle.
If I can do it anybody can. I dont say any of this to impress people, I only say it to impress upon people what can be done even by an idiot like me.
Were you buying foreclosures? Did you get a loan for the first 100k? How did you find the properties?
Self-directed, you can put any amount in there. They’ve been around around for a long time. This is not your standard ROTH, SEP, etc.
Most investors I know use Equity Trust. http://www.trustetc.com/index.html
I also liked this company. http://www.guidantfinancial.com/info/truly_self_directed_ira.aspx
If you notice the responses you are getting have nothing to do with real estate because real estate is no better than any other investment except for leverage. Having $100,000 in the bank is not much different than having $10,000 in the bank. You should be looking to mortgage the properties. If you buy 1 house or 100 houses and still should have the $100,000 in the bank.
there are some opportunity to invest with no money down and many of them offer cash back @ closing. just my opinion, I like to use other peoples money. That credit score you got is one of our biggest assets… check this out…
Most investors I know you the entrust group, www.theentrustgroup.com. Equity Trust fees are to much, they charge you as soon as your open the account, and just have the account based on value, and guidant charges $4000 to open up and account and get checbook control. You can get that done for less than $500. And you can’t put $100k into an IRA all at once. You have to make contribiutions of $4000 in a traditional or a roth, $100 catup limit is over $50. Can put upto $15k into a 401k, $44k in a sep, $10k into a simple etc. All the earning are limitless though, which mean you can make as much as you want at any given time. Do your due deligence on the companies, make sure they don’t have hidden fees, and make sure they dont charge you until you do a deal.
Now that’s what I’m talkin about! C’mon Eric give us the low down!
Did you find your buyers first like most people advocate? Weren’t you afraid of those high HELOC payments? Talk man.