In need of good advice.

Hey everyone,

I’d like to start off by saying that I am completely new to real estate investing. Generally, whenever I am curious on a subject I like to do a lot of research. I find that using forums like these are far more educational and useful then the articles available on google and such.

Basically. I live in Brooklyn, NY, and I have inherited a little more than 180k. I’v decided that I was going to invest the money in real estate as it seems a little more stable than stock,bond,mutual fund investing (Or so it seems).

I’m asking for beginner advice, as I honestly don’t know anything.

I can’t tell you what my ultimate goal in real estate is because I don’t really have an idea of what is possible.

Can someone please help me? I want to make smart investments with my money.

You’re in a good, albeit dangerous situation. A pocketful of money and no idea what to do with it. On top of that, you’re asking a room full of strangers what to do with that money. And while most will be well intentioned with their advice, no one knows what is best for you. Too many variables to answer that question.
My general advice is to educate yourself on the various ways of real estate. Decide what your goals are with that inheritance and what type of investing you want to do. Don’t drop all or most of that cash on one or two investments. You can invest wisely and safely and still not tie up or risk that cash, if you are careful. Good luck!

my advice , go to the library/bookstore get as many books as you can on realestate investing (buy and hold ,flips, rehabs) read, read, read.

From what I understand NY is a tough market for real estate investing you may want to look outside NY places like New Jersey or Philly.

My suggestion would be to NOT let that money burn a hole in your pocket. While it is absolutely true that real estate can be an awesome investment, it is also true that you can lose it all and more if you don’t know what you are doing.

I would put the money somewhere safe and research your options before jumping into anything.

Chris

Put that cash into a nice safe insured money market fund while you study what is available to you.

You can leverage with real estate. With approximately 20% down, you could take control of a $900,000 residential property.

You need to be careful what you buy, because then you have to be able to make the payments on that big mortgage.

With 30% down, you could take control of a $600,000 commercial property.

If you are uncertain about real estate and how it works, there is nothing wrong with buying yourself a house to live in. A personal rsidence can be a very good long term investment if you pick the right house. People here can teach you how to buy that residence for well under market value, so that you get instant equity.

The different levels of real estate investing involve differing amounts of time and work, so you want to consider how much of yourself you want to invest.

I don’t know who you inherited from, but my condolences on your loss. Inheritance is a painful way to get the money to start with.

Sentinel,

180k in a %3.80 money market is giving you like $560 a month…Nothing to sneeze at but that’s taxed end of the year…

My advice is research upstate NY real estate…If you are in Brooklyn you and I are neighbors and its a very short drive upstate…And the cashflow is very good…I’m not saying to buy anything…DON’T YET…But research the markets available to you…I would avoid Buffalo because of distance and other issues…But there is money to be made 3 hours drive out of Brooklyn…And you only need to use %10 of your 180k to get your feet wet in real estate upstate…The rest of your money I would advise looking into Closed End Funds…They pay monthly dividends and have annual yields of (%9-%13) and sell at a discount to $1 value…go to www.etfconnect.com to learn more…DON’T BUY THESE EITHER YET…Do your homework on everything first…Sometimes the best and hardest thing to do is nothing at all …

I still say not to spend the money on something you dont know how to do and dont let someone help you spend it that doesnt know what they are doing either…

I would however learn how to buy without cash and credit when posible. Keep the money liquid until youre educated and for the “Special” deal that needs funds fast… Then proceed from there.

Conrats on becoming an Investor

Michael Quarles

Sentinel,

I would suggest doing enough research to determine what type of real estate you want to do: rentals, flipping, wholesaling, etc.

Then, join your local REIA (Real Estate Investors Association). Make friends with the SUCCESSFUL investors there and learn all you can.

Next, contact RookieNYC. If he’s your neighbor, you should talk to him. He knows how to find great deals in your area and has a track record of being successful in business!!!

Once you understand the basics of the business, write a short business plan to explain where you want to go with real estate investing and how you will get there.

While you’re doing all that, start looking at property in your target area. Go look at a minimum of 100 properties that are for sale. Your goal should be to become an expert in your local market. You should KNOW property values in your area.

Finally, buy your first property at a HUGE discount! These are precarious times and any deal you do should be excellent!

Good Luck,

Mike