I would like to start investing in RE. My situation is as follows:
Positives
A well-paying day job
Zero debt
Excellent credit (~800)
~$35k in cash and liquid instruments
$200+k HELOC
Negatives
No REI experience
Limited amount of free time
Home ownership (that disqualifies me from 203k loans)
I live in a high-price area (MetroWest Boston) where my cash and credit do not go very far.
Which REI strategy would you focus on if you were in my shoes?
Hi,
You have a lot of positives going for you. Don’t let a couple of negatives hold you back. Besides they aren’t really a problem.
The time issue can make it difficult but not impossible. Set yourself up some auto mated systems and that will take care of that issue.
I would recommend wholesaling a few deals that don’t require cash or credit to get done and that will build your cash reserves.
Then I would recommend starting out with small multifamily properties 1-4 units. Get a good management company to run them so you don’t have to deal with tenants and toilets. There are a lot of great courses out there but you can probably read a couple of books to start with.
Set up a few websites for capturing leads on sellers and buyers and then post your wholesale deals there as well. You can do that virtually for free at ten free websites dot com.
Investors are always looking for private money lenders… That means you give an investor money to do deals with and your money is secured by real estate. Find the investors in your area and see if any of them are looking for private money lenders (someone will be) you not only do not have to do a thing but you get a lucrative return on your investment. Typically 10-20% in 6 months or so.
You may want to consider investing in Tax Lien Certificates. They pay a fairly high rate of return (16% to 50% depending on the County) and are very secure.
They’d be a good strategy for someone short on time because in most cases nowadays you can do all the research you need to do from your home computer.