I like being diversified, I’ve always been in mutual funds as well as RE. I’m not sure what part of TX you’re in but I don’t see prices “rising” except as part of statistical aberrations; high % of new construction in a particular market, etc.
That said since I live in TX I invest here too. I like buying for CASH and selling on “low down, no qualifying” terms, Typically I can buy "at FMV and sell the same day for 20% GP and earn a good interest rate on the seller financed loan.
Other than that I don’t see any reason to buy into a flat and/or declining market.
I just sold a investment property and got about $100K in cash and wanted to invest it on something. Real Estate, Mutual Funds, Stocks, Etc.
I was even thinking buying a house for 40-80K cash in another states, and just get a postive cashflow. Hopefully by 3-5 years, I will set the house and make a decent return plus of course the cash flow.
I currently have 4 investment properties in TX where prices are still climbing.
Right now, it’s sitting in the bank earning 4.75%
What would you guys do as far as investing with $100K?
Have you thought about becoming a capital investor? Many hard money lenders will give you 10-12% on your money. 1% per month return on your capital investment. $100k nets $12,000 return yearly.
Right now I like MH notes w/full recourse, L/Hs & low-end REOs. I agree w/Dealmaker that diversity is important, so I wouldn’t spend it all in one place. Your tax situation could be an important consideration. You want to protect your profit & secure your future. A lot also depends on whether you want to leverage your investment. Sometimes choice makes things more difficult!
I agree with dealmaker. Diversify. I had too many friends with all their money in dot com stocks lose much of their retirement. I have others get stuck buying property they can’t sell when the brakes came on.
For myself, I have some in stocks (mainly tech stocks, since I spent 20 years in that industry and actually know what I’m looking at in many cases), venture capital funds, bonds, and RE. RE has been a solid performer, but has not out performed the venture capital fund I’m in. If any one of those segments crashed, I’m not out everything.