What to do with $ - Posted by Eric

Real Estate Investing
#1

Posted by dealmaker on July 25, 2007 at 15:10:09:

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.

dealmaker

#2

What to do with $ - Posted by Eric

Posted by Eric on July 25, 2007 at 13:58:00:

Hey guys,

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?

Thanks.

#3

Re: What to do with $ - Posted by Wiliam Aldinger

Posted by Wiliam Aldinger on July 27, 2007 at 24:30:41:

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.

#4

Re: What to do with $ - Posted by Levi

Posted by Levi on July 26, 2007 at 06:13:56:

I’ll give you a 1st mortgage on a nice property at 7% for a few years.

#5

Re: What to do with $ - Posted by Mike (Seattle Wa)

Posted by Mike (Seattle Wa) on July 26, 2007 at 01:46:20:

Vegas, all on black? :wink:

#6

Re: What to do with $ - Posted by Sailor

Posted by Sailor on July 25, 2007 at 20:52:16:

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!

Tye

#7

Re: What to do with $ - Posted by Rich-CA

Posted by Rich-CA on July 25, 2007 at 20:48:44:

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.