you should invest your time in learning how to invest first........if you have to ask stranges for advice how to invest 160k your putting yourself in the danger zone.......learn before you invest.........km
I have never heard of 'TC's (although I know what Tenant in Common is).
Can anyone point me in a direction to learn more about that as an investing strategy?
Another possible avenue for you to make superior returns is to work with good, experienced CA REIs who find bargain properties, then buy, rehab and resell.
Before investing with any of them, ask for references, have a look at their credit and financial statements and really dig into who they are and their integrity....then you'll be equipped to work together to make some money.
TIC are the term used for a fractional ownership deal. Mostly created for folks with 1031 needs who want a share of a large deal rather then find a specific property.
Not very liquid and unclear what the resale market will be in a few years. The legal structure is less then completely obvious (direct comment from a law firm advising on the products for both developers and investors).
If you want to buy notes or lend money then you need to understand how to evaluate RE investment properties. Underwriting would be one term for it. No idea if you have investment experience.
You can make good returns. You should invest a bit of the capital in your education.
PM me for suggestions. There are some materials on this side and on other sites.
If you can make 10-11% on a purchase, why not borrow 5 times as much money at 6% or so (any conventional loan, and then earn your 10-11%. I.e. any managed rental (at that price it can be something sizeable that justifies hired management)
Example:
10% on 160k = 16k/yr
OR
160k=20% downpayment on $800k
$800k can buy a "good deal" property worth $900-1M
$640k/6.5%/30yr debt service is $48,545.
Net Operating Income (NOI) of a $1M property financed this way is approx. $60-120k (depending on management, residential vs. commercial, vacancy rate, etc.) = 75% RETURN ON INVESTED CASH!
Makes financial sense... but you're probably scared. Solution: DON'T SO THIS YOURSELF. Delegate. Pay someone to find the deal for you, pay a good RE attorney to make the deal bulletproof, pay a GOOD IREM-licensed management company to manage it. Pay a good CPA to pull another chunk of profit from your tax deductions and loopholes. Pay a good realtor when you finally decide to pull your money out. Then the headaches reduce to two: putting the money in the bank, and spending it.
Best of luck, and DO STUDY YOUR INVESTMENTS before you take anyone's advice.
You may want to look into TIC's (tenant in common).
There are plenty of ways to make more than that on your money but they all are going to require your time and energy.
It looks to me as you are looking for a passive investment.
you should invest your time in learning how to invest first........if you have to ask stranges for advice how to invest 160k your putting yourself in the danger zone.......learn before you invest.........km
I have never heard of 'TC's (although I know what Tenant in Common is).
Can anyone point me in a direction to learn more about that as an investing strategy?
someone posted a similar question a month or 2 ago. search the forums.
Another possible avenue for you to make superior returns is to work with good, experienced CA REIs who find bargain properties, then buy, rehab and resell.
Before investing with any of them, ask for references, have a look at their credit and financial statements and really dig into who they are and their integrity....then you'll be equipped to work together to make some money.
TIC are the term used for a fractional ownership deal. Mostly created for folks with 1031 needs who want a share of a large deal rather then find a specific property.
Not very liquid and unclear what the resale market will be in a few years. The legal structure is less then completely obvious (direct comment from a law firm advising on the products for both developers and investors).
If you want to buy notes or lend money then you need to understand how to evaluate RE investment properties. Underwriting would be one term for it. No idea if you have investment experience.
You can make good returns. You should invest a bit of the capital in your education.
PM me for suggestions. There are some materials on this side and on other sites.
John
[addsig]
If you can make 10-11% on a purchase, why not borrow 5 times as much money at 6% or so (any conventional loan, and then earn your 10-11%. I.e. any managed rental (at that price it can be something sizeable that justifies hired management)
Example:
10% on 160k = 16k/yr
OR
160k=20% downpayment on $800k
$800k can buy a "good deal" property worth $900-1M
$640k/6.5%/30yr debt service is $48,545.
Net Operating Income (NOI) of a $1M property financed this way is approx. $60-120k (depending on management, residential vs. commercial, vacancy rate, etc.) = 75% RETURN ON INVESTED CASH!
Makes financial sense... but you're probably scared. Solution: DON'T SO THIS YOURSELF. Delegate. Pay someone to find the deal for you, pay a good RE attorney to make the deal bulletproof, pay a GOOD IREM-licensed management company to manage it. Pay a good CPA to pull another chunk of profit from your tax deductions and loopholes. Pay a good realtor when you finally decide to pull your money out. Then the headaches reduce to two: putting the money in the bank, and spending it.
Best of luck, and DO STUDY YOUR INVESTMENTS before you take anyone's advice.
-Greg