Even if you don't have a deep bank account, you may have an old 401(k) or IRA from a previous employer that can be used by moving the money to a self-directed IRA. It's possible to use life insurance equity in some cases too. You might have more ability to invest than you think, let's connect and chat about the possibilities.
That being said, here are the strategies I'm focused on if you're interested in partnering:
1) Single Family Fix & Flips - I'm finding off market houses that are in bad shape and the sellers would rather just sell them for a discount than go through the hassle of repairs and listing on the MLS. I typically get a bank loan for 80% of the purchase and then use investor (in the form of a loan) money to cover down payment, closing costs, and repairs. The average flip requires about $100,000 of investor cash. I typically borrow the money at straight 8% per deal and aim to return the money within 4-6 months. If we can pull off 2-3 of those per year then the annual return gets pretty good. With any investment, there is risk, but we take calculated ones and I will make zero dollars before my partners ever lose any money.
2) Apartments (aka
Multi-Family) - We buy properties
of 5+ units and, in many cases,
form what's called a syndication, or pool of investors.
Properties will need to meet specific criteria and be in metro areas of growing
populations and economies (anywhere in the country). Unfortunately, legislation
in California is not landlord friendly so there would need to be a lot of right
variables for a deal to make sense here. Our strategy for apartments is
long-term. In most cases, we at least five years as the goal is strong cash
flow. Additionally, it's easy to force appreciation of apartments because
they're valued based on the income they produce. So buying a run down,
underperforming complex and then fixing it up and improving the amenities and
systems causes it to generate more income and thus significantly improve its
value. After 5-10 years, we have completely renovated the complex, ridden the
market cycle up, and received good cash flow and then investor returns are
often 15%+.
