Invest in real estate. What, where and why would you be looking to purchase.

With things such as they are in market investing. Moving monies into real estate might make some sense. Especially if it was a property you could use yourself.

What would you be looking to buy real estate wise?

This message has been edited. Last edited by: old rugged cross,

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Here, Cottonwood Az, and now. Real estate is lower than it’s been in a while. The area I live in is a hot commodity for people moving here. There is some pristine land I could buy for $100 k.

$100K might get you 1/2 acre around here these days.

Northern Michigan getaway cottage. At one time I thought seriously of offering it up as an Airb&b but have decided against that.

Central TX market is falling…houses are for sale for over a month now in my neighborhood (good school zone) it’s the interest rates

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What would you be looking to buy real estate wise?

Right now? Nothing.

Maybe find a REIT you like?

I'd wait a year. Last cyclical downturn lasted 4 years. This one is only 8 months old.
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If it's something I can use it's going to be in/near skiing. No interest in renting it out as an investment.
If as an investment, something close enough for me to monitor renters but far enough away that I don't have to interact with them regularly.
For both, I think we are over a year from a bottom in real estate.

Buying property for an investment is risky. Once you factor in taxes, improvements, and other costs, it’s hard to make money. If you have a use for it, that’s different. In Vermont, people used to buy wood lots, log them off and get a good portion of the sale price back. Not so much any more.

I would also wait for the market to feel more like it’s at a “bottom” point. Unless you find some off market deal that’s too good to pass up.

Lake shore property. Can't go wrong as a investment. But 100g's probably ain't gonna get you there.

Too early, not enough money to buy anything other than a small undeveloped area.

Look into an REIT (Real Estate Investment Trust). Inland is an example. They manage & invest in commercial properties. It is not a liquid investment, this is something you’d do as a long term investment. There’s no ready market for the “shares”. The one I have, I bought in to get a quick bonus after the first few years & then a monthly return. The first one I had, cashed out after 5 years with a reasonable profit, which I invested into the current one which I suspect will cash out in the net couple of years.

In areas of the country worth buying, $100k won't get you an investment property. And even if it could, investment properties have expenses associated with them too (upkeep/taxes/etc.), so it's not just the initial $100k investment.

However, $100k could get you a number of shares in a REIT, as Skins and jbcummings suggested.

But consider this: Are you a homeowner? If so, you already have quite a bit of exposure to the real estate market, in the form of your home value. Thus, your current overall portfolio already has several hundred thousand dollars tied up in real estate. So do you really want to sock away even more of your money in the same investment area, or would you rather diversify into a different type of investment? Diversifying away from real estate could help to hedge against another housing market crash, whereas if you pile even more of your portfolio into real estate exposure it could get ugly during a real estate market downturn.

First, I would need to understand your objectives and goals.

Further, any additional constraints or risks. I’m not a financial advisor or even predictively smart when it comes to managing money…

However, I do know about requirements. 1MM%
First things first.

What is your investment objective? Income? Capital appreciation?

Or do you just want property for recreation?

Personally, I'd take a wait and see approach for now.

Maybe it's just me, but I'd pay off my house, if I had a home loan. This is all I'd do right now in respect to your real estate question.

I would also pay off all other debt, credit cards and such first, then any auto loans, etc.

Stop paying interest would give you a much better return on your money, so to speak.

Then, start socking away $$$.

For me personally, I'd be looking for a piece of property a ways out away from the city or any big towns, sort of a "place to get away" from things, peaceful and quiet, and safe.
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The "classic" way to invest in RE for long-term gain is to buy rental properties with the objective of having the rents cover the carrying costs. Obviously, this works better in times of low mortgage interest rates. I am not so confident that this would be the right time to get started in this direction.

As far as a REIT goes, JAllen would have pointed you to Realty Income (O). They recently spun off many of their commercial properties into a separate REIT (Orion Office REIT - ONL), ostensibly to reduce risk exposure in the over-built commercial office market.

quote:

What is your investment objective? Income? Capital appreciation?

^^^^^^^^^^^^^^^^^
Makes no sense otherwise. I mean if you just want to say you are a landowner, go for it. Remember unlike stocks liquidity may be an issue.

quote:

Originally posted by architect:
The "classic" way to invest in RE for long-term gain is to buy rental properties with the objective of having the rents cover the carrying costs. Obviously, this works better in times of low mortgage interest rates. I am not so confident that this would be the right time to get started in this direction.

As far as a REIT goes, JAllen would have pointed you to Realty Income (O). They recently spun off many of their commercial properties into a separate REIT (Orion Office REIT - ONL), ostensibly to reduce risk exposure in the over-built commercial office market.

FWIW IMO the rental mkt is screwed by emergency COVID policies that allow rent forgiveness, placing the risks/burdens on the landlord.

Good friend of mine inherited a lot of $$$, did his due diligence and in 2018 bought a five unit apartment in the bay area. I think most of his tenants kept up their rent payments, but the value of his property sunk because no one wanted a rental property in California where the laws undermined the ability to collect rent.