I have come into an inheritence of $100,000 what is the best way to put that money to work in real estate?

Looking to do business in the south, preferably Texas. I have been doing extensive research into mobile home parks, any guidance would be greatly appreciated.
In General Area - Asked by Kyle L. - Jun 24, 2010
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Answer(s)

stuart h.
Corporate Investor
Houston, TX

I've been investing for years and am happy to help. When times were good, my investors made30%-300% per year. Times are very good for investing now again-- most say the best in our lifetime. People may not respond because $100,000 doesn't meet minimum requirements, but I have some ideas for you. Call 804-525-0948
Stuart D. Holtzmam
Prosperity Investments, Ins.

Jun 24, 2010
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James P.
Owner/Investor
Bellevue, OH

Kyle, There is a website called the Mobile Home Park Store. These guys are great, they buy and sell, because they are investors. They will also do your due diligence for you to determine if the park you are looking at will be profitable. Of course, their fee is $5000, but they actually go to the park for you and/or with you. Be carefull of other people who just want your money...their all over the place. For some odd reason mobile home parks are hard to finance, so I heard. If I can help, my e-mail is jpuckett13@woh.rr.com(I'm in Ohio) Jim

Jun 24, 2010
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Doris R.
Broker/Agent
Pasadena, TX

Hi This is Doris: If I were you I would take this money buy a small house under $100.000 and rent it to the city where you live. They pay on time and usually the tenents keep up their houses if not they could lose them.

Jun 24, 2010
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Ray A.
Owner/Investor
Blacksburg, VA

Kyle,
I've had years of experience with MHP's. It is an excellent property type for small investors. Key piece of advice: do NOT plan to rent the homes. That's the worst mistake you can make. Rental homes degrade the quality of the rent roll, double maintenance costs and collection problems. Some of the best opportunities are found in parks which have high numbers of rental homes and worn the owner out. You can buy it at a high cap rate, convert it back to a land-lease operation, and in about a 3 year hold period have it ready to sell at a higher valuation. Shameless plug: I wrote a book about how to find, value, finance and operate MHP's. See the web reference or send me a message ray at parkrealty dot com.

Jun 25, 2010
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D.L W.
Owner/Investor
Bloomington, MN

Hey if I were you i would put the 100k on a CD for a 10 unit building or more.
It the bset time to invest in commerical right now.
952-913-9392
DL

Jun 25, 2010
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Dr. Farooq U.
Owner/Investor
RIYADH, AR

INVEST WITH http://www.fundsreturned.com/ I HAVE INVESTED AND THE RETURNS ARE COMING TILL NOW

Jun 26, 2010
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Billie H.
Owner/Investor
Spring, TX

I wish I was in Texas now! Last summer I bid on a repo house for 65k for cash. Put in a central a/c unit and hot water heater that were missing, (banks won't fund a house without those), the house appraised for 130k. 'nough said? Buyer beware! Location, location, location. Have it inspected first so you know what it needs and how much it will cost. Recently found a mid-century contemporary that I would love to renovate....asking price on the foreclosure...only 109k in a great golf neighborhood...best wishes on your success.

Jun 26, 2010
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Joe H.
Broker/Agent
Columbia, SC

Its best to find a real estate investment firm... Meet with them, they are licensed, bonded, and have years of experience... Plus, you could partner with other investors...

Jun 27, 2010
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Anthony D.
Owner/Investor
Downingtown, PA

I have been a RE investor for about 6 years. I have had more then a few mentors.
I believe what they would tell you is, do not invest yoour own money. At least not immediately. Invest in some good real estate investor education. $5,000 now will serve you well in the future. Put the inherited money in a Truly self directed ROTH IRA if you can and learn to invest RIGHT before you invest. If you care to discuss this further you can reach me at mjtony@gmail.com
Tony Difonzo
MJTONY ENTERPRISES, LLC

Jun 27, 2010
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kitten h.
Owner/Investor
Huntsville, AL

I agree with Anthony D. and ditanium. Put it into a CD or self-directed IRA and take a few classes and seminars. DO NOT listen to what other tell you. They mostly alll have their hand out (even some of the "classes" and "seminars" only have their hand out, and only want to get your 2-5K for promises and guarantees you may never get). Wait and be a little patient until you KNOW for yourself how you chose to invest it. Once you invest it somewhere, make sure you somehow how the money coming back, and not just buy a house and rent it out. If you had more money this may be ideal, but with such a small start you want to be able to consistantly bring in thousands a month and not a couple hundred. A down-payment on a commercial property is probably your best choice. But, please take your time to decide. As you know location is important, but more so BEWARE, BEWARE, BEWARE. Now, read that last sentence again.

Jun 27, 2010
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Brad M.
Broker/Agent
Atlanta, GA

Some good advice here. Thanks for the input guys. I'll join the group about gaining knowledge first...I'll also throw in that seems like all the real estate is on sale right now if you are a buyer.
Regarding Mobile Home Parks, I'll share a strategy that I saw work pretty well. Used to assist a group that would look for MHP properties that were <50% occupied, but with good infrastructure. We would buy newer 3/2 units to sell (you could also work with local MHP retailers to get them to place units they were trying to sell in the park free of charge. If they sell, they get a sale and you have a rent paying tenant). Anyway, we would sell the units on a 7 year term. Reasoning was most everyone can imagine paying off the home in that amount of time...longer terms result in higher defaults. On average, we would fill a park and double the value of the park within 12 months. The hard part was the financing of the homes, so the plan needed someone with capital to invest. I worked with the group acquiring and selling the parks and in administration capacities and saw some 12-14 parks done successfully over a 2 year period.
Kyle, this probably wouldn't apply to you unless you could leverage the purchase of the homes and/or access larger volumes of cash, but it was a fun strategy to watch.
With $100,000...what about buying and renovating homes?

Jun 28, 2010
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KEVIN H.
Owner/Investor
Pasadena, TX

A good managed apartment complex works well for out of town owners. If you are interested contact me KLH PROPERTIES@SBCGLOBAL.NET KEVIN HARRIS 713 504 5996 let me know what you are looking for: purchase to hold or invest in short term hold and sell for a nicer return then leaving the money in savings. No promise as of now we do not know if we can do business together, call and find out

Jun 29, 2010
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Gene G.
Broker/Agent
Houston, TX

I think any income producing property with solid tenants would work. Try to stay away from single tenant assets unless they are AAA credit tenants, locked into long term lease, and have guarantees on future funds. May also want to get several friends or family members together to get a larger property given the current credit restraints; it will also diversify your risk from the capital side. Good luck

Jun 30, 2010
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bulcheapland B.
Owner/Investor
varna, VA

Bulgaria, Varna, Black sea coast properties For Sale By Owner (FSBO)
Worldwide financial crisis also bring property prices in Bulgaria down to a more acceptable level, closer to real values and with the cheapest real estate in Europe; this means Bulgaria is still an even better investment. Bulgaria,Varna,Black sea coasts property remains an attractive destination for low price and highly real estate investment.
Real Estate & Legal Services
• Buying - selling property in Bulgaria for you;
• Searching for the most appropriate offers for you;
• Real Estate market researches and property valuation;
• Company registration, allowing foreigners to buy a property on the territory of Bulgaria;
• Legal impediments checks;
• Preparing the full set of documents required the realization of the deal;
• Co-operation to obtain permanent residence visas;
All property is freehold, you are buying the house with private land directly from the owners and there is no agent’s commission involved

Jul 7, 2010
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