400k cash to invest but how?

by Readers Question

11:31 AM, 21st December 2017
About 3 years ago

400k cash to invest but how?

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400k cash to invest but how?

Hello Property 118 Investors. I have a fortuitous conundrum that I was hoping to get your experienced opinions on. I’ve come into some money, 400 grand to be exact and ready to invest it into property.

I’m 37, with a good income, no debts and lots of initiative / get up and go. I’ve purchased one property at auction thus far, refurbished it, failed to re-mortgage it and are on the cusp of selling it for a 60 grand profit, but at this point it’s unrealised.

I’ve previously posted about my issue with obtaining finance on this purchase and received so many amazing responses from people I was taken aback.

I’m based in South London (zone 2/3) and looking to purchase property in the surrounding areas.

My objective is to increase my capital as much as possible over the next 5-10 years.

So with all your knowledge and experience If you were starting out and were handed 400 grand cash to start investing in property, what would you do to for the greatest return on investment?

My thoughts were, do I?

1. Buy 4 x 350k apartments at market value through the traditional methods (via an agent) committing 100k capital to each property (25% deposit), let it out and after the period of a year or so, re-value, pull the capital out then purchase another one?

2. Go to the auctions, purchase an apartment in an excellent location for cash, the refurbish it and then flip it for a profit? Put the profit back into my fund and continue that process? Then once I get to the point where I have enough capital, purchase a whole building, obtain planning approval, then carve it up into apartments and sell them, etc?

3. Can you suggest another strategy?

With so many of you on this forum being so knowledge about property investment, I would be very grateful if you could provide any insight you have and your opinion on which strategy I should employ.

Many thanks!

Thaddeus

Comments

Jonathan Clarke

0:23 AM, 4th January 2018
About 3 years ago

Your strategy 1 is the strategy (give or take ) that I employed
You build a solid asset base and growth is compounded year on year. Turn your 1.4 mil portfolio into a 10 mil one in say 20 years so by the time you are 57 you will have a 100K passive income and if prices rise by 4 % pa your portfolio with increase by 400K pa
So your wealth increases by 500K pa - Job done

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