During episode 356 of the BiggerPockets Podcast, I asked guest Joe Asamoah, “If someone looking to start investing in real estate has saved up 10 grand, what would you as an expert do in their position?”
Joe is a Washington, D.C. investor, who owns more than 30 single family homes that are currently building him massive wealth.
What Should a New Real Estate Investor Do With $10,000?
Here’s what Joe had to say.
First of all, work on themselves in terms of learning the basics, what they want to do, what their goals are, what their strengths and weaknesses are, and make sure they get buy-in from their family, their spouse, and so on. OK? That’s that one.
I mean, you’ve got to really work on yourself first. Otherwise, that $10,000 will go real fast.
What’s your strategy? What do you feel comfortable with given where you are?
And then once you decide that, it’s learn the basics of that. So if it’s wholesaling, for example, learn the basics of wholesaling. If it’s rehabbing, learn the basics of that.
The next part is to really identify somebody in the area where you’re located who’s an expert or a mentor or a coach. Because this person can really guide them along and tell them, “OK, then this is what I would do if I was in your situation OK. I would do A, B, C, D, E.
The key is finding that person and making sure that person will help you. Create a win-win scenario and incentivize the expert or the coach to help you along.
And then once you’ve done that, then just go out and do it. Take action. Do your first deal, and leverage that $10,000 that you have to be able to get on the right path.
Otherwise, that money could go real fast.
I agree—it could go fast, and the new investor will have nothing to show for it. Really, really good advice from our friend Joe.
What would you do with $10,000 as a new investor?
Weigh in with a comment below.