If you had 10k to start investing how would you invest it

4 Replies

Originally posted by @Sham Soomer :

If you had to start investing with 10k how would you build your real estate business?

I'd look into an FHA loan on a house hack. Minimum down payment of 3.5%. If it happens to be a single family home you'd just rent out the other rooms.

Originally posted by @Sham Soomer :

If you had to start investing with 10k how would you build your real estate business?

 Assuming that I know what I know now I would spend it on Marketing. 

@Joe S. Marketing is a good one. Why buy one deal with $10k when you could buy a flow of deals. There are always ways to finance deals that still result in building your capital. Repeat the process until you are the cash buyer, and you are able to provide the financing

@Sham Soomer

Call FSBO listings and ask if they are free and clear and if they would consider carrying a note.

Buy on the note and use $2,500 down payment/good faith. Hirer a painter for $5k to brighten up the house quickly, then list for rent and keep the final $2,500 as your beginning reserve. Don’t take any money out of the rent until you have at least. $5k reserve.

With this method, buy something in near rent ready condition with roof and and mechanicals under 15 years old so you should be able to get at least 5 years before updating.

You will want to make sure your note payments are at least $250 below area rents, $400-500 is better. Depending on taxes, you may need even a larger spread.

There are other factors in selecting a house but you can get into something with little out of pocket this way, not need to worry about banks, and you know the people you are talking to want to sell, unlike with DMM.

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