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

[Sham Soomer]

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

[David Lee Hall, III]

@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.