21 years old with $2000, what should I do?

20 Replies

Hey everyone.

I have no experience aside from the countless articles I have read online. I'm receiving money that my grandpa had left me in a CD, and I would like to reinvest it. I'm using some of it to eliminate my debt, anf will have about $2000 left to invest. I've looked at mobile homes, and found a couple under my capital, but with lot rent, theres not much profit. I thought about fast flipping and reinvesting until I got my desired capital. As seasoned investors, if you could be in my shoes what would you do to make the most of what you have? My goal is to eventually own a handful of multi-family properties and have them managed by someone else so that I have a very sturdy income and by the time I have children I can have all the time in the world for them.

Thank you

Since you used most of the proceeds from CD to pay off loans, make sure you take the money you were paying on the loans and "pay it to yourself", not as additional discretionary income. In addition, start looking to see if there are special home owner programs in your area. Some programs allow you to place little or no money down when buying a home in a specific area. If I remember correctly, when I bought my first home, It cost ~$25K and I had to put down 3%, suddenly HUD (as it was foreclosure) announced they would give a rebate of $600 for any home closed within 30 days 0r $300 for closing within 45 days. Anyway, even after prepaying insurance, setting up escrow accounts, covering closing costs, I wound up coming out of the closing with a check for $200.00, a "new" house mortgage to the hilt, and payments less than I was paying in rent and 6-months taxes and insurance paid or in escrow. Never did figure how it all worked but did not complain.

So stay liquid, add to your savings, join a real estate investment club, and keep your eyes open for a bargain. They do exist in almost every market.

Welcome @Chris Miedema is your other debt low interest?

How much money were you left with from this cd?

you may already have enough to get yourself into a rental property.

maybe an FHA owner occupied duplex or quad.

@Chris Miedema I suggest you get active on BP. Read the article and interact on the site. make the commitment to the site and your education and it will repay you. Learn the take action. Best of luck!

Edward, how would I go about finding an investment club in my area?

James, what's left of my debt includes a fine of 1100, $25 a month. And two credit cards totalling ~$1000. These are just things I would like to get out of my hair financially. I Was left with (if my math is correct) around 6000 dollars.

Shawn, thank you. I definitely plan on it.

I'm particularlly interested in duplexes/quads so you have my attention. If I may ask a stupid question, what is FHA?


The FHA stands for the Federal Housing Administration. They offer lots of home ownership solutions and loans. It is a good way to aquire a property with the minimum down payment as possible. Usually nothing down, depending on credit. They have many guidelines that you must follow. Go to this link and study around.



I would also look into crowd funding. You can fund a small part of the investment needed in larger real estate projects. If you are not familiar with the process you should read up on it. Your money is invested for a short period of time and usually get a decent return of 12%APY ++ That can help you buildup the money you have to invest. Good Luck. If you stay dedicated and focused you can achieve anything.

First, I would recommend a good solid job if you don't already have one. Once you have a job, then you can use that $2000 towards the down-payment of a house for you to live in. Not necessarily an "investment property". But try to find one where you can gain some equity. Maybe an REO that needs some fix-up. Then you can tap the equity with a HELOC. I got started much later in life than you, but that's basically how I got started.

Originally posted by @Chris Miedema :
Edward, how would I go about finding an investment club in my area?

James, what's left of my debt includes a fine of 1100, $25 a month. And two credit cards totalling ~$1000. These are just things I would like to get out of my hair financially. I Was left with (if my math is correct) around 6000 dollars.

Shawn, thank you. I definitely plan on it.

Check here under Network for BP members in the Quad Cities area and send them a message. I would be very surprised if one of them can not lead you to a club.

Yes, pay off the credit cards (their interest rate is usually sky high) then do not use the cards except in dire emergency in the future. Unless the court is charging you interest above like 5%, as far as the fine, I would simply add the minimum credit card payments you are making currently to the $25 and send them that monthly. Guessing that the minimum payments on each is $20/month, so you would wind up paying $65/month towards the fine (+whatever else you can add to it) and pay it off in a year or year and half. If the court is charging you interest then yes pay it off, but at the same time go to your bank and open a savings account and have $65.00 a month (or more depending on the amount of payments you are eliminating) transferred to a savings account that you do not have a ATM card access to.

Also follow up on the suggestions here.

@Chris Miedema

Welcome to BP, the greatest and best place to get real estate education! I really feel that a great place for you to start would be to find out who in your town, or close by, is Wholesaling properties.Offer to take them out for lunch or coffee and win them over with your enthusiasm and passion for real estate! Offer your help with their business in exchange for real life lessons in Wholesaling. Once you gain their trust ,and viceversa, through hard work and dedication bring up the fact that you have some money you would love to go in on a deal with them.It is worth a try!

But, in the mean time, get yourself educated and connect and check out your local real estate investment clubs.

Best of luck to you!

@Frank Uzzi
If I'm not mistaken, SEC guidelines for investors in crowd funded securities (have a net worth $1 M or annual income of $200k) are probably going to prohibit this particular individual as well as the majority of Americans from participating.
Someone correct me if I'm wrong, but that is what my research is telling me.

The most common and most successful way to begin investing in real estate is to buy and live in a single family home until that time you can move to another property and rent out the first one. This would mean buying a property that would make a good rental for you in your circumstances--so probably something small and cheap so you can afford the vacancies or repairs that come up. Buying something off the HUD home store that is offered only to owner occupants is a good way to get a good deal on that fiest property.

A less common and less successful way to begin investing is to go to a seminar in California and buy sight unseen a new trac home in an outlying suburb of Austin, Tx, get a loan as an owner occupant, hire a property manager to rent it out but with negative cashflow because while houses are cheaper in Texas, so is rent but , property taxes are much, much higher, have a tenant flood the house when her old, vinyl supply lines to the washer bust, and not have enough savings for the insurance deductible and the mortgage while the house is vacant, end up in foreclosure. true story. (not me).


I am almost in the exact same position as you are. I am 21, still in college, and have a hair over $1000 to my name. I am fortunate in that I have a job lined up that begins mid-2015. Like you, I am extremely eager to get started in investing and have spent a lot of time reading the forums.

My views may be a bit more conservative than what some of the others suggest, but I believe you will find them helpful.

1) Get your personal finances in order - not having to worry about fines and other debts will be beneficial as you take on your real estate dreams

2) Network, network, network - remember that you don't know what you don't know. Meet with people whether it is here on BP or with your local real estate clubs. They will cast new light on the industry and expose you to new ideas and methods. To answer one of your questions the National Real Estate Investors Association has quite a few local chapters that could be a good place to start.

3) Continue to improve your knowledge. Do not stop learning. I have learned from reading quite a few posts that a lot of these successful members are humble, and perpetual students.

Best of luck!


Thank you all very much. All of this has helped a lot. Im learning a lot and hope to learn much more. I'm going to look into the networking come tomorrow.

@Chris Miedema

I'm a young person (25) getting into investing as well so I can relate. This site is a great place to start. I have some experience, as I'm a licensed real estate agent, but am still learning a lot. If you're interested in multi-family units then I would agree with James. Get an owner occupied loan on a duplex or multiplex, live in one unit and rent the others out. The rents will help pay for the loan and potentially give you cash flow.

There are a lot of steps to take before getting to the final step like:

Researching loans/mortgages and different programs for assistance, what it will take to qualify for a loan, getting the capital for a down payment, finding the right property, etc.

This is the route that I was planning to take, but I may do an owner occupied single family instead for different reasons.

Something else is to speak with wholesalers, possibly find a mentor, learn vital skills to complete wholesale deals and use that as a way to build up your cash flow.

I've come accross wholesaling quite a bit on the net and BP, what is it?

Maybe also look into Homepath and Homesteps

for low down payment owner occupied property

Maybe this thread will answer your question

truth about wholesaling

@Chris Miedema

Hi Chris,

Well done.

Its great to see someone your age looking into real estate.

I can tell you that you are already ahead of the game.

I suggest saving a bit more and to keep asking questions of other investors who already are where you want to be. This is the best way to learn.

Read the odd book here and there and attend numerous personal development seminar but leave your credit card at home hahaha

Also, this forum is a great source also.

Make a passion an obsession and you will never work a day in your life.

Thanks for reading :)

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