What to invest 25k in to

Forest Hills, NY · Member since 2016 · 2 posts · 2 votes

Hi, I'm looking for someone to help me invest around 25k if you have any suggestion or ideas please share. I'm 20 years old living in New York city.

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Rosston Smith

Investor · Warner Robins, GA · Member since 2015 · 1k+ posts · 490 votes

Don't give your money to anyone.

Don't buy anything.

Sit in your room, and research online for free. Read forums, listen to podcasts, watch videos.

Choose the vehicle you like.

Then purchase 5 books on that subject specifically. Read them.

Network with someone who is proficient using that vehicle.

Then spend your money on your first investment.

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Ruth Bayang
Investor · Kent, WA · Member since 2015 · 624 posts · 274 votes
9y
Hi @Account Closed, do you have any RE experience or knowledge? If not, I suggest you get educated before putting your money anywhere.
If I had little to no experience with $25k, I would look into crowdfunding sites like Patch of Land, Holdfolio or Groundfloor.us
6 Reply
Israel Ramirez
Wholesaler · Phoenix, AZ · Member since 2016 · 33 posts · 10 votes
9y
Figure out what you expect that 25K to do for you. Then find a real estate project that will hopefully earn you that.
1 Reply
John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
If you cannot buy anything in your market with 25K you might consider lending it. You can get pretty high returns and not have the joys of landlording. As the lender, you also retain control. You should be able to grow that 25K by 16% or more per year. Over time that ads up.
1 Reply
Ian IppolitoBusiness Member
Investor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
9y
Are you an accredited investor or non-accredited? And how liquid do you need the investment to stay?
There are over 100 different real estate crowdfunding sites available, so one or several of them might meet your needs.
The Real Estate Crowdfunding Review
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2 Reply
James Mc Ree
Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 934 votes
9y
At 20 years old with no investment background, if that is the case, I recommend you consider investing in a diversified stock mutual fund. It is relatively safe and will give you plenty of time to learn and grow while your investment grows too (hopefully!). You can sell it at anytime to invest in something else.
Investing your $25k into not well understood real estate not only poses significant risk of loss, but also makes it not a liquid investment. You won't be able to easily pull it out if you need it, for a car or wedding for example. (Sometimes that is a very good feature: enforced savings!)
If you are set on a real estate investment, consider a duplex or triplex in which you live in a unit and have a nearby tenant. This is called "house hacking". Your tenant could pay your entire living expenses while you learn the ropes.
Good luck!
Jim.
1 Reply
Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y
Invest it in your education.
2 Reply
Rosston Smith
Investor · Warner Robins, GA · Member since 2015 · 1k+ posts · 490 votes
9y
Don't give your money to anyone.

Don't buy anything.

Sit in your room, and research online for free. Read forums, listen to podcasts, watch videos.

Choose the vehicle you like.

Then purchase 5 books on that subject specifically. Read them.

Network with someone who is proficient using that vehicle.

Then spend your money on your first investment.
16 Reply
Billy Spearman
Macon, GA · Member since 2013 · 1 post · 0 votes
9y
Hi Rosston Smith
Billy Spearman, I am also in Macon, Ga.
currently have a property under contract, would like to know if you have any Private lenders in mind,
the property is in Great location. Please help, im am in a tight with my closing date coming up.
Thanks
Billy Spearman
0 Reply
Brian Jordan
Columbus, OH · Member since 2015 · 117 posts · 175 votes
9y
I know of a group in Columbus, OH that work with investors at the $25,000 price point. It's a 5 year commitment that pays 12% annually with monthly principle and interest payments of $556.11 for 60 months directly to you. 1st position lien on specific property with guaranteed independent appraisal value of $45,000 . Message me if you'd like additional info.
0 Reply
Angie Williams
Flipper/Rehabber · Bronx, NY · Member since 2016 · 168 posts · 168 votes
9y
Crowdfunding? Can someone please explain what these sites are and exactly what crowdfunding is. Thats why I love BP, as an investor I just learned something new!
1 Reply
Ian IppolitoBusiness Member
Investor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
9y
@Angie Williams, The idea is that a group of people pool their money together to invest in our property. In the past it might take hundreds of thousands or millions of dollars to invest in certain commercial real estate properties. With crowdfunding, you can do it with as little as $10,000, $5000 and sometimes even as low as $50. This also allows you to split your money across several investments so that you're better diversified than sinking it all into one. The downside is that you have to have confidence in whomever it is that you are investing in. So you have less control than if you do-it-yourself, which is perfect for some people, but not for others.
The Real Estate Crowdfunding Review
View Page
4 Reply
Huss Sharifi
Investor · New York City, NY · Member since 2015 · 8 posts · 2 votes
9y
hi
No matter what, 20k gets you nothing in NY City. And I really mean nothing.
You need to be outside of NYC and a good distance at that.
1 Reply
Account Closed
New Jersey, NJ · Member since 2015 · 327 posts · 137 votes
9y
$25k wire good credit can get you started investing in class D area next to NYC like NJ newark or Paterson. Don't listen to the negative comments unless they are from NYC themselves. I was stuck in NYC investing with little return but now I'm investing low with high return in NJ. If you know any family members in the construction field then your set.
1 Reply
Omar Ismael
Agent / Investor · Newark, NJ · Member since 2015 · 95 posts · 60 votes
9y
What would I invest 25 k into . I Had that same question 4 1/2 years ago at the ages of 35 , living in Brooklyn Ny . A co worker at the time told me he was investing in Newark Nj because he was buying up properties at 20 cents on the dollar . I had no idea where Newark Nj . I started doing my research and going out there, with my co workers help I was able to buy a REO 5 bedroom 1 1/2 bathroom house for 23.5k . i had to put another 10k into that property which I borrowed from my girlfriend at the time. I lived in this house for 3 months while doing the repairs . I have been renting out this house to a section 8 tenant for the pass 4 years .section 8 pays $1400 she pays $100. Last year I was able to do a cash out rifi and pull out a little under 80k to buy a 6 unit building for 270k 4 blocks away. The only regret I have is that I should have invested my 23.5k more wisely. I should have leverage that money by buying a 4 unit as a first time home buyer. I did Not know about FHA loans at the time. 4 unit houses were selling for 150k with 3.5%down I would have used up 15k to close and still have 8.5k and the security Deposit from the 3 tenants the day I got the keys . So u could get a 4 unit for 200k with 3.5%down right now which will not use up all your 25k. Rents for a 2bedroom 1 bath average 950 a month . If u need to know the area pm me I live in the area
4 Reply
Huss Sharifi
Investor · New York City, NY · Member since 2015 · 8 posts · 2 votes
9y
NYC, means the 5 Boroughs which was the area alluded to in the post, it doesn't mean Patterson and anything next to NYC. My comment was addressing what was asked. I am a licensed realtor in NY state and have 8 M portfolio in NJ.
I ended up in NJ, exactly because the money goes further there and I had a lot more than 20k to start with.
I stand by my comment. There is nothing negative about it.
0 Reply
Account Closed
OP
Forest Hills, NY · Member since 2016 · 2 posts · 2 votes
9y
It's all good guys thanks for sharing your thoughts, and I can't wait for more. Reading all of these kind of got interested in Real estate
0 Reply
Angie Williams
Flipper/Rehabber · Bronx, NY · Member since 2016 · 168 posts · 168 votes
9y
Thanks for all the feedback. Correct me if I'm wrong these are similar to "hard money loans" almost like legal loansharking? I understand the concept but I'm a little weary when it comes to the return profit and the turnover time. It's a decent idea if one feels like they have the money and does not want to go threw the hassle of investing and rehabbing on their own time. I personally love to be involved and hands on. Plus I have enough anxiety and stress with my own investments, to trust another investment that I have no control over may drive me to go insane. But I'm also a semi control freak and need to have a say in all aspects of my projects in all phases of the rehab or new development.
2 Reply
Ivan Z.
Rancho Palos Verdes, CA · Member since 2015 · 3 posts · 1 vote
9y
Glad you're starting early. Cant agree more with those post above recommending investing in education.
You might want to explore Turn Key Investing. Lots of good post on BP talking about Turn Key.
1 Reply
Lane Kawaoka
Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
9y
Ian Ippolito What are the typical irrs on those crowdfunding sites? I know you can really say but give be a magnitude. My understanding is the crowdfunding site host deals that the deal sponsor cannot source funding. Aka inexperienced lead with no track record and no investor following of their own.
2 Reply
Ryan Keeton
Investor · Ashland, KY · Member since 2016 · 67 posts · 15 votes
9y
Abdunosir Khaydarov to echo the sentiments of many others there are a lot variables your post doesn't really answer to make a sound recommendation. The beauty of real estate is there are a number of ways to make your money work for you. The key is determining your desired level of involvement and education in the particular type of investment. As well as the fluidity desired as mentioned earlier. I'd def say kudos to you though for attempting to be smart with 20k at an early age.
1 Reply
Mark RobertsonPro Member
Investor · Salisbury, NC · Member since 2014 · 313 posts · 385 votes
9y
@Lane Kawaoka Your understanding is way off. Crowdfunding sites and investors do not invest with sponsors without significant track records. Successful sponsors use CF sites to increase their reach and add new sponsors to their network. IRR's on equity deals range form 15% to 30%+. Average is about 20%
2 Reply
Charlie John
Investor · Twin Cities, MN · Member since 2015 · 130 posts · 111 votes
9y
This post didn't include who you are and what you are looking to do. Since the feedback is already all over the board, I'll throw my two cents in.
I personally would invest it into direct mail marketing. First your list has to be very targeted. Also produce a quality mail piece that shows you are the real deal.
Combine that with partnering with someone local that is already doing what you want (for example fix and flipping/wholesaling) and give them all of your leads. If you can light their business on fire, you will benefit too.
I am currently doing fix and flip, sending out my own direct mail but am limited by budget. I am sending just over a thousand a month but if I had someone that wanted to learn and had some $ -- I would use their money to ramp up my marketing while teaching them everything I know. And then give them a profit on the deals.
If someone wanted to get started and said Charlie, I've got 25k to play with- I guarantee you we would make that money back 4x over!
Be creative I guess! Good luck.
1 Reply
Ian IppolitoBusiness Member
Investor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
9y
@Lane Kawaoka, I see that @Mark Robertson already answered your question.
The Real Estate Crowdfunding Review
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0 Reply
Lane Kawaoka
Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
9y
@Mark Robertson
What is the assumed hold times. Say its 3-7 years... is the IRRs you mention per the 5 year assumption or 3 years?
1 Reply
William Kenley
Washington, DC · Member since 2015 · 9 posts · 4 votes
9y
Invest is such a broad word. What do you want to invest in? Do you want to flip homes, rentals, buy and holds etc.......? Do you have a job that allows you to save money? Do you already own property? Are you looking to move? These are just a few of the questions that would have to be answered before anyone could give you in sound advice, but If you have stable income and wouldn't mind moving I think house hacking is the best tool to leverage your money. Instead of being required to pay the conventional 20% down on a property you are only required to pay 3.5%. That means you could jump out there and get something in the 500,000-600,000 range.
2 Reply

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