What would you do with $1000 a month?

Question

So you want to get started with real estate, and have $1000 a month to use for investing. Where would you start?

Wholesaling?

Save it for a down payment?

What strategies would you use?

Jaron Walling · Answer

I'm not sure what your market is like but $12K after 12 months is a good amount. Lot's of ways to deploy that $$$. I'd use some for education on REI. Books, classes, inexpensive courses, that type of stuff.

It's important to narrow down the area of real estate you like then go after DEALS. So many people get on BP with no direction for investing and ask for advice. It doesn't work unless you have a plan.

Chace Fraser · Answer

@Joshua Cruz what a great question! However, if you don't have a target, you'll never hit it.

Ultimately, you will need to decide on your ultimate goal for investing in real estate and then determine how you want to get involved/start. Do you want to be an agent, a buy and hold investor, flipper, wholesaler, etc... You need to figure out a plan on how you plan to attack one or more of those target areas. Next it is just sitting down and following that plan to the best of your ability until you have reached your goal.

It's ok if your ultimate goal/plan changes, and it should really. As the more you experience, grow, and learn, you'll have a better understanding of how things work and what ventures may be best suited for your personality and lifestyle preferences. However, try to keep on blinders when it comes to shiny object syndrome. Pick one strategy and start with that. After you’ve done a few deals of that type of strategy you can move on.

As you're figuring out exactly what it is you want to do and accomplish, I'd invest in your education as @Jaron Walling recommended.

Will Fraser · Answer

Hey @Joshua Cruz!  Here is a list of what I would consider starting out with this cash access:

• - House Hack -- you'll have the money for the down payment pretty quickly and this is a brilliant strategy
• - Save for 8-12 months and buy a rent house (this will be around a $66k house if you can work the numbers on it)  -- either hold and operate it as a rental, or BRRRRR it 
• - Save for 8-12 months and partner with someone on a flip, where you bring the down payment, the bank brings the 85% LTV loan, and you get a share of the proceeds OR a simple interest rate.
•

What would you do with $1000 a month?

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