What would you do with only 20k? All ideas welcome

Question

Let say you have you have no job, go to school part-time and just acquired 20k. How would you capitalize on this opportunity?

Randall Alan · Answer

@Christian Dove

There are some assumed premises here… that you want to get into real estate (being this is bigger pockets) being probably the biggest.

We really don’t know enough about your situation to answer this thoroughly.  I find my self asking, “How old are you?” “why no job?”, and “Why school just part time if no job?”; and   “Are you having to support yourself?”  And “where are you living” and “who is paying for that?”  All of these things and more factor into any answer, as well as , “what is your objective for yourself and for the money?”

$20,000 is probably not enough money to buy a typical investment  property, but it is probably enough to buy your own home if you got an FHA or other loan only requiring 3.5% down…but to qualify you probably need a job.

You need to get YOU in order before you go out and try to utilize that money for real estate.  Finish school, get a job, start saving towards your first real estate purchase if that is where your heart is.  The job will qualify you for a loan, and the money you have acquired will go a long ways towards purchasing an investment property or a property for you to live in , or perhaps a duplex for you to live in where you could rent out the other side.

I would say put the money for the short term in a high yield savings account.  One could argue to put it in the stock market, but there are a lot of mixed signals coming from the market, the president, and the economy as a whole right now.  Just a lot of upheaval given tariffs, and the whiplash going on with the executive branch changing policy on a near daily basis.  The market hates uncertainty, and that’s all it’s really being fed right now.

Most financial gurus also suggest establishing an emergency fund in case something in your life goes sideways… car breaks down, or unexpected medical expense, or what-have-you.  So by putting that money in savings you effectively create an emergency fund for yourself which is one more step towards putting your personal life in order.  Real estate is a long term ‘game’… it will be there ready for you when you are ready to get in.  Until then, work on your situation… learn about real estate, attend local real estate meet ups to help determine the best path for you.

Hope some of it helps!

Randy

Christian Dove · Answer

Hey Randy, much appreciated.