What type of investment would you make with 10K?
What are your goals? Long term/short term?
What type of long term investment can I make with 10k
Eventually long term as in buy and hold single or multifamily, but 10k doesn't get you much in Asheville area.
@Johnathan Osborne obviously this is up to you but if I were in your position I would look into one of two things.
One: start a yellow letter campaign. If you drop 1k notices a month you should make more then that in your first 6 months. You would obviously have to be comfortable meeting with sellers, the contracts, and networking. You would wholesale a few and hold onto the best ones. This is what I have done. We are closing on our first 2 rental properties this month. We used proceeds from a wholesale transaction to fund the DP.
Two: you could look into finding a HML and finding a property to flip. 10k should be enough to cover interest payments/holding costs. You would want to make sure you have a bank that will refi you out if it doesn't sell. You always want to have exit strategies.
The thing I have learned in this industry is there are slow ways and fast ways to get started. For some people putting away pennies and saving for a dp on a SFR is perfect for them. With my goals/dreams I needed a faster solution. There is no way to "get rich quick" in Real Estate. It takes risk analysis and careful execution. Do it right and the sky is the limit. If you throw 10k at it and hope for the best you are setting yourself up for failure. Feel free to stick around and ask questions. Read through the success stories for ideas and motivation! I learn something new on here almost daily.
Great post Ryan D. I have limited funds, but also considering using my retirement accounts to invest on first trust deeds just to get me started on investing on RE
Right now all I am doing is researching and reading up on marketing, and learning how to analyze deals and estimate rehab cost...
Can you give me tips and tricks on how you created a system on direct mailing / marketing in general? Did you use a company to get you leads? Did you manually mail letters or use online marketing? Would love to hear your thoughts.
@Jonathan Orana Thanks! Of course I'm on here to help anyway I can. I used @Jerry Puckett for my leads. He pulled my first list for me using leadsource and was kind enough to teach me how to pull my own leads. His website is marketlikeawholesaler.com. We found our contracts/tweaked them from the Fileplace here on BP. Look under resources for wholesale contracts and purchase and sale agreements. We stuffed and stamped our letters the first month. After manually stuffing 1k envelopes I decided I'd rather pay Jerry's company to do it for me. We did one month and loved it so much that we decided to commit to another 6.
You actually have more options with $10k than what was posted, my favorite being the WSOP suggestion! :)
You can use the $10k as EMD to lock up contracts and assign them for fees, you can buy a note at a discount and keep it for cash flow or sell it, you can use the $10k to partner with a rehab flipper who has a good portion of funding already but is a bit short, you can use as a down payment on a buy and hold rental property, and the list goes on. What your goals and your risk tolerances are will determine which options are best for you.
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