Best Way to Invest $2,500

Realtor/Investor · Ft Lauderdale/ Miami Florida · Member since 2015 · 311 posts · 104 votes

I got this question recently and I am not sure I have the best answer.

"I want to invest in real estate, I have $2500 available to me and would like to know the best option if I wanted to invest that money. Should I save it and keep saving, invest in mailers, partner with someone who needs a small amount of cash...? "

What do you guys think?

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Yuvraj Singh

Santa Rosa, CA · Member since 2016 · 6 posts · 18 votes

Keep saving.

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Yuvraj Singh
Santa Rosa, CA · Member since 2016 · 6 posts · 18 votes
9y
Keep saving.
4 Reply
Yasmine Bisumber
OP
Realtor/Investor · Ft Lauderdale/ Miami Florida · Member since 2015 · 311 posts · 104 votes
9y
I thought so too, we are in South Florida and $2500 can't even pay a decent rent in some areas. But I thought I'd reach out to BP and see what others have to say. There are so many ways to skin the cat when it comes to REI and maybe there is something I hadn't thought about.
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Teddy Smith
Real Estate Broker · Wilmington, NC · Member since 2016 · 236 posts · 126 votes
9y
Buy a subscription to Mojo, Cole Realty Resource, Vulcan 7, and start calling people. You'll burn up $2,500 in mailers before you see a real return.
1 Reply
Yasmine Bisumber
OP
Realtor/Investor · Ft Lauderdale/ Miami Florida · Member since 2015 · 311 posts · 104 votes
9y
Ah thats a great idea @Teddy Smith , I've heard a few stories about lists and auto dialers. Seems like you'd have to put in tremendous hours in order to see any results. I haven't used any myself. What are your experiences with them?
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Teddy Smith
Real Estate Broker · Wilmington, NC · Member since 2016 · 236 posts · 126 votes
9y
Originally posted by @Yasmine Bisumber:

Ah thats a great idea @Teddy Smith , I've heard a few stories about lists and auto dialers. Seems like you'd have to put in tremendous hours in order to see any results. I haven't used any myself. What are your experiences with them?
I'm a broker, so my way of prospecting is different as opposed to a wholesaler. But most of my business comes from absentee owner propspecting. I spend prob 3-4 hours a day on the phones. I use Prospect Now specifically. About to get Cole Realty Resource.
If you are talking about real-estate investing in the "traditional" sense, I'd keep saving. Or maybe consider putting it in a REIT or index fund.
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y
Keep saving.
2 Reply
Andrew Wong
Investor · Milpitas, CA · Member since 2015 · 278 posts · 155 votes
9y
Give it to me!
1 Reply
Yasmine Bisumber
OP
Realtor/Investor · Ft Lauderdale/ Miami Florida · Member since 2015 · 311 posts · 104 votes
9y
Originally posted by @Andrew Wong:

Give it to me!
I am not sure she'd want to give anything to anyone :)
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Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
9y
Save it = yes
Invest in mailers = and then what..they are broke
Partner with someone who needs $2,500 = c'mon man
I am not being negative, just candid. I'd recommend suggesting that they read books, listen to podcasts, analyze deals and network with investors to ask how they can help them...maybe as a bird dog. I'm a fan of doing rather than studying but that does not seem applicable here. They need to go to work.
Hope that helps.
2 Reply
Yasmine Bisumber
OP
Realtor/Investor · Ft Lauderdale/ Miami Florida · Member since 2015 · 311 posts · 104 votes
9y
Hi @Mike Dymski , it does help. I had the same thoughts. Especially in South Florida there isn't much you can do with anything less than 45K-50K depending on the type of investments you want to get involved in. I've already offered access to all my my books and material I have collected over the years to her and introduced her to BP. I'm a real estate professional and still a long ways away from my own investing goals so it takes time, effort, and WORK. You're right.
1 Reply
Roman M.
Investor · Miami Beach, FL · Member since 2016 · 486 posts · 216 votes
9y
1. You can buy a REIT (real estate investment trust) that pays high dividends. They invest for you across different properties and it trades on stock market. It's highly liquid and you can sell right away if you need money but it may also be volatile depending on market conditions. There are a lot of reits to choose from and they pay an average 6% to 8% dividends which you can reinvest.
2. You can try doing lease option. Rent a house/condo with option to buy at fixed price. If you see market prices have gone up and exceeded your option price, you can flip the house. I would make a lease option longer then 1 year to make sure you see a return. So in this case $2,500 will be your lease option fee which is non refundable.
2 Reply
Yasmine Bisumber
OP
Realtor/Investor · Ft Lauderdale/ Miami Florida · Member since 2015 · 311 posts · 104 votes
9y
@Roman M. I don't have much experience with lease options at all past conversations with other investors. Not something I thought about, thanks! Great to hear from someone local to our market in South Florida!
0 Reply
Vince Mayer
Wholesaler · Arnold, MO · Member since 2013 · 348 posts · 183 votes
9y
@Yasmine Bisumber
Try this link. It directs you to some creative financing ideas by Brian Gibbons here on BP.
https://www.biggerpockets.com/blogs/3/53697-video-...
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Yasmine Bisumber
OP
Realtor/Investor · Ft Lauderdale/ Miami Florida · Member since 2015 · 311 posts · 104 votes
9y
Thanks @Vince Mayer !
0 Reply
Tiffanie Vendryes
Realtor · Boynton Beach, FL · Member since 2016 · 52 posts · 12 votes
9y
@Teddy Smith Do you use Prospect Now for residential as well? From what I'm reading it appears to be a software for commercial properties?
0 Reply
Teddy Smith
Real Estate Broker · Wilmington, NC · Member since 2016 · 236 posts · 126 votes
9y
Originally posted by @Tiffanie Vendryes:

@Teddy Smith Do you use Prospect Now for residential as well? From what I'm reading it appears to be a software for commercial properties?
Yeah, it works very well for residential as well. When I 'm searching for properties I usually look for high equity and PropsectNow lets you do that. My firm has Landvoice and Mojo as well, but I just like the lay-out and numbers of Prospect Now.
1 Reply
Peter MckernanBusiness Member
Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
9y
@Yasmine Bisumber
Keep saving like everyone else said, unless you have other monies saved for example an emergency fund? If you have an emergency fund then this money could be use for something.
It would very well depend on what you wanted to spend the money on (your business, marketing, or something else to put your business in a better position). If you go into a property with this, you will be making a move that will be over extending yourself and I would try to stay away from that because if that is the only money you have, that move with the money will stress you out and maybe even put a bad taste in your mouth to never invest again!
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Ray Lai
Investor / Vendor · San Diego, CA · Member since 2016 · 1k+ posts · 949 votes
9y
1) Pay off all credit card debt with high interest if you have it
2) Establish an emergency fund. 3-6 months depending on your risk tolerance
3) Decide what real estate strategy you are going to pursue based on how much time/energy you are willing to invest, and how you can add value (i.e. finding deals or finding money)
4) Decide on the market you want to invest in and attend local REIAs
5) Have a mentor in the market you want and add value to them
At the same time you should be listening to all the podcasts and taking notes. Once you have 1-5 figured out, the amount of money does mater but isn't as important as the above 5. I have access to huge amounts of capital but still lack all the experience to tap it safely for my future partners. Don't delay the knowledge just because you don't have the capital.
Protip of the day: Look at the software available for what you want to do. If you want to do wholesaling, there is wholesaling software. If you want to do buy and hold (BRRRR) or flips, you'll need something like the software in my signature (free beta at this time) to be efficient.
Keep arming yourself. $2500 is a good start but know your goal and focus on it. It's ok to fail as long as you keep trying. Better to fail fast then to strategize endlessly.
Good Luck Yasmine! And any other newbie reading this :)
2 Reply
Alexander FelicePro Member
Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
9y
10% roi on 2500 is 250 a year. I mean, it's just not enough. Best way you could go is do an FHA primary in an area like mine that houses sell cheap.
Did this a few years ago: 55k selling price, 3.5% down (~$2000), lived in it for a year then appraised it at 115k, cashed out and turned into a great rental.
Aside from an FHA primary you're going to have a tough time I think, and your market might not support that.
Save money like it's scorched earth!
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Yasmine Bisumber
OP
Realtor/Investor · Ft Lauderdale/ Miami Florida · Member since 2015 · 311 posts · 104 votes
9y
@Alexander Felice That's a great idea, I think saving more money would be best here in South Florida. Something that sells for 55K would not qualify for any type of financing. It would probably need tons of work and need to be a cash only deal. Unless it's one of those rare deals on a condo.
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Yasmine Bisumber
OP
Realtor/Investor · Ft Lauderdale/ Miami Florida · Member since 2015 · 311 posts · 104 votes
9y
@Ray Lai Sounds like you might have listened to the Dave Ramsey baby steps! I follow him very closely and practice his methods. I have been in business for a little while now but I gave similar advise to her. I think a mentor is great as well. That's honestly how I got my real start, I just latched onto someone already int he business and kind of felt my way around from there. Thanks so much for your input!
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