What can I do with $3,500?

Georgia Real Estate Q&A Discussion Forum

What can I do with $3,500?

Real Estate Agent · Powder Springs, GA · Member since 2016 · 15 posts · 19 votes

I have a real estate photography business, and I save for taxes , and I was thinking about my small amount of savings and possibly putting it to work in the investment arena. I know it's a very small amount, but I was wondering if I could somehow use it as private money, I don't think it's enough to actually use for my own deal. I am planning to go into real estate investing next year, right now I am self-educating. Can anyone recommend a proactive move I can make with $3,500?

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Dustin Rose

Investor · El Dorado Hills, CA · Member since 2014 · 447 posts · 62 votes

Hi Kate. I saw your post about your $3,500 and thought we could connect. One thing you could do is offer your $3,500 to help fund a down payment on a property and receive a Deed of trust recorded against the property. You could ask for $500 in 120 days. Do that 2-3 times over the course of a year and you could earn $1,000 to $1,500 on your $3,500 over the course of a year. I've done that with investors who have small amounts they are looking to invest and they always seem to love the return.

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Matt K.
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
9y
What's your savings account look like... if it's not healthy put it in that. The 3,500 could very well from saving you having to put something on a credit card (at a high interest rate).

Assuming you have a good savings acct, invest in yourself. Debt with high interest rates, pay it off/down, can you invest that in your company and get something worthwhile?
Boring answers and not as cool sounds... but better returns than likely most anything else you can find (unless you want to take it to the casino...).
10 Reply
Kalimah Jenkins
Investor · Marietta, GA · Member since 2014 · 226 posts · 97 votes
9y
@Kate Kratochvil I’d have to agree. One way to get more money over the long run is to pay down high interest debt. Do you have a high interest cc you can pay off? You talk about private money. The best would be paying yourself 10-15% by paying off high interest debt.
3 Reply
Andrew B.
Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
9y
the only active way I can imagine besides what is mentioned is to invest in advertising for your real estate photography. if you get enough business, you can use this to network to prepare you for more real estate investing down the line
2 Reply
Joe Barnett
Rental Property Investor · Warren, MI · Member since 2014 · 70 posts · 25 votes
9y
I agree with paying the high interest credit cards off if you have any of those. That's what I'm doing now paying off the credit cards then saving for the next property. Hopefully it won't take to long for that. Best of luck!
0 Reply
JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
9y
If that is the extent of your cash reserves, no. Using all of your available cash to invest in real estate is a good way to end up broke. If that's the amount of money you have lying around besides a cash emergency fund, and no high-interest debt, and if you don't own a home already, you might use that and a couple more pieces to fund an FHA house-hack, maybe a duplex that needs some work. You've got about enough for a $100k FHA loan.
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7 Reply
Kate Kratochvil
OP
Real Estate Agent · Powder Springs, GA · Member since 2016 · 15 posts · 19 votes
9y
1. I don't have any credit card debt. I was just trying to think of a way to increase my tax savings before April 15th comes along. Of course I will continue to add to it, but money just sitting in a savings account is dead money.
4 Reply
Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y
To begin, congratulations on not having credit debt. Anyone with your limited ability to save should never be using credit.
Again congratulations you are a rare breed in this day and age.
With as little as $3500, assuming you have a 6 month emergency fund as well, you should be putting it all into retirement savings.
1 Reply
Stan Sugarman
Investor · Decatur, GA · Member since 2015 · 313 posts · 207 votes
9y
Keep saving and wait until you have 30k to fund a down payment and have working capital.
4 Reply
Kate Kratochvil
OP
Real Estate Agent · Powder Springs, GA · Member since 2016 · 15 posts · 19 votes
9y
I'm just of the mindset to grow my money instead of put it into a low interest bearing savings account. Real estate is the best way to grow money, I think that's why we're all here! I appreciate all the good ideas. I just don't have any credit card debt, and I am getting ready to retire from Real Estate photography to go into investing. I definitely don't want to put any more into that.
2 Reply
Matt K.
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
9y
Originally posted by @Kate Kratochvil:
I don't have any credit card debt. I was just trying to think of a way to increase my tax savings before April 15th comes along. Of course I will continue to add to it, but money just sitting in a savings account is dead money.
Spend some of it on a REALLY good CPA then lol.
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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
9y
Originally posted by @Kate Kratochvil:
I don't have any credit card debt. I was just trying to think of a way to increase my tax savings before April 15th comes along. Of course I will continue to add to it, but money just sitting in a savings account is dead money.
Have you already funded a non-Roth IRA? That's the quickest way to make a grand on that money, assuming you've made enough to be in a taxable bracket.
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2 Reply
Matt K.
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
9y
Side question... wouldn't RE photography be a useful skill set in investing (assuming we're talking RE investing due to the context of this thread). Maybe you could use that skill set to provide some value along w/ your savings to another investor....
4 Reply
Kate Kratochvil
OP
Real Estate Agent · Powder Springs, GA · Member since 2016 · 15 posts · 19 votes
9y
The IRA is a good idea, thank you. Yes I am trying to figure out how I can use my 10 years as a real estate photographer, and 15 years as a licensed real estate agent, to my advantage as I start to plan my next career as a real estate investor.
2 Reply
John Woodrich
Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
9y
An IRA contribution would provide tax savings but it may hamper your real estate goals. Sure you can use an IRA to invest in real estate but there are more hurdles to jump through and the money is stuck in a retirement account. You can't pay yourself a wage or take any profit out without penalty and taxes being due.
You could look at investing in tax liens for the short term but otherwise the waiting game may be your best idea.
Depending on your income and tax brackets the IRA contribution could save close to 50% in current taxes but you would still lose the use of your money in the IRA.
4 Reply
Michael Johnson
Investor · San Diego, CA · Member since 2015 · 77 posts · 42 votes
9y
I'm sure you have some good contacts in real estate with your past, maybe get some people together that you trust and pool some money to buy an investment property.
6 Reply
Kristen R.
Investor/Attorney · Cheyenne, WY · Member since 2017 · 30 posts · 13 votes
9y
if you want something real estate related, do an IRA< but invest within the IRA by buying into REITs
2 Reply
Kate Kratochvil
OP
Real Estate Agent · Powder Springs, GA · Member since 2016 · 15 posts · 19 votes
9y
Great advice, everyone. Thanks so much!
0 Reply
Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
9y
It is usually common advice to beginners that you must have a regular income to save, invest and be able to qualify for financing.
If you are not a employee earning a good income real estate investing is going to be near impossible. It is not a wise decision to make real estate investing your career. It simply will not work.
Contrary to beginners dreams it takes money to make money.
2 Reply
Kate Kratochvil
OP
Real Estate Agent · Powder Springs, GA · Member since 2016 · 15 posts · 19 votes
9y
Why would you assume I do not make a good income? I have been very successful at real estate photography for 10 years. My husband has a IT job making a great income. Some of you seem to have made a lot of assumptions about me, based on the fact that I simply want to grow my tax savings, LOL.
4 Reply
Jake Recz
Manville, NJ · Member since 2015 · 141 posts · 87 votes
9y
As crazy as it may sound, personally I would invest 3500 into crypto currencies... That's if all your other debts are paid off, of course.
5 Reply
Sam Shueh
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
9y
ROTH or SEP IRA in best REIT(real estate mutual funds). They are commercial properties, shopping centers and fairly risky free return is very good. You can use it for business later. REITs is your best bet even if it is not a tax deferred retirement plan.
2 Reply
Dustin Rose
Investor · El Dorado Hills, CA · Member since 2014 · 447 posts · 62 votes
9y
Hi Kate. I saw your post about your $3,500 and thought we could connect. One thing you could do is offer your $3,500 to help fund a down payment on a property and receive a Deed of trust recorded against the property. You could ask for $500 in 120 days. Do that 2-3 times over the course of a year and you could earn $1,000 to $1,500 on your $3,500 over the course of a year. I've done that with investors who have small amounts they are looking to invest and they always seem to love the return.
14 Reply
Lloyd King
Douglasville, GA · Member since 2017 · 8 posts · 7 votes
9y
I would like for you to consider investing in a fix and flip or wholesale deal. All you have to do is pay the earnest money for a home and ask for 20% return on your investment. There are hundreds of investors who would give you that in a heartbeat
5 Reply
Lloyd King
Douglasville, GA · Member since 2017 · 8 posts · 7 votes
9y
IRA, Stock, Mutual Fund and 401K are all good slow investments. If you are looking to turn your money around faster, invest in a real estate deal
2 Reply
Devin Mann
Investor · Ascutney, VT · Member since 2015 · 291 posts · 20 votes
9y
spend it on your marketing to do some wholesale deals or try to find a partner to match your money and do a flip/ buy and hold. find a partner or two and you can make some good income with that ca$$$$h
3 Reply

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