What should i do with 10k-15k?

[mdogg3]

Hello I am 19 years old and I am a management science major at UCSD. I am currently doing an internhip and saving money. By the end of the summer I should have anywhere from 10-15k. My question is what should I do with it? I dont want to put it in an account and just slowly make interest on it. Because even with a 10% rate ill only make about 1500 a year. What should I do with it? I was thinking about buying cars from auctions and reselling. Is this a good idea? Any other suggestions? Feel free to answer here or through PM. Any help is appreciated thanks!

-Matt

[3ntrepreneur]

Real Estate

[mdogg3]

What can i do in real-estate with such little money?
-Matt

[pacificfame]

Put it into stocks, let it grow over the years. Just make wise decisions though.

[Will]

Buying cars at auctions is not too profitable unless you have a car sales lisence, which allows you to get into auctions where cars are sold in bigger lots and at much cheaper prices, hence where a lot of used car salesmen make their money.

[mdogg3]

really?^ thanx for the heads up, any other ideas of what i should do with it. Thanx for the stocks idea^ but again that is something that really takes too long to turn into anything. Especially if i invest in the blue chip stocks. I honestly want something thats gonna keep me busy so I can learn things about the business world, and make me profit in the process. I'd like to turn my 10-15k into enough to invest into real-estate...

[kazisdaman]

There is no leverage in stocks.

With $10,000 in real estate you can contorl $100,000.00 in real estate.

Would you rather gain 10% ROI on ur small 10k, or 10% ROI on 100k?

Want to get rich fast, or get rich slow?

Want to have LEVERAGE, or don't have LEVERAGE.

Invest, LEVERAGE. Buy abunch of books with some of it.

[Steveramil]

There is no leverage in stocks.

With $10,000 in real estate you can contorl $100,000.00 in real estate.

Would you rather gain 10% ROI on ur small 10k, or 10% ROI on 100k?

Want to get rich fast, or get rich slow?

Want to have LEVERAGE, or don't have LEVERAGE.

Invest, LEVERAGE. Buy abunch of books with some of it.

Well said, took the words right out of my mouth!

[pacificfame]

Whats he going to purchase with 15k in the San Diego real estate market?

He wants quick gains, it's possible in stocks, but you have to invest on a riskier level. Throw some in a CD or maybe Tax Lien Certificate (little more riskier as well though).

[kazisdaman]

I see whatcha mean, how could he afford real estate where he is.

But you don't have to buy real estate where you live.

[mdogg3]

How do I get into the market in other places? is there a book or anything that you guys would recommend that would help get me started? i really dont know much about real-estate to begin with. Thanx for the help!

[Young Spark]

I agree with Kazi, you can purchase real estate with no money down (its honestly horrible how these cheap programs are manipulating a good industry into making it seem like a get rich quick scheme. Example: Winning in the Cash Flow Business (Cash Flow Industry) ... Carleton Sheets: No Money Down (No Money Down Real Estate.)

Maybe they work, but not without some kind of reprecussion... ANNNYYYWWWAAAYYYY

Yes, I'd recommend investing in rehab projects with no money down. Of course, I don't know much about the real estate market to be quite honest to say you can possibly do it in the area your in, but its a slight possibility. Or why not go to somewhere like Prosper.com and diversify your money by lending it out via Prosper and get a return on your money. For example, a person has a good idea for a lawn car business with $1,000 startup capital needed. You lend them $1,000 with a 8.5% annual interest rate for 3 years being paid monthly. Here's the numbers:

Lended: $1,000
Annual Interest Rate: 8.5%
Term: 36 Months
Payback Plus Interest: $1,071

Okay... so maybe that was a bad example, but use your imagination and you'll get it. Good luck

By the way, kazidaman... nice suit and backdrop, remenaces a new york stock broker ha ha

[harrymcwealth]

kazisdaman there IS leverage in stocks. It's called options and margins...

Anyway back on topic...be careful where you put your money. Don't take advice from people who are just speculating and not basing it on real life or their personal experience. There are associated risks with all types of businesses and/or ventures.

The best thing you can do is avoid becoming over-zealous and rushing into things. First educate yourself and gain experience, then decide what to do with your extra money. For the time being, if you have any extra cash/disposable income, put it into the bank.

Oh and my brother used to do car flipping. He made a bit of money 'till the supply dried up. He couldn't find collectible cars anymore. So, uh, that's a temporary way to make money. But not a longterm solution. If you do buy the car CHECK FOR RUST. Make sure your sales agreement allows you to renege on your purchase if it's a lemon. Get it in writing.

[Young Spark]

Hey, I never said that stock's didn't hold big gaining potentials I believe in stocks having a possibility of greater returns too Harry (although it comes with high risk... sort of like involvement with HYIP's )

So yeah, moving on, what exaclt ydid your brother do flipping cars (I am taking it the same as flipping a house?) This sounds good and you can also invest in repossessed cars and police auctions which could supplement his income a bit. I know you can purchase these kinds of automobiles for as little at $200 ... free and clear, but many people think murderer cars, drug dealer cars... well, not all of them are, it could be because the person violated a traffic sign or something small as that. Its still good to purchase these cars and then fix them up and you can resell them for money.

Just my opinion, IDK, but like I said, keep us informed of everything and let us know how you spend your $10k-$15k (not down to the nail explain or tell, just did you get a return, how did you apply yourself to make a return and what did you do? etc)

[Austin_Wilson]

If you want to get into Real Estate in California, I would recommend going into a larger REIT program. Basically it's an Investment Trust that takes alot of different peoples money and pools it together to invest into multiple properties and then pays back the profit based on your % of the investment.

Examples of a REIT would be www.Macerich.com though I'd target something a bit smalller - just a thought - Good luck!