15,000 to invest...but where?

[touchscreen]

Originally Posted by nocci01

It's relative and all depends on the investor. There will still be people who are making the big money in real estate even during these times. If you know what you're doing, you can still make money in real estate in the current state of the economy.

If you want to make money when the real estate market is good...talk to touchscreen. If you want to make money when the real estate market is bad...find someone who is making money during the so-called bad times...and they'll show you that it's actually a great time!

In my experience, both throughout life and during several years as a real estate entrepreneur, during times considered a "buyers market" such as we are now, the rule is "cash is king".

If you have cash you can buy cheap. One reason you need a lot of cash is that you will still have to feed your investment during the bad times. When things turn around and values pick back up, perhaps 5 years later (or more), you will have made an excellent return.

Since $15k is not really a lot of cash, I wouldn't recommend trying to get into real estate in this market. That money will be gone in no time, and more will be needed for things like payments, taxes, insurance, maintenance, etc. Yes, tenants can make up some of that, but then you are dependent upon your tenants (or buyers if you are owner financing them). What happens when they don't pay? You will have to have sufficient funds available, not only to feed your alligator, but also for your own living expenses.

Sitting on a ton of money and are looking for a long term investment? Real estate may be what you are looking for. But even then, buy far below today's current market prices, because it looks like prices are going to continue falling for a while yet.

Just my two cents, but I think common sense would agree.

[nocci01]

I completely understand your point touchscreen. I'm not arguing...just giving my opinions as well. You're right that cash can be king. I've helped many real estate investors purchase properties over the last decade and have also found out that some people don't have enough cash to snatch up properties during this market. I work with all types of real estate investors and am not saying that $15,000 should be invested in real estate. I'm just saying that if someone desires to invest in real estate, it's possible to make money in the current market and they don't have to have a whole lot of cash either.

When I got into the business, I didn't have any money at all. So...I started learning from other investors who were making money and gained so much knowledge that I was able to sell my ideas to people who had money but didn't know how to invest in real estate. To make a long story short, I made a ton of money every month putting deals together and I didn't even have to own any property or take out any loans.

Here's a true story about 2 real estate investors and how they've done it and 1 entrepreneur. 3 totally different people with different points of view on real estate but all 3 are earning multiple six figure incomes annually.

Investor 1: retired attorney over 65 years old.

REO (real estate owned): 42 SFRs (single family residences) free and clear - no mortgage
Line 34 of 1040 US Tax Return: ~$192,000.00 (consistently over three years)
Line 60: $50,000.00
Started Investing: during the real estate slump in the 80s
Capital at Start: $500,000.00
Mortgages: 0 - all properties free and clear (no interest write offs)
Average Income: ~$16,000/month
View on Real Estate: Cash is king, always pay off mortgages, best investment on earth no matter what time it is...over the long haul...you will win

Investor 2: Just a regular country boy from the suburbs, mid 40's

REO (real estate owned): 100+ SFRs (single family residences) and other multi-unit properties
Line 34 of 1040 US Tax Return: ~-$694,000.00 (consistently over three years - and yes that's a negative sign)
Line 60: $0.00 (pays no income taxes, but when I asked him how much he made, his honest answer was ~$440,000.00/year which is on Form 1065 but due to IRS Tax Codes, he uses a real estate strategy that will defer his income taxes from real estate holdings indefinitely)
Started Investing: during the real estate slump in the 80s
Capital at Start: $0.00 (learned from gurus such as Ron LeGrand, etc.)
Mortgages: 100+ - all properties have a lien (whether in his name, his multiple partnerships, trusts from subject-to acquisitions, etc...they all have mortgages)
Average Income: ~$30,000+/month
View on Real Estate: OPM - use other people's money, until today, he still puts real estate deals together with very little of his own money and joint ventures with his students - loans are in their name, etc...smart investor in my opinion and I've learned a lot from this individual...he is very passionate about investing in real estate no matter how the market is...this is buying season right now

Person 3: 32 years old, hates real estate investments

REO (real estate owned): 1 SFRs (single family residences) free and clear - no mortgage - personal residence
Line 34 of 1040 US Tax Return: ~$1,200,000.00 (consistently over two years)
Line 60: ~$250,000.00
Started Investing: N/A
Capital at Start: $0.00
Mortgages: 0 - all properties free and clear (no interest write offs)
Average Income: ~$100,000+/month
View on Real Estate: why own a property to generate a few hundred bucks and have a mortgage balance when in America, there are thousands of ways to generate that kind of cash flow without having to take out a $100,000+ mortgage

These are 3 gentlemen that I know personally and they are not friends of friends. I know where each one lives and I still talk to 2 of them on a regular basis. Who's right and who's wrong? I believe they all have a valid point. The point is this...everyone has their views on how to make big money in this country. Many have tried and failed...however, the good news is that no matter how many people say you can't...there is still a way if you learn this one valuable lesson that was taught to me right out of high school from a Doctor and motivational speaker:

"Never let anyone rain on your parade!"

He also continues by stating that you should be on a constant pursuit of knowledge and apply what you learn as long as it gives you positive results and that you're building a dynasty in a field that you can get passionate about. Another mentor says that "income follows personal growth." I don't even know if the person who posted about investing $15,000.00 is still reading this...but my post is for the forum...and not just for one person.

Forgot one...another one of the most valuable tips that I've learned from a successful entrepreneur is: Profits are better than wages!!! Wages make you a living...which is fine...but profits make you a fortune...which is super fine. His name is Jim Rohn and you can learn more about him at Jim Rohn International Online Store (his free weekly e-zines are awesome!)

Good luck entrepreneurs!

[touchscreen]

Originally Posted by nocci01

I completely understand your point touchscreen. I'm not arguing...just giving my opinions as well. You're right that cash can be king. I've helped many real estate investors purchase properties over the last decade and have also found out that some people don't have enough cash to snatch up properties during this market. I work with all types of real estate investors and am not saying that $15,000 should be invested in real estate. I'm just saying that if someone desires to invest in real estate, it's possible to make money in the current market and they don't have to have a whole lot of cash either.

Not trying to argue with you either... there's always at least 2 sides to everything. Yes, it is possible to make money in real estate today. Is it as easy as it was 2 or 3 years ago? In my humble opinion.. not by a long shot. Is there more risk today than 2 or 3 years ago. Absolutely, a lot more (again, IMHO). Will it be harder to find the deals? Yes. Will it be harder to find the money? Yes. Will it be harder to find the buyers? Yes. Will it be harder to find financing for your buyers? Yes. Will potential partners be more cautious and scrutinizing of your deals? Yes.

I really long for the good ol' days! Can you tell?

"Never let anyone rain on your parade!"

I agree with that wholeheartedly... but at the same time, don't buy a parade to begin with if you can't afford to pay for it!

BTW, Ron Legrand was one of my early mentors too. I interviewed him on my Real Estate radio show I had in Orlando in the mid-nineties. Later he offered me a job in his marketing department in Jacksonville. I am one of the few people who said "no" to Ron Legrand!

[ZurvitaDiva]

Well I don't know about the full $15,000 but I invested in a brand new start up network marketing company called Zurvita and I LOVE IT! I get to work from home, and I made my money back plus a few hundred in the first week.

It's only $350 to start I know that doesn't cover the whole $15,000 lol but it's something to look into. Let me know if you'd like more information and good luck with everything! I hope you find what's right for you

[touchscreen]

For an overview of the near term future of real estate, check this out (before you invest!): AEI - Short Publications - It's Only Going to Get Worse

ugggh!!

[xalimx]

just my suggestion..

invest in Forex.
better return in each trade.
big margin big profits you'll get. no need worry about margin call etc.
sometimes if you are good trader, you'll gain 10k in each trade ( if you really understand about market).

[Mitoman]

Originally Posted by JKB Clothing

you said you wanted to invest in a clothing line. I just created JKB Clothing. We are a new looking golf apparel co/ young adult clothing. We are just getting started but know we will be successful because of the contacts we have etc. I could give you 20%. Everything would be in contract.

Which clothing line?

[matt_15]

Find a service or product that lots of people want. Then sell it to them.

[Molly_Ca]

I agree with Sonny. I would simply stay away from real estate for the next 1-2 years. Prices are more likely to fall another 20-30% for sure. It's a 10-15 yr cycle if you look at the past data.

[Molly_Ca]

Hi Xalimx,

I do day trading in stock market. I know about currency trading but I thought it was way too hard. The $$$ is rallying... Can you help me?

[element94]

Originally Posted by HRforex.com

you can invest in the forex market these are our monthly returns for our managed accounts.
Monthly profits* for managed accounts across all our accounts since inception were:


October 2006: 12.47 %
November 2006: 10.06 %
December 2006: 6.95 %
January 2007: 10.45 %
February 2007: 7.78 %
March 2007: 7.81 %
April 2007: 7.06 %
May 2007: 7.29 %
June 2007: 6.54%
July 2007: 5.77%
August 2007: 8.11%
September 2007: 8.10%
October 2007: 7.55%

Yep forex is the thing for you if you know what you're doing.

[lazarus4444]

Well the only way to know what you are doing in Forex is to learn from somebody who is good...

[drpepper22]

well, the question is: how quick of a return are you looking at? I suggest that you invest that $15k in differrent areas. I don't know if a clothing store is good or bad. It depends on what area you're in.1) in a mutual fund (leave it there until you're ready to retire), 2) partner up w/ other investors and maybe get into real estate (it's huge in Cali and Florida). 3)start a little business--car detail (uses little inventory and expenses), garage sale store (this is even better cuz most ppl just give away their stuff for free and in great condition and all u have to do is sale it! These kind of stores are huge in my town. Whatever you choose to do just don't let it sit under your mattress. Put it somewhere that it will grow for you. I hope that i was able to help.

[Encrypted]

I'm not sure if you realize this or not, but this thread was created a year ago.



Edit: Original Posters activity...
Last Activity: 02-06-2008 04:45 PM

[StudioSandmanX]

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