Advice

[octavian]

Anyone have SOUND advice on what to do with $10K in cash. Downpayment on real estate is what I am leading towards. Something more short-term would be better for me.

Like to hear what you have to say.

Thanks.

[dre]

I would say it depends on whether you are working and if so how much money you are making.

I say that because if you are not working and you invest in real estate you won't make money off it short term unless its rental property, then you'll be strapped for cash.

If you are working and make like $300 per week and you can save most of it, then it you could invest in real estate for long term and still bring in consistent cash from your job.

Are you looking for rentals or something to buy and flip?

[GriZzly]

Err... 10k in cash you say...you could give it to me

When it is only 10k you might want to consider getting a stock broker nd buying some shares...not much you can do in real estate with 10k to be honest. Although if you ever have a go on the stocks, only ever use money you can cope with losing, don't sell your house or anything lol.

[iGROWyourBiz]

depends on what you call short term.

I do NOT recommend stocks - that is definitely long term, and it will take you a while to find a competent AND trustworthy broker.

Mutual funds are an option and can yield great results, again its not short term though.

If you want cash flow quickly, I recommend a web based business or getting into the wholesale end of real estate.

if 90 days is short term, you can flip properties - with 10k down your credit wont be an issue.

I am NOT TALKING RETAIL real estate. Go to http://www.nationalreia.com/

find the chapter in your area, visit the free meetings. You will find the investor community to be very helpful to people who are serious.

With 10k you maybe be able to work with more than one property. The key to whatever you decide whether its RE or a small business, learn as much as you can from those with more experience than you 10k is not a lot and can disappear VERY quickly.

Spending 5000 in the development of a website and then 5000 in marketing can generate cashflow decent cashflow in about the same amount of time.

Best to you!

[iGROWyourBiz]

just noticed you are in canada -- go here instead: http://www.creonline.com/real-estate-clubs/cn.html

they can help you find groups close to you. Every city/province has groups of investors that work together to buy/sell/trade/rehab properties.

And it doesnt take a lot of money to get involved either - 10k is plenty.

[mxer210]

With 10,000, you can do PLENTY in real estate. My friend is 18 and he put $2000 down on a duplex, and he rents it out. His monthly payments for the loan are $1800, and the tennants pay him $2000/month (total). Some serious passive income, huh? Also check out the "tennants in common" system if you are looking for another affordable way to get yourself into REI. Best of luck and let us know what you end up doing with that cash.

[iGROWyourBiz]

indeed....10k is plenty on the WHOLESALE end of real estate. REI is a whole different ballgame, and most have no clue about the industry. You can actually get in for ZERO dollars and NO CREDIT still make good money.

[octavian]

Thanks everyone!

I work in the financial industry and investing in stocks/bonds/mutual is long-term, sometimes longer than real estate. So I doubt I will be leaning towards that. I would rather build a real estate portfolio.

Now, in regards to the real estate. I know that 10K plus the income I make a year is MORE than enough with getting a property. Not a large property in Toronto, but more than enough for rental purposes. Again, this is a long-term investment.

I am in-between a rock and hard place trying to make this money grow into something. Looks like real estate is winning the votes...

[octavian]

Thanks for the links as well, iGROWyourBiz.

[iGROWyourBiz]

Your welcome any time.

Glad you already know the truth about stocks.

Also, I did see there are several groups on this forum who are looking for financing.

Maybe you could partner with some other entrepreneurs and put that money to work.

[Aletheides]

Buy a multi-unit, live in 1, rent out the others. Owner-occupation + 10k down will probably get you a nice unit, depending on where you are.

[NeeJam]

igrowyourbiz, i live in the uk do you have any links for someone like me in the uk for real estate?

[dre]

I do NOT recommend stocks - that is definitely long term, and it will take you a while to find a competent AND trustworthy broker.

Stock aren't long term you can buy and sell when you please and you don't need a broker with all the online brokerage sites.

[GriZzly]

Goin to agree with dre (obviously I am seeing as it was me that suggested stocks and got shot down ) The reason I would not recommend real estate (or property as we simply call it in the uk) is that 10k doesnt get you much in the UK, so I cannot reall comment on it's value in the U.S. That's only about 5 and a half grand in pound sterling...not really enough to get you going in the 'real estate' or 'flipping' industry. It might be a money maker in the US, but in the UK it is the kind of thing middle class couples do with their spare £30k savings to make an interesting story to tell their friends, Unless you are buying a lot of property then it doesn't really reap much rewards.

[NeeJam]

Grrizly i know what you mean but it was worth a try.

I eventually want to get into the property market and become a property developer and eventually get my company as big as Barratt or Redrow ( ppl from the uk will have heard of these) or even bigger.