I have $4,000 dollars and 3 months - what are my options?

Question

Hello all! My name is Samantha, and this is my first post. I'm currently an undergraduate at the University of Florida.

I'm getting started in real estate investment and at the moment I have $4,000 with which to invest. My deadline to act is September 1st, as I will be leaving the country for a year.

My question - a), should I seek to invest before leaving the country? And if so b), what sort of investment should I attempt? I intend to eventually purchase an SFR and rent it out, but is that feasible from where I currently stand? I was thinking perhaps I could put the money into a CD or some such investment until I return to the US next year. However, if I can take a step into REI within the next 3 months, I'd really like to do that. What I'm mainly asking is, to what direction should I aim my efforts at this moment?

Thank you all for reading and for any advice you may have. I look forward to learning from you!

Phillip Syrios · Answer

I don't think it would be wise to invest your $4,000 into real estate while you are about to leave the country. It easy to lose money when you are not watching what is going on and there is a steep learning curve as well.

I'm not sure what your best options are with $4,000 but I don't think real estate would be until you had more time to devote to it.

Robert Zavertnik · Answer

@Samantha Tite Webber I don't think real estate is the best investment while you're abroad. If I were you I would invest in some conservative stocks or ETFs. Your investment will be more liquid there than if you bought a 1 year CD in case you need to access it while you're away.

GO GATORS!!

-RZ

Ramon Jenkins · Answer

possibly into REIT investing

maybe tax deed 14 -18 return

John E. · Answer

I think it's AWESOME that you're showing drive and initiative, but 3 months is just not a lot of time to really get started. In REI, as in life, it usually takes time to get the wheels turning and the big bucks to roll in, so I feel that putting a 3 month deadline on your endeavors won't get you much money. I'd also like to echo the sentiment of others in saying that it would be better if you just invest in a REIT or CD (chosen based on your appetite for risk) until you're back...

BUT, and this is a big BUT, I feel that instead of investing money over the next 3 months, you should invest your time into learning about REI & read books that will help give you a great confidence boost and "success mentality". Think & Grow Rich is a GREAT read that I just finished last week and it's life changing. From there I think I would write out my "Why?", Goals, & milestones. Read some great books while you're overseas like the E-Myth and the 4 Hour Workweek, to give you an idea of how to structure your business around you. A great article was recently written by @Brandon Turner...

See: http://www.biggerpockets.com/renewsblog/2014/05/28...

I feel that a year coupled with some books, self analysis/reflection on what you want, smart goals, and building up your confidence level will do SO much more than investing on a time crunch & making a 2-5k wholesale fee.

Thoughts?

Samantha Tite Webber · Answer

@Phillip Syrios , @Josh Sexton , @Mark Kemp , @David P. , and @Sydney Chase

Thanks for the input! I think it would be most sensible to invest the money elsewhere and in the meantime educate myself on REI. David P, thanks for the suggestion about REITs. I will look into that. Even with laddering, CDs aren't as powerful an investment as I'd like (though still better than nothing!), so I'm looking into other avenues.

David P. · Answer

@Samantha Tite Webber it is great you want to start in real estate investing and a lot of good advice here.  An alternative to investing directly in real estate is to open a online broker account and invest in REITs (Real Estate Investment Trust); this is a great way to invest in real estate without hands on of managing them.  This way over the next year or so if the market keeps going up you will not have totally missed out; and conversely if it goes down you may lose, but safer as you can manage the risk via the internet and the broker account.

Disclaimer: This is NOT investment advice and you need to make your own decisions about the information contained within these post.

Dave

Mark Kemp · Answer

Another option is to do a deal in that much time, striving to double or triple your money. It's enough to get a deed from an owner who is in default, and get them out of the house. Then you can flip it to an investor who will give you $8-12K for the deed.

Mark

Account Closed · Answer

Hello Samantha,

First wlc to BP and Real estate investing.

I would wait till you return, Put the money some were safe (CD will work) and add to your $4000 if you can while you are gone. Time or money is not in your favor. Go enjoy your trip with no worries

Josh Sexton · Answer

Your safest bet would be to just stick it in a 1 year CD until you get back.  Starting out is usually very hands-on.

I have $4,000 dollars and 3 months - what are my options?

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