What to do with 10k

[Jason D.]

Hello everyone, Been on the site long enough to know there are so many insanely smart people on here, so being in the mindset of utilizing the right people for the right job I wanted to leverage this knowledge. I have managed to save 10k in a year and plan on entering the real estate after finishing Grad school in August 2017. My question now is what do I do with the 10k I saved? I could do cd @1% interest, reits @ 8-10%, p2p lending, mutual funds, etc. I would truly appreciate some insight on what to do here and how to let the money grow in a easily liquid manner so that I can access the funds when I am ready to invest.

[Ben Leybovich]

I like @James Wise's thinking, but I disagree and raise him one :)

The issue I take with the plan of using the money as a down-payment with FHA supplying the leverage is two-fold. First, if you use everything you've got to get into the property, what are you going to do when a furnace needs replaced...?! You see, $10k is really not enough to cover both, the necessary float and the DP. You NEED the float.

Second issue, which actually alleviates the problem, is that God invented creative finance for a reason, and this reason is - if you have limited cash floats, keep them...and figure out how to get the property with nothing down.

Interestingly, the side effect of thinking along these lines is that the process necessitates that you get better deals, and that you are much better educated - both are good :)

Good Luck, Jason!