Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 8 years ago,
New investor with $10,000... What would you do if you were me?
BP, what's up? The title is pretty straightforward to my situation. I have $10,000. How can I turn this into $1M overnight? Thanks!
Okay, I'm only joking. If you're still reading, I'm assuming you're patient enough to help someone who's a complete noob to the real estate world, but lucky for you, I'm decently knowledgable. I've researched a good bit on REI for almost 2 years now, but I'm finally ready to make the plunge into some actual investments.
Now, before I start, I'd like to take a moment to say this isn't a "What would you do if you had $10,000 as a beginner?" question, but more of a "Tim, if I were you, I would do _________."
I'm assuming that since I'm asking for you guys to help guide me specifically, it would be nice to know a little about me.
Well, I'm 23 years old. I didn't go to college (it's more of a business than anything, don't even get me started on that topic), but I have a really good job, at least for my location. I'm currently a contractor for an aviation company and make $25/hr. I also get per diem, meaning I'm only taxed on minimum wage for the first year of working since I live over 50 miles from the job site. So for the next year, with overtime included, I'll average anywhere from $1,200 - $1,500 per week.
With that being said, I don't like my job at all. The pay is good, but... *in my most non-cliché voice* the corporate world is not for me. At all. I work around 12 - 18 hours overtime weekly. I don't have much time to myself at all. On top of my 60+ hour work weeks (if you include transit), I'm taking online courses to become a licensed real estate agent.
I have no bills to my name. Well, not the kind of bills that make people live in the rat race forever. I have rent, a prepaid phone bill, Netflix... things to that nature. Things to where if I were to lose my job tomorrow, I could get out of if absolutely necessary.
I currently have $10,000 to my name. Cash. In the bank. I need more reliable work car, but I'm not financing anything. I currently drive one of my parent's vehicles and help with the insurance. I plan to just buy a little $3,000 - $5,000 Honda, but there's no rush on that.
My ultimate goal is to own a real estate investment company. I want to do a little bit of everything. Wholesaling some deals I don't feel like rehabbing, rehabbing others, rent to own single-family, multi-family, you name it. I'd start on a project to project basis and kind of gradually get to the point I'm taking on multiple at a time.
I'd like to start out as a real estate agent, but it's obviously going to be quite the challenge with my current schedule. This is where you guys come in! I'm thinking of working for the next year like a dog. Overtime like crazy, saving up all my money, getting my real estate license on the side... And then getting super serious with REI once that per diem tax break runs out, which will be November of 2017.
So, what would you do in my situation? Any suggestions are appreciated!
And one last note... I would rather make $30,000 a year owning my own business than $65,000 at my current job.
Opinions? LAY IT ON ME!