where to invest 10K?

[Jonathan Beemer]

Hi BP,
im looking into the best ways to start investing and what experienced people would do right now.
if you had 10K where would you invest it today? how would you invest it? what strategies would you use?
thank you!

[Steve Milford]

I would look for the best return for my money based on my risk tolerance. That may or may not be real estate.

Within real estate or anything really, for me, the cost of entry versus the reward based on quickest availability to sell, is how I evaluate. If I am looking to own something more liquid, like a piece of furniture, I can sell that quicker - so the risk is less. Real estate is not really considered liquid, so I look at the time of selling a year realistically. And then I look at the numbers based on what I like. If I buy a chest of drawers for $30, rehab it for $20, and then sell it for $120, I netted $70. Now consider real estate. These are numbers based from an investor I recently helped. A recent rehab in my market is $150k+ wholesale. If I put down $10k, I still need probably $35k to rehab. Then if I sell for $210k - $10k (down) - $35k (rehab) - $140k (mort) - $12k (mort pay/carrying costs) - $5k (closing costs & excise tax) - $8k (realtor fees) = $0. How do you win with real estate? Lower cost of entry when you buy, you sell it quicker if you are flipping or you hold onto it longer for the BRRR strategy. You have to look and look and look until you find one that makes sense for you.