Today’s first caller has $10k in reserves. What’s the best way to get started investing with that amount of capital? On today’s show, I’m answering this question, and more!
This Q&A edition of Investing in Real Estate features three great listener questions on getting started investing with $10k, how to stay focused when your goal is to build wealth, and how to nurture your portfolio by weeding out underperforming assets. Click play to hear my answers to your investing questions!
On this episode you’ll learn:
- How to start investing with $10k or less.
- How to stay focused on your wealth building goals.
- What to do with underperforming rental properties.
How to Start Investing with $10k or Less
While $10k is not enough for a down payment on a rental property, it’s a great starting point. If I had $10k to invest, I would consider two different routes. The first would be investing in real estate notes through Connect Invest. This avenue allows for high returns and you can invest with as little as $500 with time commitments as short as six months. If your goal is to eventually buy a rental property, I think this option is a smart way to build up your existing funds. Another idea would be to invest in precious metals like gold and silver. Either way, I personally would not want $10k tied up in US dollars.
How to Stay Focused on Your Wealth Building Goals
Getting focused on your goal is a critical component of reaching any goal. And when it comes to investing, I can personally relate to getting caught up in shiny object syndrome. My advice would be to seek clarity. Sit down and map out your goals, and how you plan to achieve them. For me, investing in residential buy and hold properties has been the most successful, so I try not to stray from this proven system! Choose one path, and follow that course of action repeatedly.
What to Do with Underperforming Rental Properties
If you’re doing your due diligence in regularly nurturing your portfolio, you’re likely to experience a scenario in which you have an underperforming rental property… but this is not a bad situation to be in! In fact, it’s a great opportunity to increase your returns and upgrade your cash flow. The best thing to do in this scenario is to utilize a 1031 exchange, because it allows you to trade in your property without taking a tax hit. For more, see this recent video on 1031 exchanges.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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