As a life long successful investor, I get a lot of questions about the best way to invest different amounts of money. I’ve found the best way to invest 20 000 is by getting started in the real estate market. There are several different steps to take when you’re just getting started.
First of all, do your research. This might seem like a boring step but it’s important to understand your local real estate market. Once you get involved you probably won’t have to keep up current research, as you’ll be involved enough to know the hot spots before the newspapers do. When you’re first starting though, you’ll want to look at neighborhoods that have the highest growth rate and highest rate of occupancy. Both of these factors point to people having a desire to live in the area.
Next you’ll want to find a local home auction. Some of these homes will be up for auction due to foreclosure, back taxes or they simply have owners who want to get rid of the homes quickly and are willing to take a loss. Be sure you know exactly what you are willing to spend in each neighborhood before you go. This will prevent emotional bidding.
Once you’ve bought a house with your 20,000 you’ll have to flip it quickly to make the maximum profit. If it’s in good repair you can sell it as is, or with minor improvements. If the house is in disrepair it always pays to spend a few thousand dollars to make the house presentable. Before you know it, you’ll have sold your first house and will be on a road to being a professional real estate developer.