You have $10,000 and your thinking about investing in real estate? wtf [sm=wakeup.gif]

If anything look into REITs or somthing. (Real Estate Investment Trust) or find some fund heavily vested in real estate. Or...fucck real estate all together. look at the divided stocks i mentioned. I have alot more suggestions too.

 

if you have more suggestions, please drop another post!


Round 2:

Realize i never said exactly how much i will have in those mutual funds. The funds are gradually rising in value, and i'm also adding about $300 a onth into them myself. Right now they're at a little above $10,000, so when i go to college in exactly a year, they should be a little higher than that, anywhere from $12,000-15,000. I understand the concept of having a cushion. Even now as a 16 year old, i constantly have $1000 in the bank to cushion me in case of emergency. So if i pull $14000 from this fund by the time i'm 18, i could invest 10k, have a 5k cushion, have paid college and dormitory, and only need to support myself with a car, clothing, and food. and i'll be keeping my car through college, with i dont have payments for b/c i purchased it in cash.

I understand that renting can be a pain and be very involved, and the hardest part will be finding people to rent it to, and tenants. Now what you're referring to is renting it out daily. If i were to do this, i would have to furnish it, and either clean it myself every time theyre gone and assess the damage, or go to a company that does that for you, which takes a percentage of the profits. I don't want to do that, i'm not going to furnish the condo. I'd rent it out as an apartment, 12 months at a time. the $5k cushion could be used to pay for any repairs and cleaning crews after each tenant (and i would of course rplace any of that money that is spent as quickly as possible).



of course once againif you think there's anything better than real estate for me to invest in, place explain that ivestment, how it works, through who, how i can do it etc. b/c i'm 16 and i dont know anything about this stuff.

Keep in mind that i'm looking for an investment that i can see a return on within 2-4 years from the time i investv - either after i'm out of the dormitories or after i'm out of college, when i'm looking into buying my own place. The idea is to have a nice chunk of cash as money down on a home or maybe even business

thanks for all the replies guys!

 

Ok, first off, you can not afford real estate. With 10 grand you could't buy a tree house, much less pay property taxes/intrest/DP/etc. So thats far out the window.
Put half in a value fund and half in a foregin growth fund. I would avoid tech heavy funds, at this point the NASDAQ is about to give up some serious gains. Fidelity,
Bear Sterns ect will not talk to you about funds because they require at least $25,000 investment, as do most large investment banks. Talk to a finanical advisor.

 

you make a good point with property taxes interest, but $10,000 is definitely enough for a down payment on a house. Then again the only way i could get a loan for something like that is through a parent, since I'd have no credit to speak of. So I understand your point. Real Estate would be a tough reach.


What exactly is a 'value fund'?

 

Well im 18 and im also an invester, had NO where near as much as $10k, i had about 1800 i htink when i started. Did alot of fooling aorund in penny stocks and am still doing so. Has been about 8 months now and i have prolly turned 1800 into like just under $4,000. So its all up to you, penny stocks take a lil bit of guidance and a little time to do research and watch the market but can or can nto be a very quick way to make a few bucks......
Agood one oging right now is. GamesNFlix. (GZFX) Kinda liek a net flix type company except cheaper and has video games and DVD's. The start not too long ago year? year and half ago. Just started major production. They reassured they have plenty of money to make moves and just finished puting up 4 more distributions centers. the stock is at $0.90 about. If over the next couple years it can get to any where near net flix. you are looking to get into the mid $20.00's for a stock price. Just throwing $1k in there and letting it grow could make you a 100,000 fairly easy. But hey do what ya want im only 18 myself still learning.

And thats my $0.04 [&:]

 

Reinvest the dividends or else with the rate of inflation, your dividends will remain the same but will be worth less over time. You gotta reinvest to make the right money.