The best way to invest 20,000 – How to make money in real estate

As a successful lifelong investor, I get a lot of questions about the best way to invest different amounts of money. I have discovered that the best way to invest 20,000 is to start in the real estate market. There are several different steps to take when you’re just getting started.

First, do your research. This may seem like a boring step, but it’s important to understand the local real estate market. Once you get involved, you probably won’t have to keep up with the current investigation, since you’ll be involved enough to know about the hotspots before the newspapers. However, when you’re just starting out, you’ll want to look at the neighborhoods that have the highest growth rate and the highest occupancy rate. Both factors suggest that people want 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 foreclosures, back taxes, or simply have homeowners who want to get rid of the homes quickly and are willing to take a loss. Make sure you know exactly how much you’re willing to spend in each neighborhood before you go. This will avoid emotional bidding.

Once you have bought a house with your 20,000, you will have to invest it quickly to get the maximum benefit. If it’s in good shape, you can sell it as-is or with minor improvements. If the house is in disrepair, it is always worth spending a few thousand dollars to make the house presentable. Before you know it, you’ll have sold your first home and will be on your way to becoming a professional real estate developer.