Andrew Lokenauth
Finance Executive
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Forum Comments (3)
So, you start with how much you'll be able to afford every month. And then once you get that number, then you can figure out how much you have for a down payment. An old school rule of thumb is 20% down.
I think that if you're a first-time home owner, you should put 3.5% down only because the time that it takes to save 20%, you might miss out on appreciation in your property. For example, if the property is $100,000, 3.5% is $3,500 whereas 20% down is $20,000. And that time it takes you to make an extra $17,000, which the average salary of an average American is $50,000, you might miss out on appreciation of the property. So, it depends on your situation. The most important thing in that scenario is to figure out how much you can afford to pay per month.
Another way that people flip money fast is through day trading. Day trading, like anything, you have to be very good at it. So, if you choose to day trade, invest in education, and learn how to read technical indicators or technical analysis. A lot of days traders lose money. So, if you go this route, be sure to educate yourself on it just you would with anything else in life.
Another way to flip money quickly is through real estate. Wholesaling real estate is a quick way. Basically, with wholesaling real estate, you're flipping real estate contracts. An example would be you convince Person A to sell you their house. You get that under contract for a price, let's say, $100. And then now you sell that contract to someone else for a higher price than $100. For example, Person B, you sell it to them for $120. So, now you make $20. Another way is you could just buy a distressed property, you can fix it off and then you flip it and you make money because you put the time and effort into remodeling it. Someone who doesn't want to put the time and effort in remodeling it, they will buy it from you. You make money that way.
A third way to make money, which is very illegal but you should watch out for it so it doesn't happen to you, is Ponzi schemes. Ponzi schemes or pyramid schemes are when people make ridiculous promises, they take money from you and then they give it to somebody else. So basically, you borrow from Peter to pay Paul. A lot of people do that, such as Bernie Madoff who has gone to jail. Most recently, Sam Bankman-Fried from FTX had done it with crypto and he's being tried in jail. So, Ponzi schemes or pyramid schemes are a quick way to flip money but watch out so it does not happen to you.
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