Andrew Lokenauth
Finance Executive
wikiHow's Editorial Process wikiHow partners with over 1000+ experts from a wide range of fields to ensure our content is accurate and based on well-established research and testimony. Content Managers conduct interviews and work closely with each expert to review information, answer reader questions, and add credible advice. Learn more about our editorial process and why millions of readers trust wikiHow.
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.
Co-authored Articles (79)
How to
Check if a 100 Dollar Bill Is Real
Considering there's an estimated $70—$200 ''million'' in counterfeit bills circulating in the U.S., learning how to spot a fake 100 dollar bill is a great idea. Fortunately, it's easy to tell if a 100 dollar bill is re...
How to
Win at Sports Betting
Betting on sports games is a hobby for many, and most people just consider it to be a fun and friendly past time. But there are ways to consistently make money on sports betting, and the tricks are understanding betting ...
How to
Find Your Bank Account Number
Finding your bank account and routing numbers is easy to do, even if you don't have access to a check. There are several ways you can locate the numbers, including online, and we'll walk you through each one step by step...
11 Ways to Send Money Without Revealing Your Identity
Tips to help you send money anonymously both online and offline There are plenty of reasons you might want to keep your personal details on the down low when you send money. Maybe you want to surprise someone but don’t...
How to Recover or Reset Your PIN Number: 2 Easy Ways
A quick and easy guide to get a new PIN for your debit cardWhenever you apply for a credit, debit, or banking card, you’re typically assigned a 4- or 6-digit personal identification number (“PIN” for short) that ma...
How to Check If a 1 Dollar Bill Is Real
An in-depth guide to detecting counterfeit $1 bills One dollar bills generally are not counterfeited because of their low value, so it’s unlikely that you’ll ever encounter one. However, there have been cases of it ...
How to
Detect Counterfeit US Money
If you have a bill in your possession and are unsure of its authenticity, follow these steps to certify the real value of your money. It is illegal to possess, produce, or use counterfeit money; if a prosecutor can prove...
How to
Find Your Credit Card Account Number
If you have a credit card, you may need to know your account number to pay your bill or to access your information. Luckily, it’s easy to find your account number with or without your credit card on hand.
How to
Create a Mortgage Calculator With Microsoft Excel
One of the best features of Excel is its ability to calculate your mortgage-related expenses like interest and monthly payments. Creating a mortgage calculator in Excel is easy, even if you're not extremely comfortable w...
How to
Create a Budget
Keep track of your spending and saving with our helpful guideCreating a budget can help you organize expenses, manage your income, and keep your finances in check. Start by writing down your monthly income and expenses s...
How to Find Out If Your Old Premium Bonds Are Worth Anything
Track down the quid you deserve with this simple guide Hoping to claim prize money from old premium bonds? You're in luck, because it's super easy to do! Every month, premium bonds are put into a monthly lottery drawing ...
How to Submit Damaged Money for Reimbursement
Properly submitting torn or damaged bills so you get the full amount backMoney might not grow on trees, but, luckily, it can be replaced in the off chance it gets damaged. Even if you have a dollar bill completely torn i...
How to Tell if a $5 Bill is Real or Counterfeit
Learn how to spot fake cash (and what to about it)Think you found a counterfeit bill? The best way to spot a fake $5 bill is to examine its security features, like the watermark or security thread. The designs and securi...
Will I Become a Millionaire Quiz
Are you destined for a life of private planes and fancy champagne? Do you have what it takes to land in the 1%? Are you gonna be a millionaire someday? Or even a billionaire? Answer these quick questions about your deep...
How to
Make Fake Money
Fake money is a great prop for games, educational exercises, and stage performances. However, you must carefully follow all legal rules and regulations when preparing your own play money. Start the process by dying paper...
How to
Calculate Exchange Rate
If you're planning to go abroad and exchange your money for another currency, it's a good idea to figure out how much cash you'll have after the exchange. Also, knowing exactly how much your money is worth can prevent yo...
How to
Read a Candlestick Chart
A candlestick chart is a type of financial chart that shows the price action for an investment market like a currency or a security. The chart consists of individual “candlesticks” that show the opening, closing, hig...
A Guide to Counting Cash Quickly: Sorting, Organizing & More
An easy tutorial for quickly counting dollar bills and coins by hand Recently filled up your piggy bank or money jar and trying to see exactly how much cash you have? You’ve come to the right place! In this article, we...
How to
Decide Whether to Go Out or Stay In
Deciding if you want to go out can be stressful. It can sometimes be hard to tell if you could use alone time or if socializing will help you get out of your shell. To decide, you can use practical considerations. Think ...
How to Dispose of a Credit Card
Never worry about someone stealing sensitive information from your old credit cards againIf your bank or credit card account expires, you’ll be asked to dispose of your old card safely and securely. But how do you do t...
