It does not matter if you are starting with 50k or 500k. Investing 100k is a good place to start. That’s the magic number that will get you into 1031 exchanges (investment property exchanges), where real estate investors can defer capital gains tax on their properties when they sell them for replacement properties in another trade or business. In that way, real estate investors can build their real estate empire tax-deferred.
Now you may be asking yourself, “I have 100k, then what?” Well, I’m glad you asked! Here I am sharing the top 15 ways to invest 100k to make $1 million.
How to invest 100k in real estate?
1. Real estate investing-Income property
Another option for those who have 100k is to buy a property that you can rent out. If you’re patient and good at finding tenants, this can be a great investment strategy.
2. Real estate investing-Replacement properties
The most obvious way to invest 100k is in real estate investment property or houses that you flip for a profit (REITs are another good option). When you have 100k, you will want to replace the properties that you sell with better and more profitable ones. You may not be a millionaire yet, but the sky is the limit when it comes to real estate investing in replacement properties! This is how to invest 100k for passive income.
3. Real estate investing-Wholesaling
For those of you who don’t know what wholesaling is, it’s buying a property with the intention to sell it to another investor, usually for a higher price. It’s a great way to increase your cash flow if you’re lucky enough to buy at the right time.
4. Real estate investing-Land investment
If you have 100k to spare, another good option for real estate investing is purchasing land in an area of high demand where your property will appreciate tremendously over time. People buy houses close to good schools, places for kids to play, and public transportation. You want your place to be convenient for the people around you.
5. Real estate crowdfunding
Real estate crowdfunding is also a great way to invest 100k. It allows you to diversify your investments in the real estate market without having to buy properties individually. You can purchase shares of fractional ownership in individual properties or funds that own multiple properties simultaneously. This makes investing more accessible for laypeople like you and me.
How should I invest 100k?
Stocks are another great option if you have 100k or more (500k is even better). But remember that investments in stocks should be done for the long term. But you should still check in on your portfolio often to see how it’s doing and if anything needs to be adjusted.
If you want to know how to invest 100k today, and If you don’t want to risk your 100k on the stock market, another great investment is purchasing bonds. They’re a safer alternative to stocks but still provide a good return.
8. Mutual Funds
Mutual funds are an excellent option if you have 100k and want to diversify your money in the stock market without the hassle of picking individual stocks. But don’t forget that they charge fees, so make sure to look for no-load mutual funds or, at the very least, ones that charge minimal fees.
9. Hedge Funds
If you want to invest 100 000 dollars in the stock market with the help of a professional, hedge funds are an excellent choice. They’re risky, but if you can find one whose manager has good success, they’re a great way to earn money.
10. Invest in Cryptocurrency
If you’re feeling especially risky or if you want to invest 100k in a way that will make potential billionaires jealous, then the last thing I’ll recommend is investing in cryptocurrency. This form of currency is gaining popularity quickly, and there’s no telling how high they might go!
Trading is another way to invest 100k. But as a beginner, you should only do it if you’re planning on spending a lot of time studying and practicing.
12. Invest in a startup
If you’re a risk-taker, why not invest 100k in a startup yourself? You might lose all of your money, but if you win big, it could change your life for the better. You might even become an overnight millionaire!
13. Start a restaurant
If you want to invest $100 000 in something that will bring you regular income, why not start your own restaurant? It’s a lot of work, but the payoffs make it worth it.
14. Business franchise
Like starting your own restaurant, you can also invest 100k in buying a business franchise like Starbucks or McDonald’s. But you should study the market before committing to a purchase.
Finally, another way to invest 100k is to use it as collateral for a loan. I’m talking about getting a personal loan or a home equity line of credit. This is my least favorite way to invest money, but it’s still worth considering if you have no other options.
If you have 100k or more, then congratulations! You have a lot of opportunities to grow your money. But don’t stop here. Keep searching for ways to increase your wealth, and you could become a millionaire in no time! My advice is to invest in cryptocurrencies.