pennydollar

Minimum Amount Required To Invest

One question that we get a lot is, “How much money do I need to be able to invest?”.

There’s no single answer to this question.  On a grand scale, it depends on what you are investing in.  If you want to “invest” in a bank account (and get that stellar 0.01% return that they are offering these days, you can probably open an account for $10 (or less).  At that point, you have invested.  If you want to “invest” in a certificate of deposit (CD) it will depend on what the bank requires.  If you want to invest in a mutual fund, they typically vary from a few hundred to thousands of dollars.

One thing to remember is that we (can) bring multiple investors into a single investment.  If we are investing in a property that will need $500,000 of total investment, that $500,000 does not need to come from a single investor.  The type of real estate investing that we do does mean that we won’t have a large number of investors, though.  A bank can have thousands or millions “investing”, as can mutual funds.  For most real estate deals like we are involved in, the number of participants is far below ten.  So, ten investors investing $10 each wouldn’t accomplish much.  Every deal and every investment company sets the requirements according to their own needs, abilities, and desires.  Every one can be different (and our company has our own standards that we’d be happy to talk with you about, one-on-one), but we have seen minimum investments as low as $25,000 and as high as $250,000.  I’m sure there are some out there that might go below $25,000 (for particularly small deals) and some with a minimum in the $$multi-millions.  For the size of real estate deals that we are targeting though, that is what we’ve seen.