Question
What's the best first investment for someone with $100,000 saved?
Response
If you have $100,000 saved, the best first investment is commercial real estate, specifically multifamily properties like duplexes, triplexes, or small apartment buildings. You can put your $100,000 down and easily purchase a $300,000 to $400,000 property. The key is to manage it yourself—handle the leasing, maintenance, bookkeeping, and property management directly so you learn the business. Once you've fixed it up and it's running smoothly, you can refinance it, pull cash out, and use that capital to buy another property. This approach teaches you the fundamentals while building equity. Importantly, real estate is always a good time to buy, whether the market is good or bad, because if you're buying with the intention to hold long-term—10, 20, or 30 years—you're building generational wealth rather than trying to time the market or flip quickly.
Sources & references
- 01Asking Billionaires How They Got RICH! (Florida)2:06(opens on YouTube in a new tab)
So if somebody has $100,000 saved up right now, where would you put that money in today's world? >> I'd go right into a commercial property. I'd find an asset class you like. The truth is multif family is the easiest one to get into. You could buy a duplex, a triplex, put a $100,000 down. You could easily buy a three- $400,000 property. You need to manage it yourself. You need to lease it yourself. You need to take care of it. Running all the books yourself. Learn the game. Fix it up. Keep it going. Then eventually can refinance it. Pull some cash out of that and go buy another.