Question
What's the best investment for someone just starting out with limited capital?
Response
When you're starting out with limited capital, commercial real estate—specifically multifamily properties like duplexes and triplexes—is a strong option. If you have $100,000 saved, you can put that down on a three- to four-hundred-thousand-dollar property. The key is to manage it yourself initially: lease it yourself, take care of it, run all the books yourself, and learn the game. Once you fix it up and get it going, you can refinance it, pull some cash out, and buy another property. Real estate is described as a generational investment, meaning if you're buying with the intention to hold for 10, 20, or 30 years rather than flipping quickly, it's always a good time to buy. Beyond real estate, another foundational approach is index funds. The smartest investors put money into index funds like the S&P 500 through a platform like Vanguard—a cheap, reliable way to compound wealth over time without overcomplicating things. The broader principle across all these recommendations is to start somewhere and let compounding work for you over decades rather than trying to time markets or find perfect opportunities.
Sources & references
- 01Asking Billionaires How They Got RICH! (Florida)2:06(opens on YouTube in a new tab)
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.
- 02Asking Billionaires How They Got RICH! (Boston)11:32(opens on YouTube in a new tab)
I think the smartest people know what they know and know what they don't know. Put it in an index fund. >> Give me some game right here. Vanguard. Put your money in an index fund. Cheap way, reliable way. >> What specific index fund? >> S&P 500. Like don't don't be overly complicated. Like too often we invest in this small idea and that small idea. Compound wealth over time.