Yahoo Finance How I Invested $10K and Turned It Into More Than $100K
Even the healthiest, most flourishing garden has to start with the smallest seeds. Similar concepts help savvy investors grow their wealth over time. With the right insights, planning and risk tolerance, you can have a green thumb when it comes to growing an initial seed of an investment into six figures.
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From playing the stock market to learning about the best real estate investments, there are so many ways to fertilize your initial seeds of an investment into a return of 10 times or more. GOBankingRates talked to a couple people who took about $10,000 and grew it into $100,000. They shared their insights about how they did it, and how you might be able to as well.
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Lean Into Your Expertise
As an associate broker with 8z Real Estate, Colten Claus understands the real estate market inside and out. Using his on-the-job knowledge, he invested an initial $10,000 in real estate, eventually going on to purchase a distressed property in Colorado Springs for $80,000.
“The property needed significant renovations, which I managed personally due to my construction experience, keeping costs low,” he said.
Over the next six months, he invested about $20,000 in renovations that focused on areas like the kitchens and bathrooms, as well as curb appeal. This brought the total investment to $100,00, which included the initial purchase and renovation costs. Once the renovations were done, he listed the property at $150,000 and sold it within one month, which left him with a gross profit of $50,000.
“After deducting costs, I reinvested the proceeds into additional properties, leveraging my initial success,” he said. “Within five years, my initial $10,000 had grown to over $100,000, thanks to strategic investments, market knowledge, and efficient project management.”
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Don’t Be Afraid To Research
About 10 years ago, Kevin Huffman — day trader, personal finance and investment expert, as well as the owner of Kriminil Trading — had $10,000 in his savings and, he said, “a thirst to learn.”
Wanting to grow that money and improve his own knowledge, he read everything he could about “technicals, fundamentals, and market psychology.” He knew that understanding the data was just a beginning and wanted to test his skills in real life.
“I practiced paper trading for hours, sometimes for days on end, until I felt comfortable risking real capital,” he said. “Paper trading is where I was able to try strategies, develop instinct, and gain a sense of discipline and my own risk tolerance. This wasn’t just about memorizing the indicators I used — I was learning instincts, something I try to impart to my students and clients.”
Using his insights, Huffman was able to grow that $10,000 into over $100,000.
Embrace the Power of Networking
While you can start investing with your own knowledge and book learning, there is also another powerful way to gain the skills and insights you need to turn $10,000 into at least $100,000. You should consider networking with peers, experts or other people who are passionate about investing to learn from there.
Claus did just that when he was undertaking his own real estate investments. He said connecting with other investors, attending real estate workshops, and staying updated about industry trends was essential.
“Learning from others’ experiences and gaining new insights can enhance your investment strategy,” he said.
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This article originally appeared on GOBankingRates.com: How I Invested $10K and Turned It Into More Than $100K
