Did you send in your question for Ask Philip? Bold TV host Philip Michael once again answered your questions straight from his DMs. In this segment, he discussed Akon’s crypto-powered city, how to invest $1,000 and how to buy real estate with bad credit. Check out the video (Skip to 14:00.) for the full responses.
Q. Akon is making sustainable crypto-powered cities in Africa? What do you think about that?
A. He’s trying something new. He’s trying to be a trailblazer in this very aspirational, very ambitious project. I dearly hope that he succeeds. One of his driving forces is disproving a lot of misconceptions about the opportunities that exist in Africa. He literally put his money where his mouth was, and he’s building his own place that brings in a modern-day Wakanda. I’m not really sure what’s going to happen or how successful it is going to be. We should applaud him for what he’s trying to do. If he does indeed succeed with creating this new modern-day Wakanda powered by crypto, this is going to create a chain of events that hopefully leads to a lot more prosperity and innovation for people that could use it and need it. I think that’s a cool thing.
Q. What would be a good investment for $1,000 or less?
A. You have to think about money as though you have a garden. You can plant little things: You can plant some tomatoes here, or you could plant a big tree there. But in order to get a big, prosperous, fruitful garden, leaving one tiny seed and not watering it – or planting more things – is not going to work for you. Wealth operates the same way.
For instance, Warren Buffett always advocates for index funds. The stock market over the past 140-plus years has compound about 9-10% annually. It just keeps going up, and that doesn’t seem to change. So that will be one avenue. Real estate is always good. But with a little money, you can download an app like Public or Acorns and invest $500. Before you know it, as long as you don’t try to day trade or do crazy stuff, this is going to compound, and you’ll have quite a bit of money in your account.
Q. I really want to invest in real estate, but I don’t have good credit. How do I make it happen?
A. When I started investing, I didn’t have any credit either. I didn’t even have a social security number. So, one of the ways that I did that was I found a partner that did have those things. You always got to look at a problem of any kind as, “How do I solve this? How do I get around it?” Let’s say you want to build a house that you want to rent out, or do you want to sell? Well, you have to figure out how to get the land. How much is the land? If you need to get financing, you have to get a partner that has credit.
If you want to go the basic route with an FHA three-family property, you put down 3.5%. You do it with a partner that signs on as a co-guarantor or as the main guarantor on the mortgage. You build up your credit, and you get some job that gives you the W2 history for the sole purpose of making sure you’re ready when you actually have to do it on your own. So there are a number of ways: The main thing is just never to accept a limitation as something that should make you stop.
If you want to hear your question answered live, make sure to follow us on social media. Ask us a question on Facebook, Twitter, Instagram or TikTok @Bold TV, and you may be featured in our Bold Business show.
Want more from Philip? Check this out.