If you did a deal that made you $10,000,000 dollars net, what would you do with it? The reason I ask is because I figured out something interesting just the other day. But then I started debating what on earth one would do with that kind of money if things worked out?
I'd "retire"and travel the world. I'd live like a rock star for a year or two. I would probably start to get bored, so I'd tinker on some projects that I've always been meaning to get started on, but never had the money. I would slowly realize how much money I wasted on stupid sh!t over the years and, with whatever money I still have, I'd work on turning it back into $10 million again.
So what's this "something interesting" you figured out?
Well if I told you then I'd have to kill you now wouldn't I. Ha ha. Well I just realized that after doing some number crunching that I could likely net 10m right now if I condo converted everything I have. Which might take a couple of years. And I calculated that if I wait about 5 years to convert I could make about 15m net. Just debating it all. Because I'm not sure what I'd do with that kind of money, plus I think having that much liquid cash is very risky. Far safer to keep it in assets I'd think. But at least I wouldn't have to worry about dealing with tenants anymore.
I'd convert it into cashflow. Pay out the principle on all the mortgages of all rental property that you have (or as much as possible). That will allow you to keep all that money safely in the form of equity and it should really pump up your monthly profits.
That changes the question to: "what to do with $xxx/month?" First of all, find 5 charities that you like and give them 5% each month. Travel the world. Take some art classes. Enjoy nature. Start a small business doing what you *want*. Maybe a restaurant or a bar or a club or a gym or anything else your heart wants. Start a scholarship. Go to a private island in Fiji with your significant other and figure out what you want to do with the rest of your life. Give money to cancer/aids/etc research. Give $ for food/medicine to developing countries. Find a way that you can make a positive difference in the world. The sky is limit here.
"Normal people take care of themselves. Good people take care of themselves and the people around them. Great people take care of everyone." What kind of person do you want to be? If you have the money to be that kind of person... then thats who you should be and what you should do.
I would sell every piece of Real Estate I owned and invest it into Tax Liens and make 13-18% Interest on the money and live off of the Interest. Oh that is of course after I spent a million or so on the most important thing.. My family.
I have a similar situation myself I have a house on a really large piece (241 acres) of land in Colorado. The land is totally sub dividable Right now I owe less then 5% of the appraised value on the property. Within 2 years they are opening up the highway and it will make my land a 15 minute drive to two Major Ski resorts. Right now it is a 2 hour drive. So when the Road cuts in my land value will go from 3.6 Million to 13.7 Million. Now I am not one to rip up Mountains for new roads on the other hand I am one for cash.
I look at it as there is risk associated with any activity. It doesn't matter if you are talking about walking across the street or Investing in Real Estate. The key for me is to select activities that will minimize that risk.
Trust me at 20 I took all the Risks in the world to get to the top now 12 years later and with that kind of money there is no need to get crazy. It is plenty to live on for the rest of my life and take care of my Great Great Great Grandchildren.
If you can't live off of 13-18% Interest of 13 Million dollars Please go to rehab or something!!!
Yikes...I think it would be a miserable existence to never work again. I take 2 weeks off and can't wait to get back to work...You can only play for so long without feeling the need for productivity. It was bred into the human nature.
Besides, 10 Million wouldn't last you very long if you didn't seek a return on your money. And that would take a lot of work to do.
Yikes...I think it would be a miserable existence to never work again. I take 2 weeks off and can't wait to get back to work...You can only play for so long without feeling the need for productivity. It was bred into the human nature.
Besides, 10 Million wouldn't last you very long if you didn't seek a return on your money. And that would take a lot of work to do.
To each, his own, brother. If you can't retire on 10 million, we must have much different lifestyles. I could make 10 mil last a long, long time, and wouldn't miss the work. I did say it somewhat tongue-in-cheek - of course I would find something to keep me challenged, but I wouldn't let it dictate the course of my life.
A former boss (a partner at a real estate development firm in the San Francisco Bay Area) told me that if I would retire when I got $10m, then I would never get to $10m.
I would retire if I had $10m and try to make the PGA tour...
I would probably buy $100 million dollars worth of apartment buildings and use the money as a 10% down payment, then have them managed by a property management company.
I'd take out the tithe first and give it back to God. Then I'll leave the rest in my company's account to show as reserves to borrow money to buy some manufactured home communities and some apartment complexes that'll give me positive cash flow each month and just keep building wealth that way without having to use my own money.
Most importantly, I'll make sure that I have an excellent tax strategist/financial planner on my team to make sure that I don't lose as much in taxes.
Once I'm generating enough cash flow each month from my holdings, I'll travel the world with my family then settle back down when the kids start going to school. All the while acquiring more and more properties and building wealth.