Young and looking for advise..

5 Replies

Hi there, i just want to thank everyone in advance for your responses. Im in need of advise and would like to get as much information as possible to help steer me in the right direction.

Im 26 years old, currently unemployed, and due to the sale of a family business that i inherited a good portion of, im going to be getting a large sum of cash. Dont want to disclose any exact figures but bc im asking you for advise ill say its in the ballpark of a half million dollars. Ill let you all know what my plan in my head is as of right now. I live in upstate ny. Im not necessarily set on buying property in this area but i am leaning towards it. I want to buy a one family house for myself, obviously id like to get as good a deal as possible bc i will be paying cash. Also i want to purchase a multiunit building such as a 3 family house or slightly larger. Thats all i have thought out so far. Ive done researxh on foreclosures and property taxes in the area which are fairly high but i dont know where to start and im not sure if this is the best route i should go. I dont have much interest in putting any money into the stock market maybe a small amount(im meeting with a financial advisor next week). I know that. very fortunate to be in this situation and i want to make the best of it and not just live off the cash but to build on it. I feel as if investing in real estate is a lot more of a tangible investment than stocks as well. Any imput at all would be very helpful. Thank you for youre time.

Originally posted by @Spencer Iveson :

Hi there, i just want to thank everyone in advance for your responses. Im in need of advise and would like to get as much information as possible to help steer me in the right direction.

Im 26 years old, currently unemployed, and due to the sale of a family business that i inherited a good portion of, im going to be getting a large sum of cash. Dont want to disclose any exact figures but bc im asking you for advise ill say its in the ballpark of a half million dollars. Ill let you all know what my plan in my head is as of right now. I live in upstate ny. Im not necessarily set on buying property in this area but i am leaning towards it. I want to buy a one family house for myself, obviously id like to get as good a deal as possible bc i will be paying cash. Also i want to purchase a multiunit building such as a 3 family house or slightly larger. Thats all i have thought out so far. Ive done researxh on foreclosures and property taxes in the area which are fairly high but i dont know where to start and im not sure if this is the best route i should go. I dont have much interest in putting any money into the stock market maybe a small amount(im meeting with a financial advisor next week). I know that. very fortunate to be in this situation and i want to make the best of it and not just live off the cash but to build on it. I feel as if investing in real estate is a lot more of a tangible investment than stocks as well. Any imput at all would be very helpful. Thank you for youre time.

 Wow Spencer you are in a very good situation. We all envy you. Make sure you get educated in whatever area you choose. I would not recommend turning your funds over to a financial manager or advisor. I believe real estate is your best bet vs. Stocks or other investments. You mentioned that you are unemployed, do you plan on starting your own real estate business? My advice is to start small and learn as you go along. Find a real estate investor mentor in your area. You could possibly buy a 4plex multifamily unit and live "free" in one of the units while the others are paying your mortgage and while you are learning the business. You have so many options available to you. 

Here is my advice:

1.Protect your money (do not turn it over to strangers to manage for you)

2.Go slow (do not rush into making financial decisions)

3. Get educated (BP is a great place to get started.

 http://www.biggerpockets.com/real-estate-investing

4. Find a real estate mentor (once you are knowledgeable partner on deals)

Just my thoughts- I am no expert. 

Yep agree with Rhondalette here, I know cash will burn in your pocket, but let them for a while. 

I am personally taking money out of the stocks I have at the moment, as I'm certain we will see another crash at some point within the next 18-24 months. 

The great thing about real estate is there's always month to be made. The key things is figuring out what you are looking for an then make sure you dont buy before you find such a deal, so get educated on particularly getting the financial aspect of investments right.  

@rhondalette w.       @mads singers

Thanks for your opinions. I agree with both of your thinking. Best to sit on the cash and find the best deal possible and make the right investments. Luckily for me that im this fortunate bc although i am young my credit is shot so anything i do will have to be cash deals. I just figured i would throw that out there. Real slim chance of me ever getting a mortgage in the next 7 years. Obviously paying my dsbt off is a first priority. So where do you suggest i look for property? Do you think the single family home and multi is a good idea? At first i was thinking two 3 family homes and just live in one collect the rent on the other 5 apts and just set aside enough for expenses(taxes,utilities,maintainence) but then i got to thinking i do want a family someday and id like to own a chunk of land. Im not sure the more opinions i hear the better. I was looking into foreclosures/preforeclosures, do you think thats a good route? Again thanks for the help.

If I was single/without kids, I would definitely look at house-hacking a small multi-family.  They may not appreciate as well as a single-family, but lowering your cost of living will pay off in multitudes later.  The learning experience will be invaluable as well.

I like the way you are thinking. Congrats on asking here and being intentional with this money. Sounds like that wasn't always so.

Know the financial 'adviser'you are meeting has an interest in putting you all in to paper securities & insurance products.  Diversifying is fine, to a point.  Do not 'invest' in anything with a guarantee. Please keep us posted @Spencer Iveson !

Thanks Steve i appreciate your advise.  The financial advisor im meeting with is a family member so he should be able to give me some honest advise.

All of your opinions and advise is very helpful, please keep it coming.

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