How to Invest $600,000
Hi guys,
I’m pretty new to the community and I am so glad to have found this place for suggestions and feedback.
Here is our situation:
- $600,000 cash on hand from inheritance
- Desired return of 8-10%
- Live in Greater Boston Area
- 100% equity on home
- Working full-time in public accounting and making roughly $50,000/year
I talked to some financial advisers and none of them suggested the real estate route. I was told that it was too risky and that I would be putting all my “eggs in one basket.” They said that if we invested in securities, I can expect 3-4% returns while being charged fees about 1.5% on total assets. So a return of 1.5-2.5% sounds really bad to me, which brings me to my question: What else can we do with this money? I should mention that it might be difficult to obtain financing. My credit score is 640ish on Experian but higher on the other two with a score of 700+. My age is 28 and the only income we have is my salary. We’re looking at properties in MA. We have no experience in running a business/being landlord. Also, we are very nonconfrontational and “soft” people. So I believe we will be using a management company. I read about partnerships that invest in RE but I’m not sure how to find them. I would appreciate if I can get ideas that would put us towards the right direction. Thank you!
-M