Found $873K, need help investing it

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Found $873K, need help investing it

Jim K.
Handyman 路 Pittsburgh, PA 路 Member since 2018 路 5k+ posts 路 13k+ votes

Bought a teardown at a tax auction, went in and knocked a hole in one of the kitchen walls, found three stud bays filled with plastic-wrapped used bills, mostly twenties but lots of fifties, hundreds. $873K total. There was a Glock lying on top of one of the stacks, bit rusted, been there a while.

How should I invest this money? Please help. I'm so confused.

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Joe SplitrockPro Member
Moderator
Rental Property Investor 路 Sioux Falls, SD 路 Member since 2015 路 9k+ posts 路 18k+ votes
6y

Your situation is more common than you may think. Lots of investors got started after finding money stuffed in walls. 

First bit of advice is don't touch the gun. If you did, wipe off any finger prints and dispose of the gun in the closest river. 

Second thing to realize is someone will be looking for that money. It may be 10-15 years before the come looking, but guaranteed they will be back. Finish the rehab quickly and sell the house.

Now the money is all yours! Here is how you make it grow:

1. Advertise publicly you have the money. This is the best way to attract investing advice. You will meet lots of nice people who are looking out for your best interests.

2. Hopefully you find some fist time syndicators or flippers that will agree to pay you huge returns. Is it risky? Yes, but do you want to get rich or what?

3. Avoid the stock market. Everyone knows real estate is the only guaranteed investment.

That is about it. Give your money to the first person offering great returns and watch it grow. 

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  • Landon Moore
    Rental Property Investor 路 Phoenix, AZ 路 Member since 2019 路 60 posts 路 45 votes
    6y

    YES!

    7Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor 路 Sioux Falls, SD 路 Member since 2015 路 9k+ posts 路 18k+ votes
    6y

    Your situation is more common than you may think. Lots of investors got started after finding money stuffed in walls. 

    First bit of advice is don't touch the gun. If you did, wipe off any finger prints and dispose of the gun in the closest river. 

    Second thing to realize is someone will be looking for that money. It may be 10-15 years before the come looking, but guaranteed they will be back. Finish the rehab quickly and sell the house.

    Now the money is all yours! Here is how you make it grow:

    1. Advertise publicly you have the money. This is the best way to attract investing advice. You will meet lots of nice people who are looking out for your best interests.

    2. Hopefully you find some fist time syndicators or flippers that will agree to pay you huge returns. Is it risky? Yes, but do you want to get rich or what?

    3. Avoid the stock market. Everyone knows real estate is the only guaranteed investment.

    That is about it. Give your money to the first person offering great returns and watch it grow. 

    93Reply
  • Steve Morris
    Real Estate Broker 路 Portland, OR 路 Member since 2019 路 4k+ posts 路 2k+ votes
    6y

    Wait a second, what's the address?  That's my house.  I was wondering what happened.

    I guess if that's what happened, hell, I'd be buying tax auctions all day long.

    17Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor 路 Sioux Falls, SD 路 Member since 2015 路 9k+ posts 路 18k+ votes
    6y

    One more thing.. Setup an LLC before you do anything.

    14Reply
  • John Edwards
    Rental Property Investor 路 Topeka, KS 路 Member since 2017 路 56 posts 路 137 votes
    6y

    @Jim K. Ask Walter

    7Reply
  • Steve Morris
    Real Estate Broker 路 Portland, OR 路 Member since 2019 路 4k+ posts 路 2k+ votes
    6y

    Also, you should ask a CPA since there are tax consequences if you follow the rules :)

    It is income like a lottery ticket.

    1Reply
  • Chris Eidson
    Rental Property Investor 路 Member since 2019 路 89 posts 路 58 votes
    6y

    @Jim K.  Maybe you should watch "No Country for Old Men" before you decide on your next move.

    26Reply
  • Christian Cramer
    Property Manager 路 Kihei, HI 路 Member since 2016 路 85 posts 路 97 votes
    6y

    I think you just found your ticket out of pittsburgh 

    13Reply
  • Jim K.
    OP
    Handyman 路 Pittsburgh, PA 路 Member since 2018 路 5k+ posts 路 13k+ votes
    6y
    Originally posted by @Joe Splitrock:

    Your situation is more common than you may think. Lots of investors got started after finding money stuffed in walls. 

    First bit of advice is don't touch the gun. If you did, wipe off any finger prints and dispose of the gun in the closest river. 

    Second thing to realize is someone will be looking for that money. It may be 10-15 years before the come looking, but guaranteed they will be back. Finish the rehab quickly and sell the house.

    Now the money is all yours! Here is how you make it grow:

    1. Advertise publicly you have the money. This is the best way to attract investing advice. You will meet lots of nice people who are looking out for your best interests.

    2. Hopefully you find some fist time syndicators or flippers that will agree to pay you huge returns. Is it risky? Yes, but do you want to get rich or what?

    3. Avoid the stock market. Everyone knows real estate is the only guaranteed investment.

    That is about it. Give your money to the first person offering great returns and watch it grow. 

     Thank you so much for all the excellent advice, Joe. I'd like to ask: should I talk to a psychic? My sister-in-law says she knows a good one that does phone consultations even during COVID, won't need to touch the gun to tell me where it came from. What do you think? 

    7Reply
  • Jim K.
    OP
    Handyman 路 Pittsburgh, PA 路 Member since 2018 路 5k+ posts 路 13k+ votes
    6y

    Isn't there like a weekend investment boot camp out there for found-money investors?

    4Reply
  • Jim K.
    OP
    Handyman 路 Pittsburgh, PA 路 Member since 2018 路 5k+ posts 路 13k+ votes
    6y
    Originally posted by @Steve Morris:

    Also, you should ask a CPA since there are tax consequences if you follow the rules :)

    It is income like a lottery ticket.

    Doesn't the IRS have a de minimis safe-harbor exemption? I heard something about that a while ago...what if I claim that the kitchen in the teardown was my home office last year?

    3Reply
  • Zeke Tessmer
    Rental Property Investor 路 Australia 路 Member since 2019 路 36 posts 路 44 votes
    6y

    That is so cool! You got yourself a fair chunk of cash, and everyone is going to want a piece! The first thing I would be doing is trying to minimise how much in tax I would pay. I believe there are some creative ways of doing this...I am no tax specialist. If ya want some creative ideas on how to approach it feel free to PM me.

    I would say that @Joe Splitrock is correct in his concern that someone may be coming back for this $$, for that reason I would try renovate and get out of that house ASAP as a precaution. 

    I do not agree with the idea that you should announce to the world you have a pile of money to invest and then go for the first guy with the best rate....I would be more careful than that. I actually thought this post may be a joke when I read that.

    Then I looked at your profile. It looks like you are a hardworking, honest, down to earth guy that just caught a big break.  Do you know that a large percentage of the people that win the lottery go broke a few years later? Do not be that guy. You have the information and resources at your finger tips. First you must decide what you want in life, and that should dictate what you do with the $$.

    I would be happy to speak with you more directly in a bit more detail.

    5Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 16k+ votes
    6y
    Originally posted by @Joe Splitrock:

    One more thing.. Setup an LLC before you do anything.

     LOL. I think he needs separate LLCs for each bundle of cash. 

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    12Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 16k+ votes
    6y
    Originally posted by @Zeke Tessmer:

    That is so cool! You got yourself a fair chunk of cash, and everyone is going to want a piece! The first thing I would be doing is trying to minimise how much in tax I would pay. I believe there are some creative ways of doing this...I am no tax specialist. If ya want some creative ideas on how to approach it feel free to PM me.

    I would say that @Joe Splitrock is correct in his concern that someone may be coming back for this $$, for that reason I would try renovate and get out of that house ASAP as a precaution. 

    I do not agree with the idea that you should announce to the world you have a pile of money to invest and then go for the first guy with the best rate....I would be more careful than that. I actually thought this post may be a joke when I read that.

    Then I looked at your profile. It looks like you are a hardworking, honest, down to earth guy that just caught a big break.  Do you know that a large percentage of the people that win the lottery go broke a few years later? Do not be that guy. You have the information and resources at your finger tips. First you must decide what you want in life, and that should dictate what you do with the $$.

    I would be happy to speak with you more directly in a bit more detail.

    馃ぃ Jim's our resident comedian. We might be nuts over here in the States but not generally nuts enough to actually find close to a million in the wall and then advertise it on the internet. 

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    12Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 16k+ votes
    6y
    Originally posted by @Chris Eidson:

    @Jim K.  Maybe you should watch "No Country for Old Men" before you decide on your next move.

     LOL. Nice!

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    0Reply
  • Zeke Tessmer
    Rental Property Investor 路 Australia 路 Member since 2019 路 36 posts 路 44 votes
    6y

    @JD Martin Ya.... re-reading through the thread that is a bit more obvious.  Someday I will better perfect the art of skim-reading. The things that people actually post on the internet will never cease to amaze me...and I know you are all nuts over there in the states, because that's home!

    3Reply
  • Allan C.
    Rental Property Investor 路 Member since 2018 路 826 posts 路 810 votes
    6y

    @Jim K. You shouldn鈥檛 have shown your hand so quickly, you didn鈥檛 get all the input from syndicators or TK providers yet. However, thanks for the amusement of the day.

    1Reply
  • Jim K.
    OP
    Handyman 路 Pittsburgh, PA 路 Member since 2018 路 5k+ posts 路 13k+ votes
    6y
    Originally posted by @JD Martin:
    Originally posted by @Joe Splitrock:

    One more thing.. Setup an LLC before you do anything.

     LOL. I think he needs separate LLCs for each bundle of cash. 

    I was thinking one LLC for the twenties, another for the fifties...

    4Reply
  • Jim K.
    OP
    Handyman 路 Pittsburgh, PA 路 Member since 2018 路 5k+ posts 路 13k+ votes
    6y
    Originally posted by @Allan C.:

    @Jim K. You shouldn鈥檛 have shown your hand so quickly, you didn鈥檛 get all the input from syndicators or TK providers yet. However, thanks for the amusement of the day.

    @JD Martin's ultimately right, though. The joke is funny but not the wisest thing I've posted.

    Don't tell people you have a lot of money on the side. You will get a lot of advice from a lot of broke people on how to go broke, usually by investing with them.

    5Reply
  • Chris John
    Member since 2020 路 671 posts 路 937 votes
    6y
    haha.  It took me a minute.  I was like, "delete this post, delete your account, and shut up!"  Then I realized...
    1Reply
  • Lynnette E.
    Rental Property Investor 路 TN 路 Member since 2018 路 2k+ posts 路 2k+ votes
    6y

    Jim, God has blessed you so you need to pass that blessing on to others.  All of the wealthy Nigerian princes that e-mail me tell me that they continue to be blessed by god because they share their wealth.

    I have several orphanages and other charities that I manage.  I can invest your money in caring for orphans and widows too!  I have several Nigerian princes who can attest to my charitable efforts.  My charitable efforts are well known across the planet.

    Once you allow me to invest this money god gave you in my many charitable efforts, god will see your good efforts and will continue to bless you with more wealth.

    Also, for your information, my orphanages and other charitable organizations are non-profit and your gifts are totally tax deductible.

    Also, I do NOT take ten percent of donations for my efforts.  I am not greedy.  5% is fine.

    4Reply
  • Jody Sperling
    Omaha, NE 路 Member since 2020 路 611 posts 路 665 votes
    6y

    I love that you found 873k. That means the guy who stuffed it in the wall spent 127k before he got popped by Uncle Tony.

    If the cash is burning holes in your pockets, I'll reluctantly you loan me some. I'm partnering with an out-of-state investor on a flip and fighting with the bank over funds. I'll even give you a healthy 9% return.

    But if you want my honest advice, the best possible use of all that money is Powerball tickets. At two bucks a pop you can snag 436,500 tickets and that gives you a 1 in 292,201,338 odds of winning 436,500 times.

    2Reply
  • Christopher B.
    Investor 路 Southeast, MI 路 Member since 2016 路 425 posts 路 184 votes
    6y

    Like at least one person said above, thing about your goals for life, and that will guide you some.  If you are flipping, then you already know how that works, and the returns from it.  You may want to also consider investing for passive income, so your money keeps paying you and your family.  That's where investing in a syndication like Joe mentioned could come in handy. 

    It all comes down to goals.  That's what I tell anyone who comes to me for advice or to invest.  I like to understand that first.  

    0Reply
  • Doug Pintarch
    Rental Property Investor 路 Harrisburg, PA 路 Member since 2018 路 369 posts 路 406 votes
    6y

    @Jim K.

    A few questions first, Jim...

    Do you have lots of "Drive" and a newfound "Passion" for real estate investing?   If not, the money won't help you and this entire post is moot.

    Have you started "Building your brand" yet?  Because you'll need to impress people you may run across who have no idea how successful you are convinced you'll be.

    Did you form your LLC yet? If not, have you googled "Forming an LLC for no apparent reason but I know I want need one" at least 2 dozen times and printed the results for your "Research Notebook"??

    Oh, wait...you're actually a real estate investor already.   Never mind all the above that I pulled off the recent post section to help you out.

    Enjoy dreaming of tropical beaches and little umbrellas in your drinks. Then go fix the wall and get back to making money!

    :)

    6Reply
  • Steve Vaughan
    Rental Property Investor 路 East Wenatchee, WA 路 Member since 2014 路 10k+ posts 路 16k+ votes
    6y
    Originally posted by @Jim K.:

    Bought a teardown at a tax auction, went in and knocked a hole in one of the kitchen walls, found three stud bays filled with plastic-wrapped used bills, mostly twenties but lots of fifties, hundreds. $873K total. There was a Glock lying on top of one of the stacks, bit rusted, been there a while.

    How should I invest this money? Please help. I'm so confused.

    Need to replicate and scale this investing method.  What are you doing opening walls?  Need to work on your business, not in it.  

    I don't know what a hammer looks like because I hire out everything and source deals across the country in my underwear. I suggest buying every hood teardown house and opening every wall to scale this. McRib Seminar Solutions will have just the ticket.馃憤

    And Joe Splitrock- you mentioned an LLC. What is that and should I open one too?

    6Reply
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