Found $873K, need help investing it

Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 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

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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes

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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Brian Ellis
Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes
6y
Whats the R-Value on that type of insulation?
8 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
6y
Originally posted by @Steve Vaughan:
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.👍

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

I am glad you asked about the LLC. Many first time investors overlook this important step. Here is what you need to know:
1. You always want multiple LLC. I have 136 LLC and many of them own other LLC. I have so many LLC that you have to go through five or six before you find me. What attorney would even waste their time?
2. An LLC is like an invisible shield that stops anyone from suing you. Someone comes after you, just say "sorry bro I got an LLC". I wear a t-shirt under my shirt that says LLC, just in case.
3. An LLC doesn't owe any taxes, because it is a pass through entity. (CPA all agree it is a pass through entity, so don't think I am making that up.)
4. Be careful not to pierce the corporate veil. This basically means let your henchman do your dirty work and you stay clean.
(I am not an attorney and this is not legal advice. Humor is protected speech, so don't blame me when things go wrong.)
9 Reply
Ronald Troy Whidbee
Real Estate Agent · New City, NY · Member since 2018 · 21 posts · 2 votes
6y
@Jim K. I would love to help there’s some good deals in NY. If interest send me a email I can send you some stuff.
0 Reply
Doug Pintarch
Rental Property Investor · Harrisburg, PA · Member since 2018 · 369 posts · 406 votes
6y
@Joe Splitrock Well said, sir!!
1 Reply
Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
6y
@Jim K.

I think you can claim no tax liability for finding the money. Just claim that it is a gift from the prior owner of the house to you.
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Steve Morris
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
6y
I agree, but a couple of points and correct me if I'm off base. Each property should be in a LIMITED LIABILITY Corp for those reasons:
1. You always want multiple LLC. I have 136 LLC and many of them own other LLC. I have so many LLC that you have to go through five or six before you find me. What attorney would even waste their time?
Am a broker and if your state has a business registry, I can find you. About your best defense is to get a 3rd party (prop mgr or atty) as the listed agent.

2. An LLC is like an invisible shield that stops anyone from suing you. Someone comes after you, just say "sorry bro I got an LLC". I wear a t-shirt under my shirt that says LLC, just in case.
Well, they can sue you, their recourse is limited to the LLC and its holdings. However, that is good if you have a lot of stuff at stake besides the property in the LLC.

3. An LLC doesn't owe any taxes, because it is a pass through entity. (CPA all agree it is a pass through entity, so don't think I am making that up.)
I hold apartments in an S-Corp which my atty says gives me a liability shield. That way I can pay myself a salary and get the profit numbers to my liking for tax purposes. More complicated admittedly.

4. Be careful not to pierce the corporate veil. This basically means let your henchman do your dirty work and you stay clean.
I agree.
1 Reply
Steve Morris
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
6y
Whats the R-Value on that type of insulation?
I'd look at the $/SqFt myself.
0 Reply
Steve Morris
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
6y
I think you can claim no tax liability for finding the money. Just claim that it is a gift from the prior owner of the house to you.
I'm assuming you're not serious? Gifts have tax consequences also. About the worst thing an owner can do is "gift" his kids an apartment tax-wise.
0 Reply
Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
6y
Originally posted by @Joe Splitrock:
Originally posted by @Steve Vaughan:

I have 136 LLC and many of them own other LLC.

Thank you, Joe. 136 LLCs is the exact number I was thinking. 1 for every 28sqft plus 1 per room, 1 for the porch, yard, fence, garage, sidewalk, driveway, and roof. Try suing me now.

In addition, as you get to over 100 LLCs, you start getting into inverse taxation. This is a sophisticated concept where the IRS starts paying you. 99 LLCs won't cut it. Close only counts with horseshoes, hand grenades and stretching carpet after all.

That concept is also covered in the McRib Secret Seminar Solution Software I beleive, but confirm with @Jim K.

5 Reply
Johnny Wolff
Rental Property Investor · Kansas City, KS · Member since 2015 · 45 posts · 29 votes
6y
WOW - this is my favorite real estate investment story EVER. Congrats man! I think Midwest real estate is really where it's at.
1 Reply
Daniel McNulty
Financial Advisor · Indianapolis, IN · Member since 2018 · 294 posts · 165 votes
6y
The magic of this banter is only surpassed by the occasional serious comments on what to do with it. I can officially die happy!
13 Reply
Danny Webber
Real Estate Broker · Austin, TX · Member since 2016 · 834 posts · 449 votes
6y
Bro.....
Pay off any high interest rate debt, hold cash for next downturn unless you find deals
0 Reply
Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
6y
Originally posted by @Daniel McNulty:
The magic of this banter is only surpassed by the occasional serious comments on what to do with it. I can officially die happy!

Right?! I guess Jim needed a 'coffee is hot' disclaimer. Or maybe the one at the top of escalators. 'Get off' or whatever simple thing it says.
THIS IS A JOKE, PEOPLE!

6 Reply
Troy B.
Rental Property Investor · Pittsburgh, PA · Member since 2014 · 26 posts · 19 votes
6y
@Jim K.
I messaged you this AM and here I come to find a thread about you finding money in a wall haha! Regardless if this is real or not, I hope you're doing well and want to pick your brain about any roofing (box gutter) contacts you may have. We both know the rainy summer will show it's face eventually.
0 Reply
Jim K.
OP
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
6y
Unbelievable how many friend requests I've gotten off this...let's do coffee and discuss my stud bays.
6 Reply
Darrell M.
Flipper/Rehabber · SOUTH JERSEY · Member since 2020 · 6 posts · 0 votes
6y
@Chris lol
0 Reply
Jim K.
OP
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
6y
Originally posted by @Joe Splitrock:
Originally posted by @Steve Vaughan:
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.👍

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

I am glad you asked about the LLC. Many first time investors overlook this important step. Here is what you need to know:
1. You always want multiple LLC. I have 136 LLC and many of them own other LLC. I have so many LLC that you have to go through five or six before you find me. What attorney would even waste their time?
2. An LLC is like an invisible shield that stops anyone from suing you. Someone comes after you, just say "sorry bro I got an LLC". I wear a t-shirt under my shirt that says LLC, just in case.
3. An LLC doesn't owe any taxes, because it is a pass through entity. (CPA all agree it is a pass through entity, so don't think I am making that up.)
4. Be careful not to pierce the corporate veil. This basically means let your henchman do your dirty work and you stay clean.
(I am not an attorney and this is not legal advice. Humor is protected speech, so don't blame me when things go wrong.)

Joe, you're a treasure.
Steve, thank you.
3 Reply
Justin B.
Investor · Gaithersburg, MD · Member since 2013 · 659 posts · 441 votes
6y
So, this is the perfect situation to get into loan sharking. Take that money and start lending it out to people at extremely high interest rates. The shadier the borrower, the high the interest rate and return. Forget real estate. With that much cash and loan sharking you'd be a multi-millionaire in an instant. Don't forget to set aside about 10% to hire some "leg breakers" as you are definitely going to have some people try and cheat you and we just can't have that. This also means the IRS never has to know (no taxes, not even on your gains), since loan sharking isn't regulated by them so you're in the clear!

and just to be clear, this is not a serious reply, just trying to create some laughter. Never know with the Internet these days...
1 Reply
Matt M.
Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
6y
@Jim K.
You should invest with Clayton Morris. Probably the best return on your money. Since it wasn’t really yours, you’ll get nothing back from Morris Invest.
Best things I’ve ever found was a 67 Chrysler 4 door land yacht that paid me $250.
Good Post Jim!
3 Reply
Jeff Shumway
Lender · Tampa, FL · Member since 2020 · 182 posts · 90 votes
6y
I don't know how "common" it is to find $873k but that is an amazing windfall. Congratulations. I would possibly consult with a tax attorney or seasoned financial pro. I could forsee you running into problems with IRS or other federal agencies. People who have a large amount of cash draw suspicion that the money could be from illegal proceeds or laundered in some way. Real estate professionals and loan officers are trained to specifically avoid and report situations like this. As far as the gun is concerned. I would immediately call your local police and just tell them the truth. If you want to mention the money it's up to you. What if that gun was used in a crime, maybe even used in a homicide? I would want the good karma of knowing I did the right thing by turning it in. Police/FBI can trace the barrel markings with any slugs found at a crime scene to trace it back. So long as you found it and are turning it in you would have nothing to worry about. I was a police officer for 7 years and it was common for people to turn in old guns just to get them off the streets.

0 Reply
JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
6y
Originally posted by @Steve Vaughan:
Originally posted by @Daniel McNulty:
The magic of this banter is only surpassed by the occasional serious comments on what to do with it. I can officially die happy!

Right?! I guess Jim needed a 'coffee is hot' disclaimer. Or maybe the one at the top of escalators. 'Get off' or whatever simple thing it says.
THIS IS A JOKE, PEOPLE!

LOL. No doubt.
I think Jim should immediately 1031 this week into something else. Nothing says tax shelter like turning an abandoned dump into a million dollar multi :D

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4 Reply
Brandon Schwab
McHenry, IL · Member since 2019 · 21 posts · 26 votes
6y
Congratulations! That's awesome... once you validate the money is clean and do your due diligence to actually invest it... I would strongly consider investing in boutique senior living. The baby boomer demographics is growing by 10,000 per day. It's a great real estate + health care business combination... plus you make a huge impact on peoples lives.
0 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
6y
Originally posted by @Brandon Schwab:
Congratulations! That's awesome... once you validate the money is clean and do your due diligence to actually invest it... I would strongly consider investing in boutique senior living. The baby boomer demographics is growing by 10,000 per day. It's a great real estate + health care business combination... plus you make a huge impact on peoples lives.

Out of curiosity, how is there 10,000 more baby boomers every day? If anything I would expect that demographic to be decreasing daily.
1 Reply
Justin B.
Investor · Gaithersburg, MD · Member since 2013 · 659 posts · 441 votes
6y
I think he meant that they are retiring at that rate (or needing that type of housing going forward), not more of them being created :).
1 Reply
Account Closed
Real Estate Agent · Cebu, Philippines · Member since 2020 · 5 posts · 0 votes
6y
@Jim K. Real estate investment on foreign countries such as PH
0 Reply

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