How to best grow $200k?

Question

What would you do? You have $200k and need to grow it over the next 3 years at which point you will need to use it for another project. No goal amount has been set but at a minimum it needs to keep up with inflation. The two options you are looking at are private lending or stick it in the stock market. Buying and selling real estate is not an option due to the volatility of the market and you need the cash back out in 3 years at the latest, possibly sooner. Keep in mind you know absolutely nothing about being a private lender so allow time for a learning curve.

Scott Wolf · Answer

YOLO!!!!!!!! GME baby!

*Nothing in this message is financial advice.  Please consult an attorney and investment professional before doing anything

In all seriousness, I'd probably do private money lending or invest with a fund that does similar, and has a great track record.

Ujwal Velagapudi · Answer

You could invest as an LP into a fund that does lending, one that knows the industry, has the skillset, etc. Or you can partner with one doing it, learn, and invest your own capital doing it. Or find some family/friends/local investors that are experienced, you have some personal relation with, that you can help finance.

Adam Schneider · Answer

@Mindi B.. You mentioned a 3 year timeline--one question is, whether that 3 year mark is an exact date or a ballpark date. That makes a difference in your strategy. If you are doing private lending directly to the end borrower, the risk is that the end borrower is unable to pay off the loan on the exact date you need the money back. The loan payoff is dependent on either the end borrower having a successful refi, or the end borrower having a successful sale transaction. If you are lending to a lending business (you would be called a subscriber, as an example, if it's part of a PPM deal), then you would be paid at consistent intervals and would know the exact date that the money was being returned. If you want to talk in more detail, feel free to PM me.

Daniel McNulty · Answer

@Mindi B.

It depends if you are looking for stability or total return. Private lending would be more stable but the total return on a rising stock market could be greater.

How to best grow $200k?

Most Popular Reply