Real Estate Broker · Johns Creek, GA · Member since 2009 · 870 posts · 664 votes
You have inherited $1,000,000 USD from uncle Joe and you are seeking 10% return of $100,000 a year how would you invest this money in an environment where money market is paying you less than 1%? In terms of rental properties you prefer not to lock up more than 30% in real estate.
If investing in the stock market, how would position yourself in 2012? If investing in a business, what type of business who you invest it in?
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y
Originally posted by James Park:
You have inherited $1,000,000 USD from uncle Joe...
According to the email, I actually inherited it from a Arabian Sheik, and it was $50M...I just need to provide my bank account information to get it!
Regardless, if I couldn't put it all into real estate, I'd probably lend it out. I imagine I could probably generate 10% with relatively low risk this way...
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y
Originally posted by James Park:
You have inherited $1,000,000 USD from uncle Joe...
According to the email, I actually inherited it from a Arabian Sheik, and it was $50M...I just need to provide my bank account information to get it!
Regardless, if I couldn't put it all into real estate, I'd probably lend it out. I imagine I could probably generate 10% with relatively low risk this way...
Real Estate Broker · Johns Creek, GA · Member since 2009 · 870 posts · 664 votes
14y
Let's also assume you've seen enough episodes of American Greed on CNBC and you will not trust turning over your money to a hedge fund manager or become loan shark. You want to control this money with conventional investing.
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
14y
In an Orange County CA commercial real estate project, of some type.
OC has some of the highest valued R.E. in the world, and offers good potential for future appreciation.
>> this is NOT a solicitation for funding for s specific project.<<
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
14y
James Park, you are slowly taking away the options. Less than 30% in real estate, no lending, etc. I can tell you this, I would definitely not invest much of it in the market right now, as my faith in the stock market is very low right now. Another business, maybe, but I am agree lending would be an attractive option.
J Scott, Arabian? I thought he was a Nigerian Prince!
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
14y
James Park, define conventional investing. Step one, Down payments on a couple 20+ unit buildings, and then notes, liens, maybe an occasional dividend paying stock(has to be paying at least 10% annual to make me patient with it. Small business loans is another possible pursuit. There are more than you'd realize. Muscle cars... Enough said.
Homeowner · Sacramento, CA · Member since 2010 · 52 posts · 8 votes
14y
I won't comment on RE since I hold long term.
The stock market - one year is way, way too short a holding period. You may lose 20% in a year easy.
How is your risk tolerance?
Stocks/bonds/metals/equity investing has a long learning curve. If you are a novice at it, better hire a good money manager than to pay expensive lessons.
If you know the answer, please share it.
Being 32 years old Id put 200k into Reit's like Realty Income (O), etc that have a long history of dividend payouts and increases and let it compound, 300k in 900k worth of investment properties and take any of the cashflow and reinvest it & the other 500k into a IRA for retirement.
Investor · Union, NJ · Member since 2011 · 838 posts · 295 votes
13y
I would look for a nice Garden Apt. Style complex 30 to 50 units, 30% I'd take 20% and invest in stocks of tried and true companies paying above average dividends (10% or higher) Than I'd take the other 50% and use it for HMLs
That should allow me to quit my day job and start to REALLY enjoy life!!
Real Estate Broker · Johns Creek, GA · Member since 2009 · 870 posts · 664 votes
13y
I would put $300,000 into my own business (non real estate related), $300,000 in SFR rental properties yielding 15-20% return, $100,000 in USD cash (money market collecting 1.24% a year) and $300,000 in long commodities: Oil, Agriculture, Silver, and Gold. I would allocate a larger percentage to Oil and Agriculture as they are more undervalued than Gold and Silver.