can someone please help me out! very desperate - irresponsible person

Member since 2024 · 17 posts · 6 votes

Hi,

I have $400k that my husband left me after the divorce. I never worked my whole life and I'm not finding jobs...seem to be procrastinating. Im also very irresponsible with money. I need to do something with this money so it's locked for me to dont spend everything and also I need to figure out a way to get some income every month so I can support myself. Can you please give me suggestions? I need to decide asap!

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Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

A “desperate and irresponsible person” should not invest in real estate and definitely shouldn’t lend out their money. You might as well light it on fire…

If you need to invest it more dangerously than a CD buy a home and rent spare rooms to co-workers, friend, relatives. But this also leads down bad paths for the desperate and irresponsible. Maybe buy a duplex, live in half and have a professional property manager handle the other half. If you currently rent you’ll save that money. If you currently own and it’s appreciated, sell tax free. If you currently own and it hasn’t appreciated, NM, go back to the CD.

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
2y
Talk to a local property manager who also has a real estate license. If you buy a house with cash, it has to make sense and the amount of money you get each month may not be worth it. Other options are term deposits where your money is locked in and you can't get at it. You can also set up a bank account (if you get a good interest rate) that requires you to go in in person to access it. Set up a second account that you can access online and have $X each month transferred automatically to that second account which you can then use for your expenses.
$400K is a lot, but if you aren't working, it won't last forever.
3 Reply
Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
@Isabella Mendes
Put it somewhere that is lower risk and will provide you with decent cash flow. Do not be risky with it. Might also want to talk to a financial advisor or broker dealer as well for options
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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
2y
Put it in a CD. $400k will return almost $2k/mo and the same as a $12/hr job.
7 Reply
Isabella Mendes
OP
Member since 2024 · 17 posts · 6 votes
2y
Yes but there's inflation...isnt it better to just buy a real estate property? like this I will still have the money + some monthly income?
0 Reply
Isabella Mendes
OP
Member since 2024 · 17 posts · 6 votes
2y
also thought about lending money with hard lending... what do you guys suggest?
2 Reply
Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
2y
A “desperate and irresponsible person” should not invest in real estate and definitely shouldn’t lend out their money. You might as well light it on fire…
If you need to invest it more dangerously than a CD buy a home and rent spare rooms to co-workers, friend, relatives. But this also leads down bad paths for the desperate and irresponsible. Maybe buy a duplex, live in half and have a professional property manager handle the other half. If you currently rent you’ll save that money. If you currently own and it’s appreciated, sell tax free. If you currently own and it hasn’t appreciated, NM, go back to the CD.
14 Reply
Alan F.
Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
2y
Quote from @Isabella Mendes:

also thought about lending money with hard lending... what do you guys suggest?

Whoa, slow your roll. This is when mistakes are made. Do just like Bill said, get a 6mo cd & breathe. Take that time to educate yourself & formulate a plan. There are honest people to get advice from, but there's even more that want your $. FWIW at least your in Florida, there's opportunity there.
2 Reply
Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
2y
Would NOT recommend investing in real estate if you are a procrastinator!
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
2y
Quote from @Isabella Mendes:

also thought about lending money with hard lending... what do you guys suggest?

No. If you are irresponsible and desperate, this is a recipe for disaster. go for the slow and steady option and learn to manage your money. I'd avoid jumping into real estate. spend time learning how it works and if it is a wise choice for you.
4 Reply
V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
2y
Put your money in a HYSA and go find a job. Then, decide what to do. You seem like an absolute mess, straighten yourself up before you get into the real world.
7 Reply
Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
2y
As others have mentioned, you should pause before making any long-term investments.

Take some of the money and maybe consider learning a technical skill.

$400,0000 x 5% is about $20,000 a year.
I think you get about 5% at a bank with no risk.

Have you determined what your annual budget is?

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Isabella Mendes
OP
Member since 2024 · 17 posts · 6 votes
2y
Quote from @Michael Smythe:

Would NOT recommend investing in real estate if you are a procrastinator!

Why not? What about if I live in the real estate wouldn't this help me?
0 Reply
Michael Dumler
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
2y
@Isabella Mendes, if house hacking is an option, by all means, explore the strategy. That being said, what most people are trying to get across, is don't purchase an asset immediately for the sake of doing so. Real estate investing is still risk-inherent. Needless to say, you need to take precautionary measures to affirm you're acquiring a sound deal. Read, "Real Estate by the Numbers" by J Scott and Dave Meyer. The resource provides a good overview of financial literacy fundamentals and sound real estate assessment. As someone who is "very irresponsible with money", do not rush into any investment.
2 Reply
Isabella Mendes
OP
Member since 2024 · 17 posts · 6 votes
2y
Quote from @Basit Siddiqi:

As others have mentioned, you should pause before making any long-term investments.

Take some of the money and maybe consider learning a technical skill.

$400,0000 x 5% is about $20,000 a year.
I think you get about 5% at a bank with no risk.

Have you determined what your annual budget is?

My annual budget is 50k. With the inflation the way it's thats pretty much nothing... I need something that will help me out more monthly.
I saw these two properties and I was thinking I can create an extra bedroom and rent it out? And live in one of them?
https://www.zillow.com/homedetails/11111-Biscayne-Blvd-305-M...
https://www.zillow.com/homedetails/7920-East-Dr-APT-14-North...
0 Reply
Isabella Mendes
OP
Member since 2024 · 17 posts · 6 votes
2y
What about hard money lending?
Thanks
0 Reply
Isabella Mendes
OP
Member since 2024 · 17 posts · 6 votes
2y
Quote from @Michael Dumler:

@Isabella Mendes, if house hacking is an option, by all means, explore the strategy. That being said, what most people are trying to get across, is don't purchase an asset immediately for the sake of doing so. Real estate investing is still risk-inherent. Needless to say, you need to take precautionary measures to affirm you're acquiring a sound deal. Read, "Real Estate by the Numbers" by J Scott and Dave Meyer. The resource provides a good overview of financial literacy fundamentals and sound real estate assessment. As someone who is "very irresponsible with money", do not rush into any investment.

How could I do the house hacking? Would it work with apartments?
0 Reply
Michael Dumler
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
2y
@Isabella Mendes, read, "The House Hacking Strategy" by Craig Curelop.
1 Reply
Isabella Mendes
OP
Member since 2024 · 17 posts · 6 votes
2y
Quote from @Alan F.:

Quote from @Isabella Mendes:

also thought about lending money with hard lending... what do you guys suggest?

Whoa, slow your roll. This is when mistakes are made. Do just like Bill said, get a 6mo cd & breathe. Take that time to educate yourself & formulate a plan. There are honest people to get advice from, but there's even more that want your $. FWIW at least your in Florida, there's opportunity there.

What kind of opportunity?
0 Reply
Byron VallesPro Member
MSFP, CFP, Financial Advisor · San Francisco Bay Area · Member since 2020 · 66 posts · 53 votes
2y
I'm sorry to hear about your divorce and the situation you find yourself in now, Isabella.

I agree with what a lot of folks have already said here. It's not a good idea to make investment decisions when you are not in an emotional place to do so. I've witnessed this go wrong a few times.

If you need to make a decision right away a CD would pay decent interest and allow you to get your thoughts together before making another more long-term decision.

Have you considered consulting a professional for financial advice? I know financial advisors sometimes get a bad rep (mainly those focused on sales) but many others have a legal fiduciary obligation to you and could help coach you in the right direction.
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2 Reply
Alan F.
Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes
2y
Quote from @Isabella Mendes:

Quote from @Alan F.:

Quote from @Isabella Mendes:

also thought about lending money with hard lending... what do you guys suggest?

Whoa, slow your roll. This is when mistakes are made. Do just like Bill said, get a 6mo cd & breathe. Take that time to educate yourself & formulate a plan. There are honest people to get advice from, but there's even more that want your $. FWIW at least your in Florida, there's opportunity there.

What kind of opportunity?

Florida is historically a good state for real estate appreciation (there can be some ups n downs) its also more landlord friendly than other states. It has a relatively good business environment, and theres a robust REI community. There's alot of knowledge to be garnered here on the forum, but its not going to happen overnight. Like everything in life it takes work to make it happen.
0 Reply
Jessie Cruz
Specialist · Overland Park, KS · Member since 2018 · 58 posts · 30 votes
2y
I agree that a financial advisor can look at all the options and help you come to a decision so you can make the wisest decision at this time. After that, you will need to get your emotional self together and healthier so you can learn to manage your money better. The $400,000 is a gift. I see that you're trying to make a good financial decision so it doesn't get squandered so don't make any hasty decisions until you get more FACTS. Best wishes kiddo!
0 Reply
Ben Brown
New to Real Estate · Denver, CO · Member since 2020 · 43 posts · 5 votes
2y
@Isabella Mendes I would guess you are not an accredited investor. Hard money lending is not an option for you. You could do PML, but in your situation, being a PMP might be a better fit. Yes, investing in real estate can provide you better returns vs the market (no need to contact an advisor). You don't need to contact a real estate agent. You will be able to look at all of the details of a real estate investment before investing.
0 Reply
David F.
Member since 2018 · 113 posts · 135 votes
2y
@Isabella Mendes

If you’re worried about money, the best things you can do for yourself is learn to get and keep a job. The 400k won’t last forever.

I recommend not making emotional rash decisions (OMG don’t buy real estate or lend right now!), and instead trust the advice you’re getting here. I recommend the CD at 5% for 6-12 months and learn to keep a job.

Your strong financial foundation needs to start with developing a work ethic and appreciation for the value of money. You’ve told us that you don’t have these traits YET. I didn’t either 10 years ago, but they can be developed.
You’re trying to play high level financial literacy by worrying about inflation. Stick to the basics. CD and get and keep a job.

3 Reply
Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
@David Fern
I don’t believe this is a real person based on private message I received.
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Martin Kuo
Member since 2024 · 2 posts · 0 votes
2y
Invest in dividend paying REITs
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