How to invest $900K in 2018

El OchoCinco said:
If you are asking about your retirement money then putting it all in the stock market at your age is akin to gambling. Find passive income flows such as real estate rental properties.

Depending on where you live for $800,000 you can buy several studio apartments and rent them out and be cash positive from day 1. If not you can use mortgage financing and invest in several properties worth over $2 million and get a property management company.

The skill is in finding the right properties in good areas with regular demand. This way in addition to rental income your principle grows as the properties maintain value or hopefully grow while tenants pay off your mortgage. This requires a lot of time and effort at first but is worth it. I am now at 4 properties and looking for the 5th but it is not a quick flip game anymore. Long term buy and hold and in 20 years with the money you have now you will have 5- 6 properties with little to no debt, positive cash flow and increased property value. You can sell 1 if needed for large influx of cash or just keep generating more.

It is not as easy as it sounds and I have been at it for 20 years myself so I have some experience. But 20 years later you accumulate a lot of equity and cash flow. Put some of your cash flow in the stock market to grow but long term wealth has to be diversified.
More...

valid suggestion.

however, rentals are not an investment... it's like a job.
 
dozu888 said:
valid suggestion.

however, rentals are not an investment... it's like a job.
More...

And investing in the market is not work? Everything is work unless you are lazy. Rentals are an investment because I am investing in the property and the cash flow. I also do full screening before renting and credit/employee checks. If someone is not paying their rent they get evicted. However month to month all I do is get rent checks and pay bills and once or twice a year call in a repair man for something simple. I have manager than handles most of this freeing me up for more investments.

Nothing is easy but hard work pays off.
 
El OchoCinco said:
And investing in the market is not work? Everything is work unless you are lazy. Rentals are an investment because I am investing in the property and the cash flow. I also do full screening before renting and credit/employee checks. If someone is not paying their rent they get evicted. However month to month all I do is get rent checks and pay bills and once or twice a year call in a repair man for something simple. I have manager than handles most of this freeing me up for more investments.

Nothing is easy but hard work pays off.
More...

throw everything in QQQ... there is no 'hard work', other than stomaching the draw downs lol... but everything has draw down.... it's just not as obvious as rentals.

the psychological aspect may just be the most 'hard work'.
 
$900K not enough? I spent less than total for the 4 properties to buy them. 20% down and financed it is more than enough. If you are in mid size city you can get 2 to 3 studio apartments 100% cash. Not looking to buy office buildings here but it is more than enough to not even need to use all of it. I am telling you from personal experience. Real estate financing can be gotten if you put 20% down minimum and get the property appraised.
 
OP already has money in an IRA so he already has exposure to the market. He has free cash he is asking about...why over leverage everything in buy and hold.
 
You must log in or register to reply here.
Back
Top