What would you do with $500,000.00?

[1.8TIM]

Lets say you had some rich uncle you never knew existed, he passes away and leaves you $500,000.00.

Besides the inheritance- Your mortgage has been taken care of, you have no car payments, and your child/children have already had a trustfund established, so they're taken care of as well. Between you & your spouse's income, you're banking just under 200k a year, with basically no real expenses.


What would you do with the money? Where would you put it, if you were told you had to double it as quickly as possible? What would you invest in?

[ValveCoverGasket]

What would you do with the money? Where would you put it, if you were told you had to double it as quickly as possible? What would you invest in?

i would put it all on red.

seriously? double it as quickly as possible?

[1.8TIM]

seriously? double it as quickly as possible?

yeah- thats exactly what i said.

your motivation to double it as quickly as possible, would be because at that point, you would be given more, on top of what you've just made.

[GeoffD]

I'm 53 so my answer is going to be different from others. I'd put it in residential income property. I'm not going to take on the level of risk where I could double it quickly.

[jnm2.0t]

That would get me about a 20% down payment for the neighborhood I want.

[ValveCoverGasket]

yeah- thats exactly what i said.

your motivation to double it as quickly as possible, would be because at that point, you would be given more, on top of what you've just made.

its odd that getting more is contingent on gambling with the first payment...

lately ive been pretty jazzed on mREITs... check out NLY, AGNC, IVR, etc... $500k in a few of those would be a pretty nice side income

[1.8TIM]

its odd that getting more is contingent on gambling with the first payment...

yeah- i did make it confusing.

I guess i should've worded my first post more like this-

Lets say you had some rich uncle you never knew existed, he passes away and leaves you a large sum of money. Your first payment is for $500,000.00. Once you have doubled that, you will be entitled to your second payment of XXXXX.XX

I hope that makes a little more sense. I guess I can also leave out the "as quickly as possible" part.

[AIRider]

Buy a condo, and rent it out. Sell in 15 years, and buy another in newer building. Repeat.

[ValveCoverGasket]

Buy a condo, and rent it out. Sell in 15 years, and buy another in newer building. Repeat.

actually, going with that theme... id probably just try to buy an apartment building.

$500k should be enough for a downpayment on something like that... maybe not the nicest one in town, but ive definitely seen ones for sale near me in the mid million or so range. being a college town here theyre nearly always full...

[1.8TIM]

Buy a condo, and rent it out. Sell in 15 years, and buy another in newer building. Repeat.

Real Estate- Good idea! Like Tony Soprano always said- "Buy land, cuz God aint making any more of it".

Probably a good idea to follow current trends and purchase condos in an area that's up & coming. 20% down, rent it out and let someone else pay it off while pocketing a little something in the meantime. Flip it in 15 yrs for some serious money.

Thanks, guys.....keep it coming!

[1.8TIM]

actually, going with that theme... id probably just try to buy an apartment building.

$500k should be enough for a downpayment on something like that... maybe not the nicest one in town, but ive definitely seen ones for sale near me in the mid million or so range. being a college town here theyre nearly always full...

Hmmm....thats another possibility. If the area isn't that great, just turn it into Section 8 and have the gov't send you a check each month. Might not be as much as renting it out yourself, but the checks will be guaranteed each month, even if the place is vacant.

[twilk]

Yeah, no one has lost money in real estate lately......

[GeoffD]

Yeah, no one has lost money in real estate lately......

Anybody who says this is likely to only buy things at the top of a bubble. You hear the same about the stock market after each big correction. The time to buy things is when nobody else is buying.

[twilk]

Anybody who says this is likely to only buy things at the top of a bubble. You hear the same about the stock market after each big correction. The time to buy things is when nobody else is buying.

I'm not saying it's not a good time to buy, but the idea of doubling money quickly in real estate may not be a great plan. I'm working on buying some now myself, but not with any expectation of doubling quickly.

And the stock market drop did pretty well for me overall.

[AIRider]

I learned to realize that there is no such thing as quick money, or quickly doubling anything, unless you get lucky, but that's a very small probability.

Wealth is created slowly. Richness comes and goes, but wealth stays for generations.

So if you want to double your 500k, I say take it slow, and be smart.

Real estate might not be the smartest now, then or in the future, but I'm thinking long term, 10,15,30 years.

[cwescapexlt4x4]

Yeah, no one has lost money in real estate lately......

Now's the time to buy my friend... and you have the ability to buy with cash, even better time!
We have purchased additional income properties as monthly income and for longer term investments .

[Vision33r]

RE is rock solid. It's all about location.

This is the best time to buy, in fact with 500k I wouldn't even use all that cash. I would borrow more to get a nice income property and rent it out. A nice purchase can last generations.

[1.8TIM]

RE is rock solid. It's all about location.

This is the best time to buy, in fact with 500k I wouldn't even use all that cash. I would borrow more to get a nice income property and rent it out. A nice purchase can last generations.

the neighborhoods have already been chosen if that's the route that is followed. 400-500k can still purchase a condo in these areas that will easily be untouchable within another 10-15yrs.

[Matt15]

1) Ferrari 360 - $100k
2) 2bdrm investment condo paid in full and rented out in up and coming area - $300k
3) $100k in the bank
4) Work and rent-to-live in desired location

I'm 22 and would not hoard all of it under my pillow nor risk any of it to the market. Live a little

[1.8TIM]

1) Ferrari 360 - $100k

Purchasing a hundred thousand dollar car would be THE LAST thing I'd do.

2) 2bdrm investment condo paid in full and rented out in up and coming area - $300k

This would be a great idea. But for $300k, it would most likely be a 1bdrm. In up & coming neibhborhoods, a nice 2bdrm is alreadly in the 450-470k range (at least the areas around here).

3) $100k in the bank

$100k in a bank these days, is going to gain a little over a thousand dollars interest a year. How sad is that??

4) Work and rent-to-live in desired location.

That may be a good idea. Choosing to rent = Lots of options. Not being stuck and can get up & go if you'd like.

I'm 22 and would not hoard all of it under my pillow nor risk any of it to the market. Live a little

I'm 36 and would love for my wife (37) and I to retire, comfortably, in the next 10-12yrs while we're still young enough to enjoy our kids. I would also not want to risk it in the market. As far as "Live a little"- Maybe I'll build a '32 Ford roadster or something. Nothing too crazy- Just enough to get the spending out of my system. LOL

[BetterByDesign]

Not sure what you mean by "as quickly as possible," but with $200K income and little expenses the $500K is bascially "play"

Its not enough to flip and dealing with a rental property imo is like watching paint dry (it is not "quick" by any means)

Currency trade.

[mauslick]

I would go with the diversified spending
take a 100k and just waiste it on self indulgence (probably some surf trips, a car, some fun)
100k in gold and silver (physical)
bank 100k

and look around at real estate look for residence/vacation rental combo (I live on maui so that's possible)...... and see what you can get with a 100k down payment,
keep the last 100k for keeping it all going

but that's just me
there are probably smarter ways to lose it all

[1.8TIM]

Not sure what you mean by "as quickly as possible," but with $200K income and little expenses the $500K is bascially "play"

Its not enough to flip and dealing with a rental property imo is like watching paint dry (it is not "quick" by any means)

Currency trade.

I probably should've left out the "as quickly as possible" part....but the whole point of wanting to double the amount, is because once that's been accomplished, you would be entitled to a second payment.

I have to disagree with you on flipping property- That definitely depends on where you're buying. I know people who have bought property in up & coming areas and within a decade, have either flipped it for hundreds of thousands more, or now have some serious income from simply renting it out.

I have a family friend who purchased a 2bdrm apt in Long Island City Queens in 1998. She lived in it for a couple of years, put a down-payment on a 1bdrm in the same building, currently lives in the 1bdrm, rents out the 2bdrm...and what she's charging in rent on the 2bdrm, completely pays the mortgage & maintanance on it and a huge chunk of the mortgage on the one she's currently in (2bdrm apts in this area are going for 600k+...people who rent them are paying like 3300-3500 a month).

[maskedSONY]

http://www.macrobusiness.com.au/2012...umpy-recovery/

While I'd normally say put that money to work in RE, have fun with it, considering the housing market is still screwed up beyond repair.

[titleist1976]

- I'd have a solid downpayment on a new house.
- Keep a surplus of money in an account to eat into while renting out my current upside down house and mortgage.
- Buy a fun little car (hopefully somewhat inexpensive)
- Diversify the rest.
- max the hell out of an Ind K so I wouldn't get killed on the remainder.
- Some Reg D stuff, a brokerage account,

I'll be in this position in the future. My uncle has no other family and has a little house is Redwood Shores. That alone... I'm guessing is in the $700k range.

[SidVicious]

May answer will probably be a bit different than everyone else's, too.

Tithe 15%
Buy a house in the area I live in($180k or so if I couldn't get one at auction for mad cheap)
Buy a decent car so I can
Resto-mod my Bug
Invest/CD/Money market the rest for a decent interest rate

Wish we were making $200k per year....