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?
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.
Last edited by 1.8TIM; 03-19-2012 at 01:01 PM.
$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...
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!
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.
Last edited by AIRider; 03-19-2012 at 08:14 PM.
2013 JSW TDI, Nav, Kessy - White, Pano roof, Canvas Back dog/cargo liner
13% tint, 30% on Pano, Fog lights, rear spoiler, mud guards, (to be installed).
Replaced - Trouble free 2011 Sportwagen TDi Salsa Red. Oo>=====v=====<oO/
2011 Kia Optima SX (Turbo) Corsa Blue - 13% Tint, LED interior lighting, "Big Boy" horn, T badge. BFGoodrich G-Force Sport Comp 2
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
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)
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)
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
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).
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.
Originally Posted by Turbiodiesel!
- 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.
May answer will probably be a bit different than everyone else's, too.
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....