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I have capital and need ideas

Joe Walsh

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I have $200k in capital. Any ideas on new startup or investments? I was thinking rental properties but have never gotten into real estate.

There are plenty of ways to make money. Choose something that makes you happy. Money shouldn't be the only motivation in life, you want to feel fulfilled.

As for real estate, I have purchased and/or sold at least 15-20 properties in the past 15 years. Buying/selling raw land is the easiest to deal with. Being a landlord and dealing with renters can be lame, so hiring a property manager would be a better use of your time. You don't want to waste your time being a handyman either. Residential properties cashflow if you're lucky, and you've got to wait years to build equity, but if you repeat the process over and over again you can build a nice nest egg. Me personally I find this a little boring, but I still dabble in real estate because they aren't making any more real estate and in the end land will increase in value.

You aren't getting any younger and time is precious, more precious than money, so make sure whatever you spend your time doing, you are enjoying yourself. Good luck!
 
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Ecom man

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My goal is to make it produce passive income in the future.



lol. I assure you. I have not slipped on any pee or inherited any money from no one. I am not even wealthy.



I just have a business that sells online. It is not a multi-million dollar business or anything like that but it has allowed me to work from home and do what I want financially and has given me some freedom. That is it. I am always still looking for more opportunists. From my business profits of course I use what I need for my own income but I try to take from it as little as possible for myself and so I reinvest some back into the same business to grow it and I save the other aside to have for other business opportunities. To better explain the 200k. I guess I used the wrong words buy saying it's just capital. This is a combination or personal capital saved and some of the business credit I have available.

I was really thinking of buying properties that I can flip, rent, appreciate and sale later in a low income city but after someone suggested where to find more information for this in the forum. I have been reading but to be honest with the landlord horror stories in these kinds of cities I am reconsidering it. If anyone know more about investing in these types of areas. Any advice?



Thanks for the tip. Was just looking for some advice. I definitely thought about it.



Exactly why. As suggested by others in that exact thread. Chasing new challenges and setting new goals.
All I can say to help is what I'm currently doing. This year my business is hopefully going to throw off 500-750k in extra profits. I'm going to invest that money into the stock market, rental real estate and into started a new business. The stock market and real estate should average approximately 10% per year growth. So with 500k in that it should be 1.5mil in 21 years. The 250k I'm going to use to set up a new business or two. They should be throwing off excess cash in 3-6 months. I contemplated just investing the money and living off the interest but I would get too bored and probably drive my wife nuts.
 

devine

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All I can say to help is what I'm currently doing. This year my business is hopefully going to throw off 500-750k in extra profits. I'm going to invest that money into the stock market, rental real estate and into started a new business. The stock market and real estate should average approximately 10% per year growth. So with 500k in that it should be 1.5mil in 21 years. The 250k I'm going to use to set up a new business or two. They should be throwing off excess cash in 3-6 months. I contemplated just investing the money and living off the interest but I would get too bored and probably drive my wife nuts.
1.5 milli within 21 years.

I'm not here to argue, just think about how much opportunity is 500k now and how little is 1.5 milli in context of 21 years.
 

devine

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I just have a business that sells online. It is not a multi-million dollar business or anything like that but it has allowed me to work from home and do what I want financially and has given me some freedom. That is it. I am always still looking for more opportunists. From my business profits of course I use what I need for my own income but I try to take from it as little as possible for myself and so I reinvest some back into the same business to grow it and I save the other aside to have for other business opportunities. To better explain the 200k. I guess I used the wrong words buy saying it's just capital. This is a combination or personal capital saved and some of the business credit I have available.

I was really thinking of buying properties that I can flip, rent, appreciate and sale later in a low income city but after someone suggested where to find more information for this in the forum. I have been reading but to be honest with the landlord horror stories in these kinds of cities I am reconsidering it. If anyone know more about investing in these types of areas. Any advice?

Thanks for the tip. Was just looking for some advice. I definitely thought about it.

Exactly why. As suggested by others in that exact thread. Chasing new challenges and setting new goals.
Property is a considerable investment if you have, let's say, at least a few million dollars, and already have a good source of income.
Here's how my "family" did it:

"We" have bought a piece of property in a very lucky moment in 2005 for $380k and sold it in 2009 for $1.4m, because prices on property skyrocketed.
It was really lucky, because USD/RUR pair was favourably the same at about 30 RUR for 1 USD mark.

In 2015 it approached a 70 RUR for 1 USD mark, steadily growing since 4th quarter of 2013
If it would be like this in 2009 - this $1m profit would be effectively less than half due to course of dollar.

Buying this property was merely to have better apartments when things started "going good", there was no plan to ever sell it, it was just a good opportunity.

As you see, it's still not a very serious amount of money. In context of 10+ years it's not a good investment at all.

It's still nowhere near numbers coming from actual businesses and owning large portions of land. Nowhere near.

p.s. don't tell me how lucky I am, because I haven't touched a single penny coming from my so called "family" and I was struggling all the time while my parents were living luxury.
It's how less than 0.1% of people really profited. Absolute majority of people who invested in property in not so favourable time are now broke and have missed good opportunities.

So no, it won't be easy, most likely it won't even worth it and will even cross off the best possibilities for you to invest in real business opportunity.
 
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Greg R

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Property is a considerable investment if you have, let's say, at least a few million dollars, and already have a good source of income.
Here's how my "family" did it:

"We" have bought a piece of property in a very lucky moment in 2005 for $380k and sold it in 2009 for $1.4m, because prices on property skyrocketed.
It was really lucky, because USD/RUR pair was favourably the same at about 30 RUR for 1 USD mark.

In 2015 it approached a 70 RUR for 1 USD mark, steadily growing since 4th quarter of 2013
If it would be like this in 2009 - this $1m profit would be effectively less than half due to course of dollar.

Buying this property was merely to have better apartments when things started "going good", there was no plan to ever sell it, it was just a good opportunity.

It's still nowhere near numbers coming from actual businesses and owning large portions of land. Nowhere near.

p.s. don't tell me how lucky I am, because I haven't touched a single penny coming from my so called "family" and I was struggling all the time while my parents was living luxury.
It's how less than 0.1% of people really profited. Absolute majority of people who invested in property in not so favourable time are now broke and have missed good opportunities.

So no, it won't be easy, most likely it won't even worth it and will even cross off the best possibilities for you to invest in real business opportunity.
I agree with the first and last statement.

[HASHTAG]#notworthit[/HASHTAG] unless you have millions to invest and can hire a property manager.

[HASHTAG]#notworthit[/HASHTAG] unless your willing to put in a full time effort to build it up to a multimillion dollar asset.

I currently manage 5 properties and it is thankless work. I am not taking any more because I don't enjoy it as much as I was once thought I would.

Renovating properties is cool and fun but it involves your time and effort.

If your dead set on real estate, research real estate crowd funding, commercial bridge loans, or REIT's.

You can get a decent return without the work.

Hope that helps.

Sent from my SM-G925V using Tapatalk
 

devine

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I agree with the first and last statement.

[HASHTAG]#notworthit[/HASHTAG] unless you have millions to invest and can hire a property manager.

[HASHTAG]#notworthit[/HASHTAG] unless your willing to put in a full time effort to build it up to a multimillion dollar asset.

I currently manage 5 properties and it is thankless work. I am not taking any more because I don't enjoy it as much as I was once thought I would.

Renovating properties is cool and fun but it involves your time and effort.

If your dead set on real estate, research real estate crowd funding, commercial bridge loans, or REIT's.

You can get a decent return without the work.

Hope that helps.

Sent from my SM-G925V using Tapatalk
I think people mistakenly assume that property is a safe bet. It's not.
Not only it requires a lot of investment, also with such political situation worldwide literally anything can happen.
 

Greg R

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I think people mistakenly assume that property is a safe bet. It's not.
Not only it requires a lot of investment, also with such political situation worldwide literally anything can happen.
Yea, you would see a lot of landlords and hedgies pull out if the tax code was changed to something less favorable.

i.e. taking away the 1049 exchange or not letting investors deduct depreciation.

I think something similar happened in the 1980s where people bought more expensive houses explicitly for the tax credit. And they got burnt... Ouch.

Sent from my SM-G925V using Tapatalk
 
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Ecom man

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1.5 milli within 21 years.

I'm not here to argue, just think about how much opportunity is 500k now and how little is 1.5 milli in context of 21 years.
Sorry 4 million I did my math wrong
 

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