Investing your money ?

[Doug H.]

On a serious note, if you came into $70,000 - $80,000 cash what investments whould you make, (no boats).......land, homes, stocks, IRA's ..? this money that you turn over needs to make a possitive return for the future.
Im looking for investment opportunities, i just need some direction......................................... ..and no funny business ok !!

[bordsmnj]

realestate's pretty safe. specialy duplex and four plex properties.

[JustMVG]

do you want to turn over the real estate quickly or hold on to it? are you investing the whole wad into Real estate or just enough to get the ball rolling, you could put a little into Real estate, and some in to the market, Intel is good right now they have some very exciting news coming up regarding communications, computers, and incredible new speeds for both, read a story on that last night, you could invest some into the S and P 500 or as i have for a better, and yes lesser , but veeerrry stable return , the S&P 400 Mid cap market, bonds are good, i could go on, but will most likely bore the crap out of you all, hell blow the wad on WALMART stock and watch it go thru the roof in 5 yrs, :D

[MagicMtnDan]

I'd buy real estate but it's not enough money to buy anything more than a lot (dirt). If you find the right one it could be a very good investment but it's a bit more difficult without a structure on it.
If you have the cash flow to pay a mortgage then I'd certainly use the money as a down payment on a single or multiple-family dwelling. You have to be careful to make sure you have something that is cash positive or not much of a negative (again, it all depends on how much you're willing to spend out-of-pocket.
I'm a firm believer in the stock market too. But I don't know how long you're willing to tie up the money. Whatever you do, buy stock in rock-solid companies to minimize your risk (and there is ALWAYS risk in the stock market - but there's also risk in every investment except the guaranteed ones and those usually don't pay much in return).
Congratulations on your good fortune and good luck!

[AdrenelineOD]

Hot Topic Stocks are allways riseing and doubling once ever two years. This just prooves, little girls still don`t know the value of a doller. As long as this holds true, they will allways rise. My money`s there. I didn`t just say that out loud just now?? SHSHSHSHSHSHSHSHSH!!:D

[jerry billet]

Every one will have thier opinion. Mine, Real Estate. That is enouph for a down payment on a rental unit. Rent covers your monthly mortgage and you keep earning value in the home. Take a while of looking and the price has to be right for this to work. Take your time. It is a big investment. Thats how I've done it. Last year, even cleaned out my 401 when changed jobs. Bought more property.
Jerry

[Mandelon]

$80K should get you into a $300,000 set of units. Buy something cheaper and you could easily have positive cash flow on them. They depreciate on your taxes, but appreciate in real dollars. You can write off the repairs and expenses. (Which allows for a bit of fudge factor in case you buy too much tile that you can use at your house.) My units have all at least doubled or more in price over the past few years. I would stay with 4 units or less for easy conforming financing. With 5 units and up you are stuck with commercial rates and terms. If you can handle doing a "fixer-upper" you can make even more $$$.
Buy units out at Havasu, Parker or BHC and maybe write off all your river trips as maintenance expenses....
That said, a cautionary note: As interest rates begin to rise, the real estate values may not increase as much as they have over the past few years. A lot of investors who were unable to get a positive return in stocks or bonds made the switch to real estate. I think the biggest gains have been made. At least around here, for the next few years. The returns will likely decrease and many investors may return to the stock market. Which could push it up again. As the economy recovers more investors will return to stocks. People have short memories and when they hear about their friends doubling their money on Qualcomm again, the temptation to join in may be too great.
I see my ML stock fund has finally reached a new high after lagging for the past few years. The recession is over and businesses are expected to start posting positive gains again.
Maybe splitting the money between the two might be wise. I don't see how you can go wrong with either at this point.
Congrats and good luck.

[SoCalOffshore]

First, do you own a home? If you do, then I would suggest some diversified no load mutual funds. If you don't own a home, then you should put the money down on one. Make contrbutions to a ROTH IRA and if available, maximize a 401k. Whatever you do, con't buy a boat! :D

[Mrs Luvnlife]

Land.......buy some land in Sedona, AZ. Stock market, very risky if you're a day trader IMO, long term with the right portfolio may do the trick. ;) :D Good luck to ya Doug, and oh yeah....I'd like just a small chunk of that 70-80K!!!! :D

[HavasuDreamin']

Originally posted by Mandelon
$80K should get you into a $300,000 set of units. Buy something cheaper and you could easily have positive cash flow on them. They depreciate on your taxes, but appreciate in real dollars. You can write off the repairs and expenses. (Which allows for a bit of fudge factor in case you buy too much tile that you can use at your house.) My units have all at least doubled or more in price over the past few years. I would stay with 4 units or less for easy conforming financing. With 5 units and up you are stuck with commercial rates and terms. If you can handle doing a "fixer-upper" you can make even more $$$.
Buy units out at Havasu, Parker or BHC and maybe write off all your river trips as maintenance expenses....
That said, a cautionary note: As interest rates begin to rise, the real estate values may not increase as much as they have over the past few years. A lot of investors who were unable to get a positive return in stocks or bonds made the switch to real estate. I think the biggest gains have been made. At least around here, for the next few years. The returns will likely decrease and many investors may return to the stock market. Which could push it up again. As the economy recovers more investors will return to stocks. People have short memories and when they hear about their friends doubling their money on Qualcomm again, the temptation to join in may be too great.
I see my ML stock fund has finally reached a new high after lagging for the past few years. The recession is over and businesses are expected to start posting positive gains again.
Maybe splitting the money between the two might be wise. I don't see how you can go wrong with either at this point.
Congrats and good luck.
As a person who makes a living in commercial real estate, I can say that is great advice from Mandelon. The only thing I would add to it is.........how long to you plan on investing? If you are in it for the long haul 20 years or better, the stock market isn't a bad option. But don't go into it thinking you are going to make a quick buck and get out. Also, if you decide to get into real estate, do your home work. The last thing you want is a 4-flat that has one unit rented.
Good Luck.

[Hallett19]

I have duplex in Glendale that is listed at $499,000 with no accepted offers yet. Its a probate sale but there is a sweet twist to it. We have a 4 plex in the hollywood hills that we are going to list soon at $1.5. The deals are out there, you just need somone eager enough to find them for you. Contact me if you are serious about doing something like this, people in my office own many buildings and could give you some great pointers, and remember, there is NO such thing as a dumb question. Your area of lancaster is expanding right now, valencia is a good idea to look into as well. I know of an amazing real estate agent in your area who can give you details of the climate out there. Her name is Deborah and her number is 661-810-5744. Keep in touch with agents, let them know you are interested, they will always keep you in mind if something good comes along, just make sure you get several opinions before pulling the trigger on something. And stay under 4 units if you go that route !! :)

[bigq]

Originally posted by Mandelon
$80K should get you into a $300,000 set of units. Buy something cheaper and you could easily have positive cash flow on them. They depreciate on your taxes, but appreciate in real dollars. You can write off the repairs and expenses. (Which allows for a bit of fudge factor in case you buy too much tile that you can use at your house.) My units have all at least doubled or more in price over the past few years. I would stay with 4 units or less for easy conforming financing. With 5 units and up you are stuck with commercial rates and terms. If you can handle doing a "fixer-upper" you can make even more $$$.
Buy units out at Havasu, Parker or BHC and maybe write off all your river trips as maintenance expenses....
That said, a cautionary note: As interest rates begin to rise, the real estate values may not increase as much as they have over the past few years. A lot of investors who were unable to get a positive return in stocks or bonds made the switch to real estate. I think the biggest gains have been made. At least around here, for the next few years. The returns will likely decrease and many investors may return to the stock market. Which could push it up again. As the economy recovers more investors will return to stocks. People have short memories and when they hear about their friends doubling their money on Qualcomm again, the temptation to join in may be too great.
I see my ML stock fund has finally reached a new high after lagging for the past few years. The recession is over and businesses are expected to start posting positive gains again.
Maybe splitting the money between the two might be wise. I don't see how you can go wrong with either at this point.
Congrats and good luck.
I am far from an expert, but this sounds like good advice. I would look hard before going into real estate, although I thought they said they are expecting a 13% rise this year still. I have many friends that do loans and thay say most are really scraping to get in to real estate so what do you think will happen when rates go up on these adjustable loans.
If it was me I would find a good growth fund for the next 2 or so years and then when real estate relaxes I would maybe purchase a Duplex or something of that nature. Over the long haul it should be fine. I have given up on the quick buck, not smart enough for that.:wink:

[welk2party]

While I agree, real estate is hard to go wrong with, I would make one other suggestion. I would at least look into tax defferred annuities. Some of them get you an honest return with little risk to the principal. Some of them will let you draw the interest as income while keeping the principal working. Or if you do not need the small income, let the compounding interest go to work. I set my inlaws up with one for when they decide to sell a rental property. They can sell the property and almost make the same annual income off the annuity. ;)

[al cole'holic]

**** the stock market, **** the apartments or buildings, buy a house in SoCal...

[hd&boatrider]

Originally posted by Doug H.
On a serious note, if you came into $70,000 - $80,000 cash what investments whould you make, (no boats).......land, homes, stocks, IRA's ..? this money that you turn over needs to make a possitive return for the future.
Im looking for investment opportunities, i just need some direction......................................... ..and no funny business ok !!
I just closed on a new house in Kingman yesterday. I bought it strictly as a rental. There is a big pent up demand in Kingman for good rental housing. Mine is already rented out for 2 years with an option to purchase by the tennant and I am making about 20% more montly(after management fees of 9%) than my payment which includes tax and insurance. While I would not want to live in Kingman I did it strictly for the investment. I only put down about 22% to stay away from mortgage insurance. I had considered land but the monthly return made it worthwhile to buy the house. Anyhow, with 80K you could buy a few brand new houses out there and have positive cash flow monthly.
Good luck

[Mandelon]

That sounds good, too. With California real estate so high, looking at a retirement area that should have appreciation seems like a good plan. One caveat is that a place far from your home can be difficult to manage, even with professional assistance. It is nice to have your real property investment nearby so you can check on it.
Let us know what you will do.

[hd&boatrider]

Originally posted by Mandelon
That sounds good, too. With California real estate so high, looking at a retirement area that should have appreciation seems like a good plan. One caveat is that a place far from your home can be difficult to manage, even with professional assistance. It is nice to have your real property investment nearby so you can check on it.
Let us know what you will do.
Mandelon----The reason why I bought out there is because of the rental market being way under what the market wants. There are plenty of trailers for rent but no nice, clean housing for rent. Plus with my place in BHC it is a short drive for me to check up on stuff. They just got the OK to put in a Home Depot and of course that helps stimulate continued growth. LHC and BHC residents are starting to move out to Kingman because of the higher costs of living in BHC and LHC. There is also the fact that BHC and LHC have lots of rentals but of course at a higher rate than Kingman. Kingman is one of the fastest growing regions in the US.
For those of you interested the lady to talk to out there is Debra Sixta:
http://resource.realtor.com/display/default.asp?sect=6&id=12511061&rt=205653
If you do contact her let her know that Tom refered you please. She can get you into a house and get it managed for you also. Easy way to go and park money for a few years.

[Mandelon]

I think if you bought just one property a year, for 10 years you could retire. Sounds like you are doing the right thing. Single family homes typically appreciate faster than multifamily properties do.
I bet you will have a good retirement and sooner than you anticipated. :D

[Doug H.]

Thanks guys, all the ideas are very strong and im going to do some homework regarding the. :)

[CA Stu]

#9 in the 7th at Santa Anita. Nazirali.
$500 across the board...
You heard it here first.
Cheers
CA Stu

[CA Stu]

Seriously, the rental property angle is the way to go.
What do you do for a living? If you're self employed, buying a commercial property to house your business is a great investment. I paid rent for 14 years until I saw the light...
I wouldn't put all my eggs in one basket, though. Diversity = safety, I reckon.
Good Luck
CA Stu

[HighRoller]

Well, not to throw a wet towel on all these good ideas, but if I came into that kind of money I'd pay off my cars in full. Your car payment will fund a nice retirement account. The average car payment is 378 a month, but that same amount invested for 25 years gets you about 2 million. Stick with mutual funds, IMO and don't listen to those who say the stock market is "risky". The stock market has shown a gain in 97% of the five-year periods and never had a decline during a ten year stretch. Although people say last year was "bad", the stock market was up 22% and growth stock mutual funds went up 44%! Like someone else says, be informed before you invest and NEVER EVER buy something you don't understand, even if it's from an agent or broker.

[Mrs Luvnlife]

Originally posted by HighRoller
don't listen to those who say the stock market is "risky".
I disagree, the stock market is VERY risky, I myself have several stocks and they flucuate like crazy......you need to be in it for the long haul.

[sboater]

There is a level of risk to any and all investments. You need to make sure that you understand the risk that you are taking and that you are comfortable with that level of risk. The main thing that you need to do is sit down and decide what your investment goal is and what your time horizon is. You need to be realistic about both. Example, you can't double your money in one year if you don't want risk.
Real Estate has been suggested. Historically, real estate has done well. Especially the last few years with low interest rates. Some risks, but not all, for real estate are timing, interest rates, and liquidity. The stock market has been suggested. Historically, the stock market has done well too. Some risks for the stock market are timing and economic factors.
One suggestion was to pay off your cars. Good suggestion, especially if you need to free up cash flow now. If you have will power and you can turn around and invest your payments, then you can do well. Assuming a 10% return for 25 years (compounded monthly) on the cash flow of $378 per month (assumes you have one car), you will have about about $500,000. If you run the scenario with 2 cars, the result is about $1,000,000.
Then you have the time power of money to look at.
Instead of paying off your cars, let's say you invest the $80,000 at 10% for 25 years (compounded monthly). You will have about $964,000.
The difference between these two options is one you put the money down now and don't make any additions. The other, you have to pay $756 a month for 25 years.
The key to any investment is to either educate yourself or find someone that will help you, but not sell you. Knowledge is power.

[Mandelon]

Sounds good, but where do you go for that 10% return?
(Besides the "risky" stock market or "risky" real estate?)
I believe at 10% rate your money doubles every seven years.
Year 7 $ 50,000
Year 14 $ 100,000
Year 21 $ 200,000
Year 28 $ 400,000
Year 35 $ 800,000
Year 42 $ 1,600,000
Nice. I like the idea of paying off any high interest credit cards or car loans. It makes sense if you can't get a higher return. Being dedicated enough to make that savings payment every month would not be easy.

[Lightning]

Very good, in the industry it's called the rule of 72. Investments will double every 7 years if they have a rate of return of 10%.

[AleAlchemist]

Skrew that In these depresing times the world needs more beers. fund a brewery! :D
everyone drinks, and if they don't they're lying, or above and beyond liquid medication!:D
Give a man a beer and hell waste an hour!
Show that man how to make beer and hell waste a life time!:wink: :D

[HighRoller]

Let me rephrase my statement. The stock market is not risky if you follow the first rule of investing. DIVERSIFY! If you pick four different mutual funds with differing risk levels you will be well protected. And leave your money there for the long run. Day traders and people who turn over their protfolios are the ones who cry about risk. Invest in good companies(Blue Chips) and good mutual funds and you'll get your 10% return.