Re: How to Invest $80k cash? - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on August 03, 2002 at 17:23:19:
On your second post you state “As for goal I would like to turn that $80k into a least a $50 t0 $75k a year income within the next year or 2.”
M Lee asked you several questions which, when answered, would allow a reasonable response to your question.
I buy houses on tax sales for less than 1/2 of market value. What I would suggest you do is buy four houses at tax sales, resell them as soon as possible for a total of $150K to $250K. Then take the money out and do it all over again. After about 5 cyles through you should have about $1Mill. Now, invest that in rental income property. Probably one to 5 apartment buildings, modestly leveraged – say 40% cash, 60% loans. You should be able to make about the yearly income you mention. There would not be much work if you hire others to do the management for you. It would be pretty safe with that leverage. If there is inflation or appreciation, your leveraged position will give you more return than just the cash flow.
It will probably take you about three or four years to do, unless you are a real go getter and devote full time to it.
Now, do you know how to do what I suggest? It is a good program, from my perspective. But, since I know nothing about you, I can’t tell if it is a good program for you or not.
That’s why you will get a better answer if you frame your question more precisely, with information about your experiences, skills, approaches, time avaiable and so on. IF there are some types of investing you do not want to do, mention them. If there are approaches you are attracted to already, mention them and ask if they could do what you want to do.
Most investment approaches will not come close to accomplishing what you want to do with the money you mention. Not unless you are out there really working like a madeperson, with a very powerful, carefully formulated investment program.
Good InvestingRon Starr***