If you had a $1 million USD

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jamboreedude

jamboreedude

New member
If you had a $1 million USD now, what and where would you invest that money? Would you buy two motorcourt homes in Quail Hill/Laguna Altura in Irvine for rental income, or are you better off putting the money into dividend paying Fortune 500 equities?
 
I will buy two 4-plex in Santa Ana or Anaheim. The net rental income will be more than $6k per month, 7% return plus potential for appreciation. Alternatively, I may buy five SFR in Corona, higher return with lower potential for appreciation.
 
Buy two rental properties in some almost new part of motor court Irvine. 800k gone!
200k should be good TNA/TZA, FAS/FAZ play money.

Anyone bought a property using IRA money? Read an article about it in Money magazine long ago, but never heard of anyone doing it in real life..
 
It's really difficult right now to get a safe return on any investment.

That's why REAL STATE seems so lucrative now. The upside may not come, but the downside seems eliminated already.

Try not lose money first, then figure out how to make money.

However, managing rental maybe the worst job in the world.

Cubic Zirconia said:
Buy two rental properties in some almost new part of motor court Irvine. 800k gone!
200k should be good TNA/TZA, FAS/FAZ play money.

Anyone bought a property using IRA money? Read an article about it in Money magazine long ago, but never heard of anyone doing it in real life..
Click to expand...
 
Cklein said:
It's really difficult right now to get a safe return on any investment.

That's why REAL STATE seems so lucrative now. The upside may not come, but the downside seems eliminated already.

Try not lose money first, then figure out how to make money.

However, managing rental maybe the worst job in the world.

Cubic Zirconia said:
Buy two rental properties in some almost new part of motor court Irvine. 800k gone!
200k should be good TNA/TZA, FAS/FAZ play money.

Anyone bought a property using IRA money? Read an article about it in Money magazine long ago, but never heard of anyone doing it in real life..
Click to expand...
Click to expand...

Yes, managing rental properties is a tough game. I would rather invest in quality Fortune 500 dividend paying stocks like J&J, P&G, GE, Verizon, Bristol-Myers, Pfizer etc. and collect on 3%+ dividends year in year out, for the next 10-15 years while my children grows up. I don't need the cash; I have cash flow through my other businesses. I guess this would be better course of action because I don't have the free time to manage rentals nowadays, and also take on the carrying cost of real estate, such as HOA fees, property taxes and maintenance cost.
 
$250,000 to take a sub orbital ride on Virgin Galactic, $50,000 converted to Swiss Franc, $250,000 in gold/silver, $450,000 for 4-5 rental properties in Texas or Oklahoma.

My .02c
 
USCTrojanCPA said:
I would throw half of it in a munipal bond fund and the other half I would trade with.
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I read somewhere munis are a ticking time bomb. I think it was an analyst named Meredith Whitney who wrote about significant municipal bond defaults starting in 2011. It didn't come yet, but who knows, it may come soon.
 
Soylent Green Is People said:
$450,000 for 4-5 rental properties in Texas or Oklahoma.
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Is the idea to target oil workers? Good pay and usually reside outside the local area when not working.
 
Low cost housing with solid employment. Same could be said for rental property in the Dakota's what with their oil boom there.
 
Cubic Zirconia said:
Buy two rental properties in some almost new part of motor court Irvine. 800k gone!
200k should be good TNA/TZA, FAS/FAZ play money.

Anyone bought a property using IRA money? Read an article about it in Money magazine long ago, but never heard of anyone doing it in real life..
Click to expand...

ugh.. I had TNA 51 weekly puts order in yesterday but missed it by a nickel...  :'(
 
Option #1
I would buy 5-6 SFRs in Johns Creek with the entire million clear and free, and live off of the $120,000 passive income for life while your southern hard assets are appreciating in value. :)

Option #2
If my ambition was to start a hedge fund.. I would put the entire million and short the living crap out of the Euro until the dollar index reaches 95 and then sell and move the all the money in Silver (@ $20 - $21) and Agriculture right before Bernanke announces Qe3.

However... knowing myself... I favor option #1.
 
jamboreedude said:
USCTrojanCPA said:
I would throw half of it in a munipal bond fund and the other half I would trade with.
Click to expand...

I read somewhere munis are a ticking time bomb. I think it was an analyst named Meredith Whitney who wrote about significant municipal bond defaults starting in 2011. It didn't come yet, but who knows, it may come soon.
Click to expand...

Meredith Whitney is the Sarah Palin of Municipal Bond Analysts.

~I am quoting someone who knows 100000000x more about munis than the equity analyst that was right on one stock (C)
 
Baby Irvine said:
Option #1
I would buy 5-6 SFRs in Johns Creek with the entire million clear and free, and live off of the $120,000 passive income for life while your southern hard assets are appreciating in value. :)
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If I were to buy 5-6 SFRs in Johns Creek GA, what if I cannot rent them? I will be stuck paying the HOA, property taxes and landscape maintenance.  It's hard to invest in single family homes for rental purposes.
 
jamboreedude said:
Baby Irvine said:
Option #1
I would buy 5-6 SFRs in Johns Creek with the entire million clear and free, and live off of the $120,000 passive income for life while your southern hard assets are appreciating in value. :)
Click to expand...

If I were to buy 5-6 SFRs in Johns Creek GA, what if I cannot rent them? I will be stuck paying the HOA, property taxes and landscape maintenance.  It's hard to invest in single family homes for rental purposes.
Click to expand...
Ahhh... ye of little knowledge of ATL.

John's Creek is hot (pun intended) for renters... Baby Panda Irvine crunched the numbers... it's a no-lose situation.

Disclaimer: I have no idea what the rental market is in ATL... I'm going by Panda-pedia.
 
bones said:
That would be impossible!  It has an HMart and great schools.  Not to mention - Bobby Brown (of Whitney fame) and Kim (of Real Housewives of Atlanta) has called it home at one point or another.... who wouldn't want to rent there!!
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All joking aside, do you guys feel the reality shows portraying characters living in areas like Atlanta and O.C. bolster its desirability? Both B.B. & Kim have been in reality show casts. All I know is once "Laguna Beach: The Real Orange County" and other shows like it came out, my nephew from Texas and his male-model-wannabe friend moved out here to the coast on a wing and a prayer thinking it was going to be just like T.V.. Within two weeks flat, my nephew's accent transformed from TexMex with a King Cab to Blazed Bruddah with a Longboard.  ::) He quickly realized it's an illusion and went back but that doesn't stop people from trying. Of course dreamers have been drawn to Tinsel Town for ages. Me personally, I see the same sort of attraction occurring with other featured areas. Think: Jersey Shore, Atlanta, and other areas that have been glamorized as of late. I think Panda's got that going for him down there in Hotlanta.
 
$1 million USD:

In the year 2012, this is how I would allocate the assets:

A) Privately Held Businesses (continually innovative enterprises) - 40% = $400,000 (ACTIVE)
1. Consulting firm
2. Product based business
3. Real Estate Agent/Brokerage
4. Flipping business
5. Any entrepeneurial ventures goes into this 40%

B) Real Estate - 40% - $400,000 equity in real estate (PASSIVE)
- Equity in principal residence) - 11-13% = $110,000 - $130,000
The remaining 27-29% is allocated here.
- Income producing property
- Second Home
- Other Real Estate
- Undeveloped Land
- Third or additional residences

C) Private Hedge Fund managed by you- 20% Allocate $200,000 (ACTIVE)
- In high school, if you got one A and six Fs in your report card, I sure that your parents would ground you for life, but in the real world you can suck in everything else, but become an expert in only one thing, you can still become successful.

For the real estate investment to double in 10 years you need to average 7% appreciation over 10 years.
For the $1,000,000 USD to double in every 3 years... you need an average growth of 26% a year.
 
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