Inheritance Investing 80K: Possibly Property?

**MikeEagle12** · 05-13-2007 08:57 PM

I recently found out I'll be receiving around 90K at the end of July. I've started thinking about what I want to do with the money, how I want to save, invest it, and most importantly make more money allowing me to retire before I hit forty. Is this realistic?

One idea I have been looking into is possibly purchasing property and either renting it out or even building a business/franchise on it. Of course, I'm still in the early stages of this as I know very little about investing or buying property.

One thing that caught my eye today is a property that is up for sale right next to a universities football stadium. The property includes 1.25 acres and includes 2 restaurant-night clubs, a diner, a grocery, and a car wash all under leases for 1.9 million. Is it realistic to think I could possibly get a loan to afford something like this eventually? This property is in a prime area, and the university is currently expanding at a rapid rate, a lot of bars are being built across the street, and new apartments all around it are planed for the future. Of course, this may be out of my league, I've just been letting my mind wander thinking of all possibilities so that I can begin investing once I recieve the money.

**postman da rich kid** · 05-14-2007 02:46 AM

well if your getting an inheritance I personally wouldn't spend it on property. Reason being that it's a one time lump sum, and a property investment requires reoccurring payments. You don't want to put yourself into a position where you won't be able to cover payments. I'd suggest saving it and finding a few stock options to invest in, and let your money grow.

**G-T** · 05-14-2007 07:15 AM

Yes, it is realistic, but you must know where to invest it and have a good ROI

**Young Spark** · 05-14-2007 08:01 AM

Originally Posted by postman da rich kid

well if your getting an inheritance I personally wouldn't spend it on property. Reason being that it's a one time lump sum, and a property investment requires reoccurring payments. You don't want to put yourself into a position where you won't be able to cover payments. I'd suggest saving it and finding a few stock options to invest in, and let your money grow.

Stocks... BAD IDEA! Of course I'm always saying its a good way to make money, but with something such as $90k - there are much better ways to invest that money. Why not diversify your investing? What I propose is sit some in a CD and let that grow, its a sure-fire way of getting some extra money for your money.

Other then that, I recommend finding other ways to invest your money instead of the dreaded stock market... that's basically suicide for giving your money out. I have some idea's that you could do with it, but Imma let you mind be creative at this point here.

**postman da rich kid** · 05-14-2007 11:25 AM

Originally Posted by Young Spark

Stocks... BAD IDEA! Of course I'm always saying its a good way to make money, but with something such as $90k - there are much better ways to invest that money. Why not diversify your investing? What I propose is sit some in a CD and let that grow, its a sure-fire way of getting some extra money for your money.

Other then that, I recommend finding other ways to invest your money instead of the dreaded stock market... that's basically suicide for giving your money out. I have some idea's that you could do with it, but Imma let you mind be creative at this point here.

My friend you need to do more research on the stock market. When I say stocks that a general term for mutual funds, bonds ect. There are very low risk funds you can place your money in and watch it grow. How do I know? I've been doing it for years. So to tell someone not to invest in stocks shows that you aren't very knowledgeable in that area.

You can always get a CD, but I don't like CD's because your money is tied up, and what if an emergency happens? Than your stuck until your CD expires. You said "diversify your investment", than you say the stock market is giving your money out.

I think you need to do a little more research my friend, because your not giving out sound advice.

good luck

**Mikey1205** · 05-14-2007 11:34 AM

I personally advise against investing in stocks if you don't know or care much about that sort of investment.

You are interested in property? I doubt you could get a loan for 1.9 million unless your day job pays well. I would look to save 80k and start a business with the other 10k.

You could always stick all of it into a savings account and just start an internet business from the ground upwards.

**kjie** · 05-14-2007 12:23 PM

My point of view, invested in something u know. Every investment makes money, be it stock, real estate, bond, unit trust. But if u know nothing about it, I would say you would hardly make any money, and u can consider yourself lucky if you don't lose it all :P

What I would suggest is, if u really interested in any of these investment, find out about it, and learn about it before you invest.

Other alternative would be letting the professional do the job for u!!

**Young Spark** · 05-14-2007 12:32 PM

Can I recommed tax liens in a situation like this?

**jackdaniels** · 05-14-2007 01:00 PM

I think the same way. If you dont have any experience on investing (like me)
do not risk the money..
Like i read on a book, there are no bad investors, only people playing with money..
If you do not know what you are investing in,,, dont risk the money.

**Austin_Wilson** · 05-14-2007 01:11 PM

Why not just take the 90k to a financial advisor or wealth management firm and let them manage and grow it for you. One of my partner's here at my firm places Financial Advisors and could probably give you some really good insight into who is good and who isn't in your area and what to expect when you talk to them.

I personally have met with a financial advisor and try to do so once a year

**Young Spark** · 05-14-2007 01:17 PM

^^ I wanted to say the same thing, but can you really trust somebody who may of worked magic for 1 or 2 other people... can they 100% satisfaction guarantee they'll grow it or they'll recover lost funds?

**WanganRunner** · 05-14-2007 02:03 PM

CD's are an awful long-term investment, and stocks are a fantastic one (assuming you reinvest dividends)

How old are you? Assuming you're 25 (guess) and holding until you're 65, $90k will be worth about $7.5 million in 40 years (given historical 12% annual broad-market return). If you assume 9% to hedge out inflation, it'll still be worth like $2.5 million (i.e. adjusted dollars), and this is assuming you never add another dime.

If you put $90,000 into a broad-market index (maybe splitting between US and foreign funds to hedge against a dollar collapse), you'll be a very rich man when it's time for you to retire. Honestly, if you AREN'T, it means that there has been a worldwide economic collapse and at that point you'll have bigger problems, like finding a cave to hole up in with some guns and canned food.

In regards to buying property, it's an okay idea, but don't dive in without some education. Consider getting your real estate agent's license, just for the educational experience it provides. You'll get hosed unless you know what you're doing.

Once you've been educated, maybe put 50% down on a couple of small, cheap-market $90k houses and rent them out. Low leverage like that will (in theory) generate positive cash flow immediately that you can then use both for working capital and eventually reinvest into other properties/businesses.

You could also use $90k to buy an existing small business. I know of a profitable used car lot in my area that's going for $75k right now, which is a great deal if you know the biz. Don't buy anything you can't competently run or don't understand.

If it were me, I'd buy the car lot, because I know that I could run that very profitably. As for you? What are you good at?

**Zoxak** · 05-14-2007 02:35 PM

Like the other people in this thread have been saying, work towards your strength. If you feel that you have a business idea that could work with that kind of money, plan it all out and go for it. It could be a smashing success.

If you plan to invest the money for a solid ROI, consider diversifying your money between stocks/mutual funds, bonds, and commodities (as well as real estate if you know about that field). Again, if you think you're in over your head, consult a financial management professional. They will have a great deal of knowledge to share with you and can probably set you on the right track towards solid returns.

**Austin_Wilson** · 05-14-2007 02:50 PM

Originally Posted by Young Spark

^^ I wanted to say the same thing, but can you really trust somebody who may of worked magic for 1 or 2 other people... can they 100% satisfaction guarantee they'll grow it or they'll recover lost funds?

While nobody can guarantee anything 100% these people manage billions of dollars in portfolios so I have no problem trusting them with my measily savings and it's worked out very well for me.

**Young Spark** · 05-14-2007 08:25 PM

Yes... but you always have to think "What IF" --- just because they've worked it for lots of other people doesn't mean your results will be the same. You always have to think of the alternative happening method.