Hello Friend,

If this is your first visit to SoSuave, I would advise you to START HERE.

It will be the most efficient use of your time.

And you will learn everything you need to know to become a huge success with women.

Thank you for visiting and have a great day!

Investing ideas.

MattR1984

Don Juan
Joined
Nov 17, 2014
Messages
84
Reaction score
1
Hey guys, so I'm 30 years old and have about 75,000$ that I'd like to look into investing. I've thought about real estate, small houses, renting and such as. I live in Austin TX and being a huge college town I would think that might be easy to keep tenants but probably just the quality of them. Do any of you do rent houses? Or franchising? I'm open to ideas. My parents are very old school and they just suggest putting it in the bank and drawing interest, but the current levels it's drawing are next to nothing. I believe they told me 1.25% if I locked it into a 10 year CD. Which is nothing basically.
 

Bible_Belt

Master Don Juan
Joined
Jul 27, 2005
Messages
17,021
Reaction score
5,605
Age
48
Location
midwestern cow field 40
My family owns a few rentals. I hope you're handy with tools. Knowing how to do at least some of your own maintenance is often the difference in making money vs losing it. You get much better deals on fixer-uppers, but you have to be able to see the money pits and avoid them. Plus tenants are animals; they destroy everything they touch. I feel like an ant with an anthill that keeps getting washed away. I have rebuilt it from nothing so many times that it is routine.

The stock market is doing well these days. I would probably put the money in $5-10 exchange-listed stocks that look like they might be taking off.
 

sodbuster

Master Don Juan
Joined
Jun 11, 2008
Messages
2,579
Reaction score
378
Age
64
Location
South Dakota
Since the GOAL of investing is to retire, and NO ONE will tell you what is enough..... my plan is to own enough high quality dividend paying stocks and other assets that will provide enough cash flow for me to live on forever. My land is Raw farmland. I rent it to my brother who is a real farmer, so my involvement is paying the taxes and collecting the rent. ONCE a year for each.

There ARE dividend funds, both foreign and domestic that may pay you 4 or 5 %.....

A rental unit that has to be maintained and rented? not on my radar, I have enough going on in my life and regular job. NOW, IF I could get into a big enough apartment building that would generate enough to be able to afford a "fix it" guy..... that's a different beast.

At your age, I'd look at how much you can make AT work. What is your upside? Are you in an area where doubling your effort will double your money{ sales}? In my case, I make around 200k at work, spending energy to make 12k on a rental home and being too tired for my real job doesn't make sense.....
 

Tenacity

Banned
Joined
Jun 23, 2014
Messages
3,942
Reaction score
2,191
There are 10 year CDs doing 2.3% - 3.25% right now, just shop around over the Internet. They are all FDIC insured. You can also look into Brokered CDs which can give you about 3% - 4% on average right now.

CDs are coming back, by the time we get to 2018 and the Fed has increased interest rates again, you will be finding CDs at 4% - 5.5% on average again which will drive all of the additional money out of stocks (stocks are in a very huge overvalued bubble right now) and back into cash.

In terms of investing, have you ever ran a business? If you know nothing about real estate (renting it out) or running a small business, then I don't believe it's smart to just INVEST money into something you don't understand.

What you could do is put the money into the bank until you complete your strategic planning process on what you are going to invest in. If you don't come up with anything, you could diversify the funds into managed portfolios with stocks, bonds, real estate, and cash.
 

evan12

Master Don Juan
Joined
Jun 2, 2012
Messages
1,405
Reaction score
329
ROI for most residential rental units are 8% , and that if every thing go well (which is not always that way ) I think it goes to 4% in practical.
So maybe just buying some low to medium risk mutual funds will do better and you can always cache out the money .
 

Bible_Belt

Master Don Juan
Joined
Jul 27, 2005
Messages
17,021
Reaction score
5,605
Age
48
Location
midwestern cow field 40
That ROI is for nice units. There's a lot more money in being a slum lord, lol.

I can buy a trailer in rough shape for $6-8k, put about $2-3k in it, and have something that rents for $400-$500 a month. In 2-3 years, you get all your money back and can do it again. My family has land, so we don't have to buy any, but a vacant lot big enough to hold a trailer isn't expensive. I bought one at a county tax lien auction once for $700.

And once again, I can do all the work myself. If you have to pay someone to do it, then that eats away your profit. And doing things yourself still requires tools. I have accumulated a couple thousand dollars worth over the years.
 

MattR1984

Don Juan
Joined
Nov 17, 2014
Messages
84
Reaction score
1
sodbuster said:
Since the GOAL of investing is to retire, and NO ONE will tell you what is enough..... my plan is to own enough high quality dividend paying stocks and other assets that will provide enough cash flow for me to live on forever. My land is Raw farmland. I rent it to my brother who is a real farmer, so my involvement is paying the taxes and collecting the rent. ONCE a year for each.

There ARE dividend funds, both foreign and domestic that may pay you 4 or 5 %.....

A rental unit that has to be maintained and rented? not on my radar, I have enough going on in my life and regular job. NOW, IF I could get into a big enough apartment building that would generate enough to be able to afford a "fix it" guy..... that's a different beast.

At your age, I'd look at how much you can make AT work. What is your upside? Are you in an area where doubling your effort will double your money{ sales}? In my case, I make around 200k at work, spending energy to make 12k on a rental home and being too tired for my real job doesn't make sense.....
I made almost 130K last year.
 

taiyuu_otoko

Master Don Juan
Joined
Jan 10, 2008
Messages
5,243
Reaction score
3,826
Location
象外
I don't think it's a good idea to take investment advice from dudes over the interwebs...

Maybe check Amazon for investment books, try something out for 5-10K a pop, and see how you do, how you like it, etc.

In case you haven't heard, finding yield ain't so easy these days...
 
Top