What To Do With 100K Cash?

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Ok investors,



If you had 100K cash, free and clear, what would you do with it to maximize your return in the least amount of time possible? No comedians, please.



JohnCl

Comments(6)

  • JohnCl31st August, 2005

    Ok Santa. Ho Ho Ho.

    Remember this question is theoretical in nature...

    1) What are your goals? Too make the maximum return on investment in the shortest amount of time.

    2) Full time or part time? Full Time

    3) What experience do you have? 2 years rehabbing, landlording, buying/selling SubTo, AFD, Lease Option, etc.

    4)What would you be better at? Rehabbing, apartment complexes, rental properties, investing in notes, sub-to, lease option? Would be better at whatever fulfills the answer to question #1. Greatest return in the lease amount of time.

    5)What market are you targeting? Again, back to the answer in #1. Worldwide, anything that makes sense.

    6)At what risk level is your personality? Moderate. No reason to go into high risk deals with Real Estate Investing.

    7)Do you have a support system? Attorney, realtor, birddog, support of family? Yes. I have built my team. All of the above +.

    What is your education level with the many different types of REI? You can never know enough. Ongoing.

    This is an academic "begin with the end in mind" question.

    -JohnCl

  • Maddog5631st August, 2005

    Not to take advantage of those down on their luck, but Katrina just opened up a world of possibilities on and near the Gulf Coast.

  • edmeyer31st August, 2005

    JohnCI,

    Your problem statement is slightly ill posed and is probably lacking a few additional considerations such as risk.

    You can pick a time-period and ask what would produce the greatest return within that period. You could do this for several (or many) different time periods. Clearly the choices you have for a one day time period are different than those for a 10 year time period.

    Alternatively, you could pick a fixed dollar return and try to acheive this in minimum time. Again, you can do this for different sets of dollar returns.

    My personal choice would be to do long term leveraged investment in buy-and-hold rental properties, since this takes advantage of the exponential rate of return and is less likely to be constrained by my limited time and work resources.

    Regards,
    Ed

  • GQ1st September, 2005

    I would write a business plan and use that 100K to obtain an even larger business line of credit. When you have money you can always borrow more money.

  • ZinOrganization1st September, 2005

    just take the cash and buy a Ferrari! LOL.

    No but really, even if you had 100k of your own cash why in the world would you use your own money. always try to use someone elses money and use yours as a last resort. if i were to use 100k of my own cash in my market it certainly wouldnt last long.

    use some of it to build a business, some of it to market or alot of it to market for properties and private investors. even if it means you have to split a deal with someone i would rather that then put up my own cash, especially if i only had 100k of it. many people on this board have built empires with little to none of there own money.

    possibilities are endless, good luck.

  • leoaking9th September, 2005

    Myself, I would take the moeny to a tax lien sale and buy as many of those I could. Never know if one of those might get me a house which then could lead to renting the place out or selling it for a profit.

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