/biz/ - Business & Finance

[Anonymous No.19261912]

I am inheriting approximately 2.3 million dollars in real estate. 2 mil of value is from a single property that generates $60,000 a year gross in rent. The other 300k is divided in between 3 properties that do not currently generate rent.

What would you do in my situation?
I am thinking the best move is to sell everything, buy a nice house for myself, stick the money in an index fund, and then gradually use it to to leverage 10 mil worth of cheap residential properties that follow the 1% rule.

[Anonymous No.19261930]

Sell your holes to bulls and film for onlyfans

[Anonymous No.19261984]

whats the 1 percent rule?

also the US is getting Japanified - I wouldn't count on an index fund doing shit in your lifetime ever again

[Anonymous No.19261990]

>>19261912
Why complicate things? If you can make the other 3 prop generate rent, do it. If they can’t, sell and buy property that allows you to live off rent. Congratulations you’re now free unlike 95% of society.

Or do this>>19261930

[Anonymous No.19262055]

>>19261984
It refers to properties that generate 1% of the home's purchase price in gross monthly rent.

>>19261990
I don't want to stagnate when I could be substantially wealthier.

[Anonymous No.19262066]

>>19261912
Sell everything and put the money in extremely safe investments. I could retire if I had only 500k+ and I'm only in my 30s. 2MM is easy button for life.

[Anonymous No.19262111]

>>19261984
>>19261990
>>19262055
>>19262066
You guys have really never seen a LARP before?

[Anonymous No.19262225]

>>19261912
Honestly, I would sell it all and invest $1,050,000 in bitcoin and $450,000 in ethereum, hold it until the next peak and then sell it. During that bear market I would hire some talented people to create an ASIC chip that competes with Bitmain. I would then buy land and build a 5MW solar farm in Australia and build underground warehouses full of miners. I would eventually shift the production of the ASIC chips from TSMC to an in-house semiconductor manufacturing plant and then expand and conquer from there.

[Anonymous No.19262272]

>>19262111
It's not a larp but I do feel that I'm getting terrible advice.

[Anonymous No.19262618]

>>19262272
There's a saying that you only need to get rich once. Most people will not make 2 mil in their whole life. Sell everything. Personally, I'd buy a house with cash and put the rest into conservative investments that pay out interest every month.

[Anonymous No.19262657]

>>19262618
That is a poorfag mentality. I want to create generational wealth for my family.

[Anonymous No.19262703]

>>19262272
you want to sell your cash cow and buy a headache? Just sell the 300k properties and keep your apartment building/commercial space. Have somebody manage it for you if you're worried about the maintenance. You've been given life on easy mode, rejoice.

[Anonymous No.19262747]

>>19262657
There's only one thing on this board with consensus regarding investment. If you're too blind to see it, why would we spoonfeed you?

[Anonymous No.19262769]

>>19262703
It is a residential property in San Francisco and is already managed by a property management company. $60,000 (gross btw, that is before a 6% management fee and repairs) is fucking terrible on a $2,000,000 investment. That is a 3% apy.

[Anonymous No.19262800]

>>19262769
you obviously know what you need to do so why ask here? are you looking for somebody to hold your hand because you're too incompetent to make your own decisions? don't squander it though, wealth not earned is easily lost.

[Anonymous No.19262840]

>>19262800
Thank you for the platitude, anon. I was hoping there would be someone else with experience in real estate investment, but obviously it is just a bunch of cryptogambling poorfags with no basis in even personal finance.

[Anonymous No.19262856]

>>19262840
Your thread probably won’t last enough to catch the attention of the people you’re looking for

[Anonymous No.19262879]

>>19262657
I disagree. With 2mil, I'd probably still have 1+mil cash, plus investments/real estate(my house) for my family when I die. I can tell you have a greedy mentality. People like you take unneeded risk and lose everything. Good luck.

[Anonymous No.19262897]

>>19262840
nice man good for you bud, free ride. follow your dreams and don't hesitate, otherwise you're spitting in favors face

[Anonymous No.19262954]

>>19262879
>trying to chagrin someone for attempting to discuss building wealth on a finance board
oh fer sure this is attitude of success
ur gonna go far kid

[Anonymous No.19263005]

>>19262840
Yes your investment is awful. Sell it, 3% is garbage. What you should do, to build generational wealth, is maximize this free time to learn real estate. Your best odds are buying foreclosures in cash, fixing and upgrading them, and then financing to take home profit without paying capital gains taxes, and renting them out thru prop managers. The hottest areas like San Fran are gonna be diluted, look for smaller areas that have had good growth. Looo what happened to Salt Lake City home prices in the last 7 years.
You won’t survive in real estate if you can’t dig up deals. Learn everything you can and you’ll develop an ability to see a property and give a guess of its true value within minutes. And when you see any gaps in value to cost of listed property, that can obtain profit, that’s where you strike.

[Anonymous No.19263030]

>>19262954
Not a kid, but I can definitely tell you're early 20s max. Very immature and probably grew up spoiled by upper middle class/wealthy parents. You have no view of the real world.

[Anonymous No.19263096]

Also never strive to buy the best house in the neighborhood. People shopping in the area aren’t looking to pay top price. Buy in the 50% and lower range of home values for the area. And never upgrade the home too much that it becomes the top of the neighborhood. My friends first foreclosure flip, she spent 75k on the house, got fucked over by a Craigslist plumber, and upgraded the house so much that it became the top of the neighborhood. After all expenses and 5 months of work, she paid $145k total. It sold for $150k. She made every mistake in the book. Hire quality so it’s done right the first time, and never be the top of the neighborhood.

[Anonymous No.19263181]

>>19263005
>Your best odds are buying foreclosures in cash, fixing and upgrading them, and then financing to take home profit without paying capital gains taxes
Do you have any books/resource recommendations further explaining this process? I am not familiar at all with remortgaging forclosures. I will look into it, thank you for the advice.

[Anonymous No.19263270]

>>19263181
No real estate books. Some books that helped me was rich dad, poor dad, the proximity principle, how to win friends and influence people, and never split the difference.
I am currently saving for my first foreclosure I have around 100k at 26 so it’s not bad. Especially as a college dropout and wife/kid.
I just know as a general fact thru colleagues that you pay cash for foreclosures, and then take mortgages out on them to get tax free gains. If you spend 50k for a $100k house, and sold it. Youd pay taxes for the $50k in profit. If you just mortgage the house you take home your cash, and keep the house. Always stay over 20-30% equity positions and have At least 6 months in expenses per property in liquid or you can ruin yourself. The minute you’re short selling properties because you’re low on cash, it’s a domino effect of losses. If you can’t survive no income for 6 months without getting behind on bills, you are over leveraged.

[Anonymous No.19263320]

>>19262657
Youre going to want to sell all three properties and go all in on chainlink, unironically.

[Anonymous No.19263952]

>>19262769
You inherited an asset that generates a $60K salary. That alone allows you to never worry about money again. You know jack shit about money, why would you rock the boat with that asset?

[Anonymous No.19263968]

>>19261912
Great plan OP. Dump those properties unless their mortgages are paid

[Anonymous No.19264372]

>>19263952
I would sell the apartment, and buy bank stocks. You get fat dividends, and they'll prob be worth 5X more within a decade as a group. Valuations were rock bottom even before the Covid-19 shit, and then they fell another 50%.

Berkshire B shares are probably a better buy, (which also hold lots of financials), but you won't get any dividends which will probably prevent you from holding for a long period of time.

Investing isn't hard. You are buying into a sector at 7.5 P/E with good prospects if interest rates rise, and they are at historical lows. Heads you win, tails you don't lose much.

Even another financial crisis = bailout = inflation = higher interest rates = more profits.

[Anonymous No.19264499]

>>19263320
That would only yield 500 million. Remember that when you see anything valued at a billion or more.

[Anonymous No.19265520]

>>19263005
>>19263270
this anon knows what's up
my parents do this and they're worth a few million now (starting from literal poverty, unlike you)

[Anonymous No.19265921]

>>19261984
>also the US is getting Japanified
What does it mean? Are the Jews finally giving up on the US, why would they allow that if they couldn't make money?

[Anonymous No.19266410]

>>19264372
>Even another financial crisis = bailout = inflation = higher interest rates = more profits.
god the world we live in where this is an investment strategy

[Anonymous No.19266428]

>>19262840
You were a fucking fool to think otherwise.

The twisted irony is that you are the only person on this board to “make it” and it’s because someone died and handed you shit.

Ill see you back here in three months when you completely fuck up and lose it all to some stupid shitcoin scam.

[Anonymous No.19266469]

>>19265520
It’s a tough discipline to spend little to no money. But I know it would be so worth it. I picture a Yingyang effect. The longer I sacrifice the greater the reward. I want to quit my job ASAP but willing to wait 5 yrs since my income just jumped and I stash away roughly $5k/mo rn

[Anonymous No.19267415]

>>19265921
>>19261984
He means the US Index is going to steadily decline like the Japanese ones.
Not happening due to inflation alone, let alone biotech in 20 years.

Japan's problem is due to old people and I was hoping Coronavirus might fix that but Japan is already so healthy that it probably won't do shit to them.

[Anonymous No.19267460]

if you want generational wealth 1/3 gold 1/3 income generating real estate 1/3 stonks