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Old 01-20-2008, 08:46 AM
 
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If you had 30K to invest right now, where and how would you invest it, seeing how bad things are right now. I'm looking for the most I can make on it 20 years from now. Thank you.
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Old 01-20-2008, 09:33 AM
 
Location: mississippi
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oh, very good question. "MOST" is an unknown. You have many options. The stock market is becoming cheaper every day. A down market is a good time to buy. Use one of the tax deferred plans and let it grow tax deferred. This is going to sound strange, but if you work where there is a matching fund, then I would max out investing in the work plan to get the employee match. I would live off my 30k and just max the contributions. Since you probably can not contribute the entire 30k at one time, what you would be doing is spreading the funds over a larger time period. I love free company money. Also, you can watch real estate. Do not be afraid of a bargain. If you are financially sound then 30k could be used in RE.
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Old 01-21-2008, 10:09 AM
 
Location: Forests of Maine
32,530 posts, read 52,979,997 times
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Originally Posted by dragon07 View Post
If you had 30K to invest right now, where and how would you invest it, seeing how bad things are right now. I'm looking for the most I can make on it 20 years from now. Thank you.
I would buy a run-down five-unit apartment building for 200K, zero-down on a 30-year fixed mortgage. Fill it with low-income renters and apply for a HUD grant/loan to replace all major items that need fixing. Hold onto the 30K as a cushion for making repairs and improving habitability. Make a monthly extra principle payment from the rent receipts and watch the equity grow.

In 15 years it could be expected to see it pay off the mortgage. Re-finance at that point, cashing out the equity, take the money and buy two more just like the first.

That is close to what we did [except for not having 30K to start with].
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Old 01-21-2008, 10:38 AM
 
24,839 posts, read 34,301,619 times
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Quote:
Originally Posted by forest beekeeper View Post
I would buy a run-down five-unit apartment building for 200K, zero-down on a 30-year fixed mortgage. Fill it with low-income renters and apply for a HUD grant/loan to replace all major items that need fixing. Hold onto the 30K as a cushion for making repairs and improving habitability. Make a monthly extra principle payment from the rent receipts and watch the equity grow.

In 15 years it could be expected to see it pay off the mortgage. Re-finance at that point, cashing out the equity, take the money and buy two more just like the first.

That is close to what we did [except for not having 30K to start with].
Good plan! Keep records to write off capital gaines in the end.
Hud funding has been a little hard to get. It still can be done.
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Old 01-21-2008, 10:45 AM
 
Location: Wouldn't you like to know?
9,115 posts, read 16,255,602 times
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Quote:
Originally Posted by dragon07 View Post
If you had 30K to invest right now, where and how would you invest it, seeing how bad things are right now. I'm looking for the most I can make on it 20 years from now. Thank you.
Its really hard to say w/o knowing your true financial picture.

I would pay off cc debt first and foremost. Right there you could be "earning" 17-20% interest if you pay them off.

How about a roth IRA for you and your signficant other? Do you have kids? How about a 529 plan? What's your risk tolerance like?

There are many options...you'd have to provide more specific details.
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Old 01-21-2008, 12:03 PM
 
Location: Forests of Maine
32,530 posts, read 52,979,997 times
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Originally Posted by Driller1 View Post
Good plan! Keep records to write off capital gaines in the end.
Hud funding has been a little hard to get. It still can be done.
File a schedule 'E' every year, MFRs [Multi-Family-Residences] have lots of write-offs. Which goes to keep most of my other income sources tax-free.

We have gotten HUD grant/loans, no problem. 50% of the money is a loan, paid back over five years at zero percent interest. 50% is a grant which stays on as a lien on the property for so many years, under the condition that if you sell the property then suddenly you owe it all plus it's accumulated interest. But if you held the property, then after 'X' years the lien gets waived and goes away.

We accumulated a few of these MFRs during my active career. Zero down each time, and each one started as owner-occupied.

We sold all of them but one, when I retired in 2001.
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