News

(Investment) What to do with 30 000? Please help me out!

Discussion in 'Other Off Topic Forum' started by ara, Mar 18, 2004.

  1. ara

    ara Karting

    Dec 30, 2003
    141
    Westmount, Quebec
    i have about 30 000 dollars (CAD) to invest, was going to buy another car, but decided to keep my jetta and invest it. I'm looking for some small land, or trying to be a silent partner for this new Martial Arts dojo that is opening up, the thing is i'm still a student with them and would feel weird asking my sensei to partner up.

    What else can i do besides all this? Where should i put this money that will accumulate the most interest? I don't need the money right now as i'm living and going to college and doing fine with my part time job.

    So i hope i'm clear enough i'm looking to do something smart with this money. And make some money off my investment.

    Any advice to this young guy will help a whole lot.
     
  2. To remove this ad click here.

  3. SrfCity

    SrfCity F1 Veteran

    Nov 1, 2003
    9,842
    Orange County, CA
    You can't go wrong with real estate imo. If you can buy right you'll never regret getting on the band wagon.
     
  4. Aureus

    Aureus Formula 3

    I don't know if Canada offers the equivalent of a IRA, but if they do, do that.
     
  5. Artherd

    Artherd F1 Veteran

    Jun 19, 2002
    6,588
    Bay Area, CA
    Full Name:
    Ben Cannon
    California real estate, if you at all can.

    Ideally, find a tycoon who does fixers you REALLY trust, and offer him the money. These guys are always taped out as much as the banks will give them (they are leveraged high and make big $) so another $30k can mean they can make another down or buy construction materials.

    Ask for 25% of the profits on the sale of their next fixer. If you find the right partner, this can be very lucrative, and everybody makes money.

    Watch out for the types that think they win when they make somebody else loose though. They're usually small time anyway.
     
  6. dherman76

    dherman76 Formula Junior
    Owner

    Feb 25, 2004
    601
    Boston
    Full Name:
    Darren Herman
    I know a great 'fixer' in Saratoga Springs, NY who is looking for investment. Please contact me via PM for his name/number. Just looking to help out.
     
  7. To remove this ad click here.

  8. JSL

    JSL Formula 3

    Jan 5, 2002
    2,212
    California
    Full Name:
    J.S. Leonard
    What is your risk tolerance? Speculation on R.E. is very risky if you don't know who you are in business with. 30K seems like a lot of money but it really isn't enough to go into real estate without being highly leveraged. If you want to invest in real estate, buy a starter home that you will live in. Probably the best investment you will ever make and you will get to live there. Otherwise, find a good mutual fund, put the money in and leave it alone for the next 10 years. You won't need to worry daily or manage the investment too closely. I am selling my investment real estate right now since the appreciation has been so great. Don't invest in a small business where you are a silent partner. You have no control and the money will disappear. BTW, I'm a 3rd degree black belt. Martial arts studios have very few real assetts other than the teacher. He goes, the business goes. Be careful.
     
  9. dwhite

    dwhite F1 Rookie

    Bury it long term - retirement account, tax deferred it will be millions by the time you are 65. You certainly can afford high risk growth maybe individually picked equities or a couple different mutual funds at age 20ish. 30K in RE in Cali can't imagine doing much with that.
     
  10. VWH3RD

    VWH3RD Formula Junior

    Jan 22, 2003
    533
    Cherry Hill, NJ
    Buy CBH stock
     
  11. WILLIAM H

    WILLIAM H Three Time F1 World Champ

    Nov 1, 2003
    34,891
    Victory Circle
    Full Name:
    HUBBSTER
    I suggest you diversify your investments. Take $10k & if you dont know much about stocks buy a quality mutual fund in Blue Chips which is usually pretty safe. Then take $10k & invest it in some form of real estate, either a fixer upper or a preconstruction usually offer the best profits. Take the last $10k & either invest it in education or travel

    The best investment advice I ever heard came from Peter Lynch who was head of 1 of the biggest most succesful mutual fund operations for a long time

    "Buy something you like, because you might get stuck with it."
     
  12. To remove this ad click here.

  13. thecarreaper

    thecarreaper F1 World Champ
    Silver Subscribed

    Sep 30, 2003
    15,974
    Savannah
    Full Name:
    I NEED A JOB
    great thread, great advice. i have been wondering the same thing, ie spend "x" $$$ or invest. good stuff here folks! michael
     
  14. ara

    ara Karting

    Dec 30, 2003
    141
    Westmount, Quebec
    the problem is i'm still in school and have to still go to law school next year. I don't really have time to monitor my funds with let's say in construction for a fix er upper, how much will i gain in mutual funds if i leave it all there for 10 years?

    Anything else?
     
  15. JSL

    JSL Formula 3

    Jan 5, 2002
    2,212
    California
    Full Name:
    J.S. Leonard
    There is never a guarantee of any return but looking at the historical record of the market, you should average around 10-11%. Time heals all wounds and wounds all heals! Put the money away and forget about it. Ten years from now you will most likely be pleased.
     
  16. ara

    ara Karting

    Dec 30, 2003
    141
    Westmount, Quebec

    Are we talking 10-11 percent over the 10 years? or per year? forgive my ignorance i'm only 20 and have no idea about this!
     
  17. ross

    ross Three Time F1 World Champ
    Silver Subscribed Owner

    Mar 25, 2002
    31,622
    houston/geneva
    Full Name:
    Ross
    by the worst house you can afford, in the best neighborhood. live in it till you graduate, then sell it. you will most probably make more than avg return.
     
  18. thecarreaper

    thecarreaper F1 World Champ
    Silver Subscribed

    Sep 30, 2003
    15,974
    Savannah
    Full Name:
    I NEED A JOB
    i bought my house a week to the day after 9/11. everyone was freaked and the people needed to sell the house NOW! got it for 60k was advertised for 79k. just had it appraised at 91k and i still have to do the windows and siding. not a bad return. equity is in a home equity line of credit. LOL should i get a fcar with it?? !! LOL !! what can you afford to loose if / when it all goes wrong.?
     
  19. JSL

    JSL Formula 3

    Jan 5, 2002
    2,212
    California
    Full Name:
    J.S. Leonard
    The average annual return over the last 40 year or so has historically been about 10% (annually).
     
  20. noony

    noony F1 Veteran

    Nov 25, 2003
    5,903
    Seoul
    Full Name:
    Johnathan
    Does that take inflation into account?
     
  21. ara

    ara Karting

    Dec 30, 2003
    141
    Westmount, Quebec
    10% annually, that is pretty good. So how much would that be in 10 years if i leave it mutual funds? i can't do compound multiplications for the life of me i forgot, that is why i am in law LOL

    Someone told me about overseas accounts which get up to 8 or 9% monthly? is that possible? what is iinvolved?

    Thank you guys very much. So far great, i will decide what to do with the money within a few months.
     
  22. benedict

    benedict Formula Junior

    Nov 6, 2003
    731
    Full Name:
    Ben
    Put a downpayment on a two-family house near the law school. Live in one side, rent out the other to students. The school will provide you a constant stream of tenants. For other creative real estate ideas check out www.creonline.com (no affiliation with me by the way). Good luck.
     
  23. ara

    ara Karting

    Dec 30, 2003
    141
    Westmount, Quebec

    sounds like a good idea! but with law school a year away or so what should i do with the money in the mean time!



    Thanks!
     
  24. JSL

    JSL Formula 3

    Jan 5, 2002
    2,212
    California
    Full Name:
    J.S. Leonard
    $30,000 for 10 years at 10% annualized is $52,567.18. No guarantee! However, this is the long term historical stock market average. I have a great deal in the market but the key to assett preservation is diversification. If you have time, the market will always make you whole.
     
  25. allanlambo

    allanlambo F1 Rookie

    Jun 9, 2002
    4,363
    Maui
    Full Name:
    Allan
    I always buy pre-contstruction propertys in Florida. I bought one in Nov of last year for 285,000. They are already selling for 319,000, and my house wont be built for atleast another 6 months. I expect it to be around 340,000-350,000 by the time its built.

    also, no mortgage payments till its built. I like to find them in very early stages, and hope it takes forever to build the home.
     
  26. JSL

    JSL Formula 3

    Jan 5, 2002
    2,212
    California
    Full Name:
    J.S. Leonard
    I built a vacation home in the mountains for 400K and sold it 14 months later, Aug, 03 for 650K. I bought a rental house 15 months ago for 200K and it is in escrow right now for 350K. But, I minimize risk by paying for these properties and not using borrowed money. Lowers my return but mitigates the risk. Not a bad return given the capital gains rate is now 15% but the state kills me with another 9%. The market is great right now but for someone with 30K there just isn't enough to take the risk on speculative real estate. And, that statement from an owner of a 350 agent, 1 billion dollar sales, residential real estate company. Wow, I hope none of our clients are reading this.
     
  27. ara

    ara Karting

    Dec 30, 2003
    141
    Westmount, Quebec
    thanks that sounds great, wish i had that amount of money to play with , one day hopefully. But for now i think i'll just stick to mutual funds or something else. We'll see.
     
  28. JSL

    JSL Formula 3

    Jan 5, 2002
    2,212
    California
    Full Name:
    J.S. Leonard
    Work hard for the next 30 years and spend less than you make and things will work out fine. Good luck. There is no secret to creating net worth, it is time, save/invest, control spending and don't look to make it in one year. BTW: I have lost money on many projects. Not everything works out like these two lucky little projects!
     

Share This Page