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Old 06-08-2018, 11:16   #46
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Re: What Would You Do W/ $700K

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Not far from our place, there was recently a multi unit apartment building for sale. Somewhere around $350K asking price, was in good shape, and had 16 units grossing somewhere in the neighborhood of $7,500/month with 90% occupancy. Deducting management cost, operating expenses, and savings for repairs and updates, it would have been enough to cover our land based overhead and leave plenty for a monthly cruising budget. That'd leave $350K out of the 700 for a boat budget and good cushion of cash without liquidating the farm, tools, house, etc. Or, buy a boat and party till it's all gone.
Multifamily can be very good...can be a nightmare too, but good pro PM helps avoid most issues.
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Old 06-08-2018, 12:31   #47
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Re: What Would You Do W/ $700K

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Multifamily can be very good...can be a nightmare too, but good pro PM helps avoid most issues.

Absolutely. The only reason we were seriously considering this property, is that my Dad is mostly retired from the real estate business but wouldn't mind managing a few properties for my wife and I. He and Mom only have about a half dozen units left, and he still likes to stay busy. We just couldn't swing the 25% down payment for conventional financing without putting ourselves in a real cash crunch, and I'm a real big fan of avoiding government lending agents. The property went off the market before we had a chance to save another couple of months, so I'm assuming that it sold quickly.
Because of many comments I've read on this forum, we have been educating ourselves on commercial real estate.

Edit to add: I was wrong. Just looked, and it's back on the market. https://www.realtor.com/realestatean...-76580?view=qv
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Old 06-08-2018, 13:57   #48
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Re: What Would You Do W/ $700K

I'm with Fence Man, put it into a residential rental property, there are even a few relatively close to me right now that come to mind, a 3 unit and a 4 unit both under 300k and with the rents in my area the return on investment, excluding expenses insurance, maintenance etc wouldn't be terrible not great but about 2.7k a month if only 5 units are occupied. But there are risks with Tennants, delinquency, property damage, to name a few, I already rent my house ( I sold most of the stuff in it and put it on the market as a rental when I moved aboard, some hastle with insurance and such but ... It does provide a small income that supplements driving the stupid forklift) so I have some experience with rental property, and I think that would be the way to go for me.
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Old 06-08-2018, 14:19   #49
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Re: What Would You Do W/ $700K

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Originally Posted by Fence Man View Post
Absolutely. The only reason we were seriously considering this property, is that my Dad is mostly retired from the real estate business but wouldn't mind managing a few properties for my wife and I. He and Mom only have about a half dozen units left, and he still likes to stay busy. We just couldn't swing the 25% down payment for conventional financing without putting ourselves in a real cash crunch, and I'm a real big fan of avoiding government lending agents. The property went off the market before we had a chance to save another couple of months, so I'm assuming that it sold quickly.
Because of many comments I've read on this forum, we have been educating ourselves on commercial real estate.

Edit to add: I was wrong. Just looked, and it's back on the market. https://www.realtor.com/realestatean...-76580?view=qv
And looks like the price was adjusted down in the most recent listing. What is the rent per unit?
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Old 06-08-2018, 14:59   #50
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Re: What Would You Do W/ $700K

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Change of pace, mates. No caveats, no conditions...if you were given $700K US, what would be your 5 year game plan...crapping your pants excluded.
Depends how old you are. If you are fit healthy and not finished with work and you want to sail the high seas in high style, then get a blue water sailboat fit for the task (Valiant, Halberg-Rassy, Pacific Seacraft) sized for your crew (you +1 ~ 40’). In good condition plus refit that may cost $250-300 (of which you’ll get back 50%+ when you’re done). Put the rest into indexed funds, with enough set aside for liquidity, and enjoy the ride on the waves and the markets.

You’ll have time to see the world, maintain your boat, gamble, drink wine, chase partners, and if managed well you’ll come back with at least half of the total. If you’re bent on spending it all, buy Facebook and a dinghy. It won’t take 5 years before you’re back at work.
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Old 06-08-2018, 15:03   #51
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Re: What Would You Do W/ $700K

Forget real estate; historically, every 10 years or so the market crashes. Let’s see when was the last crash 2006-2008. What year is it now?

Buy a 53ft Oyster and see the world.... priceless, and recover nearly 100% of your investment when the journey is complete. This year alone, we’ll visit Maine, Nova Scotia, Newfoundland, Azores, Portugal, Gibraltar, Spain, Balearics, Sardinia, Italy, Montenegro and Croatia. Next year... Greece, Turkey, Italy, Croatia Montenegro, Egypt and maybe the Caribbean.

Try to beat that with a 401k, multi-family or indexed fund.
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Old 06-08-2018, 15:23   #52
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Re: What Would You Do W/ $700K

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Forget real estate; historically, every 10 years or so the market crashes. Let’s see when was the last crash 2006-2008. What year is it now?

Buy a 53ft Oyster and see the world.... priceless, and recover nearly 100% of your investment when the journey is complete. This year alone, we’ll visit Maine, Nova Scotia, Newfoundland, Azores, Portugal, Gibraltar, Spain, Balearics, Sardinia, Italy, Montenegro and Croatia.
Every market crashes sooner or later, whether real estate or whatever...so never buy in a market that has the potential to crash? Where do you plan to get that $700K from, inheritence, lottery?

Crashes present buying opportunites. Even if valuation takes a hit during a crash a good rental property can keep on producing income till valuations recover. Been there, done that, several times.

Cruising on a 53' Oyster aint a bad plan, but if you factor in your cost to carry on that beauty, I expect you will fall well short of 100%.
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Old 06-08-2018, 15:32   #53
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Re: What Would You Do W/ $700K

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Change of pace, mates. No caveats, no conditions...if you were given $700K US, what would be your 5 year game plan...crapping your pants excluded.

THIS IS A SCAM. There was no such Shark Tank episode. If you contact them they will call you all times of the day and night from all over the world. Repeat THIS IS A SCAM.
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Old 06-08-2018, 15:32   #54
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Re: What Would You Do W/ $700K

THIS IS A SCAM
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Old 06-08-2018, 15:42   #55
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Re: What Would You Do W/ $700K

7-12 year old Lagoon,FP or Leopard 42-50' ($250k +$50K outfitting solar, lith,dink,gear ect..) $350-400k in divident stocks and mutuals should sustain a $3k month budget.
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Old 06-08-2018, 15:45   #56
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Re: What Would You Do W/ $700K

400K invested to return 36K a year is what kind of return?
A little over 11% before any kind of fees or taxes?
Good luck
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Old 06-08-2018, 15:51   #57
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Re: What Would You Do W/ $700K

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Change of pace, mates. No caveats, no conditions...if you were given $700K US, what would be your 5 year game plan...crapping your pants excluded.
Half on a boat.
Quarter on upgrades.
Leaves more than $2500/month to live and maintain the boat.
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Old 06-08-2018, 16:12   #58
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Re: What Would You Do W/ $700K

$25-50k spent on upgrades to our current boat and then hit seas immediately. The rest will go a long way for a long time.
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Old 06-08-2018, 16:12   #59
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Re: What Would You Do W/ $700K

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Originally Posted by Dianne-Mal View Post
THIS IS A SCAM. There was no such Shark Tank episode. If you contact them they will call you all times of the day and night from all over the world. Repeat THIS IS A SCAM.
No Shark Tank episode was mentioned and no one is actually offering $700K. Care to explain the nature of this scam?
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Old 06-08-2018, 16:23   #60
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Re: What Would You Do W/ $700K

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Originally Posted by svGenesis View Post
7-12 year old Lagoon,FP or Leopard 42-50' ($250k +$50K outfitting solar, lith,dink,gear ect..) $350-400k in divident stocks and mutuals should sustain a $3k month budget.
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400K invested to return 36K a year is what kind of return?
A little over 11% before any kind of fees or taxes?
Good luck
Wow, what dividend paying stocks/funds do you know that pay that kind of rate!?

REITs, a strong dividend payer, currently max out at about 6%...or $24K per year on a $400K investment.
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