Whats the better investing?

[Cruze]

Hey guys
You have an business and 500k Dollars.

Whats would you do: invest the money in real estates or buy other brands / business? Whats the better roi? Whats make more sense?

Best greetings!

 

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[MJ DeMarco]

I'll answer your question if you answer mine first:

What car should I buy for my business? One has 4 wheels and is white. The other has 4 wheels and is gray.

Please tell me exactly which one would be the better ROI for my business, and WHY.

 

[Cruze]

Hey Mj
Thanks for your answer. Yes my Question wasnt perfect. I mean when you had the money 'over' what would make more sense.

Diserfication and invest in other Things like Real estate and have a value or buy other brands and make the Business bigger.... But Ok its a stupid Question, sorry

Best greetings

Ps: thefastlane is a really nice book!

 

[MJ DeMarco]

If you want advice, you have to give more details, numbers, figures, operating history. We aren't mind readers and therefore no one can tell you anything worthwhile.

Ask better questions and you will get better answers!

 

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[ZCP]

Open a spreadsheet, put in assumptions and numbers for the different options, determine a risk adjusted NPV and make your choice.

 

[EvanOkanagan]

Hey guys
You have an business and 500k Dollars.

Whats would you do: invest the money in real estates or buy other brands / business? Whats the better roi? Whats make more sense?

Best greetings!

It comes down to what you know best.

From what you posted, since you have 500k bank, I'm assuming you've had a somewhat successful business--so I would say invest in other businesses, unless you know Real Estate in your area. If you don't know or want to learn Real Estate, or don't have trusted sources it may not be the best idea.

Example: You go out invest 500k in Real Estate. You saw a house that looks great-- and you even negotiated $25,000 off the 525k asking price!... Except you had little idea about the area and market values, so you actually bought a house that's only worth 450k. You just instantly saw a negative 10% return .