150k to invest. What would you do?

[Growth & Learn]

Here's a fun one. There are many brilliant minds on this forum. So, I'm excited to see some of the thought processes out there.

Lets say you have 150k to invest today. All options are on the table. Where would you invest it and why?

 

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[JasonR]

If have a business that's throwing off that cash, out it back into the business.

If it's just lazy money there are a lot of investment options.

If you search there are dozens of threads like these.

 

[Growth & Learn]

If have a business that's throwing off that cash, out it back into the business.

If it's just lazy money there are a lot of investment options.

If you search there are dozens of threads like these.

Yeah I was thinking of putting some of it back into one of my businesses. How to do that and get a killer ROI is the question.

 

[JasonR]

Yeah I was thinking of putting some of it back into one of my businesses. How to do that and get a killer ROI is the question.

If you have a profitable business the answer should be pretty crystal clear.

 

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[GPM]

Hookers and blow...

 

[WestCoast]

I've lost the most money investing in other people or other businesses....

and while I've lost plenty of money investing in myself and my own ventures, that is my main focus now.
I have control, I'm not cheating myself, I can turn that $150k into $220k in one deal (and a load of hard work).

So, agree with the rest. Unless you are looking for passive income, invest it back in your business.
More deals, more capital to fund whatever you want to grow into.

Do not take your foot off the pedal.

 

[AndrewNC]

I've lost the most money investing in other people or other businesses....

and while I've lost plenty of money investing in myself and my own ventures, that is my main focus now.
I have control, I'm not cheating myself, I can turn that $150k into $220k in one deal (and a load of hard work).

So, agree with the rest. Unless you are looking for passive income, invest it back in your business.
More deals, more capital to fund whatever you want to grow into.

Do not take your foot off the pedal.

If you were to invest in other peoples businesses again- what lessons did you learn from their past experiences that would help you make a better investment?

 

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[BlakeIC]

[HASHTAG]#landfill[/HASHTAG]

 

[TonyStark]

Put it in an index fund and make $12,000 a year passively?

This is still a slowlane strategy, but it's a start.

 

[Supa]

Here's a fun one. There are many brilliant minds on this forum. So, I'm excited to see some of the thought processes out there.

Lets say you have 150k to invest today. All options are on the table. Where would you invest it and why?

instead of spending time thinking about "what color your ferrari will be" type of questions, how about working on getting those 150k before?

 

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[TonyStark]

instead of spending time thinking about "what color your ferrari will be" type of questions, how about working on getting those 150k before?

I think he does have it, just doesn't know what to do with it...

 

[wholehog]

Here's a fun one. There are many brilliant minds on this forum. So, I'm excited to see some of the thought processes out there.

Lets say you have 150k to invest today. All options are on the table. Where would you invest it and why?

Real Estate.

 

[marcoschwartz]

Interesting question! I actually recently had about the same amount to invest, and I also wrote a book on the topic (called After Profits). For me, it's quite dangerous to re-invest it all into your business, as your business can fail (like any business). Therefore, I recommend investing in those four investment types:

- dividend growth stocks
- real estate (via real estate crowdfunding)
- peer-to-peer lending
- profitable websites (= buying other online businesses that can be run passively)

I'd be happy to discuss about what other people here think about this strategy!

 

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[WestCoast]

If you were to invest in other peoples businesses again- what lessons did you learn from their past experiences that would help you make a better investment?

Great question.

Is it bad to simply say, I work harder than they did??

--
I bought a portion of another business that a friend owned (composite manufacturing in US).
I was a part owner, and you know what they say "what's the only ship that doesn't float??? A partnership!"

So, since I wasn't the 100% owner, everything went slowly. Decision making, new products (there weren't many....) pricing decisions... everything.
And I wondered if they were working that hard at it, or if my fresh investment of money gave them some ease/excuse to not grind it out.

Regardless, I sold my share in that business for pennies on the dollar two years later. Great lesson.

--
I recently invested passively in a local business. I'm getting a solid return back each month, but, after 6 months of working to help the owner, I've given up. It's just not going to be possible to budge them.

While I'm happy I gave them working capital.... it feels a little silly to have thought this investment would help them see the light.
Oh Well.


--
I know what investing in my self produces now. I've got the track record of growth and returns where it's less risky than anything else for me.
Diversification is good if you're a generalist.... but, I've never read of people getting rich by spreading their money around in lots of little buckets and hoping they fill up.

Wealth preservation, sure.... but that's not why I post here.

 

[Justin Gesso]

@Growth & Learn , how are you otherwise invested today? If you don't have a business to invest in, consider real estate. Are you currently invested in real estate?

$150K could get you a portfolio of single family rentals. It could alternatively get you into a syndication on a very large multi-unit.

Personally, I like real estate because it is relatively easy to value. You can spend some time educating yourself on real estate investing, and then spend some time out "in the field." You'll quickly figure out how to identify a good deal. Judging the value of a business is much more challenging, and is dependent on people who change, move on, make mistakes, and much more.

 

[jon.a]

I'd be watching MJ's options thread.

 

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[jazb]

There's a billion things you could do.

I prefer the fun ways. I would buy some used undervalued cars, rent a lot, hire some buyers/sellers/ops and open shop.

after optimizing everything and putting all the correct systems in place, I would scale the crap out of it.

 

[Growth & Learn]

If you have a profitable business the answer should be pretty crystal clear.

I do have a profitable business...mind elaborating a bit more @JasonR ?

 

[Growth & Learn]

instead of spending time thinking about "what color your ferrari will be" type of questions, how about working on getting those 150k before?

Ummm....I never mentioned a Ferrari.

If I was just making a post to dream I would have said 150 billion...not a measly 150k.

 

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[Ahrens]

Option 1:
I would buy 3 apartments with an market value of 60.000 for 50.000 each.
Then I would rent out those 3 apartments (= 500 * 3 = 1500 a month in passive income)
Ofcourse there will be some repairs. You'll also have an instant equity of 30.000.

Option 2:
Buy and sell a fix and flip

Option 3:
Leverage the 150k as a down payment of 12 apartments and have the renters pay it down in about 7 years.

 

[MTF]

@Growth & Learn, what are you after? Wealth generation? Wealth preservation? The answer depends on your personal situation and the goal you want to achieve.

If you're after the highest return and you're fine with higher risk and more work, invest it in your business or yourself (learn new profitable skills, spend it on networking face-to-face with high net worth individuals). Probably no other investment can generate four, five, or six figure+ ROI that easily.

Flipping things (including rehabbing, etc.) can be very lucrative, too, but it's time-consuming and usually riskier than investing it in an established business or yourself.

Yeah I was thinking of putting some of it back into one of my businesses. How to do that and get a killer ROI is the question.

• improve the quality of your product,
• create a new product,
• create your product in a foreign language (say, Spanish for the US) or enter a foreign market,
  
• invest in marketing (try new marketing channels, improve the existing ones),
• hire a rockstar employee or contractor,
  
• buy out a small competitor,
  
• hire a pro business consultant who will give you more ideas how to grow your business.

The list is endless. Go to a quiet place for an hour and ponder on it. You'll come up with something.

If you're after wealth preservation (meaning you only want to park cash in something safer than a bank), buy some precious metals or perhaps raw land. I'm partial to things that exist in the real world and not only on your computer (so, no gold stocks or REITs). Farmland in particular is IMO a very good way to preserve wealth, plus you can launch a small agricultural company on the side or just have your own source of food.

If you're after relatively passive source of income and you understand that on average you shouldn't expect to make more than perhaps 5% a year unless you're willing to participate in your investments more actively, consider cashflowing real estate or maybe P2P lending for up to 10% a year.

Last but not least, ask yourself what kind of an investment naturally draws you in. For instance, I don't like stock investing at all. I don't understand it, I don't think I'd be good at it, so I stay away from it despite most people saying it's a good investment. Instead, as a contrarian I prefer alternative investments most people stay away from simply because they're not popular.

What's your approach? Adjust your investments accordingly.

 

[Ev1]

Real estate 100%

 

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[Growth & Learn]

@Growth & Learn, what are you after? Wealth generation? Wealth preservation? The answer depends on your personal situation and the goal you want to achieve.

If you're after the highest return and you're fine with higher risk and more work, invest it in your business or yourself (learn new profitable skills, spend it on networking face-to-face with high net worth individuals). Probably no other investment can generate four, five, or six figure+ ROI that easily.

Flipping things (including rehabbing, etc.) can be very lucrative, too, but it's time-consuming and usually riskier than investing it in an established business or yourself.

• improve the quality of your product,
• create a new product,
• create your product in a foreign language (say, Spanish for the US) or enter a foreign market,
  
• invest in marketing (try new marketing channels, improve the existing ones),
• hire a rockstar employee or contractor,
  
• buy out a small competitor,
  
• hire a pro business consultant who will give you more ideas how to grow your business.

The list is endless. Go to a quiet place for an hour and ponder on it. You'll come up with something.

If you're after wealth preservation (meaning you only want to park cash in something safer than a bank), buy some precious metals or perhaps raw land. I'm partial to things that exist in the real world and not only on your computer (so, no gold stocks or REITs). Farmland in particular is IMO a very good way to preserve wealth, plus you can launch a small agricultural company on the side or just have your own source of food.

If you're after relatively passive source of income and you understand that on average you shouldn't expect to make more than perhaps 5% a year unless you're willing to participate in your investments more actively, consider cashflowing real estate or maybe P2P lending for up to 10% a year.

Last but not least, ask yourself what kind of an investment naturally draws you in. For instance, I don't like stock investing at all. I don't understand it, I don't think I'd be good at it, so I stay away from it despite most people saying it's a good investment. Instead, as a contrarian I prefer alternative investments most people stay away from simply because they're not popular.

What's your approach? Adjust your investments accordingly.

Thanks for your thoughts. Here's something I struggle with. Perhaps someone can help me?

When I personally do the work and the things that my business needs to grow..it's as close to a sure thing as you can get. I have a proven track record. I can consistently turn investments of my time and a small amount of my money into larger piles of money. Way more than I could get in real estate or stocks.

The ROI is amazing! But again, I'm 100% involved with this.

For example, I can work my tail off and do all the product creation and marketing. I know the work is going to pay off because I did ALL of it.

The problem that I'm not sure how to invest my profits back into new marketing channels or new employees (as one example) and still get a high ROI. And my time is finite so I can't scale my own efforts farther.

I mean lets say I hire a new employee and pay them 40k. Is that worth it if I'm not sure how to turn that 40k into 80k with the new employee? I know how to do it with myself...but can I get an employee in to do the same and possibly lose quality and lose money and my time training them?

Or what if I build out a new marketing channel. Initially I will lose money as I learn. Plus, I put a lot of time into learning the system. So, theoretically I'm losing time and money...maybe it works..maybe it doesn't.

Anyway...how do you project the answers to these?


I

 

[MTF]

Anyway...how do you project the answers to these?

Nobody will give you the answers. All investments carry a risk, so you should ask yourself how much risk you're willing to take.

 

[MattCour]

What JasonR said. Reinvesting in your own business is the smartest bet. After it's generating larger cash flow think about putting that into something passive/safe( lending club, muni bond funds, apartment buildings).

 

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[relentlessaction]

I would put my money into an e-com site and/or paid traffic. I'd keep flipping my money until I get to $500-600k and would then work on bigger deals.

 

[GuestUser140]

Don't. Eggs. One basket.

If the business has enough oxygen (cash), don't reinvest it all. Keep it to the side.

Buy a simple apartment or a small house.

Real estate is tangible and cannot get lost or stolen. I like that and plan to do the same. If you're making great returns in your business, put in the majority of your time and effort there.

 

[hughjasle]

Anyway...how do you project the answers to these?

I'll focus on the two you mentioned:

I mean lets say I hire a new employee and pay them 40k. Is that worth it if I'm not sure how to turn that 40k into 80k with the new employee? I know how to do it with myself...but can I get an employee in to do the same and possibly lose quality and lose money and my time training them?

Employees - Honestly they are a pain getting started. Seriously. And you will most likely deal with turnover more than you wish, but that's gonna be part of the game. Treat them well to keep them as long as possible. Without knowing your business, I don't know what that means for you.

In my experience, having employees has put a huge stress on me and my business, BUT once you do get them trained you start to have lots more TIME. For me this has been huge. Sure they are doing stuff you can do better (that is if we are just talking about general skills labor), but don't expect them to be as good or committed as you.

I now hire out as much as I can so long as where I place people, they can deliver 70% efficiency as compared to when I do it. The time is worth it to me. I am now able to grow the more intricate areas of my businesses which has resulted in far more money.

Or what if I build out a new marketing channel. Initially I will lose money as I learn. Plus, I put a lot of time into learning the system. So, theoretically I'm losing time and money...maybe it works..maybe it doesn't.

This one shouldn't be an "option", this should be a requirement. You need to be setting aside a proper budget to always be doing this already. This is where real growth and sustainability come from.

Think of relating your business to a digging for oil. It's gonna cost to drill those holes. You are gonna just have to suck up that cost knowing that WHEN you find a new source of oil, it will more than make up for all the other useless holes you drilled.

 

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[iTrader]

Since one of my main sources of income is day trading, I would probably put half into my accounts and experiment with the other half (creating a business online)

 

[Growth & Learn]

I'll focus on the two you mentioned:

Employees - Honestly they are a pain getting started. Seriously. And you will most likely deal with turnover more than you wish, but that's gonna be part of the game. Treat them well to keep them as long as possible. Without knowing your business, I don't know what that means for you.

In my experience, having employees has put a huge stress on me and my business, BUT once you do get them trained you start to have lots more TIME. For me this has been huge. Sure they are doing stuff you can do better (that is if we are just talking about general skills labor), but don't expect them to be as good or committed as you.

I now hire out as much as I can so long as where I place people, they can deliver 70% efficiency as compared to when I do it. The time is worth it to me. I am now able to grow the more intricate areas of my businesses which has resulted in far more money.


This one shouldn't be an "option", this should be a requirement. You need to be setting aside a proper budget to always be doing this already. This is where real growth and sustainability come from.

Think of relating your business to a digging for oil. It's gonna cost to drill those holes. You are gonna just have to suck up that cost knowing that WHEN you find a new source of oil, it will more than make up for all the other useless holes you drilled.

This is great thank you. What do you consider the more lucrative areas of your business as opposed to what your employees are doing?

In regards to digging for new marketing channels (nice description by the way)...are you putting your personal time into learning those channels or are you outsourcing those channels?

Example...I have the marketing chops but I don't have the specific knowledge of Facebook's platform. So, I could pay someone who knows the channel better...but they may not have the marketing skills I have.