Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums - Camaro5.com
 
Bigwormgraphix
Go Back   Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums - Camaro5.com > Members Area > Off-topic Discussions

Reply
 
Thread Tools
Old 10-29-2013, 12:10 PM   #1
TheAviator
 
Drives: 2012 Black Camaro 1LT
Join Date: Sep 2013
Location: Arkansas
Posts: 226
Serious Advice needed on investing major amounts of $ Cash $

There are a lot of smart guys on this forum and I wanted to get your opinions. I have just come into some major amount of cash $500K and more actually and wanted your advice on my plan. Right now the vast majority of it is in stocks and that's what the current value is. Stocks right now are pretty high, especially this one company that about 80% of it is in.

I have gotten some advice from my friend who is a very rich real estate guy and attorney who I've chatted with quite a bit.

I was originally going to cash it in and invest it in an apartment complex or duplexes for renting out. However, that has changed, my real estate friend and after my own independent research I do concur with his opinion, that I should invest it in a mini-storage unit facility.

The numbers are as follows. Right now the stock is not generating any significant income. Doing a mini storage unit facility (the size I'm thinking) would produce over $10,000 a month in income once the units are 90% rented out.

I would pay cash for the property so there would be no bank note. So hence, it would just be a matter of waiting on the property to start generating income. I've researched the facilities around here and all are almost full and there are several good areas that don't have any, or any in the immediate vicinity, so on paper it looks like a good idea.

I just want some advice on what you would do, do you think its a good idea? I've crunched the numbers on comparison of this with say condos or small apartments, and you get way more bang for your buck with mini storage units as far as a lot less investment, a lot MORE rental income potential.

For example say for the same $400K I could do a small apartment complex that would produce maybe at most $5K to $6 K a month in income. Spending less money on mini storage I'm looking at $10 K a month and more in income, so the numbers are appealing.

Spending this kind of money on something like this is nerve racking, but I think this makes more sense than just letting it sit, and degenerate in value once the stock will no doubt tank, then come back up again along with the market. Its invested very soundly in stock, and the main company is a major fortune 500 company so the value will never go to low, but right now its at an almost record high. Just nervous about doing something like this with a past loved ones money I've inherited, thanks in advance.
__________________
TheAviator is offline   Reply With Quote
Old 10-29-2013, 12:28 PM   #2
90503


 
Drives: 2011 2SS/RS LS3
Join Date: Nov 2011
Location: Torrance
Posts: 12,020
Think about not putting all your eggs in one basket...I'd talk to an Edward Jones type of guy....Some real estate, some mutual funds, hi and low risk, etc.

Don't know your age, but there are a lot of products out there for retirement, long-term health/nursing care. Use some of it to protect what you have, especially in old age. Before doing the real-estate thing, talk to your tax-man about long-term tax implications, strategies...

Good luck, it's a nice "problem" to have....lol
90503 is offline   Reply With Quote
Old 10-29-2013, 12:38 PM   #3
strych9
Gone Euro!
 
strych9's Avatar
 
Drives: 6spd Manual Mercedes, Daytona 955i
Join Date: Apr 2012
Location: Omaha, NE
Posts: 3,036
Kudos on the forward thinking! I have to say, though, that if you want SERIOUS advice, you're in the wrong place. I'm sure many here have done well for themselves, but most will have differing opinions. Financial investments are always a unique, hand-crafted venture and a professional financial planner should be involved with a large investment such as this. Good luck to you.
__________________
Bye bye, Bumblebee!
---------------------------------------------------------------------------------------
strych9 is offline   Reply With Quote
Old 10-29-2013, 12:44 PM   #4
Apex Motorsports
 
Apex Motorsports's Avatar
 
Drives: 2000 Camaro SS
Join Date: Feb 2010
Location: Louisville, Ky.
Posts: 25,211
You need to get with a financial adviser and set yourself up a nice diversified low cost portfolio. Get it out of the stock market asap though. It is way overvalued at the moment and a correction is coming.
Apex Motorsports is offline   Reply With Quote
Old 10-29-2013, 12:45 PM   #5
nyrfan
Let's go Rangers!
 
nyrfan's Avatar
 
Drives: 13' AGM 2SS/RS L99
Join Date: Jun 2011
Location: Orlando, FL
Posts: 10,721
Mistake # 1 - Coming to the internet and asking strangers for financial advice.

Mistake # 2 - Coming to C5 where most people would rather put what little money then have into mods instead of retirement.

Mistake # 3- Posting such significant financial information on a site where so much info can be found on you very easily.

What you need to do:
Go and visit a financial advisor.
__________________
Soprano 4/1/00-6/14/11, Gone but NEVER forgotten!
FSP tuned: 377/389
nyrfan is offline   Reply With Quote
Old 10-29-2013, 12:48 PM   #6
PoorMansCamaro



 
PoorMansCamaro's Avatar
 
Drives: Really Slow
Join Date: Apr 2010
Location: Las Vegas
Posts: 55,423
i'm not a financial advisor, but I did stay at a holiday inn express.
__________________
PoorMansCamaro is offline   Reply With Quote
Old 10-29-2013, 12:58 PM   #7
strych9
Gone Euro!
 
strych9's Avatar
 
Drives: 6spd Manual Mercedes, Daytona 955i
Join Date: Apr 2012
Location: Omaha, NE
Posts: 3,036
Quote:
Originally Posted by PoorMansCamaro View Post
i'm not a financial advisor, but I did stay at a holiday inn express.
__________________
Bye bye, Bumblebee!
---------------------------------------------------------------------------------------
strych9 is offline   Reply With Quote
Old 10-29-2013, 02:09 PM   #8
TheAviator
 
Drives: 2012 Black Camaro 1LT
Join Date: Sep 2013
Location: Arkansas
Posts: 226
Thanks guys, well I'm not getting advice from JUST this forum I like to get advice from as many different places I can get it. But I do think the general consensus is to get it out of the market, that was my first instinct as well, especially since the primary stock is very high right now.
__________________
TheAviator is offline   Reply With Quote
Old 10-29-2013, 03:23 PM   #9
JTruck

 
JTruck's Avatar
 
Drives: 2014 Camaro 1LT/RS
Join Date: Sep 2013
Location: Arizona
Posts: 1,693
You are doing this all wrong... Take it all out of the stock market and invest in a large garage that you will fill with different camaros.
__________________
Detailing is an involuntary obsession.
JTruck is offline   Reply With Quote
Old 10-29-2013, 04:02 PM   #10
TheAviator
 
Drives: 2012 Black Camaro 1LT
Join Date: Sep 2013
Location: Arkansas
Posts: 226
Quote:
Originally Posted by JTruckenbrod View Post
You are doing this all wrong... Take it all out of the stock market and invest in a large garage that you will fill with different camaros.
I seriously can't believe none of you have insisted I get rid of my Camaro LT and get a ZL1 what's the matter with you people
__________________
TheAviator is offline   Reply With Quote
Old 10-29-2013, 05:13 PM   #11
Stingr69
'69 Owned Since '79
 
Stingr69's Avatar
 
Drives: '69 Z/28 LeMans Blue w/White
Join Date: Oct 2008
Location: LR AR
Posts: 1,733
NOOO!!!! Send it to ME!!!!

On a more serious note - If you want to be in the storage business just buy some "SSS". Look at the 5-year chart and do the math. Small dividend there too. You don't even need to actually operate that business yourself. You would not be owning a single storage business so the headaches/liabillity/risk is less AND you still have ALL DAY to do something else. Maybe continue to work a job while you have your capital "working" for you? Just a thought.

Diversification is good too. Financial advisor would take you down that path. Quality investments will do well over time.

-Mark.
Stingr69 is offline   Reply With Quote
Old 10-29-2013, 05:50 PM   #12
TheAviator
 
Drives: 2012 Black Camaro 1LT
Join Date: Sep 2013
Location: Arkansas
Posts: 226
Quote:
Originally Posted by Stingr69 View Post
NOOO!!!! Send it to ME!!!!

On a more serious note - If you want to be in the storage business just buy some "SSS". Look at the 5-year chart and do the math. Small dividend there too. You don't even need to actually operate that business yourself. You would not be owning a single storage business so the headaches/liabillity/risk is less AND you still have ALL DAY to do something else. Maybe continue to work a job while you have your capital "working" for you? Just a thought.

Diversification is good too. Financial advisor would take you down that path. Quality investments will do well over time.

-Mark.
What is an SSS?
__________________
TheAviator is offline   Reply With Quote
Old 10-29-2013, 05:59 PM   #13
WarMachineZL1
War Machine
 
Drives: 2012 Ashen Grey ZL1 #00012
Join Date: May 2013
Location: Minneapolis, MN
Posts: 48
Regardless of whether you follow one of your investment strategies or not, I would say that as soon as you possibly can, diversify your portfolio. Having 80% of your assets tied up in a single stock is VERY risky. Even fortune 500 companies stocks can tank on bad news or a general market crash.

Sorry, no advice on the storage units vs. rental property, but good luck.
WarMachineZL1 is offline   Reply With Quote
Old 10-29-2013, 06:25 PM   #14
motorhead


 
Drives: POS MOPAR
Join Date: Sep 2009
Location: Overlook hotel
Posts: 10,402
You could invest in my business if you want to spend your money.

Seriously though. A car forum is the last place I would ever ask advice about my money.
motorhead is offline   Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -5. The time now is 11:48 PM.


Powered by vBulletin® Version 3.8.9 Beta 4
Copyright ©2000 - 2016, vBulletin Solutions, Inc.