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.

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

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.

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.

i'm not a financial advisor, but I did stay at a holiday inn express.

:laughabove:

Thanks guys, well I'm not getting advice from JUST this forum :lol: 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.

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. :D

I seriously can't believe none of you have insisted I get rid of my Camaro LT and get a ZL1 :lol: what's the matter with you people :)

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?