Serious Advice needed on investing major amounts of $ Cash $ - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

TheAviator · 10-29-2013, 11:10 AM

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.

90503 · 10-29-2013, 11:28 AM

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

strych9 · 10-29-2013, 11:38 AM

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.

Apex Motorsports · 10-29-2013, 11:44 AM

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.

nyrfan · 10-29-2013, 11:45 AM

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.

PoorMansCamaro · 10-29-2013, 11:48 AM

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

strych9 · 10-29-2013, 11:58 AM

Quote:

Originally Posted by PoorMansCamaro

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

TheAviator · 10-29-2013, 01:09 PM

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.

JTruck · 10-29-2013, 02:23 PM

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.

TheAviator · 10-29-2013, 03:02 PM

Quote:

Originally Posted by JTruckenbrod

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

Stingr69 · 10-29-2013, 04:13 PM

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.

TheAviator · 10-29-2013, 04:50 PM

Quote:

Originally Posted by Stingr69

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?

WarMachineZL1 · 10-29-2013, 04:59 PM

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.

motorhead · 10-29-2013, 05:25 PM

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.

10-29-2013, 11:10 AM	#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. __________________

10-29-2013, 11:38 AM	#3
strych9 I'll be back... Drives: Subaru, HD Road Glide Special Join Date: Apr 2012 Location: Omaha, NE Posts: 3,036 View My Garage	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! --------------------------------------------------------------------------------------- Build Journal My Garage GoPro Mic Hack

10-29-2013, 11:45 AM	#5
nyrfan Let's go Rangers! Drives: 13' AGM 2SS/RS L99 Join Date: Jun 2011 Location: Orlando, FL Posts: 10,742 View My Garage	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

10-29-2013, 11:48 AM	#6
PoorMansCamaro Drives: Really Slow Join Date: Apr 2010 Location: PA Posts: 56,957	i'm not a financial advisor, but I did stay at a holiday inn express. __________________

10-29-2013, 01:09 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. __________________

10-29-2013, 11:28 AM	#2
90503 Drives: 2011 2SS/RS LS3 Join Date: Nov 2011 Location: Torrance Posts: 14,425	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

10-29-2013, 11:44 AM	#4
Apex Motorsports Drives: 2000 Camaro SS Join Date: Feb 2010 Location: Louisville, Ky. Posts: 25,179	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.

10-29-2013, 02:23 PM	#9
JTruck 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.

10-29-2013, 04:13 PM	#11
Stingr69 '69 Owned Since '79 Drives: '69 Z/28 LeMans Blue w/White Join Date: Oct 2008 Location: LR AR Posts: 1,847 View My Garage	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.

10-29-2013, 04:59 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.

10-29-2013, 05:25 PM	#14
motorhead Drives: Love the one you're with Join Date: Sep 2009 Location: Downtown Charlie Brown Posts: 11,850	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.