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Forum
-> Household Management
-> Finances
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amother
OP
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 Thu, May 09 2019, 8:44 pm
Hi,
We will most probably be given around $200-250 thousand.
I'm simply lookign for tips and ideas on the best way to invest but that would give us some additional monthly income somehow.
We are keh a family of 7 children and b'h just about make it each month between the mortgage, tuitions, food and other basic expenses - really no extras at all.
My husband is a bit involved in the real estate world and would love to put around $200,000 or so of it into real estate - would that make financial sense? Buy a house or two (likely with mortgages on those) and then pay up those mortgages with the rent received with hopefully some extra..
What would financial advisers advise?
(We will also use some of the cash to pay off a vehicle, some home improvements etc).
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oliveoil
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Thu, May 09 2019, 10:21 pm
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For such big money you're better off consulting an actual financial advisor and not an anonymous message board.
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amother
Jetblack
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Thu, May 09 2019, 10:25 pm
You're best of getting a financial consultant.
Do you have money saved up for the future? Marrying off your kids? Emergency fund?
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amother
Brown
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Thu, May 09 2019, 11:27 pm
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I agree with the other posters who said that you need to consult with a financial advisor. I just want to add that you will have to decide how much risk you want to take with the portion of money you will invest, and keep in mind that real estate is considered pretty high risk.
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amother
OP
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Thu, May 09 2019, 11:29 pm
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Thank you! I agree with all of you and think a financial advisor is the way to go, just need to convince my husband about that too...
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amother
Burgundy
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Thu, May 09 2019, 11:30 pm
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I wouldn’t suggest buying houses and renting them out with that money even if you would like to put the money into real estate investment
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amother
Salmon
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Thu, May 09 2019, 11:34 pm
I would speak to Professional.
I wouldn’t put all your things in one basket.
Also have you ever managed a home rental. Do you know expenses and risks involved? Speak to someone who has first.
We have a combination:
Houses, kept buying when refinanced. started with small investment. Lots of work and doesn’t bring in a ton. Every time there is s vacancy repairs are expensive plus no rent. And issues like lead and failed inspections.
DH was burnt out from managing so decided to invest in group. Put 100 k into purchase of 150 million apartment building. Buyers have a good track record and references were good.
We also have stocks and mutual funds. And investment funds for each kid.
We started with way less money 10 years ago.
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amother
Rose
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Thu, May 09 2019, 11:34 pm
| amother [ OP ] wrote: | | Thank you! I agree with all of you and think a financial advisor is the way to go, just need to convince my husband about that too... |
Really? What's dh's plan?
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amother
Ruby
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Thu, May 09 2019, 11:43 pm
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Paying off or paying down your mortgage is a form of investing in real estate, and will free up money every month. But first put aside enough to cover six months of expenses. You need a cushion.
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baby12x
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Fri, May 10 2019, 1:02 am
A fee based financial planner!
They can help you with the tax implications also. Real estate can be a good investment but investing all of it in to real estate is a bad idea. It's REALLY important to diversify. Also, real estate is not passive investing. It takes a lot of work.
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amother
Blonde
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Fri, May 10 2019, 1:11 am
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There are stocks that invest in major real estate with great returns. I would buy a house with half the amount when the mortgage is paid off you will have a nice income. The other half in the real estate stocks
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amother
Salmon
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Fri, May 10 2019, 1:12 am
| amother [ Ruby ] wrote: | | Paying off or paying down your mortgage is a form of investing in real estate, and will free up money every month. But first put aside enough to cover six months of expenses. You need a cushion. |
If your mortgage rate is 4-5% you’d be better off investing and earning 8%. Plus you can be building equity in something else.
And the mortgage gives you a tax break.
I’ve made a lot of money refinancing and keeping a high mortgage on my home. I don’t see a reason I’d want to lock my money in my home.
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amother
Ruby
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Fri, May 10 2019, 1:48 am
| amother [ Salmon ] wrote: | If your mortgage rate is 4-5% you’d be better off investing and earning 8%. Plus you can be building equity in something else.
And the mortgage gives you a tax break.
I’ve made a lot of money refinancing and keeping a high mortgage on my home. I don’t see a reason I’d want to lock my money in my home. |
For disciplined, experienced investors with cash to spare, your approach is correct. But I don't think that's the situation for the op.
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amother
Plum
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Fri, May 10 2019, 2:24 am
It's insensitive to come here asking how to invest so much money you are just "getting".
Some women on here work really hard for their money and barely cover expenses.
Be more sensitive please
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forgetit
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Fri, May 10 2019, 2:29 am
| amother [ Salmon ] wrote: | If your mortgage rate is 4-5% you’d be better off investing and earning 8%. Plus you can be building equity in something else.
And the mortgage gives you a tax break.
I’ve made a lot of money refinancing and keeping a high mortgage on my home. I don’t see a reason I’d want to lock my money in my home. |
I agree with this, even if its just a conservative stock you're investing in. Inflation also plays a role here, where you may stand more to gain with a long term stock holding than a home that will go down in value due to age, and property value may or may not decrease or remain same.
Either way, you MUST have a good financial advisor who knows about diversity.
I don't think RE stocks have as high a yield as other stocks, though a private equity group may perform better than stocks bought on the exchange.
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devash1
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Fri, May 10 2019, 3:32 am
| amother [ Plum ] wrote: | It's insensitive to come here asking how to invest so much money you are just "getting".
Some women on here work really hard for their money and barely cover expenses.
Be more sensitive please |
And I think it's insensitive to make her feel bad. Her title asks about investing money so you don't have to open it if you don't want to. Many people struggle. She's saying she does as well but she just got an inheritance. This is the internet people can ask for advice on anything they want. OP I hope that you you've gotten some good advice and find a way to invest it well. I agree that speaking to a professional is the best advice. Hope you convince your husband.
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amother
Azure
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Fri, May 10 2019, 4:05 am
Consider investing in real estate in israel which is always increasing in value.
Foreign citizens pay zero taxes on real estate over the green line. So if you invest in up and coming cities like ariel or givat zeev you can get an excellent return.
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doctorima
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Fri, May 10 2019, 9:57 am
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If you want a referral for an excellent financial planner and investment advisor, feel free to PM me. As others have said, this is too much money to risk playing with on your own.
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amother
OP
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Fri, May 10 2019, 11:07 am
Thank you all so much for your replies! I really appreciate it.
Amother salmon, that is my husbands belief, why put it into our mortgage if we can invest and earn additional equity/investments and move on from there.
To those who questioned, yes we do have some experience with real estate and are familiar with the ins and outs of renting out homes and potential issues that may arise (my husband actually helps an investor right now manage all his homes and is aware of details).
I apologize to the amother who thought this was insensitive, but truthfully it's not going to be 100% free money, really isn't an inheritance, just not going into the details here and yes we do struggle on a monthly basis to make ends meet (seriously no extras around here!).
I also agree that not every post should be opened if you think it's going to be 'triggering', there are many posts here about 'rich' people and how to budget $250 income.. I just skip over those and am realistic enough to see and know that there are others that have 'more' than me whether its money or in other ways! But I apologize if I in any way hurt you.
We actually did consider investing in Israel, and happy to see your response on that (makes me think we are actually on to something  ). Need to see if/how feasible that is. I know the return is high (ie, it tends to go up quicker and more then most places in the USA) but also know the monthly rent is going to be much lower then anywhere in America..
I am pushing for the financial advisor, but still would like to have as much info and ideas as possible so your input is greatly appreciated (can't really speak about this to anyone in real life).
Thank you!!
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amother
Crimson
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Fri, May 10 2019, 12:03 pm
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Do you have "safe savings" / "safe investments"?
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