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The 100k Cash question


CONeal

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Trying to think outside the box a little (for me anyway).  Hopefully will learn something new.

 

Rules

Can't be used to service debt

Can't be used to purchase a house or rental

Can't be put in the stock market.

Can't spend it on shit.

 

Amount of risk one is willing to take on does not matter.

 

Time for return does not really matter as long as it's growing.

 

So with all that in mind... What would you do with 100k?

 

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Con, I see you posted that on MMM!

 

I was just over there reading that question. I popped on here and saw the same thing. haha. Glad to see you over there (I just found about that site the other day from shalab's post). It's a really good site though...but not as good as this one. ;)

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Con, I see you posted that on MMM!

 

I was just over there reading that question. I popped on here and saw the same thing. haha. Glad to see you over there (I just found about that site the other day from shalab's post). It's a really good site though...but not as good as this one. ;)

 

The same post lead me over there.  :)

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I'd probably lend it out as a hard money lender for bridge financing of residential real estate... You could clear 15% a year easily.

 

Can say I've learned something new tonight.  Really enjoy your blog, learned alot from it.

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I second Jeff's blog (ragnarisapirate.blogspot.com) some off-beat quirky stuff on there.  His series on purchasing an apartment complex is awesome, if nothing else go and read that.  The synthesis of online investing and real world investing (SYTE) is fascinating as well.

 

You're looking for a return right?  I would presume?  Some random ideas, I have considered many of them myself at various times:

 

1. Purchase timberland

2. Purchase land with natural gas rights

3. Purchase foreclosed cabins in Sheriff sales in rural counties, fix up the cabins and re-sell to city dwellers as cheap weekend getaway locations. (this is still on the radar, just need to get my butt up to Northern PA in Sept when they have these things.)

4. Purchase cheap equipment from distressed sellers on Craigslist.  I see a semi on there for $45k right now, buy this then lease it out to a LTL hauler.  One semi should be able to gross around $200k a year if you can schedule the jobs right.

5. Build a little shed that sells coffee on a main route where you live.  Friends of ours did this, provided a nice income for years, invested $250k into the business, sold it for $500k.

6. Buy this game store for $30k: http://pittsburgh.craigslist.org/bfs/3864227413.html Wonder what the book value of that inventory is, this is a chance to buy a real world net-net (possibly).

7. Buy refundable airline tickets and book flights likely to get bumped, then ask for cash compensation or rewards before refunding your ticket.  You have enough capital to buy some pricey legs

8. Buy distressed receivables and work them out

9. Buy distressed credit card debt and attempt to collect on it

 

 

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Thanks for the kind words. :)

 

Oddball's suggestions are great.

 

I would also consider a pawn shop (here in KY, you can lend money at 22% PER MONTH) or buying real estate liens. You can get 12% on those, if you buy them at face and don't screw up by buying something that is inherently worthless. Plus, you can add in reasonable fees if you force a sale...

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Trying to think outside the box a little (for me anyway).  Hopefully will learn something new.

 

Rules

Can't be used to service debt

Can't be used to purchase a house or rental

Can't be put in the stock market.

Can't spend it on shit.

 

Amount of risk one is willing to take on does not matter.

 

Time for return does not really matter as long as it's growing.

 

So with all that in mind... What would you do with 100k?

 

Go to the Dean of Business at your local university or college.  Tell him you are willing to put seed capital to incubate 5 business ideas that his MBA class can come up with that you will filter, and in return 1/3rd of the business is owned by the college, 1/3rd by the students and 1/3rd by you.  In return, you will mentor the students and their businesses for that $20K in seed capital that each idea receives.  Cheers!

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I would invest that cash in the online medical platform my sister and her husband are developing, to make their medical practice easier to reach at any time and from anywhere. I think the business is a good one and I know its management very well! :)

 

giofranchi

 

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Poker

Terrible idea. You need to play almost the highest stakes available to be able to put 100K to work, and the odds that you are able to play at that level are close to zero.

 

I disagree.  My roommates in college were heavily into poker. To my surprise, they were able to consistently make money.  They used a basic skills but entered into $5-$10 online tournaments with 45-90+ players and because so many players were so bad ended up making 30-90k a year.  They would player 15-20 tables at a time and go in 'autopilote' only using basic skills and no intuition.  I don't see why you would ever want to put 100k to "work", you can use the 100k to cover living costs while you played poker for additional income.  At the $15-$25 game level only one of the guys I lived with was able to continue to win.

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With $100k you could produce TWO low budget horror movies.

 

Go to a local film school...there you will get highly motivated VOLUNTEER talent.

 

Shop your project at the various film markets where foreign distributors clamour for gore heavy, dialogue light (for easy dubbing) content.

 

Friends in this line of work usually return 3x their money every few years and once in a while a project becomes a small "hit" in a territory and they get ~7x their investment.

 

Lots of work though...

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