what would u do ?

**jnewton86** · 05-13-2009, 07:33 PM

I recently came into some money as the result of a lawsuit. Here's the deal, im 22 years old, live with a roommate, pay my own way for everything, scrips, health insurance, groceries and so on. Either im going to drop down to a part time job and live off the money so that i can finish school this millenium or, continue with my full time job and do 2-3 classes a semester taking me some time to to get on with a career.

I know alot of people would invest the money and start a business which i want to do, but being 22 years old and in this economy there are no guarantees of course in being successful. what would you guys do? were talkin low low six figures

**BritishColumbian** · 05-13-2009, 07:36 PM

Real estate

**TRT,MAN** · 05-13-2009, 07:37 PM

well since you 22 you will spend it all. so thats what you should do.

**warchild** · 05-13-2009, 07:37 PM

buy a nice house, something that will go up and get a reliable roommate to pay rent and keep working and finish school

**CHAP** · 05-13-2009, 07:39 PM

How much money would be needed to awnser this .
how much debt do you have(credit cards)
aside from the debt you could pay off now how much are the monthly bills that continue to come every month(rent,phone,utilitys)

**jnewton86** · 05-13-2009, 07:43 PM

no offense to members, but i have yet to spend the money on anything, nor will i do so. i will not throw money away on materialistic things.

current debt: 450, typical amount i keep on credit card, no other debt.
rent: 345, includes utilities
gym: 45
health insurance: 136
there are doctor costs, blood test costs, and scrip costs as well as i am on hrt from an accident

***D7M*** · 05-13-2009, 07:43 PM

^good questions, chap.

**jnewton86** · 05-13-2009, 07:45 PM

Originally Posted by warchild28

buy a nice house, something that will go up and get a reliable roommate to pay rent and keep working and finish school

i considered, however there is no guarantee to sell your house for a profit, not to mention increased monthly expenses which i dont want. i prefer to use the money to create cash flow

***D7M*** · 05-13-2009, 07:45 PM

only $345 in rent? damn! I gotta move to your area.

and you said you're in school...no edu loans?

**TRT,MAN** · 05-13-2009, 07:46 PM

Originally Posted by jnewton86

no offense to members, but i have yet to spend the money on anything, nor will i do so. i will not throw money away on materialistic things.

current debt: 450, typical amount i keep on credit card, no other debt.
rent: 345, includes utilities
gym: 45
health insurance: 136
there are doctor costs, blood test costs, and scrip costs as well as i am on hrt from an accident

hey i just messin with ya, but personally if you can afford to quit your job go for it and grind the books out.

**jnewton86** · 05-13-2009, 07:47 PM

Originally Posted by derek7m

only $345 in rent? damn! I gotta move to your area.

and you said you're in school...no edu loans?

no loans, weird situation, but due to my parents situation im able to get school taken care of by the state

**warchild** · 05-13-2009, 07:47 PM

Originally Posted by jnewton86

i considered, however there is no guarantee to sell your house for a profit, not to mention increased monthly expenses which i dont want. i prefer to use the money to create cash flow

good point but the market will rise again... i dont know what homes cost in your are but i came across some money and invested it in when I was 19 and another at 21 now a 3rd at 26, i usually have a roommate to help pay ends

**jnewton86** · 05-13-2009, 07:50 PM

i agree with choosing real estate, my dilemma is if you dont know what your doing you can lose your ass, in the sense of buying homes with little to no money down, renting it out for more then a year or however long desired, then selling it for capital gains, doing a 1031 and using it to by another house.

**CHAP** · 05-13-2009, 07:57 PM

Originally Posted by jnewton86

no offense to members, but i have yet to spend the money on anything, nor will i do so. i will not throw money away on materialistic things.

current debt: 450, typical amount i keep on credit card, no other debt.
rent: 345, includes utilities
gym: 45
health insurance: 136
there are doctor costs, blood test costs, and scrip costs as well as i am on hrt from an accident

Pay off the card. Then to keep credit score high conyinue to put 250 a mth on it and keep paying it down to 1$ leaving it with a balance will increase credit score
pay your monthly bills for the yr
set aside all medical money for the yr estimate high
What you have leftpet half in a bank with a good interest rate and save.
This should leave you to work a part time job have all the spending money you want extra to add to the savings you have all the time you need for school training and social life . This is what I would do. If you have enough from the settlement.JMO

**warchild** · 05-13-2009, 07:57 PM

yea but you do have money...just dont buy something high priced man...real estate is common sense, just live in the house

**higherdesire** · 05-13-2009, 08:00 PM

Look into buying an owner financed mortgage. You should be able to buy the note for 65%-75% of the value of the note. You will have the monthly income and the money will be securitized by real estate that you will have at 65%-75% value, worst case scenario you do a short sale on it and cash out if (when) the loan defaults. Owner financed loans are usually done around 10-12% int. so you will be raking 14-1500 per month. Many people will maybe not see the value here, but it is one of the best kept secrets in the world for compounding money with little risk and very little work. Good luck.

**higherdesire** · 05-13-2009, 08:05 PM

A bank is one of the dumbest places to keep a lot of money at such a young age (if you want it to grow respectably). Even in Schwabs money market account it is barely stagnant. Also activity on a credit card up and down during the course of one month serves no purpose for your credit score. the high credit to balance ration will affect it. the only way activity helps is if you are a corperation and are working a padex score.

BTW, if you do put it in a bank, don't keep more than 250k as it will not be insured.

Good luck.

**CHAP** · 05-13-2009, 08:08 PM

Originally Posted by jnewton86

i agree with choosing real estate, my dilemma is if you dont know what your doing you can lose your ass, in the sense of buying homes with little to no money down, renting it out for more then a year or however long desired, then selling it for capital gains, doing a 1031 and using it to by another house.

If you interested in realstate. I would buy a duplex (forcloser)pay in full if you can . Live in one side so that you have a solid place to stay til school is out.The other side you will have no problem renting due to the fact the fact that all the people losing there homes need a place to live. Then if you decide to move afterwards you can either rent both sides of the duplex and stay in thee buisness. Or I would say in the next 5-10 years the market will be back and you could double what you put into this investment. Even if the market is not a a high you will have been making month you stay there and your rent will be being payed by you tenant that you put next door. JUST A THOUGHT

**jnewton86** · 05-13-2009, 08:10 PM

Originally Posted by higherdesire

A bank is one of the dumbest places to keep a lot of money at such a young age (if you want it to grow respectably). Even in Schwabs money market account it is barely stagnant. Also activity on a credit card up and down during the course of one month serves no purpose for your credit score. the high credit to balance ration will affect it. the only way activity helps is if you are a corperation and are working a padex score.

BTW, if you do put it in a bank, don't keep more than 250k as it will not be insured.

Good luck.

i agree, i want double digit returns, interest bearing savings accounts and cd's aren't paying jack right now. i sent you a pm higherdesire, thanks for the advice

**jnewton86** · 05-13-2009, 08:12 PM

Originally Posted by CHAP

If you interested in realstate. I would buy a duplex (forcloser)pay in full if you can . Live in one side so that you have a solid place to stay til school is out.The other side you will have no problem renting due to the fact the fact that all the people losing there homes need a place to live. Then if you decide to move afterwards you can either rent both sides of the duplex and stay in thee buisness. Or I would say in the next 5-10 years the market will be back and you could double what you put into this investment. Even if the market is not a a high you will have been making month you stay there and your rent will be being payed by you tenant that you put next door. JUST A THOUGHT

good idea as well, thank you chap

**higherdesire** · 05-13-2009, 08:13 PM

Returned. Nice cap rate of 10+% is something we all want most are just too narrow minded to get there. There is no hurry so keep you funds safe and work your way into a plausible solution to grow it.

**CHAP** · 05-13-2009, 08:15 PM

I do agree that a bank is not going to even give you enough return to wipe your ass for one day at the end of the month. I was saying to put it away to not spend it.

**higherdesire** · 05-13-2009, 08:16 PM

CHAP our posts passed each other!

**amcon** · 05-13-2009, 08:17 PM

Originally Posted by jnewton86

I recently came into some money as the result of a lawsuit. Here's the deal, im 22 years old, live with a roommate, pay my own way for everything, scrips, health insurance, groceries and so on. Either im going to drop down to a part time job and live off the money so that i can finish school this millenium or, continue with my full time job and do 2-3 classes a semester taking me some time to to get on with a career.

I know alot of people would invest the money and start a business which i want to do, but being 22 years old and in this economy there are no guarantees of course in being successful. what would you guys do? were talkin low low six figures

how much and where do you live... get you degree either way just as a back up

**WARMachine** · 05-13-2009, 08:19 PM

Pay off all debt.

Put the rest toward school bro. Finish youre B.A, and go from there. Perhaps look at getting your MBA and so on from there...

Education will take you WAY further. Live off what you need to, take as many units as possible while still maintaining a lil job for rent money.

Dont make frivolous purchases, and if you can run the numbers, but 10K or so in a high interest bearing account and dont touch it.

Thats probably the best decision you can make.

**jnewton86** · 05-13-2009, 08:22 PM

Originally Posted by amcon

how much and where do you live... get you degree either way just as a back up

low six figures is all i can tell you. there was a confidentiality clause in the settlement. location? pm me if you want my location if there's a legit reason.
i agree, either way to get my degree

**warchild** · 05-13-2009, 08:22 PM

great point war... my siblings furthered their education and i got on the fire dept at 19 and started buying houses...i never liked school but your right education opens doors

**CHAP** · 05-13-2009, 08:23 PM

Originally Posted by higherdesire

CHAP our posts passed each other!

higherdesire what does this mean?What did I miss?

**CHAP** · 05-13-2009, 08:26 PM

Originally Posted by jnewton86

low six figures is all i can tell you. there was a confidentiality clause in the settlement. location? pm me if you want my location if there's a legit reason.
i agree, either way to get my degree

Oh you need that degree. Just would be nice to finish school sell sosme property and have a good wad going into your new career

**jnewton86** · 05-13-2009, 08:32 PM

Originally Posted by CHAP

Oh you need that degree. Just would be nice to finish school sell sosme property and have a good wad going into your new career

im a firm believer in creating a business to create residual income, i also believe getting the degree you cant go wrong with even if i become a business owner. Im not too fond of working for a company putting in x amount of hours when i can create a business that will pay off in the end

**amcon** · 05-13-2009, 08:33 PM

check you pm

**collar** · 05-13-2009, 08:41 PM

how much money are we talking about?

**jnewton86** · 05-13-2009, 08:41 PM

Originally Posted by collar

how much money are we talking about?

low six figures is all i can tell you

**collar** · 05-13-2009, 08:57 PM

well lets say you have another to buy a property unit, house or whatever it is.
do so get all your roomates to live in there and pay you rent.
work part time or full time what ever you may prefer.
if there is a little bit of the mortgage still to pay, the rent from roommate may help.

**stack_it** · 05-13-2009, 09:18 PM

Buy houses rent them out. Not only do you have equity but you have steady monthly income and can sell them at anytime you would like to atleast get all your invested money back as long as you buy smart

**stack_it** · 05-13-2009, 09:21 PM

Originally Posted by collar

well lets say you have another to buy a property unit, house or whatever it is.
do so get all your roomates to live in there and pay you rent.
work part time or full time what ever you may prefer.
if there is a little bit of the mortgage still to pay, the rent from roommate may help.

I would not recomend renting to friends. Almost always gonna end up bad

**jbm** · 05-13-2009, 09:24 PM

Originally Posted by stack_it

I would not recomend renting to friends. Almost always gonna end up bad

Don't rent it to friends, find somebody else and make a contract.

**Bojangles69** · 05-13-2009, 09:29 PM

edit....

**collar** · 05-13-2009, 09:37 PM

Originally Posted by stack_it

I would not recomend renting to friends. Almost always gonna end up bad

contracts.

**vpchill** · 05-14-2009, 06:03 AM

Your Probly gonna spend it, But take a moment and think 5 yrs from Now! Id get some property. The economy will be back up soon. Maybe early next Year. let your money grow. Put a few Gz to the side for fun and extra nonsense, but think longterm otherwise you will look this thread up again in 5 years and curse yourself.
JMO - I speak from xperience.

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