So I got 80 Thousand!! What should I do?

[consciousnesscreates]

I agree with this one. It is his dying wish for you to pay mortgage. you should honor him.

To be honest a mortgage is a great stress

IF you got a low job and Bh is ot working much its a big worry you always got letters in the post if you missed payment with added charges on and I was glad to pay off the remortgage even though I am still overdrafts full up and owe family 80 grand they lent me for another but shitty build house.

 

[aditya89]

buying some investment like property, gold, and of course build business empire in offline and online world
80% in offline investment 5% for online investment is enough. 15% for saving for everyday need.

 

[eyerish]

Don't pay off your mortgage....assuming your interest rate is low enough...I imagine you can take that 80k and earn more than 5% on your money if you use it wisely and conservatively. Most good marketers on this forum could turn 80 into 100 rather quickly.

 

[CYBERTRON]

buying some investment like property, gold, and of course build business empire in offline and online world
80% in offline investment 5% for online investment is enough. 15% for saving for everyday need.

You responded to a thread 4 months old now... The question now is What did the OP do with the 80k? opworm:

 

[madhornet]

I remember my wife getting the same type of advice during one of her annual real estate classes she had to take to keep her license back in the beginning of 2008. The young kid (25ish) teaching the class was telling her and anyone else who would listen how we are stupid to pay off our house instead of investing the money in the real estate or stock market cause we could make big cash. He explained how he convinced his parents to do this with all of the equity in their home.

She came home questioning me on why we would pay off our house when we could make so much in the market or real estate. I explained to her that most people have no real concept of risk and what it is. Anytime your money is not in your pocket (or bank account if you are under the guaranteed limits) you are at 1-100% chance of losing it. The secret is to truly understand what your risks are and what your true realistic rewards are and then decide if you are willing to GAMBLE the money on those terms.

Well, I probably don't have to tell you how the story ended up. We still have a $650k house that is paid off, and the teacher and his parents are now busted and living elsewhere with no retirement money after the RE market crashed since 2008.

I highly advise anyone who comes into a large sum of money (the amount is all relative) learn as much as you can about "Risk". There is a reason that most lottery winners go busted, no concept of risk or money management skills.

Paying off your mortgage will only screw you when it comes to taxes. And it is the "old school" of thought that is common place amongst many older folks. I know plenty of people with paid off homes that cannot borrow a dime from the bank.

Take the money....deposit it, have the bank verify it and give you a better rate on your home (i.e. lower your mortgage rate). Meanwhile create a LLC and business checking account and start your business with the deposited money.

Get a good CPA and follow their advice.

PS. This is my area of expertise, so if you have more complicated questions, please PM me and I will do my best to answer them.
Example: A home with 50K in equity just sitting there does nothing for you. Put that equity to work in a 10% investment (mutual fund). This way you get your full tax write off on the money borrowed on your home, since your new investment is part of that. So if you do that math....earning 10% while only paying 4.5% (30 year mortgage) makes you 5.5% a year PLUS you get the full tax write off!

 

[Chronos]

I wouldn't pay the mortgage so quickly, and many may burn me, but just hear me out.

Inflation goes up about 2-3% each year, probably even more with 13 trillion debt in the US. This means that a few years down the road, the money you pay into your mortgage will be worth less, and theoretically, you should be making "more".

You're better off putting like 20k on the house straight away, then another 10k aside in reserves for monthly payments.

The rest of the 50k, I would research the computer shop idea HEAVILY. I've seen you around this forum and you're smart, so I don't have to tell you that.

 

[fiesta]

That's a good point. How much was your present $650K house worth back in 2008?

I remember my wife getting the same type of advice during one of her annual real estate classes she had to take to keep her license back in the beginning of 2008. The young kid (25ish) teaching the class was telling her and anyone else who would listen how we are stupid to pay off our house instead of investing the money in the real estate or stock market cause we could make big cash. He explained how he convinced his parents to do this with all of the equity in their home.

She came home questioning me on why we would pay off our house when we could make so much in the market or real estate. I explained to her that most people have no real concept of risk and what it is. Anytime your money is not in your pocket (or bank account if you are under the guaranteed limits) you are at 1-100% chance of losing it. The secret is to truly understand what your risks are and what your true realistic rewards are and then decide if you are willing to GAMBLE the money on those terms.

Well, I probably don't have to tell you how the story ended up. We still have a $650k house that is paid off, and the teacher and his parents are now busted and living elsewhere with no retirement money after the RE market crashed since 2008.

I highly advise anyone who comes into a large sum of money (the amount is all relative) learn as much as you can about "Risk". There is a reason that most lottery winners go busted, no concept of risk or money management skills.

 

[Chronos]

That's a good point. How much was your present $650K house worth back in 2008?

In regards to the convo as a whole.

I do believe paying off your house is good. In the end, it's all equity, so if you can pay off your house cash, sure go for it, but I wouldn't.

The person that referred to the 25 year old that lost everything probably invested 100% or more, of the equity of his home into Wall Steet. That is a bad, stupid and horrible idea.

I would suggest taking a remortgage of half the valued amount, and reinvesting it.

A big thing is colleges. Kids, either through financial aid or well set, will pay a decent amount of cash to rent out a house with a few buddies. With 325,000, you could easily buy 4 houses (80k per) that are VERY close to MSU. A little bit further away and you can buy houses from 35,000-65,000. Anyway, you could rent these houses out, that on average have 3 bedrooms, at least 500$ a person, but the renter will pay for whatever utilities.

That's ((3*500)*(4)) = 6,000! Put 2,000 on the side for taxes, rental license, insurance, etc. 4,000!

Considering minimum monthly payments would be around 500 for each house, I would put 2,000 on payments (500 per house), and 500 I would convert it to short-term, cash ready equity via the market (stocks), put 500 towards the mortgage, and the 1,000 towards a mix of paying either mortgages off, and saving the rest for a down payment on a new house to rent out.

In 4.5 years, you could pay all of the mortgages off on your rental houses, so you would have 6,000$ coming in a month, with just your original mortgage, plus 4 houses that have a combined equity of over $300,000.

 

[Monrox]

...
Well, I probably don't have to tell you how the story ended up. We still have a $650k house that is paid off, and the teacher and his parents are now busted and living elsewhere with no retirement money after the RE market crashed since 2008.

I highly advise anyone who comes into a large sum of money (the amount is all relative) learn as much as you can about "Risk". There is a reason that most lottery winners go busted, no concept of risk or money management skills.

This doesn't make sense, the RE market crashed but your house is worth $650k. Now you either paid a lot more than that (before the crash) or your house is not worth $650k anymore, except on paper.

That WAS the crash, properties lost their value, many people said meh, why should I pay the mortgage when the next house can be had for half the money. So they defaulted on purpose. If you bought gold instead of property, you could now get 2 or 3 houses like yours.

And the teacher was right to an extent: those who can sense the market can make profits. The rest either get burned for blindly following trends or 10%, 20% or a bit more of what they have for not taking action.


Btw, the OP doesn't have the money (anymore). He made a thread some months ago that he needs peanuts

 

[Chronos]

I would start an REIT, go to a college campus, get tax breaks from the local chamber of commerce in return for bringing "business" to the campus, buy a bunch of houses, rent them out. = profit

 

[bullseye123]

use half the money on a Reposed House as a deposit,
Use the other half fixing the house, and sell the house for double that amount.

and then take the initial 80K and pay down your house, then you still have the 80k left, so then you can eather buy another repo house, or you can just buy a website with a couple of million visit's a month.

 

[MiLiTARYiV]

You responded to a thread 4 months old now... The question now is What did the OP do with the 80k? opworm:

Sold my house

A member of this forum flipped my money for me a few times.. I met up with him at his bizness and dropped some dough and he flipped it a few times for me...


Uhm CPA was good so I was banking like 10k a month of that..


Ended up buying a new 350k house in upscale neighbor. I stay next door to a NFL player..

Traveled, vacation, bought 2 cars and some other misc stuff..


Opened a CPU repair bizness in the mall here

Basically I still have the money plus more

 

[abinclane]

Pay the house first and just do what is the real purpose of that money.

 

[xcd125]

Start a autoblogging website,

Hire a freelancer and ask him to design you a 1000 auto blog sites with low competition keywords. This will give you good income

 

[Troad77]

let me know if you need help!!!

 

[catchme]

You said he favored you because he knew you are smart. Don't proof it wrong. Pay the mortgage.

 

[SpellZ]

I'm pretty sure I will pay off my house and just wait for equity loan. MY house with my big backyard is worth 110k easily.

Wow, where do you live?
IF you take my location, and add 1 more hour (driving), that equals to about 1.5 hrs away from downtown...

A house with no basement, no backyard, around 1200sq.ft in a middle of bum f*ck knows where starts at $419,000, plus taxes, plus if you want a kitchen, and this and that... It'll cost about $525,000 ... And I want to remind you again.. that is an hour and a half from downtown...

 

[SiNeX]

Be smart invest in Oil Stocks ...

 

[wholesalereplica]

well done OP, you did well

 

[marketingwise]

Be very conservative with it. Pray. Buy Silver