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

Discussion in 'BlackHat Lounge' started by MiLiTARYiV, Oct 1, 2010.

  1. MiLiTARYiV

    MiLiTARYiV Senior Member

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    So my grandfather is on his last leg and about past away. He always favored me over other family members because he knew I was smart.

    Well He is in the hospital for a few weeks and he left me 80 thousand dollars.

    Now that about what I owe on my mortgage, and the reason he gave it to me was to pay it off..(my mortgage)

    Now I'm thinking I can flip this but, there is always risk involved. I can loss the money....

    I want to open up a computer shop, but I digress....

    I'm thinking I can take the risk, or I can pay off my mortgage.

    So should I:

    1. pay off my mortgage

    or

    2 Payoff my mortgage and take out a equity loan in 3 months or so..

    I vote for number 2, since my house will be paid off. I then will have a lower interest rate if I do take out a equlity loan, and I can take it out a loan for like 30k AND HAVE ALOT LOWER RATE PLUS MY HOUSE IS PAID OFF..


    Now granted all I need is like 30k maybe to make this happen. But I will have to wait 3 month until I can take out a equity loan

    what would you do..

    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.

    What would you do?

    This is not a question of loyalty by the way..lol

    So I have 80k in question here and I have till this weekend before bank take the money. I can always wait for bank to take money. ..lol But I will feel bad because he let me know to make sure I pay off my house nothing else
     
    Last edited: Oct 1, 2010
  2. tubeincreaser

    tubeincreaser Regular Member

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    Don't open up a computer shop, very little profit. Do something with marketing.
     
  3. flaktrak

    flaktrak Power Member

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    buy some domains and flip them. with that kind of money you can get some good already started websites work on them and sell them for more.
     
  4. MiLiTARYiV

    MiLiTARYiV Senior Member

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    wrong thread..oppps
     
  5. xhanuman

    xhanuman Junior Member

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    Pay the house - then you are golden - get a equity loan or whatever to do your future gigs if you must! Just my two cents. Honor your gpa!
     
  6. jkr500

    jkr500 Regular Member

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    pay your mortgage off. And with the monthly payment that you use to pay for it invest the money into IM and build it off slowly.
     
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  7. MiLiTARYiV

    MiLiTARYiV Senior Member

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    I'm trying to move offline. I'm getting tired of sitting by a CPU 24 hours day and a CPU business is good money.

    Fix one CPU for $50 times 31 days in month equal over $1500 a month. Thats only if I fix 1 CPU a day not including other sales
     
  8. Cascade

    Cascade Newbie

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    I would put half into my Mortgage and use the other half doing Media Buys like banner ads and cpc. I would start small with around $1500 tweak my landing pages and run a lot of split tests, and then when I had my conversion rates dialed in I would drop the bomb and dump like $10k into the same campaigns and watch the money pile up.
     
  9. omgamandaa

    omgamandaa Registered Member

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    Option number 2 is best.
     
  10. hitman247

    hitman247 Executive VIP Premium Member

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    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!
     
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    Last edited: Oct 1, 2010
  11. fun4uoc

    fun4uoc Jr. VIP Jr. VIP Premium Member

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    I agree, you really should honor his last wishes and pay off your house. Also, you should let him know that you will use it to pay off your debt, and how much you appreciate it if he is even still somewhat coherent. You will kick yourself in the ass later on in life if you don't.
     
  12. CashFlowGuy

    CashFlowGuy Regular Member

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    Why dont you just buy gold and silver and wait a year. Trust me you wont be sorry.
     
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  13. wowhaxor

    wowhaxor Executive VIP Premium Member

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    Option 3 - get really high for a couple of months with someone a lot younger and hotter than your wife.
     
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  14. hitman247

    hitman247 Executive VIP Premium Member

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    This is good advice! +1
     
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  15. alexandraM

    alexandraM Junior Member

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    you have to decide your risk comfort level...
    but with a mortgage you typically have a loan with a small interest rate PLUS the benefit of a tax write off for the interest. No need to be in a hurry to pay it off if you have investment opportunities.
    Think about doubling your money then take the profits and pay off mortgage.

    there are no guarantees with mutual funds, you can lose money there also...shoot for higher returns.
    i trade forex so i know what the possibilities really are
     
  16. My401K

    My401K Newbie

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    Sorry to hear about your grandfather.

    Below are my thoughts:

    - IT depends on how well off you are...If you have a full time job paying the mortgage already, then I would focus on investing the money. Where you invest is dependent upon how much risk you're willing to accept. In the stock market you can get 7 to 15% with minimal risk, in a business (e.g. internet marketing or computer repair) -100% to 1000%. My hobby is IM so I would likely invest in specific affiliate product sites (not amazon) and depending on their success, keep or flip...or maybe I would invest in the "big" tools.

    - If you don't have a gig that's paying the mortgage or just barely paying, I'd pay off the mortgage. Also don't forget about tax benefits of having a mortgage.

    It's easy for us to provide opinions, but at the end of the day it comes does to your morals/conscious. If it were my grandfather, who is my role model & reason for my successes, I would probably follow his wishes.
     
  17. greentitanium

    greentitanium Senior Member

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    payoff the mortgage!!!!!!
    dont pay off part though.
    if you want to go that route, check into a no cost refinance so you get the benefit of a lower payment that is easier to make.

    i use to do this stuff for a living before the banking collapse
    i cant tell you how many times i have seen people try to do the smart thing
    and it ends up doing them wrong
     
  18. Megalomaniac Midget

    Megalomaniac Midget Power Member Premium Member

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    I totally agree. Buy gold & silver and get physical delivery, don't get the IOU paper gold.
     
  19. david wright

    david wright Regular Member

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    2012 is right around the corner. Enjoy life, travel, eat some good food but whatever you do don't use all your money to pay off your mortgage! You will be wasting your money when this thing is about to end.
     
  20. alexandraM

    alexandraM Junior Member

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    :laugh: