If you won two million dollars how would you invest it in realestate?

[JordanRich]

Hello there,

Thought this might be a good exercise to see what people would do if they won a lottery for say $2,000,000.

Objective is simple:

1. spend all your money on real estate.

2. create enough cash flow (if possible) to live on.

3. pick which city (in Canada) you would invest in and where.

4. what would you do after you were fully invested...ie retire?

5. have fun.

 

[NorthernAlex]

I leave the others to answer your questions, but wouldn`t invest all 2 Mill.$ in RE. Diversification would be very important to me.

Right now I would 60% RE, 35% stocks and 5% GIC.

Best,
Alex.

PS: Some donation would be a nice thing to do if getting 2 Mill$.

 

[terri]

QUOTE (JordanRich @ Jan 23 2009, 03:26 PM) Hello there,

Thought this might be a good exercise to see what people would do if they won a lottery for say $2,000,000.

Objective is simple:

1. spend all your money on real estate.

2. create enough cash flow (if possible) to live on.

3. pick which city (in Canada) you would invest in and where.

4. what would you do after you were fully invested...ie retire?

5. have fun.


I would give away about $500,000 to family and friends

If I never bought another piece of realestate but used the rest of the money to pay down my current mortgages I could live really well off of the cash flow and spend my time travelling.

But I know that I wouldn`t choose to "never buy another property" because I love renovating too much so I would continue to buy, renovate, refinance and rent out properties, maybe just do one or two a year and get some travelling in between renovations. Oh wait, I do that now, well what do you know, I wouldn`t change a thing, I`d just be richer, no actually let me rephrase that I`d just have more money.

 

[thejules]

I would invest it in a two year new 60 unit condo apartment building that I have my eye on right now. Then I may take a year off and live off the cash flow. But I would have to go back to work because I still have a pretty cool job...

 

[markl]

Lease To Owns Baby no need for investors money for a month I would be that investor my diversification would be to do them across Canada so I could have different regions covered.

 

[AndyLuchies]

I`d skim ~$200,000 off the top for charity, use $10,000 on a vacation for me and my wife for a few weeks down south, then stretch that $1,790,000 as far as it can possibly go in RE. Buying mostly residential homes, or possibly some small multiplexes (10 unit or less) because I`m just getting started and want my mistakes to be small. I`d still go for the minimum down payments and see how many cashflow properties I can grab in Kitchener. No diversification for me, nothing but the best.

THEN, once its all invested, use the cashflow to help out family and friends. I`d retire in a heart beat (I dislike my job) and volunteer in my community (soup kitchens, church, youth clubs, etc). 2 vacations a year to tropics, and casually invest in RE when I see a good deal.

Work to live, don`t live to work!

 

[jarrettvaughan]

QUOTE (JordanRich @ Jan 23 2009, 02:26 PM) 1. spend all your money on real estate.

I would add buying some gold bullion to the mix made even a couple coloured diamonds.

 

[klewlis]

QUOTE (jessandy @ Jan 24 2009, 08:28 AM) I`d skim ~$200,000 off the top for charity, use $10,000 on a vacation for me and my wife for a few weeks down south, then stretch that $1,790,000 as far as it can possibly go in RE. Buying mostly residential homes, or possibly some small multiplexes (10 unit or less) because I`m just getting started and want my mistakes to be small. I`d still go for the minimum down payments and see how many cashflow properties I can grab in Kitchener. No diversification for me, nothing but the best.

THEN, once its all invested, use the cashflow to help out family and friends. I`d retire in a heart beat (I dislike my job) and volunteer in my community (soup kitchens, church, youth clubs, etc). 2 vacations a year to tropics, and casually invest in RE when I see a good deal.

Work to live, don`t live to work!


I like this plan. But I think I`d add in some commercial RE as well, as I`ve read it can be quite profitable. And my vacations would be mainly to Europe instead of tropics. Villas in Italy are surprisingly cheap. For that matter, maybe I`d buy some cashflow properties over there...

 

[Geoff]

I would of course take the family on vacation and make a generous contribution to my charity first of all. You have to reward yourself sometime.

After that I would take half of the remainder and work on on my real estate investing.

The remaining half I would commit to supporting REIN members wanting to do JV`s as the "money partner". I think it would be interesting to be on the other side of the fence. Not only would this help REIN members with JV funding but it would also help me invest with sophisticated investors in many different RE areas. This would allow me to have several different areas of focus (albeit at 50%) and would also give me time to concentrate on my own areas of expertise.

Geoff Heminsley

 

[ChrisDavies]

QUOTE (Geoff @ Jan 24 2009, 10:17 AM) The remaining half I would commit to supporting REIN members wanting to do JV`s as the "money partner". I think it would be interesting to be on the other side of the fence. Not only would this help REIN members with JV funding but it would also help me invest with sophisticated investors in many different RE areas. This would allow me to have several different areas of focus (albeit at 50%) and would also give me time to concentrate on my own areas of expertise.

Geoff Heminsley

Ditto here, although I`d expand the JV group beyond REIN members to include my property management team and some young people to work on teaching money management.

 

[David Bradica]

I`d take that 2 million and buy rental properties (outright) in top ten towns that have a 10% rental yield. That way regardless of market condition etc... you now own your yearly salary at roughly $200K a year. I would then use LOC against those properties to buy others that would provide enough income to support the LOC & Mortgage payments with a little bit of cashflow. LOC to never exceed 50% of value and voila, you have a salary (that you never touch) and other investment realestate to boot.

Dave

PS - With that kind of income you could donate to charity every year for the rest of your life and really make a difference. Heck you could donate all of the "non-salary" realestate profits if you wanted to.

 

[RebeccaBryan]

I`m not going to speculate that because I rarely buy lottery tickets.