How to Invest $600,000

[Jack Oregon]

Hi guys,

I’m pretty new to the community and I am so glad to have found this place for suggestions and feedback.

Here is our situation:

• $600,000 cash on hand from inheritance
• Desired return of 8-10%
• Live in Greater Boston Area
• 100% equity on home
• Working full-time in public accounting and making roughly $50,000/year

I talked to some financial advisers and none of them suggested the real estate route. I was told that it was too risky and that I would be putting all my “eggs in one basket.” They said that if we invested in securities, I can expect 3-4% returns while being charged fees about 1.5% on total assets. So a return of 1.5-2.5% sounds really bad to me, which brings me to my question: What else can we do with this money? I should mention that it might be difficult to obtain financing. My credit score is 640ish on Experian but higher on the other two with a score of 700+. My age is 28 and the only income we have is my salary. We’re looking at properties in MA. We have no experience in running a business/being landlord. Also, we are very nonconfrontational and “soft” people. So I believe we will be using a management company. I read about partnerships that invest in RE but I’m not sure how to find them. I would appreciate if I can get ideas that would put us towards the right direction. Thank you!

-M

[David Hays]

Hi Jack,

Welcome to BP. You´re going to get some people coming in and telling you how you shouldn´t be advertising your investable assets like that (and I agree with that), because you´re going to find people reaching out in a hurry to take advantage of you. Unless you really want to get involved with the active management of those investable assets, I´d encourage you to interview a few financial managers (not advisors, actual managers) and see what they can offer you. If you´d rather stick with real estate, there are turnkey companies that offer developed and rented properties for cash flow. These services vary and will absolutely require due diligence, but that may be a viable option for you.