What would you do with $63,000?

[Jonathan Farber]

Very general question, but let's say a family member came to you and asked if they could invest 63K with you.  You can flip, you can buy and hold, you can privately lend - you can do whatever you'd like with the money.

What are people doing these days with chunks of cash?   

** Opinion question and not asking for what I should do with the money, curious what you guys would do :) **

[Jonathan Farber]

@Brad Farber @Jay Dertzbaugh @Troy H.@Steve Kontos

[Steve Kontos]

@Jonathan Farber

The objection here is to create a win/win/win situation.  A win for the investor (which can only be determined by finding out what their needs are for being a part of this and nailing it), a win for you (purchasing an asset using someone else's money), and a win for the tenants you are housing (making sure you take care of each and every tenant ethically and with respect).  This is the motto my company goes by each and every day.  

Personally I do not take any investor on unless they are properly educated first because with out of state investing, it is important to understand what you are getting yourself into.  Flashing money in my face doesn't cut it.  I am a huge advocate for people respecting the business we are in (this means taking the time beforehand to mentally prep and equip yourself for the great real estate journey you are about to embark on).  

Hope this helped.

[Kurt K.]

I'd tell them to invest it for themselves in an index fund if there wasn't any appealing buy and hold properties you had your eye on.

I would not force buying a property just because the money is available.

[Troy H.]

Originally posted by @Jonathan Farber:

@Brad Farber @Jay Dertzbaugh @Troy H.@Steve Kontos

 I agree with the previous comments. An investor should first educate themselves on what it is they will be investing in. As for "how" I would invest the $63,000 would depend on they length of the loan. If they were comfortable with a moderate but steady return I would go buy and hold with an equity position. If they were looking for a sizable return in a short period of time then a flip would be a good option. Of course that's contingent upon their level of risk-aversion. In your example it seems as though they couldn't care less how the money is invested so guess that isn't a factor.  I personally am not experienced in flipping so I'd certainly opt to partner with someone that has much more experience than me.

[Ingrid J.]

@Jonathan Farber I highly recommend listening to the BP Podcast Show 56. When interviewing Ankit Duggal they talk a lot about the pro's and con's of using family money for investing.