What would you do in this scenario?

[Bill W.]

What would you do in this scenario?

You have $150,000.
Most imprtant characteristics of the investment:
After debt income generation
Capital preservation
Limited direct management

What are your recomendations on investment/property type?
Markets?

Thank you for your input

[Bill Gulley]

Hi, I have no knowledge of your education, experience, risk levels or other financial needs you may have, so to suggest something, IMO, would be irresponsible. But I know what you meant, so barring all of the above aspects, I think Mark makes a good point, REITs might give you the long term returns without much of the hands on management. There is another forum that has been up that addresses managing property managers! About the only other aspect of real estate that can be put on auto pilot is financing. Buying small, seasoned, well secured notes at a discount can be very profitable. If you offer a higher price (less of a discount) for a really good note, you can still yield 20% or more without alot of risk. My rule is that you do so in your area, where you can reach out and touch them. It is very involved, but it's easy to manage, great return and an acceptable risk for the returns.....but then I don't know if you're right for lending or the paper game. Good luck, Bill