$500,000 question

[Account Closed]

So I participate in two forums. BP which I must admit is my favorite. Although I mainly just read here and not post. My second is a stock market forum. On the stock market forum there was the question asked last week what to do with $500,000. There was a bunch of responses as you can imagine. Nobody mentioned real estate as one of them. Instead they mentioned how $500,000 in the market properly diversified would net you 5 million over 30 years at a 8 percent return if you reinvested all the dividends.

So this made me think how would the BP nation invest 500,000?

Thought this would be fun. Didn't know if this should be in the real estate strategy category or the rental category.

[Will Barnard]

I guess my joke did not go over well? :)

To be serious, I like Jon's take but for some reason, I just do not get excited about a 20% annual return that is not completely passive and being a landlord with a forced appreciation play is a very active play, not passive.

For me, I would choose the path I am on now which is flippig REO's ro retail buyers for maximum profits. I typically averahe over 20% return within 3-4 months which is 60%-80%. With an additional $500k, I could easily turn that into an extra $300k-$400k per year income! Of course, this is a very active business and not passive either.

I am aware of some RE investment opportunities where you could get 20%+ returns and stay 100% passive. I am leaning towards such investments to free up some of my time for other things.