How Should I help my friend?

[Steven W.]

HI everyone,

I've got a good friend from high school days (now 30 years ago, unfortunately, who is in a precarious financial situation. He wants financial advice--what would you tell him?

Here are the details:

He is 50, lives alone in a rent controlled apartment in Santa Monica, CA (three blocks from the beach, but who's envious?!) and has his own business, by which he barely makes a living. He owns no property, as he sat on the sidelines and watched as LA real estate got more and more out of his price range (at least in the desirable areas he wants to be in).

On the other hand, he has been frugal and is sitting on probably 150-200k in cash. In addition, he probably has another 150K that he has in equities that is part of his inheritance (his father passed away last year).

He has no meaningful retirement accounts, and given that he shows little income and doesn't own anything, my guess is that he wouldn't qualify for any traditional loan.

My thought would be that he could buy a turnkey property out of state in cash, and at least have some reoccurring cash flow.

But the great wisdom out there can surely come up with a plan better than that, can't you?

Thanks,

Steven