All Forum Posts by: Hugo McBride

To your Question of what would you do if you won 800k? 

I would use it purchase a 3M ish rental property (30 unit range). 

Then I would do a Cost Seg study on it to help with the tax burden of winning the 800k come tax time.

There is lots fear right now in the market nationally. 

I don't think wages, groceries, cars etc. are going down in price anytime soon. So then it is not likely that Real Estate will go down for very long.

Even if some real estate dips in value over the short term I think in the long term inflation will drive prices up and in 10 years everything will be worth more.

Plus multifamily is still in high demand most places, people always need a place to live, and with cash flow, and debt paydown, even if inflation doesn't drive appreciation up too much it will still be a killer investment.

What would you do Hugo?

 Hi I get them all the time in the OH markets. Just picked up a 7 unit all in 200k, rents of about 45k, with a net of about 32k, Duplex all in 75k, net rent about 13- 14k, Its all about knowledge and your team

Good luck 

It's funny how everyone thinks winning 800k means investing 800k. Have you forgotten about your business partner? Um....the US treasury.

Yeah...you're looking at about half of that 800k, depending on where you live.

For me, it would end up being about 500k. I'd probably buy vacant land 100% cash with that money and then use a bank loan to construct multiple build to rent deals. Probably STRs in my local market. 

If it was the ACTUAL lottery. Something like $100m or whatever the jackpot is....there's never been a better time to win the lottery. I would just buy US treasury bonds and be done investing. 

 Buy rentals about 15% net caps, 

Since I am already spread across 9 markets in the US, I would make another international real estate investment. 
Just another way to diversify outside of the US dollar.

 Hire the best Executive Assistant $100k fetches. 

Hire 2 IT "wiz-kids" for $50k and all the ramen they can eat, lol. 

Direct the team for 1 mission. Have ChatGPT write the book "How To Turn $800k From Lotto into $8 Million via ChatGPT", and we'd sell it for $19.95 on download. Lol.

With $8million, I'd use $7m for REI, "VEGAS BABY" with $750k, rest as seed $ for next in series; "How I Turned $8m from Some Dumb ChatGPT Book into a REI Fortune". And sell it for $29.95 on download, lmao. 

Maybe 3rd in series would be "Why Everyone Keeps Making Me Rich from Dumb ChatGPT Books".  Special discount code for $34.95, on download, lol. 

$800k wouldn't massively change my life. I'd keep doing what I am doing, so I'd just have some more fuel for the machine. With some crazy hair-brained "whatever" fun sprinkled in. 

Multifamily. With the economy failing, people are going to need rentals even more...

I'd personally use 75% to invest in a variety of CRE syndications and become a full time passive investor. The other 15% I'd spend on investing in small businesses for fun. The last 10% I'd split across 2-3 vacations for my family.