All Forum Posts by: Jonathan Yeh

 Why would you take money out of a place where you can access and use it for free, and put it in a place where it will cost you to access and use it?

I would passively invest it in a real estate syndication.  Depending on the amount, diversify it among several operators in several markets over several deals.  

I would much rather have a stream of never-ending (almost) income than just a chunk of change that could one day run out. 

Again, depending on the amount, conceivably you could retire and never worry about it running out if you invested it this way.  Every time one of the syndications ends (5-7 years or longer), find a new syndication to reinvest.  You get cashflow throughout the hold period, so you're money isn't completely locked away either.

@Jonathan Yeh Great question and so much great advice from everyone! I didn't read all the comments, but things that jumped out were:

1. Yes, you can definitely do mortgages in Canada at 9%. (I got a client out of a 14% mortgage... ) . Message me separately if you want to know how. 

2. Use the money as your golden geese -- the principle doesn't decrease but you invest it and it makes money for you. If you don't need the money now, then let compound interest work in your favor. It will double in 7.2 years at 10%.

3. Look at what kind of life you want and make decisions, using the money to get you to the life. 

4. Don't use that money to pay off your primary if you are in Canada, unless you are close to retirement. Use that money to invest and then use the profit to pay off your primary. 

5. Put the funds into an IFA then use the money from the IFA to buy investments that give you 10%+. 

It really depends on how big the sum of money is. Different amounts would accelerate me to different points in my plan.

$0-$400k: This is good seed money to ramp up my BRRRR investing.

$400k-$1M: This is enough money that I could buy some high-cashflow multifamily properties to cover my expenses, then quit my job and go full time on investing the rest.

$1M+: Accredited Investor Status. Spread the money out into high-return syndications, high-cashflow multifamily, stocks and probably a business I would enjoy pouring my free time into such as a brewery or cafe. 

@jonathan, I would still get a loan for my primary. The more investments the better. To me it wouldn't make sense to tie up all the cash in one property. If I had a large sum, I would put as much as I could for down-payments and have as much cash-flow/appreciating properties as possible. I do not buy turnkey though and if I do they are at a discount. 

@Jonathan Yeh

I was just thinking of this last night. I can only answer from my own personal experience. Depending on the size of the lump sum. I would pay off a few of my currently held rentals to get to the point of bringing in monthly cash flow that covers my current income.

After finally becoming financially free, or at least have more options, I would continue to work and put down 30% on an apartment complex. That would pay much more than the mortgage savings.

Depends on the amount of money.  If it is stupid money I would pay all my debts and invest in municipal bond funds (tax free from federal, state and local) and live / invest off of the interest.

If not stupid money then it would depend on how much and what the world is like at the time (real estate in my area is over priced in general - I'm sure there is a deal out there somewhere).  Stock market at all time highs (like now) or at lows?

I would spread it around to be diversified.

 If you're talking about paying off a rental house, my answer is you shouldn't be doing it in the first place.  That's your tenant's job through the rent, not your's.

 Keep in mind though, refinancing ISN'T getting your money back out.  Your money is still in the property, and being used as collateral on the refi...which is NEW money.  This is a way of funding deals, but it is NOT an example of reusing your own money.