You have $500,000 cash. What do you do with it?
Just curious. If you had $500,000 cash in a midwestern city with relatively low costs, what would you do with it?
[{"id": "clbhhr6", "text": "Still some good deals to be had buying non-performing commercial notes, especially at this time of year. Banks are clearing out the books. Buy something messy at .40 on the dollar. Foreclose and sell or partner with a developer. ", "replies": [{"id": "clc2pay", "text": "How does one find commercial notes for sale?", "replies": [{"id": "clc5lkd", "text": "I work with a lot of banks so I am in contact with the lending departments but I have also cold called local, smaller banks. Ask for the work out department and see what they have. As I said, this is the best time of year for it. Auction.com is also a good bet. Banks are using it more and more to clear the books. I have bought one off there. You pay 5% to the website but there are deals to be had.", "replies": [{"id": "clc6d0b", "text": "Oh cool. So do you have any thoughts on what makes a good deal? Any formulas you follow? Any pitfalls to look out for? Thanks for the info.", "replies": [{"id": "clc8e7h", "text": "That's a pretty big question. Start surfing bigger pockets, some knowledgeable guys there. ", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "clbibsu", "text": "Put a massive straddle option trade on the most volatile stock with the greatest operating leverage I can think off before earnings", "replies": [], "depth": 1}, {"id": "clbku5l", "text": "Triple Net Commercial ", "replies": [], "depth": 1}, {"id": "clbnw1e", "text": "While someone mentioned triple net commercial, that would be good because it is very little work after it is set. But to be honest you are going to get very low cap rates on those. \n\nYou can probably do better buying a couple of apartment buildings. $500,000 can be leveraged into a couple of nice properties. You could get some 80% financing and end up making double digit returns on your money plus whatever {hopefully} appreciation comes your way.\n\nIt all depends on how much effort, time you want to spend as well as your risk aversion.", "replies": [{"id": "clet2dl", "text": "This might not apply to a low COL midwestern city, but in my market, even crappy little apartment buildings are currently at their peak (in my opinion) as far as pricing/cap rates.  It's crazy out there right now.", "replies": [], "depth": 2}], "depth": 1}, {"id": "clbpfxr", "text": "Pay off my student loans and buy some gum.", "replies": [], "depth": 1}]