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Message
Best revenue-producing investment for $750K
Posted on 7/10/16 at 8:24 pm
Posted on 7/10/16 at 8:24 pm
If only it was as easy as sticking it in the bank and collecting 8 or 9% interest. 
What would you do with $750K that would produce spending money without depleting the initial investment? Franchise? Real estate? Commercial or residential? What kind of income would you expect to generate from that size investment?
What would you do with $750K that would produce spending money without depleting the initial investment? Franchise? Real estate? Commercial or residential? What kind of income would you expect to generate from that size investment?
This post was edited on 7/10/16 at 8:26 pm
8
Posted on 7/10/16 at 8:36 pm to 911Moto
Tae kwon do franchise?
Someone who sells disability insurance to Dentists (maybe NW mutual)?
Someone who sells disability insurance to Dentists (maybe NW mutual)?
Posted on 7/10/16 at 10:11 pm to Ric Flair
Taekwondo franchises are a goldmine (and operate like a pyramid scheme), but I'm not qualified to run one.
Selling disability insurance would be a losing proposition in Louisiana because it's quite obvious that the morons around her have no clue how it works and are too uneducated to buy it.
Selling disability insurance would be a losing proposition in Louisiana because it's quite obvious that the morons around her have no clue how it works and are too uneducated to buy it.
This post was edited on 7/10/16 at 10:13 pm
Posted on 7/10/16 at 10:24 pm to 911Moto
I just scooped up 3 low income housing projects here in Houston and am fetching around 20% annually on them. I think homes sub $60k are going to be my new fetish bc the income they produce is excellent
Posted on 7/10/16 at 10:24 pm to 911Moto
I'd probably look at commercial real estate. You can probably find someone to partner with that knows what they are doing with that much to spend. But I'd be pretty darn careful getting into something you don't know much about, obviously.
Posted on 7/10/16 at 10:33 pm to baldona
That's my initial thought really - commercial real estate. Seems like it would have a lot less headaches and "problem" tenants compared to residential. But you're right - at this point I know next to nothing about real estate.
Posted on 7/10/16 at 10:38 pm to 911Moto
There are (as always) a lot of questions that would be needed to know before a good answer can be given here.
Do you have money in stocks? If $750k is all of your "investment money" I wouldn't go putting it into one thing, especially something you're not experienced in.
If I had $750k unexpectedly (that was an inheritance for example) that I wanted to put all into investments I would do the following.
$250k into a diverse group of mutual funds (S&P 500, O&G, etc. probably even a small amount into a bond fund)
$250k as downpayment (~25%) on a new Dollar General (typically sell for around $1M with 15 year leases at 6.5% cap rates).
$250k as downpayment (~20%) on a 20-40 unit apartment complex priced around $2 million. (30,000 - 60,000 per unit but I'd probably lean toward fewer units priced higher per unit)
Do you have money in stocks? If $750k is all of your "investment money" I wouldn't go putting it into one thing, especially something you're not experienced in.
If I had $750k unexpectedly (that was an inheritance for example) that I wanted to put all into investments I would do the following.
$250k into a diverse group of mutual funds (S&P 500, O&G, etc. probably even a small amount into a bond fund)
$250k as downpayment (~25%) on a new Dollar General (typically sell for around $1M with 15 year leases at 6.5% cap rates).
$250k as downpayment (~20%) on a 20-40 unit apartment complex priced around $2 million. (30,000 - 60,000 per unit but I'd probably lean toward fewer units priced higher per unit)
Posted on 7/11/16 at 12:15 am to yellowhammer2098
Could you even just put 20% on stuff like that if you just inherited it? Wouldn't they need some income verification to give you the loans? Whose gonna give you a loan like that with 20% down and no financials to back it up
Posted on 7/11/16 at 9:06 am to 911Moto
BIL in HS is a TaeKwondo instructor. I have been pitching him on opening up a place of his own as a partner. I'd handle business, he handles the instruction
I wish he was actually at a point to think about it seriously
I wish he was actually at a point to think about it seriously
This post was edited on 7/11/16 at 9:08 am
Posted on 7/11/16 at 11:01 am to GenesChin
Some TKD schools scrape to get by, some practically print money. You have to be in te right organization to really make money - the ones that make you sign contracts, make you buy only their gear, etc. They nickel and dime you to death, and I was not joking about the pyramid nature (just like Amway - the guys above you get their cut of everything). It all comes down to a highly motivated instructor who is good with people. Actual karate skills are largely irrelevant since most of the money comes from teaching children.
This post was edited on 7/11/16 at 11:03 am
Posted on 7/11/16 at 11:18 am to 911Moto
quote:
What would you do with $750K that would produce spending money without depleting the initial investment?
When you figure this unicorn out please let us know. Money invested is money at risk IMO.
Posted on 7/11/16 at 11:24 am to 911Moto
I don't know anything about the actual financials of TKD but I have noticed my children are actually being taught by older kids of the school several levels above them. I don't think I've ever seen the owner instruct although she does wear a uniform. This thread has me thinking you might not have to know much about TKD to open a TKD place if you can find some teenagers that know the basic stuff.
Posted on 7/11/16 at 11:33 am to 911Moto
quote:
It all comes down to a highly motivated instructor who is good with people. Actual karate skills are largely irrelevant since most of the money comes from teaching children.
You're definitely right. Luckily, the gym he's at that would be what he'd model it after is perfect. Head instructor is a younger "cool" guy who does demos w/ popular music at local schools, involved in the community and has all his hired instructors participate in that.
MIL basically told me those demos are like printing money. They show up doing flying kicks to Pitbull & Flo Rida music and every kid Grades 1-5 asks their parents to sign up
Posted on 7/11/16 at 12:04 pm to GenesChin
Exactly what our school does. The demo team goes around to schools, then the kids there get invited to a pizza party at the school. Our instructor was driving a Maserati at 24.
Our instructor was driving a Maserati at 24.This post was edited on 7/11/16 at 12:06 pm
Posted on 7/11/16 at 12:13 pm to 911Moto
quote:
Our instructor was driving a Maserati at 24.
His bought a corvette at ~24 (idk he is pretty young already and bough it 2 years ago)
Seriously, if you have even a remote amount of people/child skills, it is a sure winner if they aren't already open in your market.
BIL is extremely big on guitar right now, trying to pitch him on TaeKwonD by day, band member by night. We have an extra room while he gets his on his feet. I'll handle the books, he lives the dream, I get paid.
This post was edited on 7/11/16 at 12:27 pm
Posted on 7/11/16 at 12:16 pm to 911Moto
RE
Posted on 7/11/16 at 12:59 pm to 911Moto
quote:
Our instructor was driving a Maserati at 24.
driving one doesn't mean he could really afford to keep that note up or if it was a smart financial choice. I'm holding off on buying any sport car toys until my RE cash flow fully funds it with no money OOP from me. ok, ok, i confess, i like maserati's also.
Posted on 7/11/16 at 1:46 pm to 911Moto
a movie with a superstar actor.
Posted on 7/11/16 at 1:52 pm to 911Moto
how much work do you want to do?
I like really passive, so if I was looking at income I would go with a low fee dividend ETF + MUNIs + REIT.
I like really passive, so if I was looking at income I would go with a low fee dividend ETF + MUNIs + REIT.
Posted on 7/11/16 at 2:53 pm to Fat Bastard
quote:
driving one doesn't mean he could really afford to keep that note up or if it was a smart financial choice.
Buying a Maserati will never be a smart financial choice
. The guy we know definitely could afford one as a single guy in an apartment given the money he was pulling in That said, we did the math for the TKD gym one time, the owner brings in a bare minimum
$540,000-720,000/year membership revenue (depends on true membership)
$30,000 - Monthly testing (50-75 people min ~$50?)
$xxx - Private lessons/ addt'l services
His expenses are extremely low
Rent - ~2500 SQFT
Utilities
4 Instructors - 3 min wage HS stduents 1 Older
Equipment Replacement - Minimal other than testing boards etc
This post was edited on 7/11/16 at 2:55 pm
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