| Invest in Stock or buy a home or buy a business |
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SethNaga
New Member
Cash: $ 1.80
Posts: 8
Joined: 16 Jan 2006
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| Invest in Stock or buy a home or buy a business |
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Any of your Suggestions is appreciated on the following
What is the best use of 300k cash
I have three options:
1) Buy a home with out a mortgage
2) Buy a home with Mortgage and invest in Mutual funds
3) Buy a home with Mortgage and Buy a business with 150K cash flow
I am 42 years old, and currently self employed that does not produce any income yet. My wife works and has decent earnings and we have 140K in IRA. Zero Debts
Thanks for your help
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Fri Jan 27, 2006 4:47 pm |
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deomix
Preferred Member
Cash: $ 15.60
Posts: 106
Joined: 19 Aug 2005
Location: Lithuania
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My opinion is that buying a business isn't such a good idea. I believe it's better to start your own especialy when you have the money to start and don't need to find an investor (well ok that depends on business type, but still ).
http://www.markethealth.com/?aid=418357
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Fri Jan 27, 2006 7:43 pm |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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Nix #1.
How much is the business? Is it positive cash flow? What is the risk/reward ratio?
2) should read: ...invest in equities (mutual funds, stocks)
How well have you done with your IRA holdings? (returns)
"Expect me when you see me."
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Fri Jan 27, 2006 8:12 pm |
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FrankBie
New Poster
Cash: $ 0.40
Posts: 2
Joined: 29 Jan 2006
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| Re: Invest in Stock or buy a home or buy a business |
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quote:
Originally posted by SethNaga
Any of your Suggestions is appreciated on the following
What is the best use of 300k cash
I have three options:
1) Buy a home with out a mortgage
2) Buy a home with Mortgage and invest in Mutual funds
3) Buy a home with Mortgage and Buy a business with 150K cash flow
I am 42 years old, and currently self employed that does not produce any income yet. My wife works and has decent earnings and we have 140K in IRA. Zero Debts
Thanks for your help
Hi buddy,
If I would be in your position,
I would by a mutal fund, as a great international fund doubles every 7 years the cash you put in it.
Number 2: Your own house is more a liability, if you live in it yourself.
Number 3: who would sell a 150k cashflow business?
Regards,
Frank
www.playcashflowgame.com
Improve your financial skills by playing
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Sun Jan 29, 2006 8:12 pm |
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coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
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If you can buy a $150K cash flow business for $300k, that sounds almost too good to be true. Better have someone who knows that type of business well take a real close look at it.
~Tim~
Eye Candy : Why Whimsy
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Sun Jan 29, 2006 10:21 pm |
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CashMoney1
Contributing Member
Cash: $ 6.52
Posts: 29
Joined: 13 Mar 2005
Location: House
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a year ago..there was a huge appt building selling for 4.7Million (canadian dollars) and per yr the cash flow was 900k
If i had the money i have now a yr ago,i would of looked into it
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Sun Jan 29, 2006 10:37 pm |
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SethNaga
New Member
Cash: $ 1.80
Posts: 8
Joined: 16 Jan 2006
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Sorry I did not explain it clearly in my earlier posting;
I meant buying a business with a possible SBA loan. There are several businesses for sale with a price 3 times the cash flow. On an average, for a cash flow of 150K, I need to pay 450K to buy a business; so if I invest 450 K (250 K loan on 9% interest and 200K cash), yearly cash flow would be 150k. ( There are many for sale at http://bizbuysell.com/)
I am comparing the following scenario
Buy a home with no Mortgage (I save 5.5% Mortgage interest)
Buy a home with 20% down and rest invest in Mutual funds (Return of 7% and pay 5.5% mortgage)
Buy a home with 20% down and Buy a business as described above that will give me 150K cash. (I have to pay mortgage interest of 5.5% for home and interest on SBA loan of 9% for the business on 250K
Thanks for all your suggestions
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Mon Jan 30, 2006 12:20 am |
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