If you had an extra $25k laying around today, where would you invest/spend it?

#26
#26
I would try to get some physical assets that would be maintain long term value, like various metals.
or invest in something to "doom" proof my house, generator, water filtration system, maybe some PV panels.
 
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#27
#27
I would invest 15k in a new to me vehicle, 4k in Roth IRA (VOO) and 6k into our emergency fund.

BTW, when is the surprise 25k giveaway by the OP.
 
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#28
#28
Thunder Good-Oil said:
1 out of 5 investments in StartEngine will probably not generate a 5,000% return. Not even remotely close to that.
Click to expand...

True for most people but then, if you chose well in things you know something about, 4 out of 5 are not likely to fail, either.
 
#29
#29
Gandalf said:
True for most people but then, if you chose well in things you know something about, 4 out of 5 are not likely to fail, either.
Click to expand...

I’d like to see StartEngine publish their results (not just how much capital they’ve raised for the borrowers/equity sellers). Something like 80% of new businesses in general fail after just a couple of years. If there’s little oversight, like what comes with Wall Street IPOs with lots on institutional ownership, I’d feel like my investment would be lost to the principals having lunch with associates or making payments and filling the tanks of their company cars or their bonuses. But the OP does indicate that the $25k is play money. I’d expect better returns from lottery tickets. Somebody did just win the governments hundreds of millions (and about that much for themselves) last week.
 
#36
#36
Yeah, just sold some property. Rental returns are not that great with property prices around home. Financed part of the sale at 6.25%, but still have a fair chunk to do something with besides looking at the account balance in the bank. Have paid off rental property, so no return there paying that off. Home is < 2.75%, so would like a better return than that.

Used to do hard money loans in Atlanta and have thought about that. Given all that...what the hell does one do now?
 
#44
#44
@Thunder Good-Oil

I went back and looked at some of your older posts, so I see you are much more an experienced investor than I ever will be.

But from what I can gather, REIT's have taken a beating lately as rates rise and NYMT has the assets (I think) to support a higher value than currently given.

I didn't buy the dip after reading your advice, but If I had have spent the play money $25K as the OP proposed, I would be $333 in the black today.

So anyway, was interested in your thoughts on REIT's in general (specifically in the current fiscal environment) and NYMT's future in particular.

Thanks in advance for your expertise should you decide to give me your time.
 
#46
#46
CAPTAIN--VOL CAVALRY said:
@Thunder Good-Oil

I went back and looked at some of your older posts, so I see you are much more an experienced investor than I ever will be.

But from what I can gather, REIT's have taken a beating lately as rates rise and NYMT has the assets (I think) to support a higher value than currently given.

I didn't buy the dip after reading your advice, but If I had have spent the play money $25K as the OP proposed, I would be $333 in the black today.

So anyway, was interested in your thoughts on REIT's in general (specifically in the current fiscal environment) and NYMT's future in particular.

Thanks in advance for your expertise should you decide to give me your time.
Click to expand...

REITs come in all sorts of flavors. I’m far from an expert in their details. I think that in order to pass the IRS’s requirements to be a REIT that almost all of the profits must be paid out as dividends to the shareholders.

With real estate much of the positive cash flow comes from the tax benefits. I don’t know if loses pass to shareholders / partners. So REITs can be pretty complicated from the income tax angle.

My favorite style of REITs are things like warehouses, residential, industrial properties and the 2 big broadcast tower companies (I’m not sure if both are still organized as REITs - American Tower and Crown Castle). Commercial office space REITs and shopping center REITs are investments that I avoid, but maybe their share prices have pulled back and there’s some value to be had.

Even some mortgage holders are organized as REITs.

I prefer to own Blackstone stock (BX) which is heavily involved with real estate ventures and therefore gives me more exposure to real estate. IIRC, BX was once a REIT and reorganized as a C-corporation.
 
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#48
#48
Thunder Good-Oil said:
REITs come in all sorts of flavors. I’m far from an expert in their details. I think that in order to pass the IRS’s requirements to be a REIT that almost all of the profits must be paid out as dividends to the shareholders.

With real estate much of the positive cash flow comes from the tax benefits. I don’t know if loses pass to shareholders / partners. So REITs can be pretty complicated from the income tax angle.

My favorite style of REITs are things like warehouses, residential, industrial properties and the 2 big broadcast tower companies (I’m not sure if both are still organized as REITs - American Tower and Crown Castle). Commercial office space REITs and shopping center REITs are investments that I avoid, but maybe their share prices have pulled back and there’s some value to be had.

Even some mortgage holders are organized as REITs.

I prefer to own Blackstone stock (BX) which is heavily involved with real estate ventures and therefore gives me more exposure to real estate. IIRC, BX was once a REIT and reorganized as a C-corporation.
Click to expand...

Yes, 90% of REIT's taxable income must be paid out. Practically speaking, REITs will pay out 100% and receive full Dividends Paid Deduction. Assuming REIT pays out 100% of taxable income as a dividend, they won't owe any federal income tax (they might owe in some states)....
 
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#49
#49
The triple net (NNN) real estate investments seem like good, conservative investments if the lessees have good businesses and the lessors have long term rental contracts.
 
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