please help dh wants to invest

amother ↓

Wed, Feb 23 2011, 10:59 am

dh just got his yerusha from his father who was niftar a few years ago
now he wants to invest it for the future.
I am nervous about this, he found out from a relative of his
about a lady that buys houses in other states then rents them out and after a few years
sells them we would basically get the money from the rent every month she does the work finds the houses
and takes care of all the work and we buy the house and she gets a percentage.
help I am scared to invest dh doesn't want to listen to me

saw50st8

Wed, Feb 23 2011, 11:19 am

Sounds risky.

Where do you live? You can do something similiar if there is any area that is very rental friendly.

If you are anywhere near Teaneck, I recommend investing (yourself) in a 2br apartment at Terrace Circle. The rent you get pays the mortgage. It costs about $200,000 and rents for about $1600+.

Mrs Bissli

Wed, Feb 23 2011, 11:41 am

Two basic risks I can think straight out of head.

1. What happens if they cannot find a tenant for whatever reasons?
Then the property sits empty, you don't get rents, while you still have to incur costs (insurance, taxes,
maintenance).

2. What happens if the property price actually drops when DH wants to sell?
Then you're actually incurring loss.

Very bad idea, if you ask me, UNLESS your DH is very aware of local property market dynamics.

morah

Wed, Feb 23 2011, 11:45 am

Investing is a good idea, but you should talk to someone who knows a little something about investing. I don't like the sound of "heard about this lady who does this real estate thing..." Find a competent financial adviser and learn about different options so you can make investment decisions that are right for you.

Grandmama

Wed, Feb 23 2011, 3:53 pm

Your big problem is not the money and how to invest it, your main issue is that your husband wants to do as he wishes and does not listen to you. I don't know how to help you solve that but I have a cousin that inherited a huge sum of money, and within the year the money was gone due to bad investments and a husband that wouldn't listen to her. Maybe you can get someone he respects to talk to him?
Real estate is a terrible investment now, and the management fees that this woman is getting is a sure thing, the investments are risky. You should do as she does, go into management. The wealthiest people I know are "in management". No risk, just collecting fees every month, every year.
There is no way to get rich quick. But there are lots of ways to lose your money really quickly.

ElTam ↓

Wed, Nov 09 2011, 7:02 pm

Investing is a good idea, but this scheme of your husband's sounds very risky. I would not invest in property unless it was where I lived and I had numerous references on the property manager.

Much better to put it into an mutual fund/bonds, etc. But I agree with others, he should meet with a financial advisor.

BE CAREFUL. Do not meet with someone like from Ameriprise where they make their money off you investing in their products. There are independent financial consultants who charge a flat fee to help you make your choices. People who take a percentage are going to steer you toward the things that make the most money for THEM.

TranquilityAndPeace

Wed, Nov 09 2011, 8:53 pm

My DH manages homes like this for investors from NY and Israel here in Baltimore. It's very much not as easy as it sounds. There are home repair bills, tenants move out and there are periods of vacancy, tenants' checks bounce, there are evictions which take months and have fees, there are lawsuits due to lead paint and what not....

If your DH would want to chat with him about whether this is a good idea or not, pm me.

JAWSCIENCE

Wed, Nov 09 2011, 11:12 pm

Investing in and of itself is not bad. In fact right now it's good. Sitting in the bank your money makes less than inflation rates. Real estate is not inherently bad either - the stock market isn't exactly doing that great right now and some people are getting better returns on real estate than they are on their market investments. The problem is you know nothing abut this lady, live nowhere near the houses in question and are completely new to the real estate market. This does not sound like the kind of thing for someone who has not done some rentals and property management locally.

I think you will have better luck with your husband if you stop saying "I don't want to invest" which makes him think you just want the money to sit in a bank and get eaten by inflation or used up on various things because you are extremely risk averse. That is not the way to accumulate wealth. You should want the money to grow. Instead speak intelligently about investing and say "I do not want to invest in THIS because x,y,z reasons" and also mention you'd like to diversify a little instead of throwing it all towards one thing because then it could all get lost. Didn't chazal say a third in real estate a third in savings/liquid and a third in business or something of that sort? I know that is what many money managers say. This way he realizes you are not anti investing you just want to select solid, relatively safe investments and not put all your eggs in one basket. It also makes you sound less hysterical wife-ish and more business woman-ish and he is much more likely to listen. You could even present some smaller scale more secure projects - like a two faily house in your neighborhood to rent out.

33055 ↓

Wed, Nov 09 2011, 11:40 pm

At the moment, I have money invested on behalf of my children with a trust company. The trust company charges institutional rates which is pennies per transaction. The money is to be invested for 20 more years.

The company right now has a cash position of 26%. They are doing very well. I am extremely impressed. If you ares interested in the name of the Trust company, pm me.

I am a sahm. I do not follow the market intensely like I used to.

BTW, most professionals cannot beat the market.

I would stock to index funds.