Most profitable investment?

I've recently become rather wealthy, but have no knowledge of investment techniques. What types of stuff should I invest in, Veeky Forums?

I've been told that rental property (houses, apartments, retail properties, etc) are te best investments. What would the expected ROI be for a propety like that, and how would it compare to the stock market? Is investing in businesses a good idea? Would I make more or less than investing in property?

Basically, I want to know what kind of investment will make me the most money as fast as possible. Nothing else really matters, other than the investment being stable enough that I won't have an uncomfortably high chance of losing it all.

My budget has a rather high upper limit, so feel free to include investments with high costs of entry (maybe a skyscraper? What would the ROI on that be?).

Other urls found in this thread:

propertymanagementinsider.com/an-inside-view-on-real-estate-profit-margins
en.wikipedia.org/wiki/Valeant_Pharmaceuticals#2015_drug_price_inflation_controversy
twitter.com/AnonBabble

First figure out if you want to spend the time and effort to learn about managing your own finances. If not, your best ROI would be to hire a money manager to handle your money for you.

Otherwise, real estate.

I realize that learning how to invest takes a lot of time and effort, and I'm willing to put in the work to do it.

I'd rather handle the investing myself, both because I'd rather not pay for a middleman to manage my funds and because I'm a paranoid fuck who wouldn't trust any third party to even know the contents of my investment portfolio, much less actually be in charge of allocating the investments.

Again, my only goal is to maimize my ROI. That's it. My goal is to have the largest bank account possible at the end of my life.

I know people are going to say "money can't buy happiess!" and all that, but I'm hyper competitive and just don't see any other goal in life but sitting on the largest pile of cash I can build up. Think of me what you will, but that's my motivation. So my only question is what has the greatest ROI.

>Again, my only goal is to maimize my ROI.

OK. Then the first lesson you should learn is: Don't lose money. (This is Rule #1 or Warren Buffett's rules on making money. Rule #2 is: See Rule #1.) As tautological as this seems, if you understand why it's important, you'll likely have a better chance of making good returns in the future.

Being that you yourself claim that you know nothing, you'd best avoid any investments that make money as fast as possible because those are likely scams or perhaps greater risk than you can tolerate.

In this environment, I'd recommend you put your investable assets into the Harry Browne's Permanent Portfolio. Browne has written a few books about it so you can either check them out from the library or buy them from Amazon.

The money in the PP won't grow super fast but it should give you good returns while you become more clueful about how to make money.

>rather

>you'd best avoid any investments that make money as fast as possible because those are likely scams

I understand that claims that sound too good to be true probably are, and I'm aware that the penny stock spam I get is a scam as well. When I asked for mehods of earning the greatest ROI as fast as possible, I was referring to general invesment categories (i.e. stocks vs real estate vs x vs y vs z), not specific cases to invest in. I don't expect any of you to "do my homework for me" and spoonfeed me, I just need to find a category to start investigating to find a good investment, and more specifically I'm looking for whatever gives me the most bang for my buck.

If I told you specifics you'd call bullshit and ask for proof, and I'd rather not post personal details on an imageboard.

Also, what's the best type of real estate to purchase in terms of maximizing my income per unit of investment? So far, the categories I can think of are:

Residential light (houses)
Residential heavy (condos and apartments
Comercial light (retail stores)
Commercial heavy (shopping malls and department stores)
Industrial
Entertainment (inns, hotels, casinos, golf courses, resorts, etc)
Farmland
Blue chip properties (i.e. mines and oil wells)

I'd stay away from residential because of another housing collapse. We havent corrected entirely yet

Got it. But is it good for the long term?

And what kind of real estate is the ''best'', out of the ones I listed, for maximum rents per unit investment?

single family homes bought at >100k. put a down payment of 20% and try and buy multiple properties. 1 property won't do anything for you. aim for 500 a month in cash flow if it won't make you that walk away from it I really recommend getting multiple and snowballing 1 mortgage at a time because that frees up 400 - 600 dollars a month. most banks don't give mortgages for more than 4 houses so snowballing is the best way IMO to get multiple properties.

Okay.

But will more expensive/urban properties make more money? I remember seeing somewhere that retail properties have a profit margin of almost 30% when rented, whereas apartments were only 24%.

Would even more "upscale" properties give an even better ROI? In other words, would an apartment complex or a high rise produce more ROI than the equivalent investment in single-family homes (assuming you invested the same ammount of money in both cases, so it's a number of houses compared to a single apartment building or high rise)?

In other words, should I focus on quantity (having lots of cheap rentals) or quality (having a smaller number of big-ticket properties that command very high rents)? Again, the amount of work required is irrelevant -- I'd be willing to put in a lot of effort if I get a big ROI.

>I've recently become rather wealthy, but have no knowledge of investment techniques.
no worries it won't last long

>retail properties have a profit margin of almost 30% when rented, whereas apartments were only 24%


You realise that a 24% rate on a house means instead of renting a person could buy it and pay it off in 4 years?

If you believe in numbers like that I can tell you now with 100% certainty that you will lose every penny you have, 8% is considered good in domestic rentals, you would be mad to expect more than that without some serious fortune

also
>profit margin
doesnt exist in property, you mean rate of return

Eh, I've got a good sum coming in, so if I lose some it won't be the end of the world.

I'd rather lose as little as possible and gain as much as possible, though.

I got that statistic from this site. It explained that the profit calculations were based on total income divided by total revenue -- that's where the 24% comes from.

propertymanagementinsider.com/an-inside-view-on-real-estate-profit-margins

>if you believe in numbers like that

I don't "believe" in them in the sense that I'm going to dump my money into a particular investment because of those numbers; I'm just trying to use them to gauge what the best option is.

>you mean rate of return

Yeah, I know. Will try to keep my terms straight from now on.

First, buy all of these books, and also buy The Millionaire Next Door and Think and Grow Rich.

Then just buy some mutual fund and call it good, cuz you're gonna hurt yourself if you turn to Veeky Forums for investing advice.

sorry, THESE books.

Definitely Forex and Options. Very rich people also invest in horse breeding. I hear collaltorized car loans are becoming popular as well as oil well MLPs.

Investing in the presidency of Donald trump. It's the best investment anyone can make in themselves and America

>coming to Veeky Forums for investing advice

Yeah, I know using an imageboard for investment advice is a bad idea. That's why I'm not relying on Veeky Forums as my primary source of information. I'm going to several sources; I just figured I'd ask Veeky Forums because I spend some of my free time on chans and figured "fuck it, I might as well ask for help here too."

>mutual fund

I understand that mutual funds are a low risk method for investing, but they're also low reward. Mutual funds just won't make ''enough'' for me to be satisfied.

>inb4 "but you don't know anything; you'll lose it all!"

I know. That's why I'm trying as hard as I can to learn as much as I can so that I ''don't'' lose it all and I ''don't'' have to settle with handing my money to a mutual fund and enjoy my barely-matching-interest return on investment.

>books

Out of curiosity, what's the best way to know if a book on investments really is worth it? I've seen too many of those "follow this one weird trick and make 9001% returns forever!" books to really trust them as a method of gaining knowledge.

I guess I just can't believe that anyone could learn how to invest money from a book. It always seemed like something you'd have to learn through experience.

>forex

Any information you can give me? I've read a bit on investing in forex; I'd like to know more.

Also, as for investing in property, I've read some stuff and I think I've gotten a good idea of what kind of returns to expect and what kinds of properties to invest in.

One resource I was using explained that there are three categories of property -- Class A, Class B, and Class C, which correlate to "cream of the crop," "okay," and "broken down dump" respectively. Class C properties produce a greater return than Class B, which produces a greater return than Class A, due to the higher risk involved.

A chart I saw indicated that the best investment properties for maximizing your cap rate were Class C commercial properties in a city's CBD (basically the financial district). Those properties earned an average cap rate of around 10% to 14%, depending on the city. So a $1 million property would be expected to earn $100,000 to $140,000 per year in rents at standard occupancy levels.

What I'm wondering is, would it be possible to find Class C or Class B properties that are located in good locations but have become run down, purchase them at a low price due to their status, renovate them into Class A buildings, and then sell them?

The way I see it, that would be a pretty good deal from an investment standpoint:

>buy a relatively cheap building
>earn relatively high cap rate
>renovate it
>earn higher rent on now high quality building
>sell for more than you buy

The only problems I can see with that plan are that you have to chose properties that are in a relatively good area (no one would want to buy a building in the middle of nowhere even if it is high quality), the fact that you have to put money and effort into renovating it (and make sure that the money put into renovating it isn't larger than the extra amount that you sell it for), and the fact that it's riskier than just buying an already top-tier building.

But is it a good idea overall, and assuming it is carried out with proper knowledge?

Just read the books I recommended.

Don't get into bitcoins, penny stocks and forex, you won't be able to handle it.

Invest in your education first, mutual funds second then, onceyou have a head for picking stocks, you can pick individual stocks.

But if you follow the herd or whatever Veeky Forums and MSNBC is shilling, you're gonna have a bad time.

You say you're okay with eating losses, but when the real losses hit, we'll see what kind of man you are.You might have been happier sticking with diversified mutual funds.

>Is something that makes money a good idea

Yeah it's a good idea if it works perfectly like you describe. Good luck trying to profitably renovate a property and flip it without any actual experience or real knowledge of real estate or construction.

>I understand that mutual funds are a low risk method for investing, but they're also low reward. Mutual funds just won't make ''enough'' for me to be satisfied.

It's not like there are magical BIG MONEY OPPORTUNITIES you're going to get into without taking on a significant amount of risk.

>Basically, I want to know what kind of investment will make me the most money as fast as possible. Nothing else really matters, other than the investment being stable enough that I won't have an uncomfortably high chance of losing it all.

Then why would you invest in real estate? Real estate is hardly a get rich quick kind of thing.

You're at such a low point of understanding, that if you make any kind of real estate investment it should be to buy some shares of VNQ. Real estate doesn't always go well. Suppose you buy a commercial property and lose your anchor tenant and all of a sudden your solid cash flow property turns into a money pit. Suppose your tenant contaminates the building and cleanup takes months, costs tens of thousands of dollars, and insurance takes a long time to pay and only covers the cleanup costs. Both of these things actually happened to clients I work on. These clients do real estate full time and each have 30+ years of real estate experience.

Real estate takes work and isn't just a buy in and forget about it type of thing if you're buying individual properties.

>without any actual experience or real knowledge of real estate or construction.

This is what will fuck you user

>regulations
>planning
>special skills
>ability to know what a good deal on a contractor is etc

Its only ever construction workers who get into property development and not investors and there is a good reason...

You either need a lot of money to invest to justify site managers etc to do everything for you (lower profit) or scale down your ambition and take on 1 small residential property at time until you know what you are doing (years away)

To be honest this is all a waste of time, stick the bulk of your cash in a fund and receive 10% returns, take the rest and invest it in something small to keep you busy

You will make just as much money and have to deal with far less risk, you cannot possibly justify getting into large scale property development from a monetary standpoint

Neither can you justify it from a personal standpoint as you have no expertise and only decided this is what you want to do with your life about 10 minutes ago

>risk

I've already said bfore that I understand and acce0t the risks.

>if it works perfectly

Reading comprehension nigger; you need it. I never said I assumed it would work perfectly; I never said I assumed there wouldn't be risks. In fact, I even said two of the main concerns with that plan are the risk involved and the fact that the cost of renovation might not make it worth the investment.

Perhaps you should try actually reading my posts before responding?

>without any knowledge of real estate or construction

Then you learn the knowledge required to become proficient, estupido.

Because I don't see real estate as a "get rich quick scheme." I'm not looking for a get rich quick scheme. I'm looking for a method of investing the cash I'm getting from my primary income stream. Basically I have a lot of cash coming in and want to find something to do with it that will increase this initial source by the largest factor possible.

>you have no expertise

Again, that's why I plan on gaining the knowledge required.

>decided this is what you wanted to do with your life about ten minutes ago

Hey man, you know what they say about ASSumptions right?

Buy ETH and Bitcoin. Enjoy banging gold flake glittered prostitutes in your EWB Rolls Royce motorcade with vodka and coke fountains.

Get your real estate license and print commission money.

Only works if you're a qtp2t that can flash a little leg to push sales.

>falling for the cryptocurrency meme

m8, I'm in the tech field and I wouldn't go near Bitcoin as an investment in a million years. As a potentially anonymous payment method it's great; as a long term investment it's shit.

You're talking a lot of shit for a guy who listed stuff as varied as farmland, oil wells, and hotels and asked what you should you should invest in for the best return. You even took advice from some guy who probably has no experience in real estate I doubt you have the money to do any of the big time real estate investing you're dreaming of and I doubt any bank is going to be dumb enough to finance you. There are things you can't learn from a book, and managing construction projects is one of them.

That figure probably includes equity accumulation.

I'm just interested in finding out what I should invest in. I listed widely varied asset categories because I don't really care what I invest in, so long as it makes a good return. I honestly don't care if I invest in office space, apartments, or whatever. I just want a high return on investment.

>taking advice from some guy who probably has no experience in real estate

I'm not "taking advice" from anyone. I acknowledged his statement and looked into it; I didn't pledge a fucking million dollar investment because of what some random user on Veeky Forums said.

>I doubt you have the money to do any of the big time real estate investing you're dreaming of.

I honestly don't care if you believe me or you think I'm LARPing. I don't care if you think I'm full of shit. I just want advice, and I figured I'd at least ask here to see what you people have to say.

>Out of curiosity, what's the best way to know if a book on investments really is worth it? I've seen too many of those "follow this one weird trick and make 9001% returns forever!" books to really trust them as a method of gaining knowledge.

Read the ones I recommended, then the ones in the image chart.

Start reading Mr Money Moutache blog and Early Retirement Extreme blog.

Start checking in on bankaholic.com every so often.

Okay hot-shot here is what you do.

Buy real-estate. Take as much damn loan as the banks are willing to give. If you're getting 1mil, borrow another 9mil.

With that you buy apartments in growing cities. Usually small apartments have higher ROI.

If you put your own money 10% then you can get a ROI up to 30-40% on you initial investment, so around 300-400k yearly on 1mil

>apartments

From what I've been reading, office space has a much higher cap rate (9-11% vs 6%). So why do you think I should buy residential real estate?

KNPD

Man I don't know how shit is where you live. Where I live small apartments are the best. That, or buying whole apartment house for discount price. You are however obviously a total faggot so I don't know what to tell you. Maybe buy anti-faggot pills?

>you are however obviously a total faggot
>anti-faggot pills

Good, good... let the butthurt flow through you.

Most profitable investment is...

Niggers.

Basically every company on earth pontificates over the age-old question of, "how do we sell this to niggers?"

But therein lies the rub, niggers will buy anything, you just have to lead them to it

>I've recently become rather wealthy, but have no knowledge of investment techniques.

umm.... how?

The method is unimportant.

As it is I'm talking to some people who are more experienced at this kind of thing (no, I'm not relying on advice on an anonymous imageboard to make investment decisions), but any ideas I can get from here are appreiated.

Buy Valeant stock. Hold for 2+ years and thank me when you're twice as rich.

>Valeant stock
>implying I wouldn't look it up

en.wikipedia.org/wiki/Valeant_Pharmaceuticals#2015_drug_price_inflation_controversy