If You Had $1,000,000.00 In Liquid Assets Available?..

real estate...there are so many undervalued places around now
and if i remember correctly you can do some renovations yourself...so you can save money there

Gayish..

Id probably split it three ways:

Gold (gold is better than currency for at least next 2 -3 yrs)
Real Estate
A few decent yielding oil stocks

The dood that mentioned the dividend oil stocks is right. For instance, right now you can pick up shares in Total, major diversified, integrated oil and alternative energy company, yielding over 5%.

Was about to suggest the same thing

High risk high return? currency trading, it's like gambling but legal.

Else buy real estate, bank owned and higher your own handy man, become a scum lord and make your money on fees

It's about what you know and what you can do with it.
Just because person A will invest the mil in adult or mainstream doesn't mean you can invest it the same way and make the same profit.
I would personally invest it in adult, but maybe if I knew more about mainstream I might have chosen differently.

Buy 3 bedroom 2 bath homes and rent them out. They are on fire sale in most of the US right now.

Look for a solid mainstream internet business that may be looking for angel investors. Particularly one that doesn't just have the idea, but has already done most of the work and is looking for marketing capital....

I happen to know of one currently...feel free to hit me up and I can shed some light.

How many people on GFY their relator's licences?

Cocaine sells itself. Just dealing in bulk so you don't have to come into contact with the end-user twunts.

that's great advice...

no wonder you are broke and based on this comment i am surprised you are not in jail as well...

idiot...





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I had one in NY for several years but let it expire.

As for the $1MM, I would do something like this:

1. - $332M

Buy 1000 shares of AAPL and sell covered calls on it every month. It's $332 today and there have already been over 14,000 calls with a $340 strike/July 16th expiry that been traded this morning with an average price of about $6.60 per contract ($660). That's a little less than 2%. Using a low estimate of 1.5%, 1000 shares of AAPL ($332M) could bring in over $6000 of monthly income.

http://www.google.com/finance/option...?q=NASDAQ:AAPL

2. - $193M

Do the same with 4000 shares of EEM, an emerging market ETF. I've been doing this for over a year or so with many, many less shares and get about 1.5-2% per month. Getting 1.5% on 4000 shares is over $2500 in monthly income. I chose EEM simply because it's the emerging market ETF which has the lowest % of holdings allocated towards socialist countries.

http://us.ishares.com/product_info/f...erview/EEM.htm

3. - $250M

Buy about $500M worth of condos in Playa del Carmen, Croatia, and a cool city in France that's not as expensive as Paris. Maybe Lyon. Put a total of around 30-40% down, furnish them for about $50M, and use the covered call income to pay the mortgage and maintenance fees every month.

4. - $50M

Upgrade wardrobe

5. - $25M

Laptops. Maybe a nice digital camera. Other electronic stuff.

5. - $25M

Book a flight to LA, reserve a suite at the Chateau Marmont for one week, go to Eros.com, and set up appointments with 5 different porn stars.

6. - $50M

Go on a 6 or so month trip around the world, focus on places that I normally wouldn't consider visiting, and try to do it on a budget by staying at cheap places where it would be more likely to meet fellow travelers and other interesting people. Maybe go to Goa in India. Definitely try to hit Machu Picchu in Peru. Beirut. Maybe some random Asian countries. Basically just keep my options open.

7. - $25M

Book a flight to LA, reserve a suite at the Chateau Marmont for one week, go to Eros.com, and set up appointments with 5 different porn stars.

8. - $50K

After doing an exhaustive amount of research, give $50M to a charity who not only has a cause which I feel is worthwhile, but has proven to be both efficient and effective in working towards their cause.

i would invest in gambling

state owned tax liens

guaranteed by the state. They collect and pay you directly.

texas is 25%

Buy 650 ounces of gold...

buying gold is the current buy signal for today. i cant figure out the stable buys in any stock market anywhere on the globe right now. a market will climb then crash. all speculation. gold will grow until this depression is settled. and even then, it will level off higher than it is today.

fuck $1m. if u have $1.000, buy gold right now. get your ass off the sofa and go buy a bar.
/

Definitely some things to research in this thread. Keep 'em coming!

Agreed... I have never even heard of hard money being that low.. twelve.. But the guys who know how to find and execute deals where they come in under sixty aren't going to pay a fortune, and if they do, they won't have to for long

I just mean that the HMLs will be more competing for him than than he will be begging for their money

But I guess some do still prefer to not use their own cash even after they've made quite a bit, anyway..

Well, just putting it into something and collecting 50k for life isn't really the best thing if you mean that you want it to be your living money. If you mean you'd put it into something, collect the 50k and reinvest half of it indefinitely - that's a plan

You're as much of a hopeless disaster waiting to happen as you ever have been, but, you spell a little better than you use to.

That is a great idea. . but I have heard that in most areas, you have to be first in line and you have to know someone..

I agree with everyone who keeps talking about real estate. But again, you have to know what you're doing. Real Estate looks real simple. . . and people like (the one guy who posted I won't name) rush in and sink a pile of their own and other peoples money into "can't lose projects" and come out with nothing

You HAVE TO do your homework.

Do the payday/title loan store. Listening to me always pays off for anyone who does it. Always. But my new rule as of last month is that if you make money on my ideas you owe me 10%

I'm like Uncle Sam but I am Uncle Fred

cams / mobile :D

It's not too good to be true. The problem is a lot of people are not liquid enough to get in. I know of one guy in the Baltimore area, a retired doctor, who now has $18 million in cash floating around the area at any given time. He started with nowhere near that amount.

I'd imagine your best bet -- if they still exist these days -- would be to hit up the more reputable weekly real estate investment clubs in the area.

Before the crash there were a lot of investment property resellers (the guys who fill out the contract to buy with the hopes of assigning it before closing). They've probably mostly dried up, but if you can find a good sized reseller, he'd be a great resource as he needs to get other investors funded in order to unload the properties he was not able to assign and does not want to renovate himself.

The important thing is making sure you understand the market so that you do not do deals where you potentially get fucked on the LTV. You also want to make sure you'd be lending to people that have demonstrated experience renovating and reselling investment properties. You don't want a newb who decides its over his head because then you have a non-performing asset you have to tend to yourself.

After awhile you'll find some people that you're comfortable doing longer term deals on (say section 8 buy and hold for 5 years) where they'll happily give you say 10-12% because the deal allows for it and it doesn't freeze up their own cash or borrowing ability.

Just look into state regulations about lending. You may have to register as a private lender and do what's required of that.

What if he's in a state that forbids that type of lending? What do you recommend?

Every pay day store I've looked at that is for sale typically as a net cash flow of $200k a year. Hardly impressive considering all of the work involved.

It's best to not talk about things you do not understand.

I sold to these guys for years and introduced them to the private lenders. Nobody laughed.

Some HML's will eliminate points and drops a few % on repeat, established guys, but its surprising how many don't even ask for that special treatment.

(I was an REO agent in prior life)

Please use the $1mil to drive a penny stock up ~300% Make sure you tell me which one before you do It ;)

Interesting thread... lots of thousandairs trying to give millionaire advice.

Put it in an Interactive Brokers account.
They will give you a margin account at 1.3% and loan you $1M per $200k of your money.
So $1M of your cash gives you access to trade $6M in your account.

Buy dividend paying stocks >5% that are large cap and still growing.
You will get stock appreciation plus dividends.
It will only cost 1.3% for the money you have borrowed.

This is a low risk way to put your money to work.

I have more high risk / high reward strategies also

If you would like to discuss some real world scenarios, hit me up privately.
webmaster at howigotrich.com

Name some of these recommended dividend paying stocks please

i hear microsoft shares are a good buy, possibly undervalued. . . but what do i know?!

The ones they're selling may have been managed by people like SB

If the state won't allow that, what about having a pawn store?

And the guys who actually know how to put the work into finding deals that juicy AND get the work done right and in a timely manner... they are just everywhere, right? I'm not buying that... most people who want to "flip properties" think that they can pay 70 and spend 10 on rehab work because a house down the street is selling for 100

I am not going to argue that hard money will EVER be inexpensive - but I find it difficult to believe that the guys with the talent to come in at 60 of FMV consistently are paying points and close to twenty

I would like to do some flips, but even a HML won't touch me with a borrowed dick made of fools gold... it is too bad, too, because I would be one with the sense to get bleedingly recent comps and put the work into finding deals where I could come in well under sixty (including purchase+rehab)

So yeah I can imagine a lot of guys like me would be willing to pay quite a bit.. I'd pay whatever percentage I had to, honestly, but I couldn't afford any points or service the loan while waiting for the sale

that's the worst advice, I really doubt you can get 1:6 margin account ( i don't even think they exist) usually margin is a 50% of your money and also based on which stock you buy, many stocks have different margin ratios... and even if somehow you do get that account, loading up all 6mill at 1:6 on margin is a sure way to loose a lot of money and possibly end up owing some... if your investment starts going up right after you bought then you good, but as soon as it sinks below banks acceptable level they will start dumping your shares to cover your margin calls... and you also need to be careful about the price of an actual stock, if it'll dip below $5 on margin you loose all your margin level and you're toast... there's also a bunch of other shit, but I'm tired of typing all this..

If you're leveraged that badly, buying common shares, just paying the spread is going to put you well behind.. you had better be sure you know that the shit you buy is going to go up

This thread has added to the reasons not to do anything mentioned in it.




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Agreed. And unless you get a stock that pays monthly dividends, the whole plan can go to shit if something happens within that year. Anything can happen over the course of the year, even with historically safe stocks.

If you're looking for an income generating strategy, covered calls are definitely the way to go.

It's funny because traders (ie, active traders who aren't necessarily 'investors') or wannabe traders generally don't like the strategy because earning 1.5-2% is not sexy enough. They's would rather flip contracts in the hope of making large gains, but the majority just end up losing.

Normal people that want to invest some money, but aren't necessarily experts when it comes to investing, freak out when they hear 'options', so they don't even consider the strategy.

It's really simple, though. Think of it this way. A stock can do 5 things. They are as follows:

1. Go way up
2. Go up just a little bit
3. Remain the same
4. Go down just a little bit
5. Tank

Using 1000 Bank Of America shares priced at $10.54 as an example.

This is what today's option chain looks like for calls with a July 16 expiration.

http://www.google.com/finance/option_chain?q=NYSE:BAC

Strike Price Change Bid Ask Volume Open Int
11.00 0.28 -0.03 0.27 0.28 16394 36520
12.00 0.08 -0.01 0.07 0.08 14671 144348

Traders/investors purchased 16,394 contracts which will allow them to purchase 100 shares of Bank of America for $11.00 per share provided that it closes at or above $11,00 on July 16th. They paid approximately $0.28 ($28) for each contract, which means that their break even point is $11.28.

By and large, they are either banks/funds that have a complex hedge strategy, day traders, and amateurs who read a few articles and think they know what they're doing, but are pretty much just idiots. Many from that last group are just hoping that if BA has a strong week next week, they can maybe sell the contracts for a quick double digit percentage gain before the time decay accelerates.

When you're selling covered calls, you're essentially just helping them feed the monkey.

You own 1000 shares at an outlay of $10,540. You sell 10 contracts for $28 each and pocket $280. After transaction fees, let's say that you actually pocket $210, which is about 2% of your outlay.

Now, here is what happens for each of the 5 scenarios.

1. Stock goes way up
If the stock closes at $11.00 or above on 7/16, your shares will be 'called out' and automatically sold for $11.00 per share. Factoring in the $210 that you made when you sold the calls, you actually get a total of $11.21 per share on the sale. If it closes above $11.21, the lost 'opportunity' might upset you for a little bit, but then you'll realize that it was likely an anomalous situation and you still made over $0.67 per share before taxes, or 6%, you'll be fine, and you can just buy more shares on Monday and repeat the process.

2. Stock goes up a little bit
The 'sweet spot' is if it closes at $10.99, because you keep your $210 from the calls, earn an extra $0.45/share in appreciation, and keep the shares. That's $0.66 per share without the short term cap gains, and without having to deal with repurchasing the shares on Monday. Likewise, if it closes at $10.70, that's a net profit of $0.37 per share.

3. Stock remains at $10.54
You keep your $210. Keep in mind that this is something you'll be doing every month. $210 per month for a year equates to a 24% annual return if the stock remains the same!

4. Stock goes down a little bit
Since you keep the $210 no matter what, your break even point for the 7/16 expiry is $10.33 ($10.54-$0.21).

5.Stock Tanks
This is the only situation where it can get tricky. If the stock starts plummeting and you need to sell ASAP, the only way you can do so is if you buy back the calls. If there's an overwhelming negative catalyst and the stock drops 15-20%, you would buy back the calls at a fraction of what you sold them for, so let's say $0.02 per contract ($20) and then sell the shares at $9 each. All that means, though, is that at the end of the month, you'd end up with $8980 instead of $9000. If you want, you can also factor in that it will likely take you a little bit longer to sell the plummeting stock, because you have to buy back the calls first. Maybe you could of sold for $9.20 instead of $9.00.

In sum, you will be fine in 4 of the 5 possible stock movement scenarios and, if it tanks, you will be only slightly more fucked than you would have been had you not sold the calls.

Can you sell these covered calls on shares you bought using leverage?
I hope I am saying what I mean .. lol!!

I would think that you probably can't... but would be interesting as hell if one could do that, yeah?

I've heard pretty much the same regarding state owned tax liens.

If you're talking about just selling the call, which in this case would be considered 'Naked', as opposed to covered, you actually can, but you have to meet the "Risk Level 5" requirements to be allowed to do it at Trade King.

Minimum Annual Income: $50,000
Minimum Option Experience: 3 years
Minimum Account Equity: $100,000

Here's, a PDF that lists all the Risk Levels.

Trade King Option Levels

I'm only approved for Risk Level 4 tades, so I wouldn't be allowed to do it. There may be some brokerages that aren't as strict, but it would make me wonder what kind of other shit the bank was up to if they just allowed anyone to do that trade. Kind of like my same reaction to sponsors who offer a high PPS. lol

Anyway, here's a summary of how the trade would work.
http://www.optionsplaybook.com/optio...es/short-call/

So, using that same example from the earlier post where you'd net $210 selling calls at the $11 strike price, the safer play would be to just sell the $12 strikes for $80 each. See here.

Strike Price Change Bid Ask Volume Open Int
11.00 0.28 -0.03 0.27 0.28 16394 36520
12.00 0.08 -0.01 0.07 0.08 14671 144348

There are quite a few different types of trading strategies, all of which have their own unique set of variables. The most advanced trade that I've ever done is an Iron Condor.

http://www.optionsplaybook.com/optio...s/iron-condor/

why 5% when you could be earning 20% with AGNC

I was doing quite well with Iron Condors a few years ago. I only traded the indices rather than individual stocks. Unfortunately since the "crash" I gave up on Iron Condors due to the volatility that has taken hold in the "post-crash" market.

Prior to the crash it was pretty easy to make consistent profits (mostly on the S&P and the RUSSEL) because the market didn't jump all over the place every time some small piece of economic data was released. Sure it moved on the major reports however these days you get the same size moves on even the most inconsequential report or even some news story of political unrest in some country that has absolutely no impact on the U.S. economy.

Yeah, the premiums were a lot lower back then due to the lower volatility however I'll take lower premiums that are consistent winners month-after-month over larger inconsistent premiums any day of the week. It's all about risk/reward. Even with the most complex repair strategies I've had a really hard time making any money with IC's since the crash.

Have you been trading them in the post-crash market? If so any particular tips?

Buy up intellectual property rights and start patent trolling.

http://www.intellectualventures.com/Home.aspx
Same concept on a smaller scale...

you know point 5 and 7 are the same right.

gold is only good in a recession when people lose faith in stocks, bonds and the banks.

when the economy picks up again the price of gold will drop a lot.

twinkies.

I'm not smart enough to win on the market, I've tried time and time again and admit the market plays me more than I play it. Yeah some stocks have done well and in good times most picks do well but when a correction comes the market taketh what it giveth. Everyone can make millions when it's play money and there's no emotion, try with real money then we'll talk.

What has worked for me and is working is real estate. I recently bought 3 houses in the phoenix area and am getting a great return. I'm not going to worry about the when and if on the appreciation, it'll come and until then the rent is keeping me mighty happy.

To answer Dereks question about GFY members with a real estate license I know of one and I've bough through him already on numerous occasions!

Real estate, stock and gold.

Very lame! why not book your room in the old people's home early?

$1,000,000 is perfect to START A BUSINESS!

Find some commercial real estate for a shop, cafe on the beach, nik naks, vibrators..

OR EVEN BETTER GO ONLINE!

CAPITAL = BUY BUSINESS
BUSINESS = ONLINE BUSINESS
ONLINE BUSINESS = PORN
PORN BIZ = CAMGIRLS

Hey!

I would buy farm ground.

They arent making any more of it, and there sure is alot more getting covered up by "progress" everyday.

People still are gonna need fed.

:2c:

skin gfy