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Today I’ll answer your question, “How should I invest a large sum of money?”
So what is the safest way to invest a large sum of money? My off-the-cuff answer is very carefully.
In my youth, a large sum of money was enough to buy a car. In those days it was $3,000 to $5,000. Times have certainly changed.
To start with, I’m not an attorney, CPA, real estate broker, or registered investment advisor. I have no fancy license from the governor or the federal government.
My early career was as a pilot, and prior to that I was an air traffic controller. Neither of these jobs required money management.
My real estate experience spans over five decades. I’ve learned a lot, and I’ve been practicing continuously. It’s been a good way to make big money, but you can also lose big money.
I narrowcast real estate into an alternative investment approach. It’s a world of abundance. Once you learn how, you can make big money.
Most investment advisors have up and down track records. Don’t kid yourself, the big boys lose money just like the little guys; they make mistakes.
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SHOULD YOU DIVERSIFY?
So let’s talk about how to invest a large sum of money. Everyone claims diversity is king, that you should divide your money into many different categories, and in some cases, different investments.
The stock market people tell you about growth stocks. Insurance people seem to lean towards fixed investments that produce cash flow. The mutual fund business is massive and has something for everyone. In recent decades, index funds have made big returns with few losses.
Sunglasses block out the sun’s rays. Attitudes block out clear thinking. The investment business appears to be easy, and making money appears to be easy.
Realistically, your investments depend a lot on politicians who rarely keep their promises or allow the economy to stay the same. Promises are broken by brokers, investment advisors, and the market can make you look like a fool very quickly.
INVESTING A LARGE SUM OF MONEY IN REAL ESTATE
Where do you put a large sum of money? Certain types of real estate offer generous rewards.
If you’re looking for the best investments for large sums of money in real estate. I’d say think about housing whether it’s single family homes or apartment properties. People always need a place to live. The big question is can you buy it right?
Is the economy growing, or are the banks restricting developers from building? If they are, what will happen to the current developments?
You don’t know what you don’t know. For example, will real estate continue to grow and make money? Have you thought about bargains? Have you thought about development? What about joint ventures? Or do you prefer to be a solo investor?
Today I’m answering your question about how to invest a large sum of money.
What is the best thing to do with a lump sum of money?
If you want to know what to do with a lump sum of money, I’ll tell you about a few of my students and their best lump sum investment. Let’s review what they did.
More than one of my student investors figured out how to place large sums of money in different locations and under different circumstances. For clarity, large sums in my opinion are $100,000, $150,000, or $200,000 at one time.
If this is interesting to you, I have a free course that can benefit you whether you’re investing with little money or want to know how to invest a large sum of money. It’s a gift from me to you that will teach you the secrets of tax lien certificates and how to profit in tax deeds. Be sure to take advantage of it today!
INVESTING IN TAX DEEDS
The business I’ve been involved with for the past 30 years, is referred to as tax deeds and tax liens.
Not all tax deed properties are of the bread and butter variety. Thousands of them are under $200,000 retail value, and there’s a growing market between $200,000 and $500,000 according to the tax collectors.
These are properties that have been confiscated by the county for nonpayment of taxes. The county levies the tax and attempts to collect the tax. If it’s not collectable, they confiscate and sell the property.
The treasurer will delete the mortgage or deed of trust loan and sell the property at a public auction for pennies on the dollar, and the revenue the treasurer receives will pay the delinquent taxes.
The county treasurer does not want these properties. They produce no revenue and the county auctions them so that the new buyer will be on the tax roll of honorable taxpayers.
ABOUT THE TAX SALE
To sell quickly, the county will start the bidding at very close to the back-delinquent taxes. No mortgage or trust deed involved. 10 cents, 20 cents, or 30 cents on the dollar starting bid is typical.
These auctions, also called tax sales, are taking place in 3000 counties across the USA. Everyone wants to buy if they can purchase for a 60%, 70%, or 80% discount.
Not every property is a low-value bread and butter property. A number of my student investors typically search for high-end properties, 7-figures and more in value. That’s a million dollars in value.
HUGE PROFIT POTENTIAL
A recent example was a property valued at approximately $750,000 by the tax collector. Keep in mind, property taxes are only a few percent of the property value.
The big boys always lead the way. In this example, an investor located a property valued at $750,000 by the brokerage community, Zillow, and the tax collector.
The property was on 5 acres of land. The home was 6,000 square feet and less than 10 years old. On the property was a second nanny unit for the property owner’s maids and help.
The property was listed on a commonly known website titled “Bid4Assets”. The auction company allowed bids of only $100. This means the starting bid was $30,000, so $30,100 was the next bid, $30,200 was the subsequent bid, and so on. Patience is required.
The property was still in the auction process 10 hours later. With the bid going up $100 at a time. Bottom line, the property valued at $750,000 sold for $177,000. The difference between the purchase price and the selling price is the investors profit potential.
I’ve witnessed tax defaulted auctions of complete subdivisions where the land has been transformed into large residential buildable lots, large lots surrounding lakes where the roads have already been built and paid for.
Newcomers should realize that if the road is built, then under the road, the electrical lines, water system, and the sewer system have been installed. This makes the residential lots worth $50,000 to $100,000 each.
My point is these complete subdivisions are sold for 10 and 20 cents on the dollar which could easily be millions.
In California, I have attended auctions in San Bernardino county and Los Angeles county and watched as properties were sold for less than 10 cents on the dollar. However, they were large development projects.
The big money raises its head and takes action when they understand the business deal.
We hope you enjoyed Ted’s lesson, “How to Invest a Large Sum of Money.”
If you’ve been wondering how to invest a large sum of money without a lot of risk, in any economy, and with a high profit potential, then tax defaulted property investing is an excellent place to start.
Tax sale properties are sold for pennies on the dollar at county auctions all across the United States. The starting bid is around the amount of the back property taxes owed.
Real estate can be purchased for 60%, 70% and 80% discounts at a tax sale, and you get the property without a mortgage.
The saying, you make your money when you buy, is true, and it’s especially true when you buy property at a tax deed sale.
If you’d like to learn more about how to invest a large sum of money or a little money and turn it into big profits, there’s no one more qualified to teach you than Ted Thomas, America’s leading authority on tax lien certificates and tax defaulted property investing.
Ted Thomas is the only one who provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops & web classes, and personal coaching.
Get started today at no cost with Ted’s FREE Master Class, that reveals the incredible opportunities available in tax defaulted real estate. The class is only about 1 hour of streaming video and contains life-changing information! You can’t afford to miss it!