how can i make $400 a week from $100k cash?

[james start]

bit of a long shot and may seem like a strange question, but if you had 100k in cash and needed to generate an income of 400 a week net how would you do it?,

I have been looking at businesses, but 100k doesn't buy you much except more work

if I can pull it off then I can retire, in fact if you can come up with a clever way to do it for 90k I might send you 10k as a thankyou

 

[Brady]

Send me the $10k and I'll give you $400 p/w

 

[JDM]

Based on $100k you're looking at returns of 25%pa or so. Good luck finding a reliable source of investment with these sorts of returns that won't take considerable amounts of your time (such as buying a business like you mentioned).

 

[Scott No Mates]

If you have a REA licence, $100k will get you a rent roll of around $33k per annum. Sure it comes with headaches but it's a 3 year payback plus if you're any good at it you could grow it and sell it.

 

[Rixter]

bit of a long shot and may seem like a strange question, but if you had 100k in cash and needed to generate an income of 400 a week net how would you do it?,

Stick it in a 5 year RCV0 Cashbond @ 4%.

Couldnt retire on it but it's great tool for increasing your serviceability.

 

[Mr. Fabulous]

Stick it in a 5 year RCV0 Cashbond @ 4%.

Ignore this. In the name of all that is holy, ignore this.

 

[Rixter]

Ignore this. In the name of all that is holy, ignore this.

$400w nett...and you can show 100% of it on the income column side of your loan application.

 

[datto]

become a share trader, get a margin loan and go the full hog.

 

[mrdobalina]

become a share trader, get a margin loan and go the full hog.

Or an options trader. Leverage up and you'll earn the 100k back in 1 week.

 

[pinkboy]

If this was possible I would have retired at 24.


pinkboy

 

[Mr. Fabulous]

If this was possible I would have retired at 24.

It's possible, just not passively as james is looking for.

Geez, if it was possible to do passively, I'd be all over it like a whore on pay day.

Edit: actually no, not true. You could buy 100K worth of heroin and if you're smart enough to find someone stupid enough to sell it for you, there's your passive income.

But then that is going to bring all kinds of problems your way and not just from The Fuzz.

 

[oc1]

If this was possible I would have retired at 24.


pinkboy

And in Chile!

 

[DEC]

$400w nett...and you can show 100% of it on the income column side of your loan application.

What am I missing?
$100k x 4% = $76.92/week by my calculations

 

[Hoffy]

What am I missing?
$100k x 4% = $76.92/week by my calculations

RCV0 = Residual Capital Value zero. Pays back capital and income over the period, but all deemed as "income".

 

[virgo]

Some room for thot?

Hiya

Maybe still do-able?

Disclaimer:i don't know anything about the US mkt

http://www.fifighter.com/finance/re...ested-in-rental-property-retire-me-right-now/

 

[Rixter]

What am I missing?
$100k x 4% = $76.92/week by my calculations

Dec, I have posted extensively on it here in this Thread.

Read through it entirely as I explain what your missing including calculation examples.

 

[Redom]

If you've got taxable income and can borrow for servicing properties - 2 x NRAS properties. Will get you very close to that and can easily be done <100k.

Cheers,
Redom

 

[Paul@PFI]

Or an options trader. Leverage up and you'll earn the 100k back in 1 week.

Or lose it.

The casino offers odds of 49% that either red or black will double your money. That also means the odds of losing are 51%.

 

[Mr. Fabulous]

What am I missing?
$100k x 4% = $76.92/week by my calculations

DEC, cashbonds have their place, but not in relation to creating income. All Rixter is recommending is giving your money to an insurance company, which they then give back to you over a 5 year period (with interest).

So effectively, you're just getting your capital back over 5 years, less inflation and opportunity cost. Basically, you're going backwards. It's a really terrible recommendation to make with regards to 'how to create an income stream of $400 per week from 100K investment'.

This is the basis for Rixter's 'Living On Equity' strategy, which should be re-named 'Sitting on a ticking timebomb' and is, in my opinion, irresponsible of him to be not only implementing himself, but recommending it to all and sundry on the forum.

 

[D.T.]

What am I missing?
$100k x 4% = $76.92/week by my calculations

You're missing the part where you waste all your capital