what business would you invest on with budget upto $1M?

[ryan_mel]

Hi Forumates!

There is one question staying there for a while recently. I’m wondering what sort of businesses can I/we (I guess there maybe a lot of other forumates having the same question as well) invest under the following backgrounds?

1. Purpose: To get extra income, improve cash flow situation, and improve loan service capability, and to expand property investment portfolio

2. Budget for investing a new business: up to $1M

3. Having a fulltime job already, and for whatever reasons, we still want to keep the routine everyday job (9am-5pm). But can extract 1-2 hours per day to look after the business.

4. Expect return 20%/pa plus after all cost

Anything available? And what special attention shall we pay to do that business?

Any ideas or suggestions would be mostly appreciated?

 

[oracle]

Hi Forumates!

There is one question staying there for a while recently. I’m wondering what sort of businesses can I/we (I guess there maybe a lot of other forumates having the same question as well) invest under the following backgrounds?

1. Purpose: To get extra income, improve cash flow situation, and improve loan service capability, and to expand property investment portfolio

2. Budget for investing a new business: up to $1M

3. Having a fulltime job already, and for whatever reasons, we still want to keep the routine everyday job (9am-5pm). But can extract 1-2 hours per day to look after the business.

4. Expect return 20%/pa plus after all cost

Anything available? And what special attention shall we pay to do that business?

Any ideas or suggestions would be mostly appreciated?

No requirement to ensure safety of your capital? Or that's not important as long as you get your 20% return with around 1-2 hrs per day work? So that's 14 hrs per week earning $3846.15. That is $274.73 per hour.

Let me know if you find something, but only if there is enough security for my capital.

Cheers,
Oracle.

 

[ryan_mel]

Sound a little bit impossible, Oracle?

Don't know it yet myself, it's the reason I post my question here.

let's see what others saying

 

[Bargain Hunter]

I thought it was a riddle and was waiting for the punchline.

The fulltime job will limit your ability to start up the business so you are left with either an established business (who would sell with a 20% nett return) or getting a hotshot to do all the hardwork (how's your networking). A hotshot will want a decent piece of the action so there goes your 20%.

There are probably some drug cartels who might like an infusion of funds, but you would also have to deal to get 20%.

Money makes money but to make the sort of dollars you are talking about with minimal effort would in my opinion require some illegal activity or huge risk. I got an email from a friend in Nigeria I can forward to you if you like.

I wonder what it would cost to buy all the possbile combinations on a $40M Lotto Draw?

Regards

Andrew

 

[Y33]

Search the internet for different types of affiliate programs were you don't have to outlay money or look for businesses wanting to import goods to Oz where you can be the oz contact or distributor. Preferably international brands that still haven't broken into the oz market. Check with Austrade as they get contacted regularly by overseas businesses looking for distributors etc.

 

[JamesGG]

4. Expect return 20%/pa plus after all cost

It may be difficult given the time restrictions, but, another option could be to consider buying a business with a lower (existing) return and potential for improvement?

A renovation project, in property terms.

 

[Nathan]

Buy/reno/resll a property and make $40k clear.

Thats $40k and for project of 3 months. so thefore $13k per month for a $250k purchase.

Get 4 going at any one time and thats $52k per month.

Or over $600,000pa on a $1,000,000 investment? 60% return....

As james mentioned maybe property trading.

Little risky just throwing big money and not knowing the beat that lays ahead. With business you could buy a biz for $1,000,000 and if not operated properly can have wheels fall off and crash. If it crashes not only does one loose investment, but also liable for leases etc etc...

Food for thought, and not being negative just being bashful for the exercise, and thrown all these examples around in the past from my own family background of retail.

 

[ryan_mel]

Really appreciate guys!! Especially for those constructive suggestions such as property trade, wholesale etc, which makes my question is not that ridiculous

But no matter what, appreciation to any replies here.

 

[Bigtone]

Why not buy a loanbook from a mortgage broker, they are heavily cashflow positive. $1m will get you about $400pa in trail. Get a mobile lender from a bank or someone you know to run it for you so no work from you.

You could even get an established broker to run it for you, you buy the book, he manages it along with his own clients, you get the trail and he gets the upfront commission from repeat business from your book but the client goes back into your book so the book doesn't decrease much. Will certainly increase your serviceability with banks, provide ongoing income and will involve little if any work if you get the right partner.

 

[Aaron Sice]

i'd buy some comm real estate.

but that's just me.

 

[grossreal]

use the money as seed capital.
the seed capital is usually the start capital for a business and the norm is 20% of net returns.
20% is not that uncommon there would be 5 or 6 different types of investing that will give 20 to 30% returns but it depends what your risk profile is.

 

[ryan_mel]

use the money as seed capital.
the seed capital is usually the start capital for a business and the norm is 20% of net returns.
20% is not that uncommon there would be 5 or 6 different types of investing that will give 20 to 30% returns but it depends what your risk profile is.

Thanks a lot!

Very keen to see your further sharing about those 5 or 6 types of investing.

Regards

Ryan

 

[Sunfish]

what business would you invest on with budget upto $1M?

A pub in the Phillipines?

Better life style and a non-socialist government.

 

[ryan_mel]

valuable idea -- much appreciated!

Buy/reno/resll a property and make $40k clear.

Thats $40k and for project of 3 months. so thefore $13k per month for a $250k purchase.

Get 4 going at any one time and thats $52k per month.

Or over $600,000pa on a $1,000,000 investment? 60% return....

As james mentioned maybe property trading.

Little risky just throwing big money and not knowing the beat that lays ahead. With business you could buy a biz for $1,000,000 and if not operated properly can have wheels fall off and crash. If it crashes not only does one loose investment, but also liable for leases etc etc...

Food for thought, and not being negative just being bashful for the exercise, and thrown all these examples around in the past from my own family background of retail.

Much appreciated Nathan for your fantastic sharing. I definitely would seriously considering your valuable ideas although I didn't do much reno/trade before.

BTW, do you mind share your tricks about buying/renoing/selling?

Thanks once again!

Ryan

 

[ryan_mel]

Buy/reno/resll a property and make $40k clear.

Thats $40k and for project of 3 months. so thefore $13k per month for a $250k purchase.

According to the above description, I got following figures:

Buying Cost: $250K + $10K (stamp duty) + $2K (other cost) + $4.4K (interest @ 7% for 3 months) + $6K (agent selling commission) = $272.4K

and also based on every "one dollar spend make two dollar",
Then the selling price shall be: $352.4K on 40K reno cost

or if we can achieve: "one dollar spend make three dollar"
Then the selling price shall be: $332.4K on 20K reno cost

Are they achievable? Where and which suburbs under current market condition?

 

[ryan_mel]

A pub in the Phillipines?

Better life style and a non-socialist government.

Well Sunfish, thanks!

Though not sure if is it applicable for an aussie to operate a pub in Philipines?

 

[JamesGG]

Though not sure if is it applicable for an aussie to operate a pub in Philipines?

Maybe not while keeping your 9-5 job .

Hey Ryan_Mel, was thinking about this thread again earlier. Just curious, if I may; do you have recent experience in operating (and growing?) a business...?

 

[Ajax]

ryan-mel,

I am considering something similar with similar numbers

you would need to include interest on the 20k reno cost (possibly calculating interest on 10k for 3 months assuming it was spent straight-line over time)

You would need to factor in tax...CGT taxable (without the concession of 50% for holding for 12 months or more).

You would need to factor in usual holding costs such as council rates, body corporate levies for 3 months and cost of any insurance taken out.

Also with the loan whether lmi had been paid (and to what extent you could get a refund of lmi).

 

[willair]

Hi Forumates!

There is one question staying there for a while recently. I’m wondering what sort of businesses can I/we (I guess there maybe a lot of other forumates having the same question as well) invest under the following backgrounds?

1. Purpose: To get extra income, improve cash flow situation, and improve loan service capability, and to expand property investment portfolio

2. Budget for investing a new business: up to $1M

3. Having a fulltime job already, and for whatever reasons, we still want to keep the routine everyday job (9am-5pm). But can extract 1-2 hours per day to look after the business.

4. Expect return 20%/pa plus after all cost

Anything available? And what special attention shall we pay to do that business?

Any ideas or suggestions would be mostly appreciated?

I guess the question to ask is is it your i mill or "opm"if you intend to drop i mil into a business and think you will only nedd 14 hours a weeks
and it will run itself then i would think again..willair..

 

[ryan_mel]

Maybe not while keeping your 9-5 job .

Hey Ryan_Mel, was thinking about this thread again earlier. Just curious, if I may; do you have recent experience in operating (and growing?) a business...?

To be honest James, the answer is "I don't have" . So your first suggestion about buying a business which currently has lower return, but then improve it and get a 20%+ return later, maybe too difficult for me