Have cash to invest or purchase home

**jIM_Ohio** · 08-14-2010, 03:41 PM

I would consider doing this:

Find a condo- about 100k or 75k, and buy that, then invest the other half.

I would not tie 100% of the money up into real estate. I would use a good chunk of it to make sure I had a place to live though- keep place you live modest so the market can grow the rest (even a 150k/50 split works, just don't spend all the money in one place).

**NJDebbie** · 08-14-2010, 05:55 PM

If I were you I would not invest any money. You stand to lose a lot of money and I don't think you can handle that. I am sorry but I do not agree with your reasons for forclosing on a home. I would understand if it was because of an illness or job loss.

**Neular** · 08-14-2010, 06:24 PM

As far as the reason I foreclosed, I know some may not agree morally, but financially its hard to argue it wasn't a smart choice. Sure my credit is a bit messed up for a few years, but id rather deal with that then stay in a home that went from being worth 250,000 to 50,000... We were the last hold outs in or neighborhood most everyone left years ago.. The neighborhood went from being a good area to the slums.. Just put yourself in the same shoes.. If you could be forgiven a 250,000 debt with a slap on the wrist, why not?

As far as the advice, thanks I will definitely consider it.

**jIM_Ohio** · 08-15-2010, 06:40 AM

One reason to look for a modest home is you won't be looking in Beverly Hills or Manhatten for such a place- make a modest decision and make sure you secure a place to live AND invest some of the money to secure your future.

You cannot change the actions of the past.
You can change the old behaviors which led to the old actions.

**snshijuptr** · 08-15-2010, 07:22 AM

1) you need to clarify for yourself if you moved out of the previous home for the money or because it was not a nice place to live.

2) Remeber as you buy this house to really research the neighborhood. Places don't become slums overnight, and it doesn't sound like you owned the previous home for too long. My guess is that the neighborhood was already in declline when you moved in.

**Joan.of.the.Arch** · 08-15-2010, 08:13 AM

Originally posted by Neular View Post

We were the last hold outs in or neighborhood most everyone left years ago..
As far as the advice, thanks I will definitely consider it.

Who is "we"? Who would we be advising? You and who else? Did you own the house with a spouse? Sibling? Parent? Friend? Did you want advice to work things out best for you and this other person(s), or just for yourself separately?

With a fresh foreclosure on your record, I do not think you will be able to get any kind of financing no matter how big a down payment you make. If you want to buy a house now, I think you will need to put out 100% cash. While not paying your last mortgage, did you save the money instead so that you now have even more saved to buy another house with? Add that to your "small fortune" and you are all set.

**wincrasher** · 08-16-2010, 06:21 AM

It will take at least 3 years before you can finance FHA. Probably 7 before a bank will touch you.

There is always private party financing - I see alot of seller financed advertising lately.

If I were you, I'd invest your fortune - CONSERVATIVELY - for now. And rent. When a fantastic deal comes along, and it will, you will be ready to buy.

Be VERY cautious with investing right now. Good luck!

**jpg7n16** · 08-16-2010, 06:41 AM

Well you must be living somewhere right now. What's wrong with your current living arrangement?

I'd pay off all my debts 1st. Depending on how much is left over...

If I could buy a house for cash for 25% or less of the inheritance, I would likely do that and invest the rest. If not, I would invest all of what remains after paying off all debts - and live as though I never really received it. Stick to a good budget, cut down expenses, etc.

Don't buy a new car or go on any shopping sprees.

**FrugalDad123** · 08-16-2010, 11:26 AM

I would

1.) Pay off debts.
2.) With less than 60% of the remainder, buy a modest home in an area with low crime and good public schools. Intent is to have a low mortgage.
3.) With 20% of the remainder buy precious metals as an investment.
4.) Invest the rest in stocks or properties.

**FrugalDad123** · 08-16-2010, 12:06 PM

Originally posted by Neular View Post

...foreclosed on a home... because it had depreciated 200k and I didn't feel like paying catch up the rest of my life.

Hello All,

I hear this on TV, radio and internet quite often. I'd like to understand the rationale and impact. Can someone elaborate?

Thank You,
FrugalDad123

**littleroc02us** · 08-17-2010, 11:09 AM

Personally from your history I don't think the banks should allow any type of financing. I mean why would they? They feel that you may default again on the loans. Actions speak louder than words. What is the rush to get into a house anyway? Pay cash if you have it, otherwise stop messing with the banks they have a right to conduct business too.

**am_vanquish** · 08-17-2010, 12:25 PM

Originally posted by Neular View Post

As far as the reason I foreclosed, I know some may not agree morally, but financially its hard to argue it wasn't a smart choice. Sure my credit is a bit messed up for a few years, but id rather deal with that then stay in a home that went from being worth 250,000 to 50,000... We were the last hold outs in or neighborhood most everyone left years ago.. The neighborhood went from being a good area to the slums.. Just put yourself in the same shoes.. If you could be forgiven a 250,000 debt with a slap on the wrist, why not?

As far as the advice, thanks I will definitely consider it.

[sarcasm]
Why would you buy a home outright and forfeit the opportunity to write-off another 200k? Just wait a few years, finance another home, and walk out on that one too. After all, financially its hard to argue it isn't a smart choice, even if it is immoral. Why not?
[/sarcasm]

While you're at it, go ahead and rob a bank by actually taking a gun to a teller. It may be immoral, but at least it makes sense financially!

**Seeker** · 08-17-2010, 09:22 PM

Originally posted by Neular View Post

I have a dellema I'm hoping that some of you might be able to help out with. First I will give you a small but of my history. I'm 29 an just recently foreclosed on a home, not because I couldn't afford it but because it had depreciated 200k and I didn't feel like paying catch up the rest of my life. I also recently inherited a small fortune. My dellema is this. I'M not sure if I should straight up purchase a home with it it take it and invest it other places. My credit is sort because of yer foreclosure so financing a home isn't an option, but I might be able to put enough of a down payment on it the bank wouldn't kind lending the money even with the foreclosure. I'm just not sure where I should go with thi, so anyone with any advice please send away! THANKS

People do things so blindly.

1) What state have you forclosed your previous home in?
2) Was your mortgage a "deed of trust" or a "mortgage"?

The answer to these two questions has future financial ramifications to you.

You may or may not be sued. Your inheritance if spent on another home, can or can not be attached to your previous mortgage. See a lawyer familiar with these laws in your state of residence.

**Ashleywatson** · 08-26-2010, 03:32 AM

You can invest in business or can buy home its all upon your need ,If you have already home than you can invest in another areas .For investment you can go through the internet or can take advice from financial adviser.For investment you should keep in mind for low risk and high profit.

Have cash to invest or purchase home