What would you do with £20k?

[thebusiness]

So you've got a spare £20k. The aim is to make as much money as possible with that £20k in five years. What would you do and how much money do you reckon you'd have in five years time? Could be starting a business, investing it......anything really.

 

[QuickHomeBuyers]

Depends upon you! You can make this £20k in £2 or £2m!

 

[Netwurx]

Oh what fun to be had with a spare £20k, it would put a smile on my face!

I would buy a couple of those cash machines that charge an arm and leg to withdraw your money. Put some cash in them, put them inside a betting shop and wait 5 years.

Bound to get some growth - not sure how much though??

 

[laguna]

If you have a spare 20k you can buy yourself a place on our board!

If you dont have 20k you can go borrow it and you can still have a place on our board

Actually we prefer the investment of your time and skill, we DON'T need your money!

But thanks anyway

 

[FM1000]

So you've got a spare £20k. The aim is to make as much money as possible with that £20k in five years. What would you do and how much money do you reckon you'd have in five years time? Could be starting a business, investing it......anything really.

I would invest in my new venture, it will come in handy for the marketing. Will aim to make a 7 to 8 figure sum in 5 years from it.

 

I would invest in my new venture, it will come in handy for the marketing. Will aim to make a 7 to 8 figure sum in 5 years from it.

Which is a pretty good summary:

High risk, high reward or low risk low reward.. That is the first decision

At a push you will get 3% on fixed deposit. Som,e well-aimed dealing in FTSE shares could yield 50% + - but obviously carries risk.

Investinng in TheBusiness might yield 500%, but carries total risk - there are many levels in between..

 

[sri_130]

I invested £20k - just a straight bank loan 3 years ago in a small business that I bought from someone (spent 2 years looking for the right one).

The value of the business is now 4 times that + its provided me with a solid income of 25k+ year on year.

Best thing I ever did + the loan was sooooo easy to get!

Twas a risk, buying or starting up generally is. but big risk = big reward.

 

[danielmeade]

£20K... I would finally be able to launch a project that has been in development for over a year. If financial forecast are correct, that £20K should lead to revenues in the 7 figure area within 5 years.

 

[Naughty Vend]

Teach donkeys to swim between Cartagena and Fort Lauderdale, stopping off in Cuba for a rest of course, with dingys tied to their wee bums filled with "product" and franchise the idea...

I'd use the £20,000 for feed and training of the burros.

 

[Blue Phoenix]

I think if I had that much money I would put it into launching a business. It is a nice amount of money to have and around about the perfect amount to get a good business started and on the path of making some money. The ability to start a business without a loan from the bank would be a fantastic incentive and I think if it was 'your' money would make you work even harder.

Right now I am finding that the start up costs of a business can be less than you would expect but it does make growth difficult. I think any money that you have spare can be used to further develop your business and make it more profitable long term. That is not to say though that if I had 20k I would chuck it on whatever I could, the working capital would be nice

 

[JoTheEntreprenette]

My idea would be to use the money on a deposit for a property. Find a good deal, 30% discount etc, renovate and sell. Keep doing this and after 5 years, you will have a decent pot of money.

If you do not have the time or want to get your hands dirty, then find someone who will do all the legwork and split the profits 50/50.

Regards

Jo

 

[Naughty Vend]

My idea would be to use the money on a deposit for a property. Find a good deal, 30% discount etc, renovate and sell. Keep doing this and after 5 years, you will have a decent pot of money.

If you do not have the time or want to get your hands dirty, then find someone who will do all the legwork and split the profits 50/50.

Regards

Jo

That works well Jo but you really do need to project manage personally else your costs eat up the equity very quickly, it is a full time job... but if done right it can be great...

I invested in Florida in 2006 and fortunately saw the market taking a "boot" just before it happened and managed to sell my single property at a gentle loss, however I then sat for a year into 2009 and as the market bottomed out took on cash purchases of REO / BANK OWNED / LIS PEN properties which can be rented out to those now unable to mortgage but able to pay. By using the equity in each property I can 'lever' a small borrowing upon the next commercially which is repaid very quickly, the growth is a numbers game and exponential as 1 = 2 = 4 = 7 = 10 and so on, as my gearing is acceptable to the lender.

At the moment you can collect a distressed property in Florida from $25,000 for a 2/1 condo to $175,000 for a typical 4/3 family home, in all seriousness start with the condo and work up over the next three years as the market recovers by 2015 to 2017 when it will probably stumble again. As a comparison these same properties were $68,000 and $325,000 two years ago - like any situation there are always parasites and yes that makes me one of them. On the face of it many in the UK / EC will be sceptical of this and indeed I've had a comment or two from individual low lifes whom wish they'd thought of it, just remember that you only lose money if you sell for less than you paid and churning that investment over can in the long term generate profit if you have (a) the nuts and (b) the drive.

You can do the same in the UK of course, indeed I have been and my equity is healthy in the portfolio but American's panic easily and this drives the market down... similarly when CNN tell them it's all good again they'll dig out their wallets and that means a more dynamic market to sell. It's all a matter of timing. So what did I do with my £20k, there you go...

 

My idea would be to use the money on a deposit for a property. Find a good deal, 30% discount etc, renovate and sell. Keep doing this and after 5 years, you will have a decent pot of money.

If you do not have the time or want to get your hands dirty, then find someone who will do all the legwork and split the profits 50/50.

Regards

Jo

The downside is that this plan assumes you can get a mortgage which in the current market without a sizeable ddeposit is most unlikely.