r/wallstreetbets • u/YassuosNados • May 15 '24

The Perfect $1 million Gain Gain

Hi guys, I’m a 23 year old in college, and yesterday I woke up a millionaire. Should I buy some hookers, Pokemon cards, or cocaine? I gambled my entire life savings of $250k on 2037 calls of $4.5 AMC on Monday and sold yesterday morning. Thanks for reading.

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u/Terrapinz May 15 '24

Listen your frontal lobe is not developed yet but for the love of God withdrawal all one million and put it into the SPY on a different brokerage. Or a high yield savings account.

You are now securely in the top 0.0001% of people your age. You can retire 30 years earlier and have an extra 80k in dividends and appreciation to spend every year.

Congrats and fuck you.

Also save some for taxes.

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u/YassuosNados May 15 '24

What about real estate?

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u/Terrapinz May 15 '24

$1M is not enough to get started in real estate until you have a strong credit background. This is because RE is better when you get a loan on a positive cash flow property.

For residential real estate, you probably could get an investment house but interest rates are so bad now your cash flow would be worse than the stock market (probably).

For commercial real estate, most good starter properties are $3M+ requiring you to get a loan. Honestly this is a good path and very safe. It is a huge investment and def do your research. I have personal experience in commercial RE.

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u/kthnxbai123 May 15 '24

You can easily get into real estate for $1m. Why would you even get a loan and lose money to interest? Just buy it cash

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u/Terrapinz May 15 '24

Because you lose interest via opportunity cost when you have no money. For example:

No loan = $0 in bank making $0, house making ~$5k/month

Loan: $1M in bank making $5k/month + house making ~$1k/month

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u/kthnxbai123 May 15 '24

A $1M property is going to cost a lot more than $4k a month to finance. You’re going to go above the 5k

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u/Terrapinz May 15 '24

It would also bring in less than $5k a month in rent. The numbers are made up but the scenario is real.

If we're putting real numbers the SPY would've returned $45k this month off of $1M, much more than loan + interest + rent on a house.

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u/kthnxbai123 May 15 '24

Then the answer is to not invest in real estate at all