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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: tomash on December 02, 2019, 02:26:31 PM

Title: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on December 02, 2019, 02:26:31 PM
Hello,  I am 68 and single.  I receive $400 social security with $140 going to Medicare, leaving $260 net to me.
I have $100,000 in savings.  I am able to work part-time buying and selling antiques online. I have a lot of knowledge and experience in real estate. Where should I keep my savings?  Should I put it into an index fund?   I would appreciate any advice or ideas on how to invest, survive and prosper.  Thank you very much.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: MoneyQuirk on December 02, 2019, 02:50:51 PM
Hello, sir!

Probably the biggest question would be the rest of your financials.

Average expenditures per month?

I'd roughly guess that with a part time job and the ability to pull ~4k from your 100k saved per year, that if you own your residence (or can live rent-free) you're probably ok.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on December 02, 2019, 03:50:14 PM
Thank you very much for your reply. 
I do not own my own residence.
I spend about $150 on food each month.
I spend about $60 on meds each month.
I could buy a townhouse for about $50,000.

 
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: iris lily on December 02, 2019, 03:58:43 PM
You need to investigate subsidized senior housing..With an income of only $400 you would definitely qualify on income, and I doubt that your nest egg is enough to disqualify you.

Where are you living now? I mean, how much does that cost?
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: mozar on December 02, 2019, 04:39:03 PM
I'm also curious as to where you live. Have you considered becoming a real estate agent? Sky is the limit on income. If you buy a 3 bed townhouse you could rent out the other rooms. A book I am reading now is the millionaire real estate agent. Can you do basic math? Lots of jobs for construction estimates where I live.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: Villanelle on December 02, 2019, 04:50:30 PM
Are you physically and mentally able to get a job?

In your shoes, I would apply ASAP for subsidized senior housing as waits can be many, many months.  Then, I would get whatever job I could.

Also, are those truly your only expenses?  Do you have a car?  Internet?  A phone (cell or traditional)?  Literally anything else besides meds, rent, and food that you spend your money on?
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on December 02, 2019, 05:35:09 PM
You need to investigate subsidized senior housing..With an income of only $400 you would definitely qualify on income, and I doubt that your nest egg is enough to disqualify you.

Where are you living now? I mean, how much does that cost?

Thank you for your idea about subsidized senior housing.  I will investigate that.
I am living in my little (400 sq. ft.) antique shop now.  I pay $300 rent plus $70 electric.  However,$300 is about half of the market value and it will not be available at all within a year. 

Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on December 02, 2019, 05:56:42 PM
Are you physically and mentally able to get a job?

In your shoes, I would apply ASAP for subsidized senior housing as waits can be many, many months.  Then, I would get whatever job I could.

Also, are those truly your only expenses?  Do you have a car?  Internet?  A phone (cell or traditional)?  Literally anything else besides meds, rent, and food that you spend your money on?


I am able to work some.  I have always been self-employed as I have had recurrent major depression since I was 21.
I do not have a car,  my cell phone is $30/month. I use my landlord's internet.  Lately, I have not been able to work much.
Also, business is very slow.  I  am barely paying minimum expenses now.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on December 02, 2019, 06:06:54 PM
I'm also curious as to where you live. Have you considered becoming a real estate agent? Sky is the limit on income. If you buy a 3 bed townhouse you could rent out the other rooms. A book I am reading now is the millionaire real estate agent. Can you do basic math? Lots of jobs for construction estimates where I live.

Thank you very much for your ideas.
  I live in my antique shop for now.  See a previous post. I could try being a real estate agent.  I have a real estate brokers license which I could re-activate. I like the idea of buying a residence and renting rooms.   I am good at math.  Where do you live?  I am in Myrtle Beach, SC .  I  will check out a job for construction estimates.  I never thought of that.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: frugal_c on December 02, 2019, 06:29:38 PM
I don't have any brilliant advice but your situation is such that if at all possible you should find as much employment as you can handle and try to bank as much as you can while your age still permits. Try to keep your savings for when you really need it.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: SunnyDays on December 02, 2019, 08:46:43 PM
Have you done all you can to address your depression?  I understand that you've had it most of your life, but treatments change over time, and it might be worth a re-evaluation if you haven't had one in a long time.  It sounds like this is the stumbling block to obtaining/keeping more lucrative employment.  If you can't afford a doctor, you can always contact mental health associations for support and information, if you haven't already.

If you're going to lose your housing in the near future, perhaps there is some situation where you can provide some type of service in exchange for reduced rent.  Handyman, yard care, etc.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: Letj on December 02, 2019, 09:02:06 PM
On your income, you should qualify for food stamps and Medicaid. It doesnít seem like youíve looked into those.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: terran on December 02, 2019, 09:11:45 PM
Supplemental Security Income is almost twice what you receive in social security and you'd also qualify for Medicaid, but there are asset limits (under $2000) and income limits (anything over like $20/month starts reducing benefits). I'm pretty sure a primary residence is excluded from the asset limit, so if you did use that money to buy a house you could potentially reduce housing costs and increase income. Obviously well paying employment would be preferable, but if that doesn't work out it might be something to look into. It might be worth consulting an elder law attorney familiar with SSI and Medicaid.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: Manchester on December 03, 2019, 03:46:48 AM
Would you ever consider moving abroad?

https://internationalliving.com/5-countries-where-life-is-good-on-a-social-security-check/
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: ctuser1 on December 03, 2019, 06:56:58 AM
Hello,  I am 68 and single.  I receive $400 social security with $140 going to Medicare, leaving $260 net to me.
I have $100,000 in savings.  I am able to work part-time buying and selling antiques online. I have a lot of knowledge and experience in real estate. I would appreciate any advice or ideas on how to invest, survive and prosper.  Thank you very much.

Thoughts in no particular order:
1. Please explore all government benefits from the federal (social security etc), state (Medicaid/SNAP etc) and any local/municipality/county resources.
One good place to start is: https://www.usa.gov/benefits

Please check here next: Benefit finder - https://www.benefits.gov/benefit-finder. This seems to work for both federal + local in my state, CT. I have no personal experience, but would guess that you should find some sort of social worker in your state capital for helping navigate state benefits, and some local one for your city/local benefits (e.g. Section 8, as well as senior housing is locally administered where I live).

You already get medicare, so you don't need to worry about Health Insurance. However, you should talk to some sort of specialist to make sure you have the correct type of supplemental or medicare advantage plans appropriate for your income and health situations.

(Reference only) - List of all federal programs: http://federalsafetynet.com/us-welfare-programs.html

2. Please make sure to avoid all financial pitfalls that must have wrecked your finances in the past
This is pure speculation and conjecture.

$100k saved @68Y implies you weren't exactly a good steward of money in the past.

I see you have mentioned RE Broker license and hinted at going back to that. Was it financially rewarding for you? Are you really as good at it as you seem to think? or was it a money sink? If there is any doubt, I don't think you should take risks at this age. You don't want to risk things now since you don't have any more time to build things back up and recover.

Maybe your problem was spending, and not income. In that case, I'd avoid any sort of credit cards and stuff - things that allows you to get into fresh trouble.

You mention being good at math. It is great to be able to be quick with numbers. But do you *really* understand the concept of compounding? I somehow doubt it - as any sort of understanding there would have led to a wealth level at least an order of magnitude above yours at even minimum wage in the US ($100/month saved and invested would lead to > $1MM in <= 40 years). So I would again advise against taking undue risks in any sort of new business ventures based on your confidence in your capabilities.

3. Do you have any sort of support network? Friends? Family?
Perhaps time to try to build a relationship back again if you are estranged. Support networks are invaluable at this age.
In the same vain, moving abroad at this age is a terrible idea, unless of course you are an immigrant yourself and can immediately find a large support network in that place if you moved back again.

Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: dodojojo on December 03, 2019, 08:21:52 AM
My mom receives about 920 in social security and lives in a HCOL state/city.  She qualifies for low income housing and Medicaid. At your low 400 rate, you'd surely qualify for assistance.  The only sticking point being the 100K in savings.  My mom cannot have more than 2K in assets (other than home/car) in order to qualify for Medicaid. 

Is there a senior center you can go and ask for help in researching programs available to you?  You should not be paying for Medicare supplemental care when you have 400 in income.  As I understand it, you are only breaking even from your antique shop?  If your income is preventing from getting assistance, perhaps it's time for you to retire and then you can apply for assistance based solely on SS.

Low income senior housing in my mom's area is furiously competitive.  Nearly every building I called to inquire about their application process told me they had waiting lists years long--like 8 to 9 years. 
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: teltic on December 03, 2019, 10:19:33 AM
I don't have much to offer; other than I think you should try to work as much as possible while you are still able to.

https://www.doctorofcredit.com/

^^  I would suggest getting into bank churning.  People make ~$1500 annually from this doing a little bit of legwork (Open bank, deposit $15k for 90 days, close... Or open bank, make 10 debit card transactions, collect bonus then close).

I'd also look into the credit card churning game... How much do you spend on this antique buying and flipping game?  If you think you can spend ~$3k in 3 month periods, you can get ~60k points from chase/amex/etc, which usually have options to redeem at $0.01 per point (meaning $600 per $3k spent)... You could potentially get $1800 by being organized and churning cards.

Going a step further into credit cards; you can sell tradelines.  I've only made ~$500 in 2019 doing this, but it was only a couple hours worth of work... Mostly because I'm new at it. 

Yardsales.  While it's winter so maybe not best time to start... But Gary Vee has some cool videos of how you can make $1k a week doing so.

https://www.youtube.com/watch?v=VVFb4pVy_4s

The video series is at least entertaining... I assume there's a learning curve; but it could be a lot of fun going garage sale hunting and finding cheap goods to flip on craigslist.

Good luck!
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: Cassie on December 03, 2019, 10:28:58 AM
I think itís difficult to be a realtor without a car. Have you thought about driving a school bus?  Maybe you can rent a room in someoneís house.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: debbie does duncan on December 03, 2019, 11:21:08 AM
How able bodied are you? Enough to buy that 3 bdroom and rent the bedrooms out to snowbirds in winter?
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: mozar on December 03, 2019, 11:42:48 AM
Check out the entrepreneurial section of this forum. There's something called drop shipping which may be interesting to you.
Google construction estimator jobs within Myrtle Beach. If this is a direction you want to go in there might be a training program in your area. This is also possible to do as an independent consultant but you'll have to learn marketing to get leads.

Being a real estate agent takes a lot of hustle and might be too much if you suffer from depression. It sounds like getting help is new to you. And I want you to know something important. The more help you ask for the more successful you will be.

As a fellow depression sufferer owning real estate really helped me to stabilize. I rent two of my bedrooms. You could rent out your whole house and live in a bus (called a skoolie) or a van. In my area (DC) you get more money if you rent each bedroom separately than renting the whole house to a family. You could also save a room, or rent the whole house for airbnb which takes more work but is more lucrative.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: LifeHappens on December 03, 2019, 11:51:07 AM
Welcome to the forum, tomash. You've gotten some good advice, but I want to strongly urge you to consult your local Area Agency on Aging. Every county has one and they are the go-to place for resources for seniors. In your area I believe you would need to talk with someone at the Horry County Council on Aging (http://hccoa.org/).

I'm a bit troubled by your situation because your income is so low and you will be homeless in the near future. There are many, many resources for low income seniors but they vary a lot by location. Calling and speaking with a local expert is the quickest way to figure things out as the systems can be very confusing.

Alternatively, your doctor may be able to refer you to a caseworker who can help with similar services.

Best of luck to you.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: frugaldrummer on December 03, 2019, 01:39:20 PM
Let me ask you a few questions about strengths and weaknesses:

1)Would your depression or other health conditions prevent you from working a simple part-time retail job?  A 20 hour a week minimum wage job would double your income.

2) Housing - I'm assuming there's no family or friends who would take you in?  Is there anybody with property that would let you live rent free or very low rent on their land if you bought a trailer home and moved it onto the property?  What would it cost in your area to buy and maintain a 2-3 bedroom property? Can you live with roommates?  What is rent like in your area? Do you want to stay in your area?

3) Are you physically and emotionally able to live as a live in helper for an elderly person?

4) What kind of support network do you have? Children, friends, siblings?

5) What's your life expectancy like? (I mean, none of us know, but if your have several chronic diseases and everyone in your family is dead by 75, that's a different picture than good physical health and a family history of longevity).  Are you able-bodied?

6) Working for someone else in a regular wage job would have two advantages - a paycheck, and it would actually bump up your social security benefit a little bit in the future as you would still be paying into it.  (I suspect since you were always self-employed that you did like many people and didn't report all your income, shooting yourself in the foot by not paying enough SS taxes. It's a common error).

7) If your mental or physical health is too unstable to hold a steady job, could you turn your knowledge of antiques into buying and selling small items (that you could store in an apartment) and selling online? Could you spread out into memorabilia or some such? (Antique market has had the bottom drop out I understand).

8) Are you doing everything possible to help maintain your mental health? Support groups, medication, eating well, exercise, sleep?

9) Are you the kind of person who COULD be happy living in a foreign country?  (I wouldn't dismiss it out of hand, although it might be difficult with your mental health issues.)

I'm sorry you are in this position - mental health problems are the source of a lot of homelessness and suffering.

Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: frugaldrummer on December 03, 2019, 01:41:19 PM
Also, were you ever married for more than ten years? If so, would you receive a higher social security check by claiming spousal benefits?
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on December 10, 2019, 06:46:00 PM
I don't have any brilliant advice but your situation is such that if at all possible you should find as much employment as you can handle and try to bank as much as you can while your age still permits. Try to keep your savings for when you really need it.

Thank you for your input.  Where should I keep my savings?  A low-load index fund?
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on December 10, 2019, 06:54:58 PM
Have you done all you can to address your depression?  I understand that you've had it most of your life, but treatments change over time, and it might be worth a re-evaluation if you haven't had one in a long time.  It sounds like this is the stumbling block to obtaining/keeping more lucrative employment.  If you can't afford a doctor, you can always contact mental health associations for support and information, if you haven't already.

If you're going to lose your housing in the near future, perhaps there is some situation where you can provide some type of service in exchange for reduced rent.  Handyman, yard care, etc.

Thank you very much for your ideas SunnyDays.  I need to exercise more for the depression and join some more support groups.  There is always more I can do.  I am also going to start talk therapy in January.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on December 10, 2019, 06:56:54 PM
On your income, you should qualify for food stamps and Medicaid. It doesnít seem like youíve looked into those.

Thank you very much Letj.  I will apply for those.

Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: frugal_c on December 10, 2019, 07:11:07 PM
Don't invest in index funds.

I saw some of the other posts and it's really clear that you should focus on the various programs that your govt offers. For instance the point was raised that there are income assistance programs which are asset tested but exclude a home.  So based on that you are probably wise to buy a townhouse.   I am not going to pretend that I understand all of these subtleties but they really need to be investigated and you want to optimize your assets for them.

You are on the right path asking questions here. Hopefully there are some resources in your area that you can talk to as well.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on December 10, 2019, 07:21:28 PM
Supplemental Security Income is almost twice what you receive in social security and you'd also qualify for Medicaid, but there are asset limits (under $2000) and income limits (anything over like $20/month starts reducing benefits). I'm pretty sure a primary residence is excluded from the asset limit, so if you did use that money to buy a house you could potentially reduce housing costs and increase income. Obviously well paying employment would be preferable, but if that doesn't work out it might be something to look into. It might be worth consulting an elder law attorney familiar with SSI and Medicaid.

Thank you very much for your input, terran. 
A home and a car are excluded from the $2000 asset limit.  That would take care of rent leaving utilities, property taxes, insurance and maintenance.  If I rented out rooms, that could offset the expenses but would reduce the SSI benefits.  Medicaid would be a big help.
I do not know which would be better.  1. Continue receiving Social Security and invest my savings in a home
and index funds and keep working part-time and saving as much as I can.  2. Buy a home and a car with my savings
and receive SSI?
 Living to 100 Life Expectancy Calculator https://www.livingto100.com/ indicates my life expectancy
to be about 89.   
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: SunnyDays on December 10, 2019, 08:04:36 PM
Also, if you live where winters are quite dark, either due to shorter days or cloudiness, full spectrum lights might help.  You can perhaps rent proper light boxes from a mental health association or just buy the bulbs and use your current lamps.  Fish oil supplements are reputed to help with depression too.  Ancient Minerals brand is a good one that doesnít contain heavy metals.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: nsmall on December 10, 2019, 11:46:22 PM
Can anyone chime in on what to do with the 100k.  My vote is to wait until you know what your long term and short term plans are.  Common advice around here is to Not invest money you may need in 5 years and some would say even up to 10 years.  Good luck to you and I hope you find a new living situation.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: frugal_c on December 11, 2019, 12:21:38 PM
nsmall, I would not invest it into the market for the reasons you mentioned.

tomash, you list 2 options but is it really that simple?  Isn't there a bit of a blend of 1 & 2 that you can do?  For instance, can you not draw ss, ssi, get a room-mate and work part-time?  I get that maybe this SSI gets reduced if you work but by how much, is it reduced dollar for dollar?
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: OzzieandHarriet on December 11, 2019, 03:08:23 PM
I advise putting the 100k into a high yield savings or money market account. Index funds wonít earn much more overall and thereís more risk.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: Bernard on December 11, 2019, 04:34:45 PM
I know this may not be applicable to this specific case, but I have read and watched a lot about expat living. If I had a $1K social security check and no or almost no savings or other source of income, and facing the choice between becoming homeless in the US or living a normal life abroad, it would be an easy decision for me.

Just this morning, I watched a couple with a child and a dog from the UK detailing their monthly expenses. They live in a small rental house with a gardener and pay 375 Euro per month including a gardener. They total monthly cost with car and all came to 860 Euro, so about $1K.

https://youtu.be/AmCnRPV2kQ0
 (https://youtu.be/AmCnRPV2kQ0)
I've heard of singles living on much less there. Heck, even the guys from Our Rich Journey who fired at 39/41 moved to Portugal with their 2 kids:

https://youtu.be/owMNL3FgjqA (https://youtu.be/owMNL3FgjqA)

Even cheaper is Thailand, Vietnam, and other East Asian countries. A bit more expensive but still super cheap is Mexico. None of this would be my first choice, but it beats sleeping in a cardboard box by a mile.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: Letj on December 12, 2019, 07:12:19 PM
If OP is in a state with expanded Medicaid, then his $100K is a non issue.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on January 20, 2020, 03:36:41 PM
I know this may not be applicable to this specific case, but I have read and watched a lot about expat living. If I had a $1K social security check and no or almost no savings or other source of income, and facing the choice between becoming homeless in the US or living a normal life abroad, it would be an easy decision for me.

Just this morning, I watched a couple with a child and a dog from the UK detailing their monthly expenses. They live in a small rental house with a gardener and pay 375 Euro per month including a gardener. They total monthly cost with car and all came to 860 Euro, so about $1K.

https://youtu.be/AmCnRPV2kQ0
 (https://youtu.be/AmCnRPV2kQ0)
I've heard of singles living on much less there. Heck, even the guys from Our Rich Journey who fired at 39/41 moved to Portugal with their 2 kids:

https://youtu.be/owMNL3FgjqA (https://youtu.be/owMNL3FgjqA)

Even cheaper is Thailand, Vietnam, and other East Asian countries. A bit more expensive but still super cheap is Mexico. None of this would be my first choice, but it beats sleeping in a cardboard box by a mile.

Thank you so much for your information.  I really like Our Rich Journey, the couple and the information on their youtube channel and website.  I think I would love Portugal because some of the best times of my life were buying antiques in England,
Romania, France and more countries.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on January 20, 2020, 03:40:36 PM
If OP is in a state with expanded Medicaid, then his $100K is a non issue.

Thank you very much for your information.  I had to look up OP.  Original Poster.  Great! I learned something else from you.
All the best.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: teacherwithamustache on January 21, 2020, 09:55:27 AM
How do you have lots of knowledge and experience in real estate but only have 100k saved up and make so little?
Can you not continue to work in real estate to make ends meet?  Are you dealing with a bankruptcy
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: slappy on January 22, 2020, 01:36:56 PM
Posts like this always get me curious. What brought you to MMM? What has your life experience been to have a small amount of SS? What are your overall expenses? $100k is not a bad amount if you only need to withdraw a few hundred per month.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on January 22, 2020, 10:02:54 PM
How do you have lots of knowledge and experience in real estate but only have 100k saved up and make so little?
Can you not continue to work in real estate to make ends meet?  Are you dealing with a bankruptcy

Good questions.  I was attending Duke University.  In my sophomore year, I got sick about 6 or 7 times with sore throat, upper
respiratory infections.  Duke Health Care gave me antibiotics each time.  I had 3-hour organic chemistry lab 3 times a week
that year.  The lab instructor was strict and required us to clean our glassware thoroughly.  We used a lot of petroleum solvents to try to remove the baked-on residue.  In the spring, I went to Duke Hospital and tried to find out why I was so tired all the timeL
Lab tests revealed some liver damage and the specialist thought it was from an allergic reaction to the antibiotics and inhaling all of the petroleum solvents like acetone.  I slept and rested a lot that summer.  My junior year, I still felt exhausted and
for the first time, I was not able to keep up the first semester.  I took an incomplete in physiology. My grade point average was
good around 3.4. 
I took a leave of absence the second semester because I was not feeling any better and did not want my grades to drop.

I was diagnosed with major depression by a psychiatrist at Duke after he interviewed me for 10 minutes.  I did not think he was correct, as my symptoms seemed to me all physical.   I had good days and bad days.  I never returned to Duke.  I did get treated for depression and anxiety when I was 30. 
When I left Duke I had a mentor and partner who taught me real estate and antiques.  We opened an antique shop and invested in real estate in Myrtle Beach, starting with a $3500 6 month option to buy a house for $37,500 which we sold for $47,500.  This is what I did all my working life.   to be continued
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on January 22, 2020, 11:07:40 PM
We got a silent partner who was an attorney.  We moved a few houses on to vacant lots and sold them.  We bought a Victorian House and old barn on an acre of highway commercial property for $45,000.  Fixed up the house and rented it out and sold the property for $90,000 for a Pancake House.  In the antiques, we went to London 12 times and bought antiques and had them shipped in containers to Charleston, SC and trucked to Myrtle Beach.  After 5 years, we sold the shop property and decided to sell  all the inventory to another antique importer. 

We bought an old beach house for $55,000 that was on a commercial lot and spent $30,000 remodeling it and adding a commercial kitchen on the back and it was a beautiful restaurant. That year it won the City Beautification Award for existing
buildings.  We leased the restaurant. 

A couple of years later, we bought a small 12 unit motel across the street for $125,000 and turned it around and after a slow summer rented the rooms on a weekly or monthly basis to businessmen, students, etc.  It was grossing about $36,000 and we sold it for $242,000.  I got my real estate brokers license and sold real estate for 3 years.

My brother and I bought 3 residential lots, sold one and moved a house on each of the remaining 2 lots.
These we leased out after remodeling. 

I moved to Chapel Hill, NC.  I bought a small 2 bedroom house for $$35,000 and moved in and worked on it. 
I bought 4 large 4,000 to 5,000 sq. ft houses close to Duke's East Campus.  They were all on the National Register of Historic Properties.  I furnished them with antiques and  used furniture and leased those  to Duke Grad Students for double the prevailing rental rate for homes.  At that time, I owned 5 houses plus 2 houses with my brother and a half of a restaurant property.

One week I called my banker in Chapel Hill and told him I was looking at a house a few blocks from the campus of UNC.
He asked me which house, and he said he knew that house.  The asking price was $180,000.  He approved the loan over the phone right then.  He said you can borrow the full price, do your remodeling with your dollar and sweat equity, and leasing to
students.  I was happy with my self-employed work, working when I could.  I was saving old homes, furnishing them nicely with antiques which I could buy cheaper than new furniture, providing nice housing for great students, and building equity.

The next week, a guy calls me from the bank and tells me all my loans are classified and I need to pay them all back as soon as possible and when I sold one property all the equity must go to pay off the existing loan and any excess would go to pay down my other loans.  I made a big mistake having all my loans in North Carolina with one bank.  What happened was
the Savings and Loan Crisis in the late 1980's. What was not well known then was the banks were in danger of failing next.
The Feds stepped in to save the banks.  I asked the bank to reduce all my loans to the going rate which was 8%.  I was paying 12% and they said they could not do that.  I was breaking even with the houses in North Carolina.  If the bank had adjusted
the interest rate I would have been cash flowing $3000 per month. 

The Triangle, Raleigh, Durham and Chapel Hill with the Research Triangle Park in the middle was thought to be recession proof.
This was the first time in decades when a recession caused a downturn in real estate.  The largest residential developer in Chapel Hill went bankrupt.  A man in Raleigh who had built thousands of houses in 50 years went bankrupt. 
I held on for 2 more years by maintaining 100% occupancy and doing all the plumbing, electrical, etc. repairs myself. 

Finally, I went to a bankruptcy lawyer for advice.  After that, I met with the bank and told them
I was going to file bankruptcy and ask the judge to lower the interest rates on my loans.  In a few days, the bank called me back and asked me to wait.  Please do not file bankruptcy.  We can work something out. If I had only known to threaten them with bankruptcy 2 years before.  That was the only thing that got their attention and motivated them to negotiate.

Alas, I had gone back into the antique business, doing antique shows out of town.  I had not been on top of re-leasing the houses that spring for a new group of students because of graduation in June.  That year, there were drug/gang wars in Durham and there had been shootings in front of the 4 houses in Durham.  I was having trouble getting tenants because I waited a month or two too long to secure the new leases and because of less demand.  There were a few other problems.
I was depressed from all the stress and loss, it was impossible to sell any houses except the small one in Chapel Hill, for $55,000.  The recession was still on.
The bank asked for deeds in lieu of foreclosure and would seek no recourse.  I decided to go that route.
I deeded my half of the two houses with my brother to my brother in order to pay off a $13,000 loan from him.

 I ended up losing all the properties except the restaurant.
 
  I never had to pay much in income taxes or social security because all the laws were/are set up to give real estate owners deductions, tax credits for investing in properties over 25 years old, historic property rehab tax credits, depreciation, etc.
deductions, tax credits.  I was 39 years old.  That was the end of that chapter.

to be continued

.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: Dicey on January 22, 2020, 11:29:52 PM
Wow. Keep writing...
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on January 22, 2020, 11:42:32 PM
Wow. Keep writing...

I will another day.  And thank you.  I hope this will help others who invest in real estate.  And I am trying to answer some of the questions above.   
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: tomash on January 22, 2020, 11:49:32 PM
I forget to tell you about the bank and what happened to the 4 houses after the bank took them. Instead of working with me on the interest rate, a win-win, the houses sat empty for 4 years and were vandalized.  I do not know what the sales prices were.
They were in a good neighborhood, called Trinity Park full of beautiful old homes.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: six-car-habit on January 23, 2020, 02:30:36 AM
 ***  Quote ***  "" The next week, a guy calls me from the bank and tells me all my loans are classified and I need to pay them all back as soon as possible and when I sold one property all the equity must go to pay off the existing loan and any excess would go to pay down my other loans.  I made a big mistake having all my loans in North Carolina with one bank.  "" ***

 How does this happen ?  Did you have some sort of business loans that were callable for the full amount owed at any time ???
  If not, and you were making payments on time, i am rather confused as to how they accelerated the payoff date....
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: Omy on January 23, 2020, 09:41:57 AM
I wouldn't feel comfortable putting it in the stock market since it's money you will need in the next few years. If it were me, I would use up to 20% of the $100k to buy a house where you'd live that had good income producing potential (Airbnb or roommates). If you can't find or deal with a full time job, I would look into side gigs to supplement income (dog walking/sitting, crossing guard, stocking groceries). Good luck!
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: better late on January 28, 2020, 09:35:35 AM
***  Quote ***  "" The next week, a guy calls me from the bank and tells me all my loans are classified and I need to pay them all back as soon as possible and when I sold one property all the equity must go to pay off the existing loan and any excess would go to pay down my other loans.  I made a big mistake having all my loans in North Carolina with one bank.  "" ***

 How does this happen ?  Did you have some sort of business loans that were callable for the full amount owed at any time ???
  If not, and you were making payments on time, i am rather confused as to how they accelerated the payoff date....

Happened to a friendís SO after the 2008 meltdown. The loan on his business was callable. I donít know if he knew that when he initiated the loan but he got the call notice from the bank even though He had been making payments no problem on schedule. There was no negotiating and no one else was lending money at the time to switch lenders. He lost a profitable business and the money he had invested.

Idk how this looked from the banks perspective. They needed $ (so they foreclose and resell?) or maybe needed to get underwater  RE off their books or maybe they knew that property would increase nicely over time and they wanted to own it...
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: six-car-habit on January 29, 2020, 12:13:35 AM
***  Quote ***  "" The next week, a guy calls me from the bank and tells me all my loans are classified and I need to pay them all back as soon as possible and when I sold one property all the equity must go to pay off the existing loan and any excess would go to pay down my other loans.  I made a big mistake having all my loans in North Carolina with one bank.  "" ***

 How does this happen ?  Did you have some sort of business loans that were callable for the full amount owed at any time ???
  If not, and you were making payments on time, i am rather confused as to how they accelerated the payoff date....

Happened to a friendís SO after the 2008 meltdown. The loan on his business was callable. I donít know if he knew that when he initiated the loan but he got the call notice from the bank even though He had been making payments no problem on schedule. There was no negotiating and no one else was lending money at the time to switch lenders. He lost a profitable business and the money he had invested.

Idk how this looked from the banks perspective. They needed $ (so they foreclose and resell?) or maybe needed to get underwater  RE off their books or maybe they knew that property would increase nicely over time and they wanted to own it...

 Thanks for the info , better late.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: DeniseNJ on January 29, 2020, 11:42:43 AM
How able bodied are you? Enough to buy that 3 bdroom and rent the bedrooms out to snowbirds in winter?

And beach goers in the summer.  Myrtle beach is gorgeous.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: DadJokes on January 29, 2020, 11:56:15 AM
PTF

I'd love to hear the rest of the story.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: Padonak on January 29, 2020, 12:06:30 PM
How can you get only 400 in social security? Even SSI is around 800 for those who dont have enough SS credirs. Cant you get SSI in addition to your SS?
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: Padonak on January 29, 2020, 12:14:51 PM
Also, to all the people who suggested that a 68 yo with 100k nw and 400 per month income moves to a foreign country, youve got to be kidding me. Have you lived in foreign counties? Do you know what its like to have no safety net, no family, low income and very little savings when your health is deteriorating? Not to mention dealing with foreign languages and visa BS.

I mean sure, OP could survive in a village somewhere in the Philippines. What happens if he or she gets seriously sick? There is no public health care there to speak of. Hospitals have no obligation to admit you if you don't have money. No food stamps, no medicaid, no subsidized senior housing, no nursing homes paid by medicaid.
Title: Re: Need advice. I am 68 and have $100,000 in savings.
Post by: terran on January 29, 2020, 01:07:47 PM
How can you get only 400 in social security? Even SSI is around 800 for those who dont have enough SS credirs. Cant you get SSI in addition to your SS?

SSI has a $2k asset limit. There are some notable exceptions that don't count towards the $2k like personal home and a vehicle, but someone with $100k in the bank definitely won't qualify. https://www.ssa.gov/ssi/text-eligibility-ussi.htm