Using bankroll to make investments...

ggbman · #1 09-23-2005, 09:12 PM

I didn't really know where to put this, but i figured there are probably quite a few posters in this forum who have to make similar descions.

I have been running very hot latley, and this allowed me to move up quite a bit recently. Currently, my main game is 30-60 and i have been dabbling in a little 50-100. I don't have too many hands in the 50 game, but i feel i can be a winner there. I am still not sure if those games are more profitable than the 30 ones.

There is an investment property that i am very interested in, and i think it has excellent long term potential. It would require about a $40,000 downpayment or so, plus maybe a grand or two in closing costs. If i made this investment, i would still have a decent role for the 30 (about 850 BB) but it would make it much more difficult to continue moving up.

So, i guess there are a few question. For those of you playing games other than the 30, but not higher than 1/2, how much greater do you think the earning potential is in those games? In the ones i see, it's hard to imagine most of them are beatable for more than 1BB/100, and i think that would be VERY difficult in most of those games. I don't want to sacrifice my earning potential, but i don't know if i really have a higher expectation in the higher games.

Also, another consideration is how much emotional control you need to play some of these higher games. I have never had a loss >8k in a day. I don't know how it would feel to drop 75BB in a day at 1-2, and i don't think i want to. For those of you who have played the higher games, did you find the adjustment was just like it was as you moved up previously, or is there some point where it becomes more of a factor for you guys? Thanks for the advice.

Gabe

shaundeeb · #2 09-23-2005, 09:27 PM

Common, I'm sure you could get better advice around campus than here. Anyways a few friends of mine have been looking at realestate around Boston and said there are some good fixer up type apptments in the area. Might want to look into them if you have some handy skills or know a few people.

ggbman · #3 09-23-2005, 09:32 PM

Lol nah i'm not too handy. The key question is really i am sacrificing potential earn to do this, and i felt that some of the posters here would be able to give good advice about this situation.

CardSharpCook · #4 09-23-2005, 09:38 PM

I think it is a classic question and one that can only be answered individually. Of course you are sacrificing earning potential by diverting your BR to other investments, but sometimes it is worth it. The other half of the question is: Is 100/200 (50/100, etc) more profitable than 30/60? Again, the answer is individual and yes, the law of diminishing returns applies here. i know it isn't the answer you want. Maybe someone else can give you that.

DpR · #5 09-23-2005, 09:44 PM

I would say definitely consider the investment. That said, make sure you are getting a good price, there is a lot of downside risk in real estate these days and Boston is NOT a particularly insulated from real estate downturns (I used to live and own there, I have been through it).

However, if you feel it is a good investment, I think that it is a much better use than trying to move up (for now). If you havent lost 7k in a day, you are definitely not ready to move up. I lost 7k in the 30 game yesterday in 900 hands and made it all back today in 600 hands. Don't let your hot streak cloud your judgement on moving up quite yet. I'm not saying you are not good enough to move up, just that you can give it a little more time. Regardless, what is $40k? 6 weeks of play in the $30? Your bankroll will be just fine in a few more weeks.....

If you want any more particular investment advice PM me, you seems like a good guy, I would be happy to help.

ggbman · #6 09-23-2005, 09:51 PM

Yeah, i meant to say my worst day in the 30 is -8k, so i don't think losing 15k in a day would be too fun. [img]/images/graemlins/frown.gif[/img]

Things are going well right now, i would be very happy if my expectation was really 40k every 6 weeks in the 30 game, i could see that being hard to sustain.

NLSoldier · #7 09-23-2005, 10:00 PM

My current view is that no investment can come anywhere near poker. For example, with a 20k roll, it would be relatively reasonable to make 100% return in a month of playing 20/40. There is no where else taht you can even come close to taht. So I would imagine if reinvesting your roll into higher limits can touch even a fraction of that return, it is going to be far more profitable than any type of land or stock investment you can maek.

ggbman · #8 09-23-2005, 10:03 PM

Yeah that is true, but if my earning potential is not much greater in the high games, then i might as well have some ROI for some of the money that i don't really need in my role. I don't know that i can make more in the 50 game, an i don't have what i consider to be a sufficient role for 1/2.

DcifrThs · #9 09-23-2005, 10:04 PM

[ QUOTE ]
My current view is that no investment can come anywhere near poker. For example, with a 20k roll, it would be relatively reasonable to make 100% return in a month of playing 20/40. There is no where else taht you can even come close to taht. So I would imagine if reinvesting your roll into higher limits can touch even a fraction of that return, it is going to be far more profitable than any type of land or stock investment you can maek.

[/ QUOTE ]

nope.

do you need 850bbs to play a limit? nope.

if you have 2000bbs, what are the other 1250bbs doing for you?

nada. i took a lot out of my online roll...my problem now is deciding where to put it. ive put some here and there but still the bulk is uninvested ...

you dont need all that cash online. peace out of that

Barron

TimM · #10 09-23-2005, 10:07 PM

[ QUOTE ]
There is an investment property that i am very interested in, and i think it has excellent long term potential. It would require about a $40,000 downpayment or so, plus maybe a grand or two in closing costs. If i made this investment, i would still have a decent role for the 30 (about 850 BB) but it would make it much more difficult to continue moving up.

[/ QUOTE ]

Why would this be? Would it really add so much in monthly expenses that you can't grow your roll? If that's the case it seems incredibly risky. Or are you just being conservative about things?