Using bankroll to make investments...

[ggbman]

Yeah that was pretty much what i was thinking Barron. Btw, i am pretty conservative when it comes to bankroll manangement,i meant that if i bought the apartment i would still have 850BB for 30-60. I think this more than fine, but it's a little short for the 50 game.

[ggbman]

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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.

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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?

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I'm conservative. It doesn't mean i could continue to take shots if i had another solid month or two. I would have people paying the mortgage for me and pocketing some money, so it would be a good deal and would certainly not add to my expenses.

[TimM]

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I would have people paying the mortgage for me and pocketing some money, so it would be a good deal and would certainly not add to my expenses.

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Oh, so it's just a matter of how long it takes you to re-earn that downpayment. Then you are back to where you are now, plus you have the property. Even if it takes 3 months instead of 6 weeks, big deal. At the cost of 3 months of poker progress, you have a nice passive income source, most of which is in the form a growing equity in the property.

I think NLSoldier's reply does not consider that this is income that comes for much less work than playing poker.

[Alex/Mugaaz]

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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.

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This is only true up to a certain point. Sklansky made a post about this a while back. I forget in which forum, it may of been the stock one, but I'm not certain.

[helpmeout]

eww $40k down payment on an "investment" property.

You dont wanna do that.

You want liquid assets when it comes to your bankroll. Get an account that pays a decent interest rate and do some research on shares.

Investing is just like poker if you dont do your homework you are gonna get burnt.

[STLantny]

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eww $40k down payment on an "investment" property.

You dont wanna do that.

You want liquid assets when it comes to your bankroll. Get an account that pays a decent interest rate and do some research on shares.

Investing is just like poker if you dont do your homework you are gonna get burnt.

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What are your thoughts on the emmigrant direct savings account (4% now)?

[Notorious G.O.B.]

"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."
From what little I know, my understanding is that Boston has one of the worst real estate markets in the country. That doesn't mean you can't find a good opportunity within the city, of course.

[CardSharpCook]

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Regardless, what is $40k? 6 weeks of play in the $30?

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Isn't this game great?

[TimM]

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eww $40k down payment on an "investment" property.

You dont wanna do that.

You want liquid assets when it comes to your bankroll.

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Obviously if he does this, he is not considering it part of his bankroll any more.

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What are your thoughts on the emmigrant direct savings account (4% now)?

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I try to sweep everything over 300BB into my ING account (now 3.4%). I use 200BB just for my initial buy-ins, so I think this is a good amount to keep on site. If I want to move up I let this rise to 300BB for the next limit, and make sure the bankroll portion of my ING is 200BB or more for that limit. I assume ING will have to keep up with Emmigrant. They have been raising rates every few months. 0.6% isn't enough to make me move yet.

I plan to get some better investments going eventually. But these will either have liquidity issues or risk of loss associated with them, so any money I use for this will not be considered part of the poker bankroll.

[helpmeout]

I dont know what accounts are best but as long as you have somewhere that is secure and you get a decent rate ~4%.

You also want to be able to get money out quickly if you have to without paying large fees.

Anything is better than just a regular savings account.