ASk HN: How would you make $25,000 if you had $25,000?
Here's a brain teaser for all you smart people. You are given $25,000 free and clear, and your goal is to make $25,000 more, for a total of $50,000. You have 1 month to accomplish your goal. How do you do it?
55 comments
[ 3.9 ms ] story [ 54.7 ms ] threadNot that I agree with this kind of business from an ethics point of view, but it's easy money.
Me, uh, I'd probably just buy servers for my current business, then require pre-payment. I don't know that I could sell that many pre-paid VPSs, but it'd probably be my best chance. speaking of, why am I screwing off here? I should be putting up more servers.
Other options, considering my skill set, would be buying server parts, assembling, and selling them... though clearing that much inventory would be something of a challenge with my sales skills, and margins on servers (unless you are dell or hp) aren't that high, so I'd need to go through several buy parts -> assemble and sell servers -> buy parts -> assemble and sell servers cycles in that month, in a business where net-30 is the norm, so that'd be pretty difficult.
but yeah... I think the key is "what are you good at?" then "how can I do using what I'm good at, plus twenty five grand, to make something worth twice that much?"
Find some other currency that's also called "dollars", that's worth half as much as the one you have.
If you've got $XXXXX to play with you can pick up some incredible bargains for a quick flip.
EDIT: I didn't see that you only had one month. This is still feasible, but would require some paid traffic/PPC skill to pull off.
Love to learn more about this. If you can elaborate on the process, please do..
Why the 1 month time limit?
Now, I haven't jumped on the idea just 'cause I know jack shit about cooking or restaurant management, but if you could seriously start up for twenty five grand, I'd be looking around for such a business to invest in.
Everyone who I know of in the cooking or catering business works pretty hard, and aren't millionaires, so I wouldn't think you would get into it unless you were in it for the long haul.
Of course, then, we'd still need to find someone able and willing to actually do the work, which is another matter entirely. by even thinking about this I'm ignoring my own rules "invest in what you are good at" - though I guess I 'know' something of the market, just 'cause I'm a customer of that sort of thing.
It's not in the valley but hopefully we'll be there soonish. More on this soon
30%/70% = 42%. Take away agent fees, closing costs, and repairs, I could have 25% if I'm careful. Turnaround is 6 months each time.
1.25 ^ 3 = 1.95.
1 month time horizon is silly. I assume you're looking for serious, practical, reproducible ideas. You won't get any that reliably returns 409600% annually.
If I were really held to 1 month, I'd go to Vegas and put it on red.
If I had lots of credit and I was willing to risk it all, I would consider such a gambit, though my plan would be to buy, fix up, and hold (perhaps renting to cover costs) until the market started recovering.
For bonus points, if I knew anything about wrangling bureaucracy, I'd work on turning business real-estate into dual-use lofts. I'd really, really like to have a dual-use space here in silicon valley, but the nearest place they are plentiful is oakland, and I don't need dual-use space /that/ badly.
But then, I don't have lots of credit, and I personally suspect there might still be even more downside in the market than people seem to be predicting. Still, if I was going to do it, I'd do it here in silicon valley or elsewhere in the SF bay area. the fundamentals of this place are strong, and while I think it will get worse before it gets better, I'm certain it will get better.
I've been meaning to build a go-to website for about half a year now, but I've been too busy with client work--they find me without the website, often through the Boston Ruby Group.
As I was saying before, if you have some special skill to add to the mix, that helps a lot (remember, a top end SysAdmin around here can earn $14K/month contracting, before taxes and stuff, so you wouldn't be doubling the money in a month in that case, you'd be adding 50% value, still damn good, and paying yourself a good wage.)
The thing is, doubling your money in a month is a what, 1200% annual return? no, it's more, if it compounds monthly, quite a lot more. You can bet that any investment with even a small chance of that kind of return gets all kinds of money thrown at it, to the point where those niches where this sort of thing is possible are filled right quick.
But yeah. Maybe you can pull that off for one month (hell, if you really hustled, and billed out at top end rates without a recruiter, you can make twenty five grand consulting as a SysAdmin. I mean, I couldn't... I've gotten that kind of hourly rate for short gigs, but I lack the sales skills to do that for a whole month.) but doubling that fifty grand the next month? doing it again? yeah, your odds start looking more and more like a day at the races.
2. I'll find an another brain teaser that gives me 25k$ free and clear!
3. I'd do it exactly the same way I'd make $25,000 without being given 25k$ free and clear.
4. If I really would have to do it using the money, I'd donate the money to a random charity and use the fame and good will to organize nationwide boyscout door to door fundraiser in order to match my donation. Nobody said I'd have to make that 25k$ for myself.
5. Ok so I should make it for myself? I'd just add that 25k$ to my millions and millions of dollars, stash them all to a short period savings account and collect 25k$ in monthly interest. Nobody said you couldn't use your existing assets to "help a bit".. Why should skills be any different from capital in this respect?
6. Ok so I have to make the money for myself, I have to use the 25k$ doing it and I can't use any other assets? Oh boy.. I'm really not smart enough to pull that off :(
- Gambling.
- Lotto
- Stock options
- Forex
- Future trading
- Illicit activities tend to have high return but highly risky. And also highly questionable.
The time limit pretty much limits what you can possibly invest in for such a big return in such a short time.
This does remind me of a different HN article i read a while back - If you had 5 dollars and 2 hours how would you make as much money as possible : http://news.ycombinator.com/item?id=912105 .
I Personally would do some research on current stock options and try to build a strategy to double the money in the time frame i have left.
If one of them wins a sum >=$25004, then I've succeeded. If none of them wins, declare that I've failed, and pocket the $24996 leftovers.
(Didn't we do this in economics 101? Where you learn about overhead and loss, etc.)
On the other hand if you want non-insane, I would buy an appartment building, flip it, and try to make long term money on that. With partners of course.
Honestly for 25 grand I'd live off the money for a few months and find a job.
With some personal effort, there a few ways of making 25k in a month. App building projects are very hot right now, you could outsource app building projects and manage their completion. Could you make 25k more in a month, maybe not in the first month. But after you had solid relationships and skilled developers as well as a smooth input project buffer you could conceivably generate 25k profit a month.
This is very risky, obviously. There are not too many ways to double your money with a lower risk profile without actually working..
To me, this is much less risky than straight gambling. My last time I answered this with a Stock recommendation (ARNA) it has already been up 3x. So it can be done (see my previous comments)