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Updated over 1 year ago on . Most recent reply

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Matthew B.
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How to invest 500 K

Matthew B.
Posted

Hello,

I'd like to get your input on how you would invest 500 K. I am a 40 year old high earning professional. I do not work in real estate. I have a few single family homes, but no major real estate experience. I have 500 k of liquid assets that I would like to deploy for real estate. I am no in a huge rush and I am not limited by location. My goal is to invest the 500k for about 50 k in cash flow a year. By the time I'm 50, I'd like to be around 100 k. I do not plan on retiring soon. I would like the investment to be mostly passive, though I am certainly willing to give time to understand and plan well.

The asset categories I am considering are passive RE through syndication, multifamily, or NNN commercial. I am leaning towards NNN commercial given the low expenses once purchased, appreciation and equity pay down. I know the cap rates are lower with this class, but I am not looking to milk every penny. More interested in stable, low maintenance return on investment.

You all have much more experience than me, so I am hoping that you all will give me a sense for how you would handle things.

Thanks!

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John McKee#5 Commercial Real Estate Investing Contributor
  • Investor
  • Fairfax, VA
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John McKee#5 Commercial Real Estate Investing Contributor
  • Investor
  • Fairfax, VA
Replied

Your best bet is to buy an asset up to 1.5million.  You may not get your exact cash flow right away, but as a high income earner you will at least have the ability to control the payoff IF needed. You can find a few qsr’s in that range or some medical facilities with a good reputation and long leases. Finding the asset is easy, its the due diligence thats important. Ive been in your shoes, and so far it seems like your on the right path. Feel free to ask me any questions I love the nnn lifestyle!

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