What would you do with a million dollars in cash?

[Nick Horob]

A 40-year old family member of mine is set to receive $1 million in after-tax proceeds from the sale of a business.

Assuming they have additional passive income (eg. don't need the money to live on), how would you invest the $1 million?

I would look to find a couple markets that offer attractive risk-adjusted returns and buy a portfolio of SFR's in 2-3 different markets. Buy properties using all cash in an attempt to slightly enhance returns (negotiate lower purchases prices). I'd then look to refi into a conservative amount of leverage and pursue additional attractive deals.

8-12% cap rates would be my target.   Is this too low?

How would you put this money to work?  I'm just curious to get other opinions.

[Dawn Anastasi]

Whenever you ask "what should I invest in?" you'll get a bunch of answers.  

If someone is skilled in X, they will refer you to X.  If someone is skilled in Y, they will say there is nothing like investing in Y, it's the best thing around.  Then you'll have people telling you no, X and Y aren't where it is, you have to invest in Z, that's where the money is.

There are tons of ways to invest in various aspects of the real estate market just as there are tons of ways to invest in non-real estate.