Starting Out: $5-7Mil investment!?

[Gerry Nicols]

Hi,

An old boss is looking to hire me for consulting on real estate investment after cashing out of his current company. I have the gumption to work and a history in project management, construction, engineering, and research, but I haven’t played with sums this large and would love some guidance on where to focus my efforts.

About his investment interests:

• -He is seeking to invest around $5-7 million
  • -Cash
  • -Potentially open to small loans if the interest rate is near-zero
• -He is interested in commercial real estate (mainly)
  • -Open to exploring residential
  • -He is interested in a potential longer-term investment in a commercial office space where he can set up another company (the holding company for his other investments and consulting work)
• -Interested in (but not set on):
  • -Triple Net Leasing
  • -Old Mill Building Restoration to commercial or residential
• -He is interested in investing in the Greater Boston area, Massachusetts only
  • -Seeking areas which have future potential for growth
  • -Currently considering:
    • -Burlington, MA
    • -Waltham, MA
    • -Revere, MA
• -His investment goals:
  • -Diversification of his portfolio from stock-only
  • -He is interested in minimizing tax burden
  • -Minimum five year investment
  • -Creation of a division within an existing company to manage a real estate portfolio
• -He is extremely open and interested in ideas, but is seeking to act within the next 6-12 months

I *KNOW* that I am not the likely candidate for assisting with this, but he is seeking to work with someone he trusts and has assisted in the past -- that is where I come in. I will be looping in industry professionals over time and doing what is right for him, he just doesn’t want to be the one orchestrating that.

I would really appreciate any insight or ideas for how to approach this kind of investment. Again, I am seeking to help him do what is right with his money for a solid investment.