Where would you invest 5,000,000 right now?

Question

Hi All,

If you had 5M handed to you, where would you genuinely invest it right now? I'm curious to what people have to say, and what demographics play a role in that decision etc. So:

1. If you had 5M, what asset class would you invest in? Would you do the purchase land and build construction/sell off or delve into other classes like Life Science, Industrial, Multi-Family, Single Family, Low-Income, Mobile Home, Hotel, Apartment?

2. What do you see as the biggest drawback investing that type of money right now?

Appreciate all the answers in advance! Great to converse with like-minded individuals.

Best,

Dylan

Robert Ellis · Answer

after 10 years in the industry and touching most asset classes as well as construction side. building spec homes is where we have landed. mostly in columbus ohio. incredibly scalable and eventually large enough to take a company public

Brock Mogensen · Answer

My focus has been on value-add industrial in the Midwest. 2023 certainly was a down year for transaction volume. But prepping for opportunity in 2024.

I think it also depends on what your goal is. Cashflow build up or longer-term appreciation? The development plays can work out long-term. But with where the debt markets are on construction financing, make cashflow near impossible.

My opinion/preference right now is a blend of risk profiles within one asset class. For me that means mix of short-term (value-add) and long-term (stable) lease deals in the industrial sector.

Chris Seveney · Answer

@Dylan Hass

Most people have never built, developed or managed real estate, so if that is the case then I would not recommend someone do that with $5M.

Invest it in what you are good at or your expertise if it is even real estate. If that’s not your thing then higher a broker dealer who has a fiduciary duty to you to invest it in a type of offering that interests you.

There are deals in every asset class still available it comes down to the persons expertise and that’s really it.

It’s like asking a kid what sport should they play, well if they suck at hockey, even though it’s hockey season - should they play?

Roschelle McCoy · Answer

I agree with @David M. - it really depends on your goals. Are you interested in short term cash flow, long term wealth, etc. Are you wanting to play an active part in the investing and run / manage the projects yourself? Or invest passively and earn returns while putting your trust in others that have experience in that given field to deliver on the projected returns? With $5M you could do both. Get some experience in smaller projects by jumping in and doing the work, while also passively investing some money. Passive investing can also be a great way to learn about a market/industry that you're unfamiliar with by watching what the project sponsors do and how they manage things.

If you have an interest in learning more about passively investing in multifamily projects I'm happy to connect and chat further.

David M. · Answer

@Dylan Hass

diversify, but certain areas of public markets depending on your investing strategy and goals.  Other than watching it, its otherwise completely passive.

for some direct real estate exposure, private lending.  Be on the debt side is the way to go in your case.

But, its up to your strategy, goals, and comfort zone.

Sorry short message.  Happy to chat.  Good luck.

Where would you invest 5,000,000 right now?

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