1.2 Million to invest, need ideas.

[Brian Halstead]

I have 1.2 million in 1031 for a client who told me to find the best investment.

I think after I invest this money, I want it to work for us.

Any Net income investment

Commercial property Starbuck or Subways.

or Transitional homes/ Halfway houses pay per beds. (I will rent to a non-profit.)

Does anyone have anything like these available, or can you point me in that direction?

Thanks.

[Mark H. Porter]

$1.2MM gives you $4.8MM in buying power.

You may want to stay away from any restaurants that don’t have a drivethrough.  Many banks will tell you the same.

You also may consider pharmacies like I did.

You’ll have ST (Walgreens, cvs, jiffy lube) and MT (small strip malls) to choose from on the retail side.  The newer the building, or longer the leases, the lower the caps.

The 4-5% cap will get you nice NNN properties that require minimal Management. To get into the 6-8% caps you'll be absorbing risk of lease renewals coming up as well as maybe deferred maintenance needing to get taken care of (NN, not NNN).