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Updated over 13 years ago on . Most recent reply

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Yuval S.
  • New York City, NY
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What would you do with $2 Million cash, good credit?

Yuval S.
  • New York City, NY
Posted

Hello

A buddy of mine with little income has inherited $2 million.
what would be some good moves in terms of investing it all in real estate?

Do you think it would be a good idea or even possible use the money as a %25 down payment on a loan to finance a $8 million or so income producing property investment?

What would you do?

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Will Barnard
  • Developer
  • Santa Clarita, CA
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Will Barnard
  • Developer
  • Santa Clarita, CA
ModeratorReplied

Chris' option sounds like a great plan to me. The key factor here is how much knowledge does your friend have regarding RE? If little to none, it would be foolish to get into becoming a landlord without fully understanding that business.

It also makes a difference if he wants/needs to be passive or active in his investments. If passive, I would start with the ETF investemnts, borrow from that at a low rate (5% or less) then learn all he can about investing in trust deeds (notes) and yield at least 10% (netting 5% from money borrowed).

Will

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