$10,000,000 to deploy -- where would you put it?

[Gabriel Craft]

Ok. Hypothetical. You have $10,000,000 to deploy. You have to deploy it right away or you lose the money. What would you put it into? (it should all go in one asset type and class). My hope is that this helps people see what folks are keen on in early 2022. 

[Antonio Bird]

80% VT (Vanguard total world stock market index), 20% AGG (bond index).  Withdraw 300K per year from the portfolio with no danger of running out of money ever.

If you have 0-3M then maybe need to get more creative.

[Ryan Schrope]

I would use it to fund a major apartment complex deal! Best to get the actual cash out of hand and get huge cash flow going ASAP!

[Michael King]

Crypto.

[Antonio Bird]

Yeah, I stumbled my way into one of those (sister's husband's brother put it together) and it turned out great.  I don't consider myself sophisticated enough to analyze a deal put together by someone who was not family.  Is that a difficult skill set to develop?

[Antonio Bird]

I am referring to the apt complex deal, not crypto

[Jay Hinrichs]

double tax free muni's

[Spencer Gray]

I would invest slugs of $500,000 - $1,000,000 into 10-20 commercial real estate assets in secondary and tertiary markets throughout the Sunbelt, Midwest, and Mountain West. I would invest in a combination of single asset syndications and funds. Allocation of ~60% into multifamily including manufactured housing, and senior housing, A and B properties, existing assets, value add and core plus strategies. The remaining ~40% into industrial assets including self storage and cold storage, existing and ground up development.

I would deploy the capital as soon as proper due diligence can be conducted on multiple sponsors in multiple geographic regions, the sooner the better.

I would also meet with my attorney, financial advisor and CPA to discuss the proper investment vehicle to use (LLC, Trust, Individual, etc) and to review opportunities and sponsors.

This is just my personal opinion for educational purposes only and is absolutely not financial or legal advice. 

[Rumen Mladenov]

@Jay Hinrichs Aren't the returns on those below the rate of inflation? Meaning you would get negative return in real terms?

[Jay Hinrichs]

Originally posted by @Rumen Mladenov:

@Jay Hinrichs Aren't the returns on those below the rate of inflation? Meaning you would get negative return in real terms?

 well depends on how many of them you have..  these investments typically are by those with this kind of cash. 

3% yield double tax free if your in CA is like making 600k and folks with this kind of dough look for safety first .. 

if your like most of us RE investors starting out or on the way it would not be attractive but the OP asked what to do with 10 mil in cash 

and that is one thing a person could do and many can live on 30k a month with no tax's.. 

[Tristan Gardner]

Five ~100 units deals. I'm in the northern Columbus Ohio area and this would be able to cover 30% of the each building as a DP easy and generate easy mid six-figure gross monthly 

[Taylor L.]

I'd build a diversified portfolio strongly focused on capital preservation. When you have $10 Million to invest the main problem for most people is capital preservation rather than producing a large return. That's one of the main issues with comparing an average investor's portfolio to a personal 8 figure portfolio. Dumping any appreciable percentage into speculative investments is just asking to lose it all.

[David Parathundil]

I would say buy large apt buildings bc the tax write offs they provide and cashflow/equity you can generate would be enormous. Say if the market does crash crypto, stocks, and real estate would go down a lot. If you do value add to a couple large commercial property you would have enough equity to where you cushion yourself for a crash. Real estate is the best asset class :)

[Percy N.]

Depends - what % of the total net worth does that $10mm represent? What are your objectives for that capital? Risk tolerance, Liquidity requirement, etc?

I was talking to a $1Billion Family Office yesterday looking to invest $200-$300mm so their criteria may be very different than a typical HNW individual who may need cashflow from their investment.

Cheers
Percy

[Jim K.]

We have reached a new nadir of wishful thinking here.

[Joe S.]

Originally posted by @Jim K.:

We have reached a new nadir of wishful thinking here.

 Well if people didn’t make 1 to 9 million. I guess they can start on 10, million LOL

[Jim K.]

Originally posted by @Jay Hinrichs:

Originally posted by @Rumen Mladenov:

@Jay Hinrichs Aren't the returns on those below the rate of inflation? Meaning you would get negative return in real terms?

 well depends on how many of them you have..  these investments typically are by those with this kind of cash. 

3% yield double tax free if your in CA is like making 600k and folks with this kind of dough look for safety first .. 

if your like most of us RE investors starting out or on the way it would not be attractive but the OP asked what to do with 10 mil in cash 

and that is one thing a person could do and many can live on 30k a month with no tax's.. 

This is priceless, Jay. What do I do with 10 million bucks? Well, at least properly imagine your circumstances, desires, and lifestyle if you had that kind of $$$...not sure I would have even understood the humor of this $3-400K ago.

[Jay Hinrichs]

Originally posted by @Jim K.:

Originally posted by @Jay Hinrichs:

Originally posted by @Rumen Mladenov:

@Jay Hinrichs Aren't the returns on those below the rate of inflation? Meaning you would get negative return in real terms?

 well depends on how many of them you have..  these investments typically are by those with this kind of cash. 

3% yield double tax free if your in CA is like making 600k and folks with this kind of dough look for safety first .. 

if your like most of us RE investors starting out or on the way it would not be attractive but the OP asked what to do with 10 mil in cash 

and that is one thing a person could do and many can live on 30k a month with no tax's.. 

 This is priceless, Jay. What do I do with 10 million bucks? Well, at least properly imagine your circumstances, desires, and lifestyle if you had that kind of $$$...

ONe of my business partners sold his Garbage company to Waste management and got a check about 6X than this.. and thats what he did .

and he would just have the best time at cocktail parties when he would talk to a stock broker and they would ask what his return was. ( he was setting them up LOL) they would say the same thing shoot we can do way better than that. And he would say depends on how many of of these bonds you have.. He had a lot of them.. plus all his real estate ( prime real estate ) Napa Valley and Lake Tahoe plus hunting ranchs were all paid for as well..  its just another world when someone can sell their business for monster dollars. 

[Alex Gurvitz]

Real Estate, Gold, Silver, Crypto and Fine Art. Oh, and I would purchase a new Jet.)

[Valerie Kerste]

@Gabriel Craft That's a lot of cash....One thing we like to do with our cash is to buy raw land/farm land. Rent to farmers. Put line of credit on the raw land and use that to purchase residential investment properties. Then after time/improvements, do cash out refinances on the residentials, pay back the line of credit and repeat.

[Jay Hinrichs]

Originally posted by @Valerie Kerste:

@Gabriel Craft That's a lot of cash....One thing we like to do with our cash is to buy raw land/farm land. Rent to farmers. Put line of credit on the raw land and use that to purchase residential investment properties. Then after time/improvements, do cash out refinances on the residentials, pay back the line of credit and repeat.

Line of credit on bare land is a pretty tall order  but i guess if you have 10 million in their bank they would probalby do it. 

[Axel Meierhoefer]

@Gabriel Craft I would buy 50/50 built-to-rent SFR in Florida and Texas with 80/20 financing, on this scale probably with private money or institutional money for the loans

[Valerie Kerste]

@Jay Hinrichs If you can believe it, we actually have a couple of Lines in place on raw land and use them actively for investing in residential real estate.

[Jay Hinrichs]

Originally posted by @Valerie Kerste:

@Jay Hinrichs If you can believe it, we actually have a couple of Lines in place on raw land and use them actively for investing in residential real estate.

thats pretty good.. out here in the west those would only happen for premier borrowers IE heavy deposit relationships..  good job !! 

[Bruce Lynn]

30% NNN, 20% in 5 apartment deals, 20% in 5 apartment funds, 30% Industrial.

Crypto is where the bubble and fraud is....

Stock market potentially still falling so if you have to do it today, maybe not today. 

[Jorge Duarte]

If I had 10k to deploy, I would give me a call and look into some rental property opportunity in the area of Real Estate my license and expertise covers. In Yuma, Somerton, and San Luis AZ there has been a huge spike on rental prices, since there is a ver low inventory of houses available for the buyer. A decent home with fixer upper characteristics, is still well below 200k, where 10K can easily be used for a down payment. Depending on the loan of course.