Suggestions for the best way to allocate a $500K cash inheritance

[Willis Chur]

This will be a bit unorthodox compared to a number of the other posts I have seen on BP. I have personally been investing in real estate sporadically over the last 5 years with a small amount of success (about 10 doors consisting of some SFR and a 4-unit). That being said, I have learned a significant amount of knowledge since joining this site and really appreciate the plethora of different views and backgrounds. I have a friend that knows I have dabbled in real estate and she just received an inheritance of about $500K in a lump sum. She has asked me for my advice (which I feel rather unqualified to give, so I am posting and asking for any advice here) for the best way to put this money to work in real estate. Her primary goals are to maximize passive income and cashflow for the long term. Would this be a larger commercial building? A portfolio of SFR? Or perhaps allocating some of this to some sort of private lending fund? Really appreciate any and all advice!

[Thomas S.]

It's a friend, say no more. Send her to a good financial advisor to start her off. I would not advise she step into  real estate investing unless she is fully educated herself. Real estate is not passive income and you should not be advising her at this stage.

Unless of course she is willing to use her 500K to partner with you. That would be a horse of a different colour and I would definatly grab that opportunity. Provided you have a lawyer draw up a comprehensive partnership agreement.