If you had $1 million to invest in RE, how would you invest it in the current market?

[Kathryn C.]

I ask because one of our partners is meeting with a capital investor that has $1 million he is looking to deploy in some type of RE investment.  The investor is a developer but can't find any suitable development projects.  So how would you invest it in todays market?

[Will Barnard]

What facts are you basing this opinion on Gerald? How can you say that the COC is better in GA than it is in CA or NY? Such a blanket opinionated statement lacks any validity or foundation. It is not the state that makes the cash on cash, it is the individual investment and the individual investor. I would challenge you or anyone else on this board to see if you can beat my COC I get here in CA with yours in GA.

Secondly, the fact that prices are lower there just means you need to buy more deals to place the entire $1M. here in CA, I could place it all in just one, or over 2-3 easily and turn that $1M over at least 2-3 times each year. To do that in Atlanta, unless you go to your higher end market, you would have to place that Million over 10 or so properties and doing so while turning that million over 2-3 times per year means you would have to buy and sell 20-30 homes to my 2-6.

To answer the original question, there are so many variables that there is no one answer as each investor has different risk tolerances, different abilities, different goals, etc. Being a developer with $1M of capital, I am surprised he cant find anything at all to place it in. Perhaps he can invest in some notes, make hard money loans, do some flips, or simply buy and hold in multifamily or commercial properties. To each his own so it makes it very difficult to answer this question without knowing the investor.