How would you invest $1million?

Question

If you were looking to diversify your total investment portfolio and had $1million to put into real estate, what would you do? Interested in both passive and active investment ideas.

Jimmy Chao · Answer

Do the same thing I do with my cash currently .... keep it in the bank until I can find a real deal. Having a lot of cash doesn't make buying any particular house any better a business decision than if you don't have the cash. You make your money when you buy, meaning you don't have to just buy cheap, but dirt cheap.

Jim K. · Answer

@Parker Eberhard

I'd start a church, buy some time on local cable access, lay in mail-order stocks of prayer suppositories for hemorrhoids, maybe Knock-The-Handmaid-Up-Every-Time™ boner pills.

Mack Benson · Answer

Like most things in real estate... it depends. In the end though, it depends on the investor. What do they want, what are their goals, what is their risk tolerance, what will their lifestyle facilitate?

Syndicators will say invest in a syndication (my preference because that what I focus on). SFR investors will say SFR, note investors will say notes, storage investors will say storage, MHP investor will say MHPs and on and on and on.

In the end the real question in what do you want to do? What is your risk tolerance? How much time do you have to devote to the investment? How does the path interact with your choice of lifestyle? I could try and pitch you with what I would like you to do but what is it you want to do? Go all in and do the research and get the education you need to make it as safe of an investment as you can.

Maria Bakaj · Answer

@Parker Eberhard $1 million cash in I'd either:

Scenario A

1) Purchase a CO mountain property ~$700,000 to short term rent out. 20% down for a second home loan + closing costs =~$150,000.

2)Purchase a small multifamily in Denver Metro ~$1,000,000. 30% down + closing costs =$ 320,000.

3)Duplex in Denver (with correct zoning) in top neighborhood that can be scraped one day but rented now ~$900,000. 30% down + closing costs = $290,000.

4) Note invest the remainder ~$240,000.

Scenario B

Purchase one large multifamily property financed in either NC or CO.

Steve Vaughan · Answer

Or bring My Crib International back like a rising Phoenix.

I can't believe people still answer these other than capital syndicator sellers.

Parker, review the myriad of other I have a quarter, what should they do threads.  Yawn.

Andrew Hogan · Answer

@Steve Vaughan Lol! People be jumping on these questions like piranhas without adding value.@Parker Eberhard, I'd first get educated to a point where others come to me for advice before diving into anything.

Lane Kawaoka · Answer

Dollar cost average on syndication deals that are cash flow positive (1% RV an higher) with good long term debt.

Sandra Andrews · Answer

@Hai Loc  - Just to add to your post...If you want to purchase performing notes and be truly passive, I would purchase a partial.  The process of actually purchasing a performing note requires some knowledge of mortgage note investing.  In addition, performing notes sometimes have a way of becoming non-performing and these notes are definitely not passive investments.

Hai Loc · Answer

Depends If you want to be passive or active..

passive

Non tangible: performing notes, syndication, private loans

Tangible: NNN STNL or leasehold mobile home parks

active

Tangible: Flip or buy and hold multi family..

Anna L. · Answer

I use some money to lend to investors for their BRRR projects. 12%, first position. Essentially, I am their private money partner. They benefit from not paying hard money cost, I benefit from investing my Solo 401K funds at good interest rate.

How would you invest $1million?

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