Advice on investment opportunities for $700k cash

[Aaron Xie]

Hi, BPers, 

   Happy New Year! I have been away from the forum for some time, busy with making my first pot of gold.

   Now I would like to get some idea from you about investment opportunities for $700k cash. Where and what type of real estate properties will be a good choice? It does not have to be real estate, but this is the area I have experience with. I am a Canadian, but I have been in Chicago/Indianapolis for about 10 years for school, and right now frequently travel to Los Angeles. 

   Any thought will be appreciated.   

[Joel Owens]

You can do that with commercial real estate on quality assets with national tenants. Typical is 25% down with a 10 year loan term and 30 year amortization.

Buy at an 8 cap and cash on cash return going in is 13 to 15% annually.

You could go multifamily but are more dependent there on management to make the property work.

You could also diversify and by a bunch of SFR type properties but then will have many sets of closing costs and also keeping track of various management companies.

Also you could invest in a REIT, or a group doing a syndicate for a set return being hands off.

Lot's of options but your exit down the road and time horizon will make a difference as well. Every investment has a positive and a negative to it no matter what anyone says. If someone tells you there is a perfect investment with a guaranteed return and no downside you need to run very fast from that person.