All Forum Posts by: Angel Hernandez

Will, Thank you very much for your reply. I agree that a long term hold strategy creates the income generation and solid wealth prospects that I desire. I also agree that starting out small and in a methodical approach build towards investing the $1 million makes a lot of sense. It will mitigate beginner mistakes and in the long run establish the most important thing - credibility with my angel investors.

Thank you BP for the advice. This is such an excellent forum. A little more clarification: 1) I have several years experience as a internal consultant at a large commercial real estate firm. Although, I am very knowledgable, understand all the terms and aware of pretty much all the options, I have no direct experience in making my own investments in real estate. 2) The capital is from a long time friend who wants to give me an opportunity to achieve my dream of one day being a large scale real estate developer/property owner. I am young, patient and ambitious. Time is on my side, I am in my mid thirties so I have a 30 year horizon to reach this goal. This capital comes from a person that has had an extraordinary career, could invest in anything with their capital, and chooses to help me start on my path to achieve my dream. 3) The capital is not transferred to my LLC yet. I am taking my time with this. When I have my strategy absolutely set and a great first deal then I will acquire the capital and start making interest payments. 4) I agree with most of the comments that diversification will be a key first step. 5) I have a very strong team of real estate pros. I can easily choose from a half dozen people with many years of experience in investing and developing that are close to me and that I trust to conduct due diligence. 6) I plan to leverage my well experienced team to make up for any lack of experience I might have as of now. This is very important.

I should add that my tendency is to lean more towards a conservative approach to start and get more ambitious once I am established. 

BP- Here is my opportunity. I have been able to attract a $1 million investment from a private source into my newly formed LLC. The terms are that I pay 5% interest per year and have to pay the $1 million back in 7 years. Agreement is that the location has to be NYC, Connecticut or Virginia. I want to start beginning next year.

This is a very special opportunity and I want to be absolutely certain that I have done my due diligence and explored opportunities as thoroughly as possible.  I have explored various options:

1) All cash and being more conservative vs. leveraging and being more ambitious

2) Partnering with a larger more experienced equity partner/developer to invest on larger deals vs. doing deals 100% on my own

3) Residential vs. Commercial 

4) Buying smaller multifamily homes to buying a larger apt unit complex

5) Buy and Hold vs. Flipping/Renovating 

I am intrigued to see what you fellow BPers would do if you had $1 million to invest. 

Thanks,

Angel