What to do with one million dollars?

[Denis Brown]

I had an excellent year in my primary business. After taxes and reinvestment, I am still left with a lot of cash on hand. Already have a lot of money in the stock market and a little bit in real estate. I have three rentals in cape coral, Florida (swfl by ft Meyers). I wanted to see what real estate investors with experience would do with 1 million dollars

[Drew T Heberer]

Hey @Denis Brown,

Here is what I'd do with that. With that much cash, I'd diversify and do a couple of things.

1) Invest in syndication and/or invest with a beginning investor and require returns that are +x% above inflation (10-15%, for example)

2) I'd take the other half and I'd buy some short-term rentals in some of the hot areas.

3) I'd likely look into investing in other things most people don't think about, like an Annuity Policy which is what we just bought for $1,000,000, and now we're the bank for our lending needs.

Congratulations on the success thus far! Let me know if you'd like to chat some more and we can bounce some ideas around and maybe see what works best for you.

[Khaled Morad]

@Denis Brown St. Pete is excellent for STR -- where it is allowed. When most people say St. Pete, they are thinking of the whole peninsula -- Pinellas County. However, a lot of Pinellas does not allow short term rentals or have strict minimum stays that may be longer than your target audience for example, 7-day or 30-day minimum.

Some areas in Pinellas have close beach access and no restrictions, such as Largo or Seminole (not to be confused with Seminole Heights in Tampa). The important thing is to find a realtor who knows the STR market well and can look up the zones and un-incorporated areas. You don't want to buy a property with the intention and numbers to STR only to find out you cannot legally carry out your plan!

Give @Mya Toohey a shout. She specializes in STR there.

I am a local loan officer in Tampa/St. Pete (and all of Florida) and can help answer any questions on the lending side. Happy to help any way I can! Best of luck with whichever path you choose. Personally, I would put at least 90% of that money in Beanie Babies!

[Ivan Barratt]

@Jay Hinrichs thank you. @Andrew Hogan see above.

[Todd Dexheimer]

Originally posted by @Denis Brown:

@Jay Hinrichs  I plan on it but where can I find information on a syndication 

 Build relationships and ask for referrals. Many people on BP do syndications and many people interviewed on podcasts are doing them as well. Of course, make sure you are verifying they're honest and ethical. 

Here is a short article on what to look for: https://www.biggerpockets.com/...

[Account Closed]

I think everyone should think of  risk, cash flow needs, growth needs and come up with an asset allocation that makes sense to them. That should drive the decision on where to invest. Is this $1M your life savings? Or 10 % of your net worth? How is the rest of your portfolio allocated? Everyone here will pitch their favorite investment and honestly those answers are worth the electrons they are printed on without looking at the bigger picture. Your long term success is much more likely to depend on this rather than scattershot investment ideas.

[Ben Leybovich]

Originally posted by @Jay Hinrichs:

try these 3 BP members:

@Brian Burke

@Ivan Barratt

@Ben Leybovich

They are all active in syndication.  

 Thanks for the call-out, Jay!

Happy to discuss.

[Chad McMahan]

Originally posted by @Mike Vasilyev:

I am a complete newbie to real estate investments so have nothing to contribute as far as advise. I am in the same situation tho. Have 1m to invest and lookin for ideas outside equities. 

OPM, and leverage that $1M to purchase 3-4 STR's. In our market, my clients are getting 25% - 60% cash on cash + huge appreciation + future (local) growth security.

[Danielle Jackson]

Have you considered passive investing (unless you want to continue building your active portfolio)? A million in passive could generate a nice monthly cash flow. 

[Tony Kim]

I'd go with syndicators that had waiting lists for their new investment deals as well as long track records.

[Tanner Sherman]

I would diversify in multiple syndications, learn as much as possible while doubling my money, then go out and start my own fund. 

[Zack Berridge]

@Joshua Janus I’d Columbus a hotspot?

[Mary M.]

well, I invested in "investment grade" new build class B small multi Fam apartments.   You might contact a local Commercial RE broker (I used Colliers but there are others) and see what they might suggest....  

also, you sound like a smart person - but posting that you have 1 million to spend might get you lots of sharks heading your way.....

[Tom Mills]

@Denis Brown. I would suggest buying some crypto assets and hold for the next run up. With the big dip recently might be a good time to pick up a few Bitcoin and ETH.

[Bud Gaffney]

@Denis Brown Buy as many units as you possibly can!

[Christopher Imbarrato]

@Denis Brown

Develop 100 unit apartment with a partner or 2.

Can’t believe no one is suggestion developing real estate on a real estate forum… how else you think the big guys keep putting up 3 apartment buildings every year around the country. It’s ridiculous how much money you make off them. You build one 100 unit building and you can retire. Look for a good construction management group, engineer and architect in your area and find a partner with enough capital. $1M is not difficult to find a partner if you want to develop.

Another way to find a partner for developing is buying a piece of Land in cash, getting it approved for whatever you want to build and instead of selling it go to a partner with what you have and use your land as collateral for the investment.

So many things to do with $1M but very little right choices.

[Justin Bauer]

I would look into becoming your own banker. Learn how to make it work more than 1 time.

[Denis Brown]

@Justin Bauer how"?

[Marc Rice]

Buy as much positive cash flowing real estate as possible on low interest 25-30yr fixed notes.