How to invest $10 million?

FL · Member since 2016 · 912 posts · 107 votes

At some point in my life, I will be getting a huge inheritance. $10 million or more. How to use this in real estate? What provides the greatest returns? I know that even large firms make their greatest by purchasing value added properties and selling them years later. But how to identify them? I'm pretty sure that "buy and hold," even on a large scale, would take 10+ years to see my money back, unless I did BRRRR. What about a $10 million wholesaling campaign? What would you do?

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

there is ONLY ONE thing to buy.. and that is double TAX FREE MUNI's

of triple a rated cities. engage a broker to help you. forget real estate far to much work and risk

if the money is coming to you and you did not have to work for it IE its inherited / given

you can make 300 to 500k a year tax free protecting your principal.. then get a job so you are fulfilled in life.

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Bill F.
Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
9y
@Patrick Philip
What are you goals for that money and your life? Do you want to grow it into $100 Million and create more generational wealth or work at Wal Mart and live off your portfolio income. Most of the answers in this post come with a health does of attribution biases; you're being told what other people would if they had you money. However, their goals, experiences, skills, and requirements aren't the same as yours.
If you want to build generational wealth look at what others in your position have done, the Koch Brothers come time mind. With $10 million why would you want to buy an asset and have to start a business with systems and process around it? Buy a business from the get go and expand it.
Lastly, if you are inheriting this amount of money what does the person you are getting it from think? They must have some degree of skill, knowledge, and experience to accumulate a net worth exponential higher than the median.
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Patrick Philip
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FL · Member since 2016 · 912 posts · 107 votes
9y
Originally posted by @Bill F.:

@Patrick Philip
What are you goals for that money and your life? Do you want to grow it into $100 Million and create more generational wealth or work at Wal Mart and live off your portfolio income. Most of the answers in this post come with a health does of attribution biases; you're being told what other people would if they had you money. However, their goals, experiences, skills, and requirements aren't the same as yours.
If you want to build generational wealth look at what others in your position have done, the Koch Brothers come time mind. With $10 million why would you want to buy an asset and have to start a business with systems and process around it? Buy a business from the get go and expand it.
Lastly, if you are inheriting this amount of money what does the person you are getting it from think? They must have some degree of skill, knowledge, and experience to accumulate a net worth exponential higher than the median.
I don't understand the last sentence of paragraph 2. Are you saying to buy a turnkey?
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Mike ReynoldsPro Member
construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
9y
first things first. Pay your 5 million estate tax. Then invest the rest as you see fit.
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Charlie Nghiem
Austin, TX · Member since 2016 · 42 posts · 13 votes
9y
@Ujwal Velagapudi That's amazing the 180 that city has done. Great deal on the building. Those are killer returns.
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Bill F.
Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
9y
@Patrick Philip
First off, three assumptions: you are passionate about Real Estate, you want work in the industry day in and day out, and are willing to use your inheritance with the end goal of growing your wealth more than you would if you bought a portfolio of indexed mutual funds.
Buy a business that operates in the RE industry. Don't buy a turnkey property, buy the company that sells the turnkey properties. Don't hire a management company to run a 40 unit apartment building, buy the property management company that runs 300 units. Business come with employees that already follow per-established systems and process that service a customer base. If you buy an apartment building, you need to make your own business from thin air, even if you hire a PM.
If you like the idea of investing in RE as an asset class, but don't want a job in it, invest in syndication. You won't have to potential upside of owning a business, but you get more downside risk protection.
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Paula Costa
Real Estate Professional · SBC, SP · Member since 2017 · 4 posts · 0 votes
9y
I think in your case you would need a mentor especialized in advicing investors on how to buy the high value and profitable business. It is also expected that the mentor advice you about all the risks involved when choosing an investment
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David Battle
Realtor · Tampa, FL · Member since 2014 · 175 posts · 20 votes
9y
Since you're in Florida you should invest your money into weed industry since it's going to be taking off and buy apartment complexes.
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