A friend of mine says she is looking for her next deal and I am bringing it to BP wondering if anyone knows something great out there. She is looking for a large out of state (from California) multi-family deal that has both appreciation and cash flow potential. I would look myself, but this is big and there are better people than me at finding deals and putting them together, so I am reaching out to them.
Thank you in advance,
@Paul Hurtubise Your friend can do lots of things with $20M. Depends on her preferences. She can be an equity or debt investor. She definitely must diversify across several investment types, and/or markets, and/or asset classes. But that should be done either after she educates herself on the topics above or has someone knowledgeable in each of the niches to guide her along. With these kind of money she will have lots of options but needs to understand what she's doing!
Feel free to PM me if you have any specific questions.
Yes, diversify as much as possible within the limitations of the 1031e.
With that much liquidity, she needs to be talking to brokers and large-scale property managers. You could help her make some of those connections on BP by hunting down the movers and shakers in whichever markets she prefers.
There are also some turn-key companies that sell rental with tenant and mgmt in place, but even those guys usually only do a single family here and there. It would take a long time to wisely deploy the capital that way.
OK, thank you, very helpful. I feel this is going in the right direction.