General Manager, Publishing at BiggerPockets · Denver, CO · Member since 2017 · 463 posts · 642 votes
How would you invest one million dollars if it was given to you free? Why would you invest that way?
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Howdy @Katie Miller! In that scenario I would use a construction loan to purchase a multifamily property around $4,000,000, seeking to be "all in" at that level, but achieve an appraisal value of around $6,000,000 within 18 months through the right value add renovations, stabilization through excellent management, and other strategies to add to the Net Operating Income "bottom line".
Then, I'd pull as much of the initial $1MM back out as possible, then rinse and repeat this a few times in the next decade.
It'd be a lot of hard work and many bumps along the way, but I would likely end up with about $25,000,0000 in real estate holding AND the $1MM in cash at the end of that decade.
If I was given one million dollars to invest for free, the breakdown would look like this:
$10,000 spread out across 12 months for marketing purposes: direct mail, FB ads, etc..
$500,000 would be used to build a Multifamilies on a plot of land here in Northwest Las Vegas
The rest would be held in an account for the sole purpose of completing BRRRR deals constantly and being able to use my own capital to buy properties for cash.