$10,000,000 to deploy -- where would you put it?

Investor · Dallas, TX · Member since 2017 · 14 posts · 14 votes

Ok. Hypothetical. You have $10,000,000 to deploy. You have to deploy it right away or you lose the money. What would you put it into? (it should all go in one asset type and class). My hope is that this helps people see what folks are keen on in early 2022.

3 Reply

189 views

Most Popular Reply

Jim K.

Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes

We have reached a new nadir of wishful thinking here.

13 Reply

See this reply in the discussion

69 Replies

Jump to latestLatest

Sort by

Bill F.
Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
4y
Originally posted by @Jorge Duarte:
If I had 10k to deploy, I would give me a call and look into some rental property opportunity in the area of Real Estate my license and expertise covers. In Yuma, Somerton, and San Luis AZ there has been a huge spike on rental prices, since there is a ver low inventory of houses available for the buyer. A decent home with fixer upper characteristics, is still well below 200k, where 10K can easily be used for a down payment. Depending on the loan of course.

I think you missed the second set of 000's there Jorge.

Buying 1,000 SFRs one at a time may take a bit...
3 Reply
William Walker
Investor · Wilmington, NC · Member since 2016 · 211 posts · 262 votes
4y
Originally posted by @Michael King:
Crypto.

….and you just lost 1.5 mil today. 😂🤣😂

I invest in crypto for a little fun but if I suddenly got 10 mil and had to park it in one spot it certainly wouldn’t be one of the most volatile forms of investment in all time.
3 Reply
Tony Kim
Rental Property Investor · Los Angeles · Member since 2018 · 844 posts · 1k+ votes
4y
Originally posted by @Gabriel Craft:
Ok. Hypothetical. You have $10,000,000 to deploy. You have to deploy it right away or you lose the money. What would you put it into? (it should all go in one asset type and class). My hope is that this helps people see what folks are keen on in early 2022.

If it must be deployed right away lest you lose it, I would go on Seeking Alpha and choose a handful of the best REITS, mixed in with some BDC's along with a handful of blue chips and just allocate everything across my selections.
If a more reasonable amount of time was offered, a better approach would be to allocate some to public REITs, some to private syndications, some to directly owned properties in prime locations and the rest to active business ventures.
2 Reply
David Jarvi
Investor · Morongo Valley, CA · Member since 2013 · 53 posts · 48 votes
4y
I'd partner with a pre-fab home builder and build duplexes (SFR with ADU) as fast as possible on vacant single family lots all throughout southern california and rent for $1500-$2500/month
In 3-5 years, sell part or entire portfolio like an apartment building to 1031 investors looking for a 5% Cap rate

another idea, might be to build bomb-proof motels to house homeless ( something like motel 666) and undercut the homeless industrial complex currently charging taxpayers 500-700K a unit.
2 Reply
Ivan Terrero
Investor · Naples, FL · Member since 2016 · 256 posts · 75 votes
4y
@Gabriel Craft
Farmland, oil and gas leases, mineral rights, maybe become a bank
2 Reply
Philip John
Katy, TX · Member since 2017 · 1 post · 0 votes
4y
Use 50% as down payment for raw land in suburban areas. Use remaining 50% to make monthly payments. Never run out of money and live a great lavish life. Nothing to maintain, agricultural exemption so minimal property taxes, no insurance required, no toilets to fix, no management. Just let it sit there and 5 years later your land value is doubled or tripled.
0 Reply
Mary M.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
4y
multi fam in a popular elite college town
1 Reply
Luka Milicevic
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
4y
I’d buy REITS.
NLY For example.
10% ish dividend.
Even if the price of the REIT drops 50% I'd still be getting $500k/yr in dividends.
2 Reply
Account Closed
Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
4y
Spending hypothetical money is completely different than spending your own. There are a lot of people with $10M and none of them would put it into a single asset class. This kind of speculative thinking gives no actual valuable insight into anything at all.
6 Reply
Antonio Bird
Member since 2019 · 10 posts · 23 votes
4y
Originally posted by @Account Closed:
Spending hypothetical money is completely different than spending your own. There are a lot of people with $10M and none of them would put it into a single asset class. This kind of speculative thinking gives no actual valuable insight into anything at all.

I agree, probably most of us mere mortals invest in more than one asset class. Although Buffet has famously set up his estate planning to provide his wife with 90% in the S&P 500 and 10% in T Bills (OK, 2 asset classes).
For someone like me who only started investing in real estate more recently, this thread is thought-provoking.
0 Reply
Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
4y
I would diversify it but if I had to invest in a single source, I would buy distressed golf courses in the drought stricken southwest and convert the golf courses to residential housing.
These golf courses are selling at a steep discount. the money and effort to develop the residential units is great, but the potential reward can justify the cost and effort.
Good luck
3 Reply
Joe Mathew
Rental Property Investor · White Plains, NY · Member since 2020 · 94 posts · 36 votes
4y
Damn it Dan! I wish I had that problem. Lol
0 Reply
Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
4y
On Black
Irish Jones Realty4.947 Reviews
View Page
2 Reply
Kristen HaynesBusiness Member
Real Estate Broker · Greater Charlotte NC and Charleston, SC areas · Member since 2017 · 109 posts · 60 votes
4y
Depends on if you are looking to generate cash flow, appreciation, or dividends? I would split my millions into relatively newer apartment complexes, self storage units or mobile home parks, or commercial buildings, where you could get a great deal now due to Covid-related vacancies / remote workers. These can all be cash cows if you buy them right. Raw land 'could be potentially good', also, if in an area that is growing fast, has easy access to the interstate- to buy and hold and sell to farmers maybe (maybe at first, while the area is 'growing up around it) or eventually to builders- but you'd have a lot of due diligence to do before buying, then you have to determine the highest and best use for the property in the end- before buying, paying for and performing perc tests every 12 feet or so, determining if the area can be serviced by city water and sewer or if the tracts would have to have well and septic permits pulled for each lot, etc.- you may lose some acreage if you find unsuitable soil or creeks or wetlands, so land can be a risky investment. So, I would stick with well-maintained apartment complexes, self storage units, mobile home parks and possibly a short term rental in a desirable area (like the beach)- here's mine, outside of Charleston, in a gated community in Isle of Palms, SC called Wild Dunes: www.vrbo.com/1930478. I bought it just before Covid was even a 'thing' (February 27, 2020), fixed it up, still have the kitchen and master bathroom to renovate- but it cash flows like a champ- and, when it's not rented, I have a place at the beach. Best investment in my portfolio due to that alone! :)

Basically, I would diversify my assets, park it and let it cash flow and appreciate. Best of luck to you!

New Home Buyers Brokers / Realty Pros58 Reviews
Website View Page
1 Reply
Syed H.
Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
4y
Originally posted by @Bruce Lynn:
30% NNN, 20% in 5 apartment deals, 20% in 5 apartment funds, 30% Industrial.
Crypto is where the bubble and fraud is....
Stock market potentially still falling so if you have to do it today, maybe not today.

there's plenty of fraud in RE too. easy to call something you don't understand a bubble and fraud
1 Reply
Syed H.
Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
4y
Originally posted by @Account Closed:
Spending hypothetical money is completely different than spending your own. There are a lot of people with $10M and none of them would put it into a single asset class. This kind of speculative thinking gives no actual valuable insight into anything at all.

exactly. my net worth ended up becoming about 50% RE, 25% small businesses, 15% equities, 10% crypto. Can't complain on the results.
0 Reply
Account Closed
Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
4y
Originally posted by @Syed H.:
Originally posted by @Account Closed:
Spending hypothetical money is completely different than spending your own. There are a lot of people with $10M and none of them would put it into a single asset class. This kind of speculative thinking gives no actual valuable insight into anything at all.

exactly. my net worth ended up becoming about 50% RE, 25% small businesses, 15% equities, 10% crypto. Can't complain on the results.
Im roughly 30% Equities, 30% owned real estate, 30% Syndications/Private Funds and 10% Private loans. Plus some cash. Never could get comfortable with crypto due to its inherent value of zero. But same concept. Diversify and relax!

2 Reply
Sam Silverman
Tampa, FL · Member since 2019 · 41 posts · 53 votes
4y
I'd invest passively into multiple asset classes with the following breakdown:
50% Class B value add multifamily -- this class of asset has some of the highest stability and most institutional cash flowing into it. As home prices rise and interest rates rise (even if nominal and still below historically numbers), individuals budgets are being maxed out and they are forced apartment rents. I expect vacancy to continue to go down and cap rates to further compress.
20% Mobile home parks and self storage -- these classes of assets can typically produce higher cash flow than the above. Cap rates also have more room to compress as institutional capital will continue to flow here to chase yield. People may also look to sell off larger houses for a gain and downsize/trade into multiple homes.
10% Class A apartments with a value add component that is focused more so on smart home technology and amenities than complete unit renovations. Amenities should continue to be worth more and more to residents as work from home grows.
20% Luxury Airbnb rentals -- this would be both a lifestyle play and permanent cash flow. The goal here would be to hang on to these assets with fixed long term debt that can provide 20%+ cash on cash returns and the ability to spend a week or two in each area.
1 Reply
Jeff Chapz
Rental Property Investor · Austin, TX · Member since 2015 · 43 posts · 8 votes
4y
@Antonio Bird - no it is not difficult if you learn from people that do it daily or weekly. Just like anything in life - you need to practice practice practice and you'll get better. You can buy some courses online and start there, once you understand how to under write a deal, put the spreadsheet away and study what's around the property - 2 to 5 mile radius. Find out if the economy in that city is strong and growing.... If so, then you should be OK 5 to 7 years after you buy the property.
Again try to learn from those who currently own multis and follow their steps.
Good luck.
Jeff.
1 Reply
Ben Leybovich
Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
4y
I find myself on the opposite end of @Jay Hinrichs in this, and that doesn't happen very often. The thing I want you to understand is that $10M is not very much money as it relates to wealth, and specifically not if you project it forward and experience the impacts of inflation. I do not believe that simply taking the easy way out with tax-free paper will suffice. With $10M you are not ready for preservation, you still have to grow.
Now, that said, Jay is probably right that some of this money should be converted into risk-free and low-risk cash flow. But, the rest needs to be deployed for growth.
Obviously, being that I am in real estate, I am partial to real estate. Feel free to reach out if you want to have a more in-depth conversation.
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
4y
Originally posted by @Ben Leybovich:
I find myself on the opposite end of @Jay Hinrichs in this, and that doesn't happen very often. The thing I want you to understand is that $10M is not very much money as it relates to wealth, and specifically not if you project it forward and experience the impacts of inflation. I do not believe that simply taking the easy way out with tax-free paper will suffice. With $10M you are not ready for preservation, you still have to grow.
Now, that said, Jay is probably right that some of this money should be converted into risk-free and low-risk cash flow. But, the rest needs to be deployed for growth.
Obviously, being that I am in real estate, I am partial to real estate. Feel free to reach out if you want to have a more in-depth conversation.

well for the sake of argument the OP did not say in this what if post that was all the funds or assets the owner of the 10 mil had .

For instance he/she might already have substantial assets like my old partner the garbage man did.. Paid for homes in High dollar markets paid for commercial properties paid for vineyards and other ranch's in Northern CA and of course a ocean front pad in Hawaii :).. Before he sold his business then he went the double tax free muni route for living money.

But your right 10mil is not what it used to be.. Just like the musings on BP were those looking for cash flow think 10k a month is enough to retire and live on. Maybe for some folks but 10k a month does not go very far when your paying your own health insurance have a car or two raise children put them through collage etc.
This is kind of like we all dream about if we win 500mil in the lotto ? who has not dreamed of what they would do with that kind of dough.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
1 Reply
Antonio Bird
Member since 2019 · 10 posts · 23 votes
4y
Originally posted by @Kristen Haynes:
Depends on if you are looking to generate cash flow, appreciation, or dividends? I would split my millions into relatively newer apartment complexes, self storage units or mobile home parks, or commercial buildings, where you could get a great deal now due to Covid-related vacancies / remote workers. These can all be cash cows if you buy them right. Raw land 'could be potentially good', also, if in an area that is growing fast, has easy access to the interstate- to buy and hold and sell to farmers maybe (maybe at first, while the area is 'growing up around it) or eventually to builders- but you'd have a lot of due diligence to do before buying, then you have to determine the highest and best use for the property in the end- before buying, paying for and performing perc tests every 12 feet or so, determining if the area can be serviced by city water and sewer or if the tracts would have to have well and septic permits pulled for each lot, etc.- you may lose some acreage if you find unsuitable soil or creeks or wetlands, so land can be a risky investment. So, I would stick with well-maintained apartment complexes, self storage units, mobile home parks and possibly a short term rental in a desirable area (like the beach)- here's mine, outside of Charleston, in a gated community in Isle of Palms, SC called Wild Dunes: www.vrbo.com/1930478. I bought it just before Covid was even a 'thing' (February 27, 2020), fixed it up, still have the kitchen and master bathroom to renovate- but it cash flows like a champ- and, when it's not rented, I have a place at the beach. Best investment in my portfolio due to that alone! :)

Basically, I would diversify my assets, park it and let it cash flow and appreciate. Best of luck to you!

We love that area! Great tennis program at Wild Dunes. We briefly lived on Sullivan's Is years ago, and my in-laws had a house at WIld Dunes for many years. They occasionally rented it out using a mgmt company. How did you wrap your head around the hurricane risk? Are there any special considerations with your property being part of a large resort?
0 Reply
Michael King
Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
4y
Originally posted by @William Walker:
Originally posted by @Michael King:
Crypto.

….and you just lost 1.5 mil today. 😂🤣😂

I invest in crypto for a little fun but if I suddenly got 10 mil and had to park it in one spot it certainly wouldn’t be one of the most volatile forms of investment in all time.

Sounds like you would have panic sold and lost your shorts. These good sized dips are accumulation opportunities. Invest in what you are comfortable with.

0 Reply
William Walker
Investor · Wilmington, NC · Member since 2016 · 211 posts · 262 votes
4y
Originally posted by @Michael King:
Originally posted by @William Walker:
Originally posted by @Michael King:
Crypto.

….and you just lost 1.5 mil today. 😂🤣😂

I invest in crypto for a little fun but if I suddenly got 10 mil and had to park it in one spot it certainly wouldn’t be one of the most volatile forms of investment in all time.

Sounds like you would have panic sold and lost your shorts. These good sized dips are accumulation opportunities. Invest in what you are comfortable with.

Sounds like you are wrong. Like I said, I have crypto. I didn’t sell on this dip.

The question of this thread was where would you park 10mil. It would be dumb to put it in to crypto. Smart to put it in something that pays dividends to live off. If a person isn’t happy with 10mil then they don’t have a healthy relationship with money. Like the guy who said he’d put it on black (likely a joke). Ok so if the question was 5 mil he’d still say put it on black and then if he won he’d have 10. Would he be happy? Obviously not because he said he’d put 10mil on black. So he’s never going to be satisfied. That’s not a healthy relationship with money.
0 Reply
Don Gouge
Specialist · Johnson City, TN · Member since 2021 · 139 posts · 146 votes
4y
I would love to be in a position where I thought 10 million wasn't much money.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.