If you had 10 million in cash, name your strategy to the fastest way to wealth in Real Estate - Pretend it's a Race

16 Replies

I'll start off. Mine would be bulk reo's tapes then multipying until I was up to 100mil. Then I would go to Hong Kong and buy distressed Skyscappers and/or commercial buildings. Please share. The point of this thread is who's idea can get to the billions the fastest. Remember it's a race. Thanks.

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Greg, an unlevered 30 percent return (net,net,net)is hitting it out of the park. It would take a while to grow that capital to 100 million

How many years do you think this debacle will trend?

Your question is not clearly defined in terms of "race." Are you referring to best ROI as far as being lucrative with the least risk, or in terms of fastest ROI?

If your talking about in terms of being lucrative with the least risk, I'm picturing a hedge fund and apartment buildings...

Originally posted by Greg P.:
I'll start off. Mine would be bulk reo's tapes then multipying until I was up to 100mil. Then I would go to Hong Kong and buy distressed Skyscappers and/or commercial buildings. Please share. The point of this thread is who's idea can get to the billions the fastest. Remember it's a race. Thanks.

Do you have access to these?

Updated over 10 years ago

"these" as in the "bulk tapes" mentioned.

If you have $10 million you already have wealth. Real estate always has relative value, thus buying properties now while prices are low seems wise.How much effort are you willing to make in this race? Rental properties come with renters, hopefully and if not then the property management company of your choice.Renters will vex you, and you have to monitor the activities of your agents as well, rental income in a popular area with a thriving economy is a great return and great for the bottom line.Empty rental units in Detroit, not so much. You could buy up quite a bit of vacant land, transactions are simpler, maintenance costs are far less and government involvement is at a minimum. In any event,I hope you like to travel because your purchases could reach from coast to coast and beyond. You could also buy most of the vacant land in your favorite town, not "city", you could help drive the local economy, be a big fish in a little pond.

If I came into $10m in cash right now, I'd probably buy a decent house on the bay outright, buy a nice fishing boat, and put the rest in free and clear multifamilies and let a property manager handle the day to day stuff. I'd shoot to generate enough cashflow to allow myself to not work and go fishing whenever I liked.

Ultimately, isn't why we invest to be able to lay off the gas and enjoy life with less worries?

Buy ten million in 12 cap property...refi it over and over. Use the cash flow to purchase properties for cash and pay down the leveraged properties.

Well, this wouldn't win me the race, but since I have 10 million, I would consider myself wealthy already. I would spend a large bulk buying homes in my markek of Memphis, sell them to international investors and hold the paper for 10 years at 8.99% and 4% interest points. Through the loan and profit of sell, each house would net a profit of no less then $45,000 on a 15 year amortization / 10 year call. Do that 250 times and that 10 million made me another 10 million. It would take about 7.5 million. I would leverage the other 2.5 million on as many financed homes as possible for tax shelter.

real wealth is built on timing of the cycle. In certain areas we are right at the bottom of that cycle. I would of course jump into the cycles with 2mm in flips, 2mm hard money lending, and with the remaining 6 i would focus on commercial flips and rentals

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Get me out of the race...Spend $1M on debt reduction/setting up personal property and taking care of family...buy some Iowa Farmland and other safe 5%+ Investment Vehicles. Live off less than $450k/Year in interest income and continue to pick off good RE deals here and there...

Consider me good...

Then I'm going fishing with Daniel Payne

Originally posted by Stu Holbrook:
Daniel and Wes, call me if you want a parcel of land to camp on when you go fishing, cheap.

I live on the gulf of Mexico, I'm talking offshore fishing!

Greg, the fastest way of creating wealth in RE is not loosing money along the way.

Getting a divorce cuts your wealth by 50%+; bad partners can be just as devastating.

Protect each individual asset seperately.

Get a very good trust attorney...and own nothing.

Invest in high quality tenants but not Investment grade commercial properties and pay attention to the market. Sell by the time the market gets back to 75-85% of the previous high for this reset market. You will have another correction and you can buy back in lower.

Put your trust off shore.

Live well but within your means and enjoy the good life.

Brad