Questions

Where would you invest $5M cash to provide an income and get good capital growth over the next 10 years?

3answers

100+ unit Apartment Buildings.

With the ever increasing mortgage lending guidelines disqualifying an estimated 80+ percent of the U.S. population, America is fast becoming a renter nation. This is why guys like Robert Kiyosaki, Grant Cardone, etc., are bullish on apartments. Ridiculous financing can be negotiated with Fannie Mae on non-recourse loans to maximize leverage and cash flow. With the right properties, cost segregation can immediately increase cash flow and ROI.
100+ unit apartment buildings can offer a great return on a collateralized investment and fantastic tax advantages. This is why our current posture is looking solely for these types of properties.


Answered 4 years ago

I'd talk to a group of professionals. Start with an attorney, CPA and financial guru. The reason you talk to all is for all the ends and outs of what could happen with your money and the income received. Some things are tax-deferred, tax free and other hold liability that you may not have the stomach for long term.

Mix things up. Old saying that I will let you finish is "Don't put all your eggs......."

Since I am in real estate I am partial to multi-family properties and commercial for long-term appreciation as well as good income potential.

Start-up companies are high risk, but have big rewards.

Stock, bonds and mutual funds. You could add a little day trading for fun.

Do remember one thing when doing anything. If you own an asset it has to be maintained and constantly monitored. If you are not in a position to do that then hire a professional.

I believe less is more when it comes to investing. I'd rather have one or two big properties than 30 scattered all over town.

At the end of the day with 5 million you can pretty much do anything. If you like Jersey Mikes you could open your own franchise and eat there daily lol.

Buy a franchise that doesn't require owner participation, but has returns of 6% to 15%.

If you like the DFW area I can show you some good income producing properties that you will receive a good income as well as have good appreciation.

One final thing is to take a little of that money and enjoy a nice vacation to New Zealand for a full month. Just make sure you go in the summer which is reversed from the US. Consider investing there and other foreign countries to have assets in additional countries just in case the petro dollar drops at some time here.

Good luck!


Answered 4 years ago

Hi there,

To answer this question I would like to know your risk tolerance and capacity as well as your expected return.

However here are some brainstorming ideas:

I would invest a part of it into real estate in emerging markets like Colombia or Brazil at the moment the currency is very much devaluated and the prices are low.

Medellin in Colombia and Buzios close to Rio der Janeiro provide a very high quality of living and the security issues are not a problem anymore. You can sub-rent the real estate and earn a good income or you can resale them once the exchange rate is improving and prices are increasing again.

With another part of the money I would buy a bond portfolio which will give you a good interest rate and stable income. Stock market in my opinion is overrated at the moment and I would invest only a small portion. A the same time, I believe the commodities (Oil & Gas and Precious Metals) have reached their bottom.

If you are interested, I can ask you more questions to identify your investment profile and give you a tailor made investment proposal.


Answered 4 years ago

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