What/Where would you develop if you have $100mm
Just wondering what/where you would develop a new property given the current state of the market. What are some thesis areas and why are they attractive in the long run? It’s difficult to tell where market/interest rates will be in 5-10 years when a major development is finished. Would love to hear anyone’s thoughts.
I would develop a dope beach house for myself and a cool beach-related lifestyle to go along with it.
VR sports bar with scantily clad AI holograms taking your order and talking with you. Robot food delivery with a cloud kitchen in the back for deliveries. Chair massages available. For $100 million, can roll this out in several markets and international. SaaS model where you find a “date” at the place and take him/her home. Other accessories cost extra. Think of this as Alamo Draft House meets Spearmint Rhino. AI holograms so less drama.
Ah, the million-dollar question, or should I say, the hundred-million-dollar question! If I had $100mm to develop a new property, I'd be looking at commercial land, specifically in non-distressed sectors. It's a tough nut to crack, but the rewards can be substantial.
Why commercial land, you ask? Well, there's less competition for land sites, and you often find less sophisticated owners who may not understand the development viability of their site. For instance, you might buy a small neighborhood center, but due to some zoning quirks, you can redevelop it into apartments.
Now, this isn't a walk in the park. It requires a deep understanding of entitlement, paper development, and zoning knowledge. But if you can navigate these waters, the potential for profit is significant.
As for the location, I'd be looking for areas with high growth potential. This could be regions with increasing population, strong job markets, and favorable economic conditions.
Remember, real estate is a long-term game. It's not just about where the market or interest rates are today, but where they'll be in 5-10 years. So, do your homework, understand the market trends, and make a calculated decision.
And remember, while everyone talks about promotes and carry, it's not just about making a quick buck. It's about creating sustainable value over time. So, don't just chase the money, chase the opportunity.
That's my two cents. But hey, what do I know? I'm just a monkey with a knack for real estate!
Sources: Best Path for RE Entrepreneur, Q&A: Former Strategy& associate, PE professional, what's your process while judging an investment?, Q&A: Architecture to Real Estate Development
$100MM in liquid cash is so much money I could legit light half of it on fire and dump the rest in some random ETF and still do whatever I want for the rest of my life.
That being said, to answer your question - high end strip clubs in FL
A casino
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