Put $10 Million to Work Within 200 Miles of NYC

If someone gave you $10 million in equity to put to work over the next few years, how would you spend it? Also, assume this investor only wants deals that are somewhat close to NYC.

22 Comments
 

What returns is he looking for? Does he have liquidity needs or can he sit and live off the NOI? Are you skilled with a certain product type? All important questions that will make everyone's answer unique.

 

Never done a RE deal in my life, so don't really have a specialty. He has no liquidity needs but due to the fact that I am an unproven investor, I would like to buy something that has a positive cash flow from month 1. Also, he wants me to manage the properties myself which I'm not too excited about. I was thinking of buying a bunch of single family homes used for college housing in upstate NY then spin it off as a portfolio 5 years later at a lower cap rate. Tough to manage from a distance but the yield on some of these student housing plays upstate is crazy. Plus my investor is able to secure favorable financing terms via a corporate entity so that gives me a major leg up on the competition in these areas.

 
"Pokemon Master"Also, he wants me to manage the properties myself which I'm not too excited about. I was thinking of buying a bunch of single family homes used for college housing in upstate NY then spin it off as a portfolio 5 years later at a lower cap rate. Tough to manage from a distance but the yield on some of these student housing plays upstate is crazy.

You're not keen on self-managing, so you figure you might as well go for what might be the most management-intensive asset possible at a distance from where you live?

I love this sub-forum, we get the best posts.

 

I would invest in hookers, diversifying my stable to be sure to hit the bottom of the market, the mid card, and the top of the line. Putting the money to work indeed.

Commercial Real Estate Developer
 

Whatever I did with it, it would be new construction or renovation and it would be leveraged to 60-65% LTC. Unless in NYC itself, I wouldn't be interested in office. But give me retail with a quality anchor, hotel with a good flag, multifamily with a reputable manager, or self-storage with a CubeSmart or Public Storage manager and I'd take a 7% return on cost deal all day long. Sell something like that at a stabilized 4 or 5 cap and you'll realize some seriously decent returns.

Array
 

Would buy an escort agency. Best. Decision. Ever.

You killed the Greece spread goes up, spread goes down, from Wall Street they all play like a freak, Goldman Sachs 'o beat.
 

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