I have a family friend who told me that he could capitalize deals for me to run for him and wanted to get people's thoughts on what they would buy at those levels. Everything seems to be super expensive now. Crappy apartment deals are selling at 5% caps.
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I would probably buy an aggregates quarry, although you may have trouble getting one for that price.
I wouldn't touch real estate right now unless I had at least the mid-8 figures to invest. You might as well buy bonds if you're going to use $3 million to buy commercial/multifamily real estate.
Disagree, you'll get killed on bonds if you buy them today.
Only if you trade bonds can you get hurt. You buy and hold and you're fine. I'd rather buy $3 million in bonds than utilize $3 million to buy crap real estate right now. And among you and me, I'm probably the only one who has personally done a half dozen deals with my own money.
I honestly don't know but interested as well....maybe some flex industrial near some of the high growth ports like Savannah. With leverage you have around 12MM to play with so you wouldn't necessarily be priced out. You wouldn't really be able to diversify though.
i'd assemble little urban develop sites
This op.
Go find some growing markets and Buy -> Rent.
jankynoname where would you buy aggregates quarries? I am fairly familiar with gravel.
I agree with scott hartnell that small developments are the way to go. Buying in place cash flow is too exp now
Ha anywhere there's a seller... But seriously, those are great businesses. I cover Martin and Vulcan and as the CEO of MLM likes to say, "if I could just have one aggregates quarry, I could retire happy... just one". I'd say Texas but valuations are probably way too high given how much highway work they've been doing there. I'd honestly probably look at some secondary metro in the Pacific Northwest, e.g. Bellingham WA or Bend, OR. Colorado/Utah could also do well. Those areas should grow a lot as the boomers retire and they're going to need more road infrastructure. Tie up a rock quarry today and sit on it for 10 years and you'll be sitting pretty... Just stay away from the Mississippi lol.
buy commercial & industrial solar projects or a stake in a good small C&I solar developer..
Flip residential properties, or if I had the expertise, do warehouse to loft renovations in gentrifying neighborhoods.
Seed investment in Uber
i would probably buy nothing right now.
Good question. I would invest into small unanchored retail strips with upside/opportunistic deal drivers. Let’s say you buy into a strip with 150K NOI at an 8 cap, Reno it, roll out the tenants with higher rents, then flip out for let’s say a 7.5 cap at 220K NOI. You would gross like a $1,000,000. There’s plenty of deals out there if you open your eyes to them.
Many equity opportunities in my view come down to 1 thing - highest and best use. Find a property, any type of property, where the land isn't being used at its best use. For instance, there's a recent deal I saw which was on a beach in SoCal that financed a Manufactured Housing Community. That is such an opportunity for an equity investor to come in and convert it to Multifamily, or a Hotel.
If you can't afford a particular project, pool your 3M with other investors.
Some of those MHPs on the beach in Orange County are as rock solid as real estate gets. There's a reason they're mostly owned by families that have sat on them for decades.
I'd buy cheap land in the secondary portion of a primary city. Build 10-18 units on top of a staple/convenient retail. Ground up. Preferably near a college or a secondary L-W-P environment. They are out there.
As the person above said, buy underperforming retail centers, renovate, push occupancy and flip. I would apply the same to hotels. Buy properties with low end flags, renovate, put an awesome brand to get access to significant base of guests, grow revenue, and flip.
I think you guys are vastly underestimating the difficulty of pushing retail rents or hotel ADRs in most maekets.
I understand the difficulty. I also didn't quote the exact time frame for that entire project. The key thing is to buy an asset that is 1) Being mismanaged 2) Has significantly below market rents 3) Has short term on the leases. You also need to take into account where we are in the market cycle and what vacancy in the trade area looks like. 13 months minimum from purchase and you could probably do it all within 24 months if you know what you're doing.
If it was this simple everyone would do it.
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