What would you do with 100 mil?

In another thread, a poster brought up an acquisition interview question (predominately for REPE) and I thought it would spark some good discussions here:

If I gave you $100 million, where would you invest it and why? For the sake of this argument, lets say you have to place the $100 million in real estate (and I'm not making the stipulation that it has to be actively or passively invested).

The first words out of my mouth would be to diversify the money. I'd make the claim that I know xyz market the best so I'd focus my active investments there. I'd also put 20 million in a core office/lab/development REIT that I am extremely familiar with (this would be my only passive investment). I'd put 30 million in acquiring multifam buildings on the outskirts of the CBD (secondary downtown multifam market). I'd take 20 million and develop a multifamily residential project on the waterfront of a long forgotten area within the CBD that I'm bullish on. I'd then use 10 million to develop single family houses in 2 suburban towns that I'm also bullish on--I have had access to successful single fam projects and have seen the numbers/time constraints/risks associated with this type of play. I'd use the remaining 20 million to buy a moderately sized class B office/retail building in the dead center of my CBD.

Your turn.

 
Addinator:

Put a down payment on this bad boy:
http://www.bloomberg.com/news/articles/2015-05-26/...

Where you gonna get the other $400m from haha

I have a strong feeling that price tag is just for marketing purposes. If he finds someone stupid enough to pay $500m then good for him, but think it will probably end up changing hand for much less.

You know you've been working too hard when you stop dreaming about bottles of champagne and hordes of naked women, and start dreaming about conditional formatting and circular references.
 

Was in LA three weeks ago and went to see that place and the surrounding area. It is not a good place to invest such an amount of money. First of all, the place looks like a war place and they stopped building this palace. The area is very expensive and shows one of the highest points in the bubble index. Not worth it, totally overrated.

 

Smartest idea I've heard yet. Only concerns are: 1) they got to be big enough to attract institutional investors but small enough to make you a partner in the GP with a $100 million commitment, 2) make sure the guys you're investing with have outstanding moral character (I'll even take outstanding moral character over investing competence, since all your money is in one place not named Goldman/Merrill Lynch/JP Morgan), 3) what % of the GP can you get contributing only $$$ and chilling out on a beach somewhere (preferably Puerto Rico for 183 days per year, so you don't have to pay taxes), and 4) they better invest in conservative shit.

 

I would donate $50 million to my alma mater, get a school named after me, and be a BSD in my hometown, and then buy a city block of cash flowing commercial property and entitle these properties for high density mixed use multi family in an assemblage. In the next cycle, I'll jv and go vertical, or ground lease it.

Have compassion as well as ambition and you’ll go far in life. Check out my blog at MemoryVideo.com
 
odog808:
I would donate $50 million to my alma mater, get a school named after me, and be a BSD in my hometown, and then buy a city block of cash flowing commercial property and entitle these properties for high density mixed use multi family in an assemblage. In the next cycle, I'll jv and go vertical, or ground lease it.

Seriously, I can't believe the amount of assemblage multi-millionaires.

 
Link_REDev:
scott hartnell:
Try to buy ALL mobile home parks on the east coast

the cashflow from mobile homes is absurd.

can be. can also be a fucking disaster.

i've been told not to consider MHP in the south. also not to touch trailer parks occupied by black people.

 

I'd diversify more than this in real life, but here's what it would be for 100% RE

  1. $40 mil in the undervalued CBD areas in Nashville/Salt Lake for commercial RE
  2. $30 mil in Washington Park and Woodlawn in Chicago
  3. $20 mil in land in Kalispell MT
  4. $10 mil in Chattanooga's CBD
University of Chicago
 

Surprised to see a few people still bullish on multifamily at this point in the cycle. I'd take ~$50M (lever up) and park it in an A+ office/retail core asset in NYC/LA. Probably going to pay over value with current market conditions, but it will provide enough income to live off of very comfortably. I'd then put $25M in an emerging market opportunistic fund (should be just enough to jump in one of the larger funds) and use the remaining $25M for spec industrial development. I like my chances as one day shipping becomes the norm.

 

The Flathead Valley (primarily Kalispell, but also Bigfork, Whitefish, and Lakeside) are starting to grow at a decently rapid clip. United has recently established direct flights to and from O'Hare, connecting Chicago (and thus the East) to Kalispell. Property values are still a tad depressed except on Flathead and Whitefish Lakes, and developers are beginning to build again north of Kalispell. Also, Big Mountain is becoming a more important ski destination.

University of Chicago
 

Get a real estate portfolio going. Look at buying out places in Italy, Greece, London (just 1-2 here) and probably somewhere like Thailand. Rest invest it in shares.

The one thing I'd love to do is get membership to Wentworth and a few other Golf clubs.

 

I'd take the $100,000,000 and start an alternative investment fund focused on small business loans with various interest rates dependent on customer credit score and financial standing (a la Brendan Ross). I'd also branch off and create a private equity fund focusing on developing convenience stores throughout the Southwest US.

I can easily see a fat return and keep this as a sustainable business for my grandchildren and there children and hope they can continue growing and expanding. As for charity I'd donate to orphanages in developing countries and pay for their college tuition upfront (assuming they get in) with the stipulation they pay it back via volunteering in their local communities. This creates a chain of giving back and propelling those that are less privileged forward in society.

 

Let's see, usually I don't really like to invest into real estate. The money would be split into three different basket a 30M.

  • real estate and land rights in the south and middle of Myanmar (based on infrastructure and future tourist destinations)
  • apartments in main cities in Germany and UK
  • emerging regions in South America (mainly in Chile)

This allocation is a good combination of risk and return. The last 10M would go into private houses in the area of San Diego.

 

Like this thought process. Also would allocate a couple Mil to Nigeria. Population growth there is supposed to sky rocket in the next decade. Rough area, but they have to live somewhere and buy goods/services from somewhere. Might as well get ahead of the demand curve and provide the supply.

 

Donate $5M. Then take $15M to buy a decent house somewhere warm and a sick boat. Then invest the rest in some relatively low risk yield vehicle giving me about 5% per year. With that, I'd live like Leonardo DiCaprio partying on a boat with smoking hot biddies, burning through my cash distributions, until I die from a heart attack at 45 surrounded by some buddies, loads of drugs and obscenely hot women.

Then take care of my family and give the rest to the make a wish foundation.

 
cre123:
In another thread, a poster brought up an acquisition interview question (predominately for REPE) and I thought it would spark some good discussions here:

If I gave you $100 million, where would you invest it and why? For the sake of this argument, lets say you have to place the $100 million in real estate (and I'm not making the stipulation that it has to be actively or passively invested).

The first words out of my mouth would be to diversify the money. I'd make the claim that I know xyz market the best so I'd focus my active investments there. I'd also put 20 million in a core office/lab/development REIT that I am extremely familiar with (this would be my only passive investment). I'd put 30 million in acquiring multifam buildings on the outskirts of the CBD (secondary downtown multifam market). I'd take 20 million and develop a multifamily residential project on the waterfront of a long forgotten area within the CBD that I'm bullish on. I'd then use 10 million to develop single family houses in 2 suburban towns that I'm also bullish on--I have had access to successful single fam projects and have seen the numbers/time constraints/risks associated with this type of play. I'd use the remaining 20 million to buy a moderately sized class B office/retail building in the dead center of my CBD.

Your turn.

I would buy land, build schools in poor countries.

 

Most of what you guys would do (i.e. buy real estate around the world, etc) could be done for MUCH less than $100M. You could start with $1M, buy small rental condos in said countries, and grow your holdings.

If I suddenly had $100M more, I don't think I'd suddenly change my life. I would definitely say goodbye to airports forever, and have private jet charters.

 

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