She should become a hard money lender.  She'd make more than investing in real estate.

I would suggest Seniors' Residences, Assisted Living Complex or Donut Shops!  A fortune to be made in all 3 !

Residential rentals! Her biggest obstacle will be herself. Rentals work and the better the location, the higher the purchase but guaranteed return over time

That's a tough one Fred, as it's so hard to predict where there will be long term appreciation and real estate markets also crash (and have in places no one expected them to do).

Land can be a good long term appreciation vehicle, if purchased and managed well.

I would not recommend rentals to 90% of the population.

Fred,

In real estate, I would suggest a NNN investment.  Example would be a Home Depot, Costco, or any other companyor any other large retailer that pays the rent, maintains the property on their own dime, and the investor gets a check.  This is as safe as it gets.  The cap rate is quite low, but better than a savings account.  Of course, some of these big companies may get in trouble.  No guarantees.  A

Asking a question like this, you are bound to already know the answers you're getting. It's like going to a car dealership and asking the question "I have $50,000 to spend on anything, what should I buy?" Everyone there is going to say a car!  There are too many questions that we don't really know. How old is she?, What is her net worth? Other investments? Does she work? What is her income? Based on the question only, I would not invest in real estate. Ask her if she would be happy with these returns on an investment. YTD +8.24%, 1Yr +14.56%, 3 Yr +10.70%, 5 Yr +16.51%, 10 YR 7.45% 15 Yr +7.72%.

So what is this great investment? Why it's the returns on the S & P 500 Index funds. My advise, have her talk to her financial investment guy and make sure she diversifies her portfolio.

My vote is both commercial and residential income property

Commercial - look for a strong industrial area possibly with those steel buildings - these tend to be inexpensive and you may be able to get a few

Residential - I suggest quad units or larger - if possible an entire rental community - also moble home parks are very good investments - cheap and always filled specially during down turns in the economy

Just my 2 cents worth

Senior living facilites or land per Jeff Pearl's advice. 

 Texas apts? Watch out on these property managers. A few will sell your apts and flee to south.....

I suggest REITs as she is already heavily committed in RE. Personally, the SF Bay Area  bubble is felt on high end for over 1 year now. 6000 sf lot with a shack for $1.6M ? 

Maybe tax liens?

pay cash for land.... they don't make land anymore....buy in a middle income town.... 

Don't know other than someone yesterday said if you have a jittery stomach get out of the stock market. This must be one of those people.

I can't give advice other than residential. Why not hire a good management company to take all the hassles off her back?

Buy and hold land, in path of population shift is better. Check zoning, prices, potential, proximity to airports, hospital, majr roads, towns, etc.

I would suggest a real estate equity fund.  Like this one here is Dallas:

http://elevateprivatecapital.com/

I found it interesting what Ron and Alexandra Seigel suggested...some good comments..no one has a crystal ball!

I would be scared to suggest anything. They should just diversify.I only help them buy when they tell me what they are looking for.

Not the stock market. Manhattan is smart, although there is quite a bit of new construction coming onstream and those would be residential rentals. Bonds are safer, usually have lower volatility; junk bonds (non-investment grade) have higher returns, have longer-term maturities and back-ended repayment terms, but are riskier. Your friend should be discussing this with her professional advisers who know her, her long-term objectives and her risk sensitivities.

Wow,  I would have her talk to someone else.

I'm with Jennifer Mackay on this one - she specializes in investors

I am thinking the same about stocks. Just look at all the laws and taxes put in place to start next year "after Obama leaves." It will strangle us unless the new prez quickly changes them or wipes them out. If not look for a downward trend..... NOW where to invest. Look to the areas people will always want to go in a upward tick or downward turn. The ocean. Seacoast communities. I liked mix use investments that tend to be steady

I would suggest a lot of demographic research. A STNL with a national tenant could also be good. Risk is very reduced and she gets cash flow and appreciation.

Buy shares in a real estate investment trust.

Parked and reading...

I here similar concerns about possible future crash. Whatever she decides to invest, she should closely monitor that business. For my area 2 mln is not much, so depends where she wants to land them. 

Fred Griffin Susan Emo has  a perfect answer!

I believe in owning rental property. I have lost a lot of money in the stock market. Not in real estate Fred.

What about rehab? Fix and flip?

I only know residential, so I couldn't go beyond advice on residential investments, which I really like.

Being a money manager for someone other than me is just not my thing.

Land unless it is being developedis slow growing and has expenses.  In aorder to gain more than a good stock portfolio, some kind of a rental is almost a must deoending on the time frame

Fred Griffin Ron and Alexandra Seigel have a good suggestion. Is this her total investment or is she willing to leverage her funds? 

If this 'investor' is seeking a no-stress real estate investment, they are following a pixie dust trail. There is no place offering attractive profit that does not come with it's unique poison pill.

Your client should search and discover how Warren Buffet solved the 'property management' problem before he purchased 30,000 sfh.

Also consider more stock in health care, REIT, container companies. Or, for a good time have her watch SHARKTANK and call the ones that did not get an offer. That should be fun.

1. Commercial building with skylights and secure fencing that she adds security system and living space inside in south western state with mild summer temperature as air conditioning may cut down on profitability of "the farming corporation" that she leases the building to-- look for a tobacco brand looking to get into pot farming. (oh my oh my I don't smoke it or condone it but tenant must be of corporate nature not a couple guys with rainbow tie dye shirts)

2. Invest in a REIT that does the work

3. Buy three different properties: 1. Coastal California like Carlsbad single family, 2. Maine single family  3. Texas in a university town like Austin.  I expect residential real estate to decline in 2018- buy when it dips. All three houses MUST have a view.

or infill lots where they are buildable in the following markets:

where job markets are strong Best if she can buy 2 or 3 lots next to one another to sell to a builder - neigborhood comparable houses should sell for more than $900000. lot costs $400000- 500000 must have curbs, gutters and utilities

DO NOT invest in commercial where someone else is the general partner, been there done that and he and his family bled the project dry

Real estate has risks no matter what type of property it is. I would suggest property development in an area that is growing. That is almost sure to appreciate.

Good afternoon Fred,

She has good reason to be worried. I would recommend new constructions here in Royal Trails, Lake County Florida. Your friend can hold the mortgages.

I like Susan Emo's idea of senior living/assisted living/nursing homes.  Since Dunkin' Donuts is coming back to So Cal, I'm liking that thought too.

Orlando...the fastest growing/rebounding city in Florida.  Land on big lakes...ideally on the chains of lakes.

Eve