Should I invest all of the capital I am seeking to invest into one deal or spread it across multiple deals?
The key to a strong investment portfolio is diversification, and thus would recommend spreading your capital across a number of deals.
The amount of capital you should put to work in each deal will depend heavily on the amount of capital you are looking to deploy in total. If you are looking to deploy $1MM, for example, you can diversify by $100K in ten deals. Alternatively, if you have $100K to invest, you may consider investing $50K in two deals.
Each investor’s financial situation is unique, so there is no general rule to follow. We advise you consult with your financial advisor for the best decision to make.