Wednesday, June 19, 2019

Considering real estate investment [non-poker]

Still playing online and live, though not nearly with the frequency I once did.  Funny how life gets in the way.

As careers progress and wealth gets accumulated, I find that I'm looking for new ways to diversify my holdings.  From my 401(k), 529 and other side cash investments (mutual funds, bitcoin), I think I'm flush with exposure to the stock market.  Unfortunately (really, fortunately - it's a good problem to have), there is still continuing excess cash flow.  I've been discussing available opportunities with my brother in law, and concluded that we should purchase a property with the intent of becoming landlords via a partnership.

Combined, we have around $100,000 of available capital to deploy (that's the rough number he and I feel comfortable using), and I'm not 100% convinced that real estate is the way to go, but it seems to be the most obvious and easy choice.  The idea is that we purchase a property, start a positive cash flow stream, escrow the cash flow and in a few years, purchase another property while also paying off the first one on the backs of the renters.  Pretty simple.

I'm sure more than a few of my readers have or are finding themselves in similar situations - albeit likely with even more capital.  What are you doing with that cash besides plowing it into the stock market or a high yield savings account?  I'm plumb out of ideas...

Thoughts are:

  • A franchise (which requires a TON of time)
  • Commercial real estate (which I lack education)
  • Beach house summer rental (lower cash flow, but allows our families to use it in the off season)
  • REIT / Real Estate Investment Trust (no control over what the REIT does AND also puts more money into the stock market)

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