How Many Ways Can You Love Real Estate?
John C. Brandy, CFEd®
I'm actually serious with this headline. There are a ton of ways - probably far more than anyone who's ever told you that you should be all in on nothing but real estate (just look at your 201K, they say), to those who say you should be all in on nothing but stocks and bonds. Truth! There is no one right way. At least not all the time.
So what do I do for myself and my customers?
For example, I personally own 2% of a hot dog franchise near Chicago. That's through crowdfunding. I think you should have some crowdfunding (not necessarily that business) yourself. Point being: I put my money where my mouth is.
REITS. Real Estate Investment Trusts. These take the form of stocks and sometimes ETFs and mutual funds. Usually stocks because of
the tax advantages. Many people do this, but that does not mean it's right for you.
Buying Real Estate. There's more than one way to do this of course. The key is to be sure to account for all of the cost variables and to know in advance what your "out game" is. That means know up front why it's time to sell. Don't wait for some future date, where you're more likely to "stay invested" even though you shouldn't be.
Commercial real estate is yet another possibility. It generally costs considerably more, but depending on your portfolio, that might be the right direction. We'll be certain to examine that.
Back to residential rentals, there's this recent "upstart" called AirBnB. It actually might make sense for you to include such a thing in your portfolio. Maybe not, but it should definitely be reviewed.
There's a crowdfunding option called RealtyShares, where you can put money into different real estate projects. I can tell you why you'd choose one over another. I think RealtyShares is a good choice given that you know the particular market.
There's yet another crowdfunding option called RealtyMogul, which adds a realty-focused REIT fund to their specific property options. It's another option for Real Estate Investors, perhaps a bit duplicate yet a wonderful alternative avenue.
We Figure Out One Of Six Ways
Actually there's more than six ways to be in real estate. We're just going to keep it easy here. Like with other investment options, the first question is: "what do you want to achieve?"
It could be that you want to own real property for rental. Maybe a bigger commercial deal. Maybe an even bigger development deal.
Or, so you don't misunderstand my approach, you want to play from right where you are and right now, not someday when you have a big pile to invest. It can be done.
What Else Could I Choose?
The many things you could choose which are not related to Real Estate! Great question! Examples are self-directed IRAs, which often are equated to Real Estate but don't actually have to be. I have a Retirement Fund which invests in raw businesses among other things, and has profits or losses accordingly.
You could choose a cryptocurrency, the most obvious (and expensive) being BitCoin.
You could choose crowdfunding to lend money, about as safely as can be imagined with of course no guarantees.
This gets us to take away a limiting belief. We openly consider the possibility that we can all become well-off, whether that's financially or socially or any other way. Should that be the bulk of your portfolio? Nope. Nothing should, unless you have that often-rumored but never seen "crystal ball". It's a great part of the picture, though.
Any Other Possibilities?
Yes, and very likely there will be even more down the road. I like choices in addition to Real Estate. I would have a long and serious argument with anyone who advised avoiding all Real Estate. I would have a similar argument with anyone who advised having nothing BUT Real Estate. Without that crystal ball thing, I mean.
Would You Do This With Your Money?
Well, yes, and in fact I do. Here's a
screenshot of part of my portfolio
with Realty Shares. I also own rental
real estate. In case you haven't heard,
I put my money where my mouth is.
I wouldn't suggest you do something if
I wouldn't do it myself.
OK, But What's The Bottom Line Here?
The bottom line is that you have to be involved. These are your goals. This is your savings toward those goals. I know what you need to do and I can nudge you in the right direction. I can warn you about whatever might befall you in the future, but I cannot make you do it if you don't want to.
So, if you want to get started with success, whether that comes to you through robo-advisors or something else we do here, like real estate, BitCoin, self-directed IRAs or crowdfunding sign up right here to get started.
Want to ask me a few questions one-on-one for free first? I totally get it. Click here to put that time on my calendar and we'll go from there.
Conclusion: You Want One Or More Of These
Because they will help you spread out your risk and diversify your returns. The secret to financial success is Multiple Income Streams, in other words money coming to you from many different places all at once. If something happens to any of them, it doesn't have to change your world.
You can be in control. My job is to understand what motivates you and meet that need while diversifying to manage your risk.
Together we paint a picture for you and your family and help you do things you didn't think you could do.
If you have any questions, feel free to reach out to me at firstname.lastname@example.org.
About the Author
John Brandy is a Certified Financial Educator (CFEd®) and a financial consultant who helps you achieve your retirement goals. He is an expert in investing using this platform. Contact John if you have any questions about using regular or retirement funds this way. He is happy to talk with you to discuss your investing goals.