BiggerPockets

What percentage of everyone's net worth is held in RE?

I've been trying to formulate my business plan and have been thinking about my long term goals lately. Wanted to know if people have most of their networth in RE or if they keep a diversified portfolio.

Even though I think it's Buffet who said that diversification isn't always the best investment model, I feel for most investors it might be.. what's everyone's opinion on this

99.5% Real estate
.5% Cars

I know what I'm good at and what I like. By the way Cars don't kill people. People kill people... :wink:

most in RE ... in fact, I recently moved money from the stock market to RE as I feel more in control and optimistic in the RE arena than elsewhere.

Your portfolio allocation will depend to a large extent on your knowledge and skills. The reason Buffett does not like diversification is becase he knows what he is doing and diversifying would simply spread some of his money to less profitable assets instead of putting it all in the most highly profitable ones.

I consider the stock market somewhat overvalued today whereas RE is somewhat undervalued in many markets and for many types of properties. So it makes sense to focus on RE.

A large majority of my net worth is also in RE, since that is my prime business. I do have some in cash, as I am also a transactional lender (but you could call that RE capital as well) and minor amounts in teh stock market. I feel more in control with RE and it is more hands on and something I can touch, stocks, not so much.
The balance of my networth is in my family!

You could also say a large majority of my networth is also in my network. :)
Happy investing to all.

This is interesting. I expected a lot more diversification, with me being the sole 100% real estate.

I have other assets that could be sold and still not make a % of my net: antiques, silver, art, jewelry, show dogs--none of it purchased for investment but still most of it could be cashed out for more than I paid for it.

I do real estate because I both enjoy it and know it. I grew up in a family that does real estate. Plus it makes me happy just to look at dirt.

I forced myself to learn how the stock market works and I was so bored I could just puke. Stock market takes a lot of knowledge, and you have to keep on top of it. I'd die of boredom.

Comodities and for-ex are too volatile for me. I'm not that much of a gambler and there is too much that is out of my control.

Art? Too much specialized knowlege required and steep fluxuations in value. Collectible cars? No thanks. Baseball cards? Comics? No for me.

I don't have enough money to own a business like a national brand of potato chips or an oil company, so that's out.

What's left?

Tim,
There is no cursing in the forums. Read your terms of service! I can't believe you said the "G" word when they are women and children present!

So it seems most of you are holding most of your money in RE. Do you have it spread out within different investments such as rentals in different areas, holding a portion of your money in notes, or having some money in raw land etc.. or is it mostly all in one basket?

I understand why Buffet likes specialization instead of diversification, and I think most of the people who responded here have a deep specialization in RE and along with what Eddie said

The answer to that is quite simple. When it comes to investment, most people do not have strengths. Most people are good (Or not so good) at what they do. Doctors, technicians or garbage collectors. They have no idea what to invest in. So, to them diversification makes a lot of sense

No doubt that real estate is very high on the list if not the highest here. After all, this is the REI site. It is definitely the best in my book for the combination of passive income and potential appreciation. The biggest drawback, however is liquidity.