How should I proceed?

Question

Hello I've been saving up my money since I turned 19 and I'm now 30 and I've saved $120,000.00 and I'm wondering what I should do to proceed, my options are sell almost all of my stock portfolio and buy a rental house partnering up with both my brother ,this would be thier 3rd deal for the oldest and second deal for the middle child I'm the youngest so it would be my first deal mind this was what has been my plan since 16 and I've read tons of books on real-estate investing aswell, or a friend recommend I get a financial manager to stock invest for me, so I'm wondering  should I sell all or most of my stocks for to get into real-estate also I'm reading a book called the intelligent investor so I could also just follow those rules and invest some in an index Berkshire Hathaway and the rest in rock solid companies that aren't going away like the book I read says, what should I do ?

Melissa Justice · Answer

@MIchael McCUe,

You're in a really solid position-$120K saved by 30, no debt mentioned, and clearly educated and intentional. That puts you ahead of most, especially since you’ve been studying real estate for over a decade and already have siblings successfully investing in it. Here’s a breakdown of your options with some thoughts to help you decide:

Real Estate Route (Partner with Your Brothers)
Pros:
You have experienced partners (your brothers) who can guide you through your first deal.
Real estate offers leverage-you can control a $300K+ asset with part of your savings.
Cash flow, appreciation, tax benefits (depreciation, mortgage interest deduction).
You’ve been preparing for this exact move for years.

Considerations:
Liquidity: Your money will be tied up more than with stocks.
Risk is more concentrated in one asset vs a diversified portfolio.
Need a clear partnership agreement (even with family).

Good Middle Ground:
Don’t necessarily sell all your stocks. Keep some (maybe 25–40%) as a cushion or rainy-day fund.
Use ~$70K–$90K as your real estate investment capital. That’s enough for 20–25% down, closing costs, and a small reserve on a solid $250K–$300K property.

Stock Market Route (Hire Financial Advisor / DIY Index Strategy)
Pros:
Fully passive and extremely liquid.
If you follow the Intelligent Investor principles (e.g., index funds, strong companies, value investing), you’ll likely do well long-term.
Zero tenant headaches or maintenance.

Considerations:
Slower path to cash flow. Appreciation and dividends take time to compound meaningfully.
Market volatility can be tough emotionally, especially if you’re shifting from savings to investing.

Hybrid Option:
Keep your stock portfolio and slowly DCA (dollar-cost average) into more positions as the market dips or opportunities arise.
Consider moving some money into a Roth IRA or tax-efficient ETFs if you haven't yet.

Since your heart and preparation are already in real estate, and you have family who are actively doing deals and willing to partner this is likely your best first move. But you don’t need to abandon your stock portfolio entirely. Think of real estate as your “wealth accelerator” and stocks as your “wealth preserver.”

Suggested Allocation Example:
$80K → Real estate investment (down payment, closing, rehab/reserve).
$30K → Keep in your brokerage across index funds & blue-chip stocks.
$10K → Cash emergency fund or short-term reserve.

You’re in a great spot-trust your research, keep learning, and execute with caution and clarity. Happy to help you weigh specific deals or investment choices as you go!

Best of luck!

Ken M. · Answer

Before you do anything rash, how much do you wind up with after commissions, taxes and expenses when selling your stocks? What is the growth rate of the stocks. At some point, it actually makes more sense to stay in stocks. Keep in mind, owning property means property taxes, insurance, repairs, vacancies, upgrades and maintenance. Real estate is a "hands on" business, stocks do not require unclogging toilets, property management, or repairing broken windows. Do not consider rentals as passive, there is a lot of work and thought that goes into rentals and if you buy a bad one, it goes really badly and is really expensive to fix.

Consider the full investment over a 10 year time cycle using both methods, stocks and real estate, before you proceed. The cost to sell real estate runs very high if you change your mind later, because you were wrong..

Mark Cruse · Answer

That is awesome to save that much by that age. Also, you seem to have a winning circle around you. You are clearly on the road to success. What I'm not understanding is wanting to liquidate ALL you have saved and put in into real estate. REI is great but as you know, you shouldn't have all your eggs in one basket. Why not just experiment with some, see how it goes and proceed with more once you position yourself? You can lose out big time in real estate vs a high yield ETF or account. If the right stock pops, you can go through the roof. I'd say keep it diversified and take it in chunks. No need to jump all in at this point. You have decades ahead of you to wreck shop in this space. No real rush. Congratulations on what you have accomplished.

Jaycee Greene · Answer

Hey @MIchael McCUe! Congrats on saving up that much money from such a young age. Do you have a passion for real estate? If so, what part? There are tons of ways to be active in real estate...finding the properties, fixing the properties, managing the properties...this list goes on. But what is it that YOU have an interest in - I'd had for you to feel like you have to invest in real estate just because your brothers did. Also, where's the rental house located?

Nicholas L. · Answer

@MIchael McCUe

hello

don't sell stocks

don't partner

save up enough for your own house hack, and then do a house hack

if it works out, repeat

good luck

Jaycee Greene · Answer

@MIchael McCUe That's great! Are you in New York?

Patrick O'Sullivan · Answer

That’s awesome, Michael. It sounds like you’re coming into this with a solid team and a long-term mindset, which is huge. Having a passion for tenant management and being hands-on with the lighter maintenance tasks is a great fit for a buy-and-hold strategy. It also helps that your brothers bring renovation skills and experience to the table, which makes for a strong complementary setup.

The fact that your dad is already in multifamily is another big plus. If you’re able to learn from him and possibly partner on deals down the road, that could accelerate your progress.

With your interest in tenant management and your family’s experience in value-add renovations, you’re positioned well to build something sustainable. Keep taking it one step at a time and stay focused on the numbers. Excited to see where this leads for you!

Patrick O'Sullivan · Answer

Hey @MIchael McCUe, first off, major props to you for saving $120K by age 30. That kind of discipline and long-term thinking is already putting you ahead of the game.

As for your next move, it really depends on your personal goals, risk tolerance, and how involved you want to be. A few things to consider:

• Real estate vs. stocks isn't always either/or. Real estate can offer cash flow, leverage, and tax advantages—but it also comes with more responsibility. Stocks, especially index funds or strong companies, offer a more passive path with long-term growth potential.
• It sounds like you’ve done a lot of reading, which is great. Just remember that no book can fully prepare you for the real-world ups and downs of owning property. Teaming up with your brothers could help smooth that learning curve, especially since they have some experience—but make sure everyone’s roles, expectations, and exit plans are clearly laid out.
• Think about diversification. Instead of selling all your stocks, you might consider a blended approach—keeping a portion invested while using part of your cash for a real estate deal. That way, you’re not putting all your eggs in one basket.
• Finally, ask yourself why real estate appeals to you. If you're truly interested and ready to be hands-on (or to manage a team), it can be a powerful wealth-building tool. If not, there's no harm in continuing to grow your stock portfolio while you learn more.

Real estate vs. stocks isn't always either/or. Real estate can offer cash flow, leverage, and tax advantages—but it also comes with more responsibility. Stocks, especially index funds or strong companies, offer a more passive path with long-term growth potential.

It sounds like you’ve done a lot of reading, which is great. Just remember that no book can fully prepare you for the real-world ups and downs of owning property. Teaming up with your brothers could help smooth that learning curve, especially since they have some experience—but make sure everyone’s roles, expectations, and exit plans are clearly laid out.

Think about diversification. Instead of selling all your stocks, you might consider a blended approach—keeping a portion invested while using part of your cash for a real estate deal. That way, you’re not putting all your eggs in one basket.

Finally, ask yourself why real estate appeals to you. If you're truly interested and ready to be hands-on (or to manage a team), it can be a powerful wealth-building tool. If not, there's no harm in continuing to grow your stock portfolio while you learn more.

Whatever you choose, it’s clear you’ve built a solid foundation. Keep asking questions and learning—you’re in a great spot to make your next move wisely.

Rohullah Sharifi · Answer

rental is better then stock, which you can get passive income and if below the 150K threshold can get benefit of passive losses. you may use the Traditional/investment account & through Self Direct investment, buy it.

Drago Stanimirovic · Answer

Michael, with $120K saved and a clear interest in real estate, it makes sense to move forward with your first rental, especially if your brothers have experience. Just structure the partnership carefully.

You don’t need to sell all your stocks. Consider splitting keep some in long-term investments (like index funds or Berkshire) and use part for real estate. That way you stay diversified while gaining experience.

You’re in a very good position, trust your prep and take action.

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