What’s your second favorite investment after real estate?

Investor · Decatur, GA · Member since 2015 · 56 posts · 38 votes

Stocks? Bitcoin? Etc.. I know there are plenty of different ways to invest in real estate, but assume you wanted to diversify and invest away from real estate— where would you go? Curious to hear where the biggerpockets crowd invests outside of real estate.

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Steve S.

Investor · River City, Manitoba · Member since 2017 · 162 posts · 193 votes

Every second I get to spend with my kids.... course technically it's my #1 investment REI isn't even a close second.

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Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y
Stocks and bonds. Definitely not crypto lol.
6 Reply
Chinda David
Investor · Lincoln, NE · Member since 2015 · 27 posts · 48 votes
8y
Mutual funds, that has a great tracked records of making 10 % or more.
0 Reply
Dave Van HornPro Member
Fund Manager · Wayne, PA · Member since 2009 · 1k+ posts · 1k+ votes
8y
To be perfectly honest, I'm not so sure hard Real Estate is my favorite these days ;)
In the order of favorites I'd probably say:
1.) Business & Private Equity
2.) Notes (Paper Assets)
3.) Real Estate - mainly for the tax advantages above all else. Also the appreciation is nice. I also like that the point of entry can be easier some investment which is good. But I prefer it more as a business rather than as an investment because it can be more advantageous to building wealth.
I also like P2P lending and insurance contracts.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
Originally posted by @Dave Van Horn:

To be perfectly honest, I'm not so sure hard Real Estate is my favorite these days ;)
In the order of favorites I'd probably say:
1.) Business & Private Equity
2.) Notes (Paper Assets)
3.) Real Estate - mainly for the tax advantages above all else. Also the appreciation is nice. I also like that the point of entry can be easier some investment which is good. But I prefer it more as a business rather than as an investment because it can be more advantageous to building wealth.
I also like P2P lending and insurance contracts.
as in life settlements ????
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Dave Van HornPro Member
Fund Manager · Wayne, PA · Member since 2009 · 1k+ posts · 1k+ votes
8y
@Jay Hinrichs
Yes, those too. I do like investing in life settlements. I also like building personal and business banks with insurance contracts. Just another safe bucket like IRA accounts.
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3 Reply
Kevin Coggins
Spring, TX · Member since 2016 · 243 posts · 203 votes
8y
Not really an investment, but I'm been buying/selling event tickets with pretty good success.
4 Reply
Steve S.
Investor · River City, Manitoba · Member since 2017 · 162 posts · 193 votes
8y
Every second I get to spend with my kids.... course technically it's my #1 investment REI isn't even a close second.
25 Reply
Eric H.
Bend, OR · Member since 2017 · 63 posts · 15 votes
8y
Stocks and bonds. Specifically low cost index funds.
3 Reply
Xavier A Hargrove
Morgantown, WV · Member since 2017 · 10 posts · 2 votes
8y
Forex is great, and has returned really well for me so far. It involves trading currencies.
0 Reply
Omar Khan
Rental Property Investor · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
8y
@Tareq Salaita Low-cost index funds from Vanguard or Fidelity. Might actually be my favorite as that is the definition of set it and forget it.
Business partnership is next in-line but that requires more input and is not as passive.
4 Reply
Patrick Buttermark
Staten Island, NY · Member since 2015 · 17 posts · 15 votes
8y
For investing: Stocks/bonds (retirement) Also for the last few years I've done pretty well with P2P lending
For short term trading: futures and forex. Trading is NOT investing though and the tax man is well aware of the difference.
0 Reply
Zachary LaJoye
Rental Property Investor · Cincinnati, OH · Member since 2017 · 58 posts · 48 votes
8y
If you are in a higher income bracket and looking for a form of investing/estate-planning I like whole-term life insurance. You won’t get as high a return as in the market but it is a much safer investment and also tax-advantageous.
2 Reply
Sam Josh
Sunnyvale , CA · Member since 2017 · 373 posts · 362 votes
8y
RE is second favorite to my favorite investment which is my day job and career. That is the bigger part of my identity and fuels the rest of my life including my investments in RE, stocks, crypto etc.
1 Reply
Ryan Evans
Rental Property Investor · Cleveland, OH · Member since 2016 · 653 posts · 769 votes
8y
On top of buying stocks, I do a little investing in a real estate startup. It's close to the real estate world I love, but a whole different business model :)
0 Reply
Kimberly H.
NY · Member since 2018 · 12 posts · 0 votes
8y
My favorite is hedge funds, though that’s hypothetical since the ones with the best consistent returns of 15%+ plus are pretty much for the “one percent of the one percent” and institutional investors. My second favorite is small business investment. And third favorite is Vanguard low cost funds; I spent a lot of time researching how to pick stocks and concluded that I would do no better on my own (and probably worse!). I would never do Bitcoin or similar - just too risky.
0 Reply
Jeff Kehl
Rental Property Investor · Charlottesville, VA · Member since 2012 · 1k+ posts · 726 votes
8y
I like stocks and closed-end funds most. It's always amazed me that real estate people are very hesitant to invest in REITS. In some cases they're exactly the same as your real estate investments just at a higher level, with professional management and marked to market.
But I also like Syndications, P2P, bonds, notes, gold and oil and gas.
The only one I would not invest in is Crypto-currency of any kind.
1 Reply
Account Closed
Rental Property Investor · Houston, TX · Member since 2018 · 106 posts · 56 votes
8y
@Tareq Salaita I always diversify all my bets between stocks, bonds, cash, alternatives (bitcoin, real estate, hedge funds) etc. I am 27 years old working in hedge fund industry so my view might be a bit titled to financial market rather than real estate. I just started my real estate journey a couple of months back and now currently in 28 units in Houston.
I am trying to allocate 50/40/5/5, 50% to stocks (mostly index funds) but well balanced across geography and sectors. I don't want to over bet on particular sector or particular country (Always diversify). You do not want to be over exposed to tech when there is a tech bubble. I always make sure most of my funds are index and under 0.5% expense ratio. 40% being in real estate (mostly multi-family apartment for now). 5% in cash. 5% in either gold, bitcoin or individual stocks or options (whatever I feel like).
Why do I chose 50% in stocks? It is passive. It has the last 15 years average return of 9%. Everyone will say their COC is better. However, you will have to think on entirely passive part where you buy and forget about it.
However, as I get older, I will be sliding my scale of stocks to bonds and more conservative asset classes.
5 Reply
Christopher Hanley
Sayville, NY · Member since 2018 · 1 post · 1 vote
8y
Crypto Crypto Crypto
1 Reply
Chris Wakley
Erie, PA · Member since 2017 · 25 posts · 2 votes
8y
Crypto for sure. Most exciting and by far most potential lol
0 Reply
Derek Ward
Investor · Long Beach, CA · Member since 2015 · 27 posts · 1 vote
8y
Business, for sure. Specifically network marketing. Where else can you build a business with NO overhead, no employees, just partners, low cost of entry, and a real education on becoming an entrepreneur? Leveraged income rather than linear income!
0 Reply
DeWitt GibsonPro Member
Investor · Phoenix Arizona, USA · Member since 2018 · 176 posts · 105 votes
8y
Bonds
0 Reply
Percy N.
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
8y
- Angel investing or early stage capital
- Structured Finance
- Factoring
3 Reply
Ailen Li
Real Estate Agent · Boston, MA · Member since 2017 · 12 posts · 15 votes
8y
Myself! If I can’t take the time and care to invest in myself then I’ve failed to have discipline or an ability to prioritize which would make it difficult for me to focus on making smart decisions. Investments or not. Been practicing being more “selfish” with where in allocating my time and energy lately... Anybody else feel this way at times or is it just me?
8 Reply
Lane Kawaoka
Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
8y
Life settlements Simple businesses Farm land parcels
4 Reply
Account Closed
Union City, CA · Member since 2018 · 2 posts · 0 votes
8y
Mutual funds.
0 Reply

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