What’s your second favorite investment after real estate?

76 Replies

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. 

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.

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 ???? 

@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.

@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. 

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.

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.

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.

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 :) 

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.

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. 

@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. 

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!

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?

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