Investment Portfolio Balancing with Real Estate

Investment Portfolio Balancing with Real Estate

Real Estate Broker · Austin, TX · Member since 2016 · 834 posts · 449 votes

Here is how my investments are broken down using approximate numbers.

Real Estate= 60% reflected in equity positions (pays me to own it/dividends in the form of cash flow/appreciation)

Physical Gold= 8% (hedge investment)

Physical Silver= 16% (held as speculative asset with inherent redeemable value)

Bitcoin + other Blockchain via coinbase= 8% (held as speculative asset-long term value unknown)

 I know some people will ask how I can be a precious metals bug and own Bitcoin.......The truth is that people much smarter than me have decided that it is a speculative asset class that is worth gambling on. My downside is fixed as my total investment in BCT but the upside can go anywhere at this point. 

I am selling a couple of rentals to stack more cash in anticipation of buying opportunities in the near future (6-18 mos). I will offset the CP taxes with hopefully with better equity stakes on the purchase side using the following strategies.

- Conv rental purchase

- Non Qualified Loan Assumptions to Mortgage Wraps to Note sale

- Flips

- Lease to owns 

+ more

How does this compare to what you have? Thoughts?

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    6y

    @Danny Webber interesting to own both actual metals and Bitcoin.  I hadn't broken down these numbers before - but after having done so I am currently 56% in RE, 9% in retirement accounts, 6% in stocks, and 29% in cash (which includes proceeds from a recent sale and will be reinvested, so won't stay 29% for long).  I am going to put a fair amount of cash into stocks - I think there are lots of companies that aren't going anywhere that are "cheap" by historical standards, and then the rest into RE.  I bought a small number of shares of the SPY ETF near the bottom and wish I had bought more - it's now back near its pre-covid peak.  Oh well.

  • Real Estate Broker · Austin, TX · Member since 2016 · 834 posts · 449 votes
    6y

    I never do enough research to want to play in the market. From what i understand some commodities like Copper may catch a bid due to infrastructure spending potentially and the move towards electric/solar power. I may buy something in that channel.

    I forgot to list dry powder as an asset but I keep a decent amount as well ready to invest.

  • Cameron TopePro Member
    Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    Danny,

    Interesting mix! My real estate portfolio (equity in rental properties) is about 80% while stocks (IRA, HSA, 401k) is about 20% of my investments. At first take, I would say I have too much in real estate but I'm happy with this ratio.

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