What's your long term investment strategy?

Question

I purchased 2 SFH last year as rentals, and plan on buying a few more this year, but my long term goal is to build up a portfolio and once the commercial real estate starts hitting a bottom like residential is now, to make my move into it.  That being said, I really know nothing about it.  I'm not the type that's trying to be a zillionaire, just looking to make a comfortable life for me and my family.  What should I be educating myself on?  What do you do for your long term investments?  Any info is appreciated, thanks!

Frank Gallinelli · Answer

Hello Tony -- Rachel is quite right to say that comfort level plays a big part in decision to follow residential or commercial.

I've been asked that question lots of times, and wrote an article on the subject of few years back where I tried to list out many of the pros and cons.  Here it is, and hope you find it helpful:

http://realdata.com/ls/residential-versus-commercial.shtml

Rachel H. · Answer

Hi Tony,

It really depends on your comfort level. I know many people who have stayed in the residential business - it works for them. On the other hand, there are others I know who are more on the commercial side. If you're going to be learning a new system/business, it will take time to educate yourself and also build a network. If you've played the cash flow game, it will give you ideas on several different scenarios.

Most people I know start out small, and expand in the future. Though, there are some that just stay at their level. I know of one investor who started out like you investing in single family homes and then bought a multi-unit after 5 years. Turns out, this investor did not like the multi-unit business and ended up selling. Went back to single family homes. Again, just depends on your personality and comfort level.

Hope that helps!

Richard Rabineau · Answer

I am wondering some of that too!

What's your long term investment strategy?

Most Popular Reply