Whats percentage of your net worth is in RE ?

Wilmington, NC · Member since 2016 · 12 posts · 13 votes

Thought it would be interesting to see what everyones % of their net worth is in Real Estate.

Also, how does your RE allocation break down (sfr, multi, debt, syndications, etc).

I find it interesting that most wealth advisors don't recommend more that 10% of your asset allocation to be in Alternative Investments which private RE investing falls into. Im not opposed to stocks and bonds, and will ease into a low cost index fund/bond portfolio over time.

Im currently around 50% Real Estate and 50% Cash

RE Breakdown:

50% hard money debt funds (short term, low ltv)

40% Syndications (Value Add Multi, Self Storage, MHP, etc)

10% non-traded public REIT (Blackstone BREIT)

Look foward to getting a glimpse into everyone's portfolios :)

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Christopher Leon

Realtor · Schaumburg, IL · Member since 2011 · 289 posts · 118 votes

@Louie Pullen I’ve never met a wealthy wealth advisor/ financial planner. The cynical side of me also thinks they tell you no more than 10% in RE or whatever because they don’t earn fees on you buying property! They want you to buy their products, it’s real simple. Don’t forget, they are in a FOR-profit business. In answer to your question, 100%.

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Christopher Leon
Realtor · Schaumburg, IL · Member since 2011 · 289 posts · 118 votes
8y
@Louie Pullen I’ve never met a wealthy wealth advisor/ financial planner. The cynical side of me also thinks they tell you no more than 10% in RE or whatever because they don’t earn fees on you buying property! They want you to buy their products, it’s real simple. Don’t forget, they are in a FOR-profit business. In answer to your question, 100%.
18 Reply
Arlan Potter
Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
8y
99%
8 Reply
Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y
@Louie Pullen Currently it’s 70 percent RE and the rest is cash or stocks/bonds Over time k hope this goes back down to around 50 percent
2 Reply
Steve Vaughan
Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
8y
About 93% RE. When I started 15 yrs ago it was exactly opposite, 93% in equities. Still have the equities, more even. RE has just blown past it that much.
6 Reply
Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
8y
I’m currently at 70% RE and 30% cash and index funds.
2 Reply
Robert C.
Investor · San Francisco, CA · Member since 2016 · 338 posts · 444 votes
8y
@Louie Pullen, I'm like 90%, but I find it interesting to check out the Tiger 21 asset allocation report. Real estate is 27% this past quarter.
2 Reply
Linda S.
Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
8y
@Louie Pullen,
I'd estimate about 90% is real estate, 10% is stocks/investments.
Of the real estate portfolio, 20% are in MFH, but 80% are SFHs.
4 Reply
Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
8y
70% real estate with the rest in equities and cash. The mix towards real estate has grown over the years with adding value to properties.
Many of us have 100% direct owned units; so, it's not an "alternative" investment...more of a small (low touch) business.
3 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
8y
50-60% real estate. 40-50% equities/cash.
[email protected]301-893-4635 Podcast Guest on Show #192
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2 Reply
Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
8y
The majority is in real estate including personal properties. I am making plans now to get out of as much real estate as possible, income and personal, in the next 2 years. Hopefully before the tide turns.
2 Reply
Chris C.
Raleigh, NC · Member since 2017 · 347 posts · 94 votes
8y
I'm right about 50/50 but I'm trying to have a higher percentage in RE in the future
2 Reply
Michael Masters
Rental Property Investor · Westport, CT · Member since 2017 · 176 posts · 183 votes
8y
The way I look at it, RE is 181% of my net worth. But that's because I use leverage so my net worth is less than my real estate holdings.
If I net out loans from my real estate holdings, then my breakout is as follows:
77% Real Estate
20% Stocks/Stock Funds
2% Cash
1% Other
4 Reply
Frank Jiang
Investor · San Diego, CA · Member since 2014 · 592 posts · 765 votes
8y
~45%
2 Reply
Matt Millard
Lewisville, TX · Member since 2015 · 344 posts · 264 votes
8y
95% was rentals, now all private placement syndications & company partnerships. Other 5% is precious metals!
2 Reply
Shawn JohnsonPro Member
Rental Property Investor · Farmington, NM · Member since 2017 · 50 posts · 28 votes
8y
@Louie Pullen 98% RE and 2% SDIRA (but it owns RE) :)
2 Reply
Dave G.
Investor · Phoenix, AZ · Member since 2016 · 349 posts · 418 votes
8y
40% RE, 55% equities, 5% cash.
For about 4 years now I've focused all new investment capital deployment on RE (other than maxed out 401K contributions).
Agree with @Christopher Leon that "Wealth Advisors" probably make no money (except maybe in some unique management arrangements) on a client investing in real estate. So it doesn't surprise me one bit the slimy financial services industry pooh-poohing RE as a lowly "alternative investment." If I ever hire a financial advisor, the only way I'm going to trust one is with hourly compensation which completely insulates the advice from conflict of interest sales commissions.
3 Reply
Brandi Petermann
Member since 2018 · 4 posts · 8 votes
8y
If everything goes according to plan for the next 16ish years I will end up at 45% RE and 55% in Roth IRA and 401k and no debt except whatever is left on the loan for my primary home. At that point I will be 45 years old and drop to part time and the real estate will be paying all my expenses and I can use my job income to travel and invest however I feel comfortable by that point.
But to answer the question, currently I'm at 0% RE (unless you count the house I live in but I bought it 2 years ago with like 7% down so there is not much equity there). I'm still in the learning stage :(
2 Reply
Jerimy Justice
Flipper/Rehabber · Lakeland FL · Member since 2018 · 18 posts · 11 votes
8y
I'm currently at around 60% of my Networth in RE. Which is strictly SFH rentals. I'm currently at 37% Cash & Indexes. Misc is 3%.
1 Reply
Hai Loc
Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
8y
@Louie Pullen 95% But this will be changing over time.. I intend to stay at about 75% real estate.. majority in multi family and development
1 Reply
Robert Raffalo
Rental Property Investor · Plantation, FL · Member since 2018 · 33 posts · 7 votes
8y
@Louie Pullen 5-10% RE, and that is the equity in my primary residence. The rest is equities, 401k, etc. I’m a newbie to RE to try and diversify. Would like to get to 35-40% RE over the next 2-3 years, but need to find deals first. I will not over-pay just to increase my RE percentage. Numbers need to work. Although, I’m willing to do some turnkey to get started and therefore concede on the “forced equity”. I will also give up some cash flow to property management. If anyone knows a good property manager or two in the Jacksonville,FL area I would appreciate any referrals you may provide. Thank you
0 Reply
Steve K.
Honolulu, HI · Member since 2017 · 247 posts · 315 votes
8y
50% cash (like almost exactly half, to the hundredth of a percent)
23.4% sfh
18.6% stock (only one, LOL)
8.1% syndication (office park, MFH, raw land, self-storage)
so 31.5% is RE
1 Reply
Matthew McNeil
Rental Property Investor · Boise/Portland · Member since 2017 · 709 posts · 742 votes
8y
75% RE - 20% Stocks - 4% Cash - 1% coffee fund
1 Reply
Victor G.
Contractor · San Diego, CA · Member since 2018 · 55 posts · 17 votes
8y
@Louie Pullen 35 % real estate. (slowly increasIng) 65% equities/cash (slowly decreasing)
0 Reply
Tyler Weaver
Investor · Cincinnati, OH · Member since 2008 · 319 posts · 243 votes
8y
Idk, 5% RE, 95% my future earnings potential.
But in a more traditional sense, 100% RE. Maybe 20% long term rentals, 80% in single family development. Slowly working on flipping that ratio.
0 Reply
Omar Khan
Rental Property Investor · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
8y
Originally posted by @Christopher Leon:
@Louie Pullen I’ve never met a wealthy wealth advisor/ financial planner. The cynical side of me also thinks they tell you no more than 10% in RE or whatever because they don’t earn fees on you buying property! They want you to buy their products, it’s real simple. Don’t forget, they are in a FOR-profit business. In answer to your question, 100%.
You must be hanging out with the wrong crowd ;)
I can introduce you to a ton of ultra wealthy wealth advisors but sadly, no financial planners. It's not that hard when you take 1-1.5% AUM fee and have a couple of hundred million AUM. Btw, a couple of hundred million AUM doesn't even bring you into the top 20 wealth advisors in most states.
Although, I do have to admit most are not worth the time, effort or headache especially as investors are educated and realize that most advisors don't have any "special sauce".
2 Reply

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