Whats percentage of your net worth is in RE ?

52 Replies

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 :)

@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%.

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.

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.

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.

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

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.

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 :( 

@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

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

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.

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