Updated 12 months ago on . Most recent reply
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How Heavy Is Your Wealth Tilted Toward Real Estate?
#1 Creative Real Estate Financing Contributor
- Lender
- The Woodlands, TX
How heavy is your wealth tilted to real estate?
I’ve been thinking about this lately. About 80% of my net worth is invested in real estate, real estate syndications, real estate notes or REITs. Now that I’m in my early 70s, I think that’s TOO MUCH concentration. I’m going to begin moving to a 60% real estate concentration.
Wondering how others have their investments structured. How heavy is real estate in YOUR portfolio?
- Don Konipol
Most Popular Reply
My current allocation consists of approximately 40% real estate, 40% equities (low cost ETFs and index funds), and 20% cash. While the cash allocation is somewhat high, it serves as a reserve for our rental properties and future real estate investments, held in a high-yield savings account. This amount fluctuates, typically peaking before a property purchase and then gradually decreasing as we rebuild reserves for the next opportunity. As our net worth grows, we aim to adjust this allocation to 45% real estate, 45% equities, and 10% cash.