New to Real Estate · South Florida · Member since 2019 · 43 posts · 11 votes
Hello everyone, I am lucky to have a 500k after taxes inheritance to spend (I am 20 w 0 debt) I have done a lot of following with Grant Cardone, Graham Stephen, Meet Kevin and Matt McKeever. Right now I am currently looking for a type of personal mentor ship. I am going to two real estate conventions in my area this upcoming month. Does anyone have any tips for my first investment?
New to Real Estate · South Florida · Member since 2019 · 43 posts · 11 votes
6y
@Brent Paul
Hey Brent, I don’t mind bombardment. I am very socially aware and not easily fooled. I actually find enjoyment in people trying. I’m not sure of why you say not 100% in real estate. I do if you mean leaving no capital. But I believe 80% into real estate is certainly safer than 80% into stocks. Maybe not 80% with a financial plane though, that could work wonders.
Hey Brent, I don’t mind bombardment. I am very socially aware and not easily fooled. I actually find enjoyment in people trying. I’m not sure of why you say not 100% in real estate. I do if you mean leaving no capital. But I believe 80% into real estate is certainly safer than 80% into stocks. Maybe not 80% with a financial plane though, that could work wonders.
Real estate can crash much faster and generally has a longer recovery time than stocks. And with real estate when it is crashing no one wants to buy, so you can not sell. When stock crash you can still sell as its going down, if you want out. (Personally I stay in and buy more then.)
Real estate also has other variables such as hurricanes and earthquakes. FEMA does not really help with investment property. You can have a total loss and the specialized insurance is so costly most people do not have it.
Never put all your eggs in one basket. Real estates, stocks, bonds, mutual funds, CDs, all have a place in a balanced portfolio.
Financial Advisor · Blaine, MN · Member since 2014 · 477 posts · 387 votes
6y
@Robert Chambers be careful in evaluating Money Managers. There is a mountain of evidence that shows that active managers underperform simple index funds over the long term. Also, there is no evidence that a manager that has done well in a given time period will do well in the next time period. I do believe there are certain things you can do to do somewhat better than the market and reduce volatility (Overweight smaller companies, value companies, and companies with higher profitability), but this is NOT the way most money managers work. In general they attempt to pick winners and losers and time the market, which there is no evidence anyone can do successfully over long periods of time.
New to Real Estate · South Florida · Member since 2019 · 43 posts · 11 votes
6y
@Scott Jensen
Hey Scott!
Thanks for tapping in.
Yeah, I’ve been studying finance my whole life. I believe with my 500k, used semi correctly will keep me above average of my peers for my lifetime to come. I would much rather put my money in places and learn and gain experience even if I take some losses, because knowledge is everything in the world along with ambition and desire. I wouldn’t ever want to pay someone to manage my money. Only to track how big it’s getting 😎
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
6y
@Robert Chambers
That’s a good start. I’ve been to a convention on multi family investing and they did try to offer a class. It was like 40K glad I didn’t pull the trigger. That’s what people are referring to when they say don’t buy the class. Start small, 500K is a lot and it’s easy to spend quickly. House hack a small duplex and put the rest of the money away in an account. After a few months I’d utilize it more. People will drag you in all directions and sell you on anything. At 20 you are young as I am so be careful about being quick to react. Try going to local meetups and learning from veterans. The biggest thing is to start don’t learn and never do anything. Best of luck :)
New to Real Estate · South Florida · Member since 2019 · 43 posts · 11 votes
6y
@Caleb Brown
Hey Caleb, I appreciate the advice. I’m certainly not giving anyone 40k anytime soon unless it’s for a real asset 💪🏼. I have two local meetings coming up that I am excited to attend.