Diversifying from tech - direct vs syndicate vs CF

1 Reply

Team - 
I'm both new to this forum and relatively new to RE. I'd love to get your POV on my situation


I'm an early employee at a (now) large tech and have 8-figure NW in stocks & bonds. I don't have much (< 2%) in RE currently. 

I'm not making use of the low-interest rates available to build a RE portfolio.

In addition to liquid assets, I draw a highish salary and can potentially get access to high credit lines with low interest rates. I'm also open to pledging my liquid assets to access more credit (non-callable).

I'm okay with some rental unit managemnt work, but don't want to do it as a full-time job.

Ideal situation

The portfolio is

- Diversified into RE

- Uses safe leverage and low interest rates to maximize returns

- Provides cashflow to cover the interest payments / expenses

- Increases overall return vs. only stocks, bonds

- Uses my credit line fully (in a safe way). Credit line from (a) Salary (b) Credit score (c) Liquid assets

Question #1: Establishing a credit line on liquid assets

How do I use my liquid assets to establish a credit line? I've read that you can borrow against 50%+ of your assets at LIBOR + Spread; Interactive Brokers allows for this but it's a margin line that can be called (at the worst time)

How do you go about pledging assets to get a non-callable credit line for RE? Presumably, the lender can take both the RE + liquid assets as collateral.

Which banks offer that?

Question #2: Direct RE (+ manager) vs. Partnership vs. Syndicate vs. Crowd Funding

I've read a bit about the different ways of accessing RE. I want to play this game for the long-term and not looking for short-term returns.

My portfolio should benefit from appreciation, depreciation, tax-free cashing-out, leverage using low interest rates (from #1), cashflow to cover the expenses.

Syndicate & CF seem to be ruled out since I can't control the asset, cannot leverage it when I want to and there's no collateral on my investment.

What is a good way to start? Are there brokers who help find + manage rental properties under your title (w/ their commission)?


    Welcome to BiggerPockets! Truly nice to meet you. Good luck going forward! Hope the best for you going forward in 2020!!

    How wonderful to be in this situation. I would look up some of the lenders on BP to ask these question. I usually talk with @Grant Greene . He is a straight shooter. Or maybe a RE CPA. 

    Podcast: https://www.biggerpockets.com/podcast

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    @David Greene and @Brandon Turner has some good ones.

    @Grant Greeneundefined

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