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

Circumstance

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)?

Thanks!

    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. 

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

    @Grant Greeneundefined

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