Building a portfolio advice?

Question

I have a client that owns two duplex properties free and clear. What advice would you give them to scale?

Thank you!

Kerry Noble Jr · Answer

I agree! Its 2 type of people in the world......people from the Ramsey School and People from the Kiyosaki school. Everyone is different

Account Closed · Answer

The three obvious choices are 1) refinance and use equity for other investments, 2) sell one, 1031 exchange it into a better investment opportunity, and 3) hold them and continue to collect a check every 1st. It all depends on their financial goals and situation, personal goals, etc. You know this better than us... but two duplexes full of equity leave a lot of opportunities to be had.

Jaron Walling · Answer

@Edgar Alviter Really need to understand there background, age, and comfort with leverage. Not everyone wants to scale, pull LOC, and leverage at a faster pace. If these properties are located in Austin your client could be sitting on a million in equity? Maybe they want to pass these down to family (stepped-by basis, tax free)? The answers to these questions will show you how to scale there business, or not.

Chris Seveney · Answer

Be smart and do not over leverage. Some people do not like debt and some are ok with it, you need to understand your client and how they want to scale in order to give good advice. What works for one person does not work for all

Aaron Gordy · Answer

As the others have said it really depends upon risk tolerance and their interests. On the surface without knowing anything more they have two choices. One: refi and buy more. Two: sell with a 1031 exchange and buy a bunch more. They could go on a massive buying spree if sfh purchases. Or they could buy a small apartment building or retail. They have plenty of options.

Upen Patel · Answer

What is their risk tolerance? Right now, not to bad to scale if you are potentially careful. Need a few more tibits of information to really help. Can you elaborate?

Building a portfolio advice?

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