Newbie - Analysis to Paralysis

[Marty Joyner]

Hi Everyone,

My wife and I are both about 10 years from retirement and looking for passive income streams through REI. We are both full-time employees (20 and 29 years at our jobs) and have some reasonably successful event side-businesses.

We have been doing our research but have hit some roadblocks with regards to our initial investment.  We live in the DC area which makes takes several options off of the table.  I am from the Baltimore area and know the city well.  I also am very familiar with Ocean City, MD.

We have narrowed down the following options:

1. Buy and Hold Rentals in Baltimore County

2. Buy and Hold Vacation Rentals in OC, MD

3. Crowdfunding through RealtyShares

The bottom line is we are reasonably well capitalized and have about 200k to work with but do not have a great deal of time other than my summers off as a teacher.  We have been analyzing and over-analyzing to the point of paralysis.

Any guidance??

Thx!!

[Mark Robertson]

@Arpan Patel  wanted to clarify what you wrote about RealtyShares:

"3) Invest in Realty shares where you are relying on people you don't know to safeguard your capital and hedge you risk for a passive return and very little time. The opportunity is defined, there are no other advantages such as tax deference or depreciation, and it relies on two parties you are not familiar with - namely the underwriters of RealtyShares and the investor who they deem lending worthy with your funds. However it takes the least time and you can always do your own research on a property they suggest because they provide you with the information you need to make a decision for yourself."

RealtyShares like many of the other Crowdfunding sites offers equity investments that do have the full advantage of tax deference and depreciation. They are simple online syndication.  I've invested in close to 100 crowdfunding deals and my average cash on cash return is 10%, the projected IRR is about 20%. Of the 4 deals that have gone full cycle, my IRR is 25%. My taxable income has been about 50% of my distributions. (about 50% tax deferred.) The long term capital gain will be taxed at 20% and the depreciation recapture at 25%.   All much better than 39% at the top bracket.