Investment strategy based on net worth and income

[Bishwash Aryal]

In deciding what strategy works for you in terms of real estate investment, I think your net worth and income has a significant impact.

If you need additional income to supplement and have less net worth, cash flow properties for cheap might work the best but for someone who does not need additional income gambling with appreciation might turn out beneficial. If you are not accredited and have less net worth would u still join syndication?

At what net worth and income would you choose one vs another strategy. I might get answers like you don’t need your net worth but can use other peoples money. if we skip that and just think as personal net worth and investment choices how would you prioritize ?

[Bryan Hancock]

Holdings and the respective asset allocation should be drive by an analysis of what is in the rest of the investor's portfolio along with their risk tolerance and goals.  Most real estate investing is NOT passive.  Even syndications demand time to vet sponsors and they generally require a significant amount of expertise to underwrite well, which most investors are not qualified to do properly.  

It's harder to figure out the covariance for closely-held assets like what is used in Modern Portfolio Theory:

https://www.investopedia.com/terms/m/modernportfoliotheory.asp

A bigger issue than the ones listed is general T-I-M-E.  Time is your most valuable asset if you're running your affairs properly.  Investing competes with time for your family, health, personal growth, less risky dollar for time trade at a lucrative and meaningful profession, leisure, etc.  Everyone gets the same 168 hours each week and this is the great equalizer.  You also don't know how long you'll live so if you continuously defer present-me for "spacesuit me" in the future you may be the richest person in the graveyard.  

Learn to balance physical, intellectual, emotional, spiritual, financial, and relational development; all at once.  Investing actively needs to be mindfully assessed against balance in the other key areas of life.  Your relationships and connectedness are what drives your long-term happiness so this needs to be imputed into any financial endeavor you undertake be it active or passive.   Do the holistic lifecycle cost analysis mindful of what you're trading off making one set of choices instead of another.