The Risks- my financial advisor

[Deyano M.]

So folks...

Just wanted to see everyone's opinions on this. About 2 years ago my wife and I hired a financial advisor. He has been fantastic- we have some great retirement investments and are 200% better saving for the future now than before.

Only issue- he has been dead-set against any real estate investing. He feels that it is just too risky and continues to come up with "what ifs". His stance is that until we have a substantial "cushion" in the bank, we shouldn't even attempt it. For him, his cushion is around $40K. His attitude is very conservative in nature, so I'm not sure if it is just him or what.

Needless to say, I am pretty much going against his advice and aim aiming at a property purchase in the spring of 2007. I have done the logistical planning and some financial scenarios and it seems like a win/win here.

The project would last 8 weeks. If it went longer we can handle the carrying costs (which we also have estimated and can handle easily). It's a team of my wife, myself, and my Mother and our collective cash flow is substantial enough to carry the house no matter what- indefinitely it we had to. We have all agreed to rent it if it didn't sell in 6 months time- So...

I just don't understand why my advisor is so alarmed by this proposal...
I have read about plenty of people building up their funds- one project at a time until eventually they are an all cash buyer and it makes sense. Sure - it is risky, but isn't life risky in general? haaa

Any thoughts???

Thanks!