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Updated about 7 years ago on . Most recent reply

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James Krahula
  • Dallas, TX
5
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52
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Stock Market & Real Estate Investing Case Study

James Krahula
  • Dallas, TX
Posted

After a great discussion on the strategy of investing in the stock market to help fund future real estate investments, I have decided to implement this strategy for me and I plan to document my journey with everyone here.

The strategy is simple enough. Instead of saving down payment money in a checking or savings account, take that money and invest it (in my case, that will be 66% VTI, 26% VWO, and 8% VEA ETFs). Then when the account value is enough to purchase a investment property, liquidate the holdings and purchase the property. Start the cycle over.

Yes, this would be considered a very high risk investing strategy in this community, or anywhere honestly. Truth be told, I have had just as many people tell me the same thing about the risks of investing in real estate and to just stick to the stock market. It all depends on a persons risk/comfort level. I believe after crunching the numbers that in the long term (even with the ups and downs in the market), this strategy will have me much further ahead than keeping them in my savings account that yields (currently) 1.49%.

So, please ask me any questions you may have, give words of advice, words of caution, etc. I will be documenting this entire strategy from the start (I will also be using current savings account data each month because I will still keep my emergency fund in that account), and hopefully provide very detailed numbers of this strategy in practice.

Thanks to everyone who provided their input in the original discussion and who helped with numbers! Some of you will be right and some of you will be wrong, let's find out together!

Most Popular Reply

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13,365
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Joe Villeneuve
Pro Member
#4 All Forums Contributor
  • Plymouth, MI
19,402
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13,365
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Joe Villeneuve
Pro Member
#4 All Forums Contributor
  • Plymouth, MI
Replied

It amazes me when people define REI investing as risky, then invest in the Stock Market...I assume because they think it isn't?

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