90% of Net-Worth in Real Estate, now what?

[Jonathan Bombaci]

Hi Everyone,

We grew our portfolio and networth very rapidly through real estate over the last 3 years. I woke up in a cold sweat a few weeks ago when I realized 90% of our current networth is wrapped up in real estate or real estate related businesses. I spent 10 years in corporate finance before getting into real estate and quick math confirmed 89.6% of our networth was indeed in real estate. The other 10.4% is in stocks (index funds), retirement accounts (mostly index funds), and cash. 

Let me be clear, I still believe real estate is the BEST place for my money however a 90/10 split seems like unnecessary risk. I’m planning to sell/refinance some properties and reduce the split to 70/30 by 6/1/22.

My problem, and where I’m looking for advice, is where should I put the other 20% of my net worth when I pull it out of real estate? 

I don’t want to hold too much cash and I know anything I invest in won’t be as sexy as real estate. I’m not comfortable with crypto and hoarding gold seems silly to me but I’m here looking for advice so I’m open to any knowledge people are willing to share. 

What’s safer than real estate, or maybe what responds inversely to real estate, where the returns don’t suck? 

Best,

Jon