All Forum Posts by: Allen Masry

 More importantly, how much experience do you have with real estate?  Will you go it on your own, or would you hire a PM?  Where do you want to invest?  NJ?  Do you know the laws of the land? Some of NJ's laws are worse than NYC or Cali.

I doubt you'll make 11% with the S&P, but it is probably still your best bet. Making money in real estate requires experience and starting with no or little money makes you study harder.

As much as most of us probably wished for it, getting started with a lot of money in your pocket is a recipe for disaster: the temptation is to make the deal work by throwing money at it.

If you want to go into real estate go with a syndicator with a good track record. You will have to interview several. And maybe diversify a little, invest half in a low cost S&P500 fund like VOO and the split the rest across 2 or 3 syndications.

Do you want to be active or passive ? That's the first question as real estate is like another job and if you are upgrading properties it's like running a daycare. 

also what experience do you have? That also plays a major role in what to do.

end of day stocks and real estate over time provide the same return on average - so it is really based on the individual, their experience and desire

11%? You plan to outperform the experts that do it for a living?

Obviously you jam it all in the stock market for 11%. Heck, you should mortgage your home to the hilt, and borrow every single dollar you can at 6-7% and crush it on the arbitrage. Heck. Sell your car and get a loan on a new car. Use that sales money to buy more stock. 

In 6 years you’ll have $1m, in 12 years $2M, and you can withdraw $220k/yr. Forever. You’re set. 

 Or. if you can’t wait that long. Invest for 6 years and then you can withdraw $110k/yr forever. I don’t see any real estate competing with that.  Especially after capex, vacancy, management fees, etc etc.