All Forum Posts by: Aaron Carroll

My wife and i are young dentists. In general we are very conservative. We make a nice combined income.... For a whole i have considered venturing into commercial and or residential real estate as investment vehicle and to diversify my portfolio.

I think real estate is a great way to diversify your portfolio. It constantly amazes me talking to financial advisers that can or will only tell you about stocks, bonds or mutual funds. Almost every adviser says diversifying is the way to go, but makes it a point to talk exclusively about stocks and bonds.

I like real estate because it offers good returns and can be quite tax advantaged. As young investors it would not be difficult to amass a decent portfolio of real estate that can be weighted toward income or accumulating wealth. Hard to get both though it is possible.

With a few exceptions(ie. buying and flipping) it is hard for me to undertand how buying for income and buying for wealth accumulation are mutually exclusive. Please help me understand. My thought process is that wealth is accumulated over a long time through factors such as asset appreciation, equity position, and INCOME. So to me an ideal wealth building asset also produces high income.

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Originally posted by Joel Owens:

Aaron just because a broker/agent can close a contract does not mean they know how to be a partner or an investor.

"My hesitation is that I don't know if they offer the same potential for high yielding returns, and I worry about the value of the property if the tenant, ie. chipotle, leaves at the end of 10 years."

I get this all the time from clients inquiring.My answer would be what kind of annual yield is acceptable to you??

If you are looking for 7 to 9% returns triple net can be great for you.My investors call it "mailbox money" and "set it and forget it".

Is triple net trouble free?? No

No investment is without risk.

In regards to your other question if the Chipolte leaves etc. you need a broker/agent that specializes and understands the value of land,location,traffic counts,the future of development trends etc.

Triple net locations if you buy right are easily re-rentable again in case of default.The buildings that are hard to rent are ones that if that tenant left the place would need to be restructured at a high cost to work again.

Think Sonic drive thru where the car pulls up,etc.

The other benefit of triple net is you can put less down because the lender sees less risk for a corporate rated tenant with strong financials.

You can drive more yield with multifamily BUT you will work very hard to get it.

In your case I would look at triple net.If you buy rentals and put the wrong manager in then it becomes YOUR problem.Your wife won't be happy and the INVESTMENT will become a core distraction from your main money earner.

You asked for our opinions and this is just mine.

lay it on . I appreciate the honest feedback! Definitely worth taking note of.

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Originally posted by Albert Hasson:

Aaron, I am an anesthesiologist and have been investing in RE for 12 years. It does add stress/complexity to your daily routine. I do it because I love it (I have the itch too). It is very important to have the support of your spouse, if she is against it you are in for a rough ride. Single family, especially when you have several, can be very time consuming. You might look into triple net commercial which is as close as you can get to stress free real estate investing.

I appreciate everyone's feedback! I am thinking seriously about triple net investments, especially single tenant as they seem like very solid investments which require little oversight and energy. My hesitation is that I don't know if they offer the same potential for high yielding returns, and I worry about the value of the property if the tenant, ie. chipotle, leaves at the end of 10 years.

A few people commented on the opportunity cost of investing in real estate when I could make more money in my own profession. This is true, and we have considered opening a second dental office, but the time and stress involved are significant, and one is enough. Our practice is in a medical center. My dad is one of the tenants and owns the center. One day we would love to purchase it, but more than likely it will be sold to one of the hospitals.

One thing I have been considering is trying to partner up with a local realtor, who also wants to invest. I figured I could structure it in such a way that I pay slightly more( maybe 52.5%/47.5%) for 50/50 ownership and he is responsible for management, oversight, renting, etc. Any thoughts?

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My wife and i are young dentists. In general we are very conservative. We make a nice combined income and after paying off our school loans and saving for retirement we have amassed a little over 100k in savings. For a whole i have considered venturing into commercial and or residential real estate as investment vehicle and to diversify my portfolio. Most recently i am working with a residential realtor and considerig a single family rental house of under 100k(i would only put 20% down). My wife thinks i am crazy. She tellls me that i alreay work hard enough. Why put more on my plate that is going to return relatively little, she says. I inderstand where she is coming from but I have an itch to invest. What do people think?

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All Forum Posts by: Aaron Carroll

Aaron Carroll has started 1 posts and replied 4 times.

Post: 100k siting in bank. Considering real estate

Post: 100k siting in bank. Considering real estate

Post: 100k siting in bank. Considering real estate

Post: 100k siting in bank. Considering real estate