All Forum Posts by: Daniel Sanchez

Howdy yall, I am curious to know what percentage of an individual's total portfolio should be allocated to real estate? I understand that real estate is viewed as one of the safest, most reliable asset classes but in the age of rapid technological evolution I feel that there are other opportunities that could out-perform while maintaining liquidity.

A little background about myself I am a 23 year old graduate student looking to aquire my first property later this year. 

Thanks!

I have had the same problem and given that every state has different protocols the best way of contacting the entity would be through the mail. Although it is an antiquated means of communication it is generally the best blanket approach to the problem. 

It seems that you are positioning yourself for great financial freedom. I commend you for that! As with all portfolios, diversification is the greatest bolster against general market risks so I would agree with not selling equity positions but still increasing exposure to real estate. In general, the best ROI is Multi-family due to the economies of scale.

 With the current economic backdrop, capitalizing on fixed low rates would be ideal as they are projected to rise in the coming months and years. Using leverage and cheap money is a huge advantage when you have the time horizon and significant downpayment. 

In terms of markets, there are tons of good markets but focus on those with resilient economies and growing populations. As you stated Texas and Florida are currently those growing the most within the US. 

The best way to save money is by paying yourself first. A certain amount (~20%) of your paycheck should go directly into a saving/investing account. In an ideal world, you deposit the maximum amount through a direct deposit style transfer. This takes decision-making and implements the element of delayed gratification.

As a realtor, being top of mind is one of the most important aspects of growing your business passively. Social media, paid and unpaid, can harness this effect. Additionally, as the saying goes 'Any publicity is good publicity.

Housing permits! (https://www.census.gov/constru..)! At the end of the day, real estate is supply and demand. Our population is growing, naturally and immigration, so it should be offset by an increase in supply. This is particularly important in states taking in large populations like Texas and Florida! https://www.census.gov/newsroo...

I was wondering if anyone had tips/tricks to investing in brand new construction. I am looking to invest and have been contemplating new construction. Here are my thoughts: 

Cons:

- The developer takes most of the margin (Expensive).

- Limited upside (no sweat-equity)

Pros:

- No improvements are needed.

- More longevity (Easier modeling of CAPEX)

- More lucrative/easier to rent.

Did I miss anything?

@Dan Guenther Concise yet meaningful advice. I will am currently applying myself in those categories. Proud but not satisfied!

@Justin Windham thanks for the heads-up. I have set some alerts to maximize my involvement in this forum. Looking forward to absorbing all the benefit of this ecosystem. 

@Julio Gonzalez I appreciate the warm welcome. I look forward to contributing to this noble cause.