All Forum Posts by: Jessica Wood

Or, if you keep it as cash, and you don't invest in real estate and inflation hits like in Venezuela, cash gets used up pretty quickly. Here's Today's Price for a Roll of Toilet Paper in Venezuela. Real estate is one form of protection against inflation. Stocks are not. The Hedge Funds, Big Money, will sell their Stocks before you as a little guy can even get your call into the broker. That why they call them brokers. They just make you broke(r). "On a long enough timeline the survival rate for everyone drops to zero."

No I am not.

If you have say 1 million in stocks and bonds.. you can go to your stock broker and request a loan against those.. the big investment bankers do these all the time.. my clients have used Mellon for this funding.  you pledge your securities and they lend you 50% so you would get a 500k loan at a rate that is lower than anything on the market.  back in the super low interest rate days my clients were getting loans at 2.5 to 3.% interest your then free to use that cash in any way you wish.. 

Portfolio loans in rental real estate context are usually done by insurance companies  Corevest  Coloney 

are you alluding to pledging securities instead of the real estate then own the real estate free and clear.. this is a very well used method for high net worth folks.. they borrow at libor or under from Mellon bank or one of the big boys.. pledge their securities they get an advance of 50% on the securities then use that cash to invest in real estate. at the absolute lowest rates possible for borrowed funds.

I would probably allocate X amount to RE and the rest in a solid mix of paper assets. 

Crowdsteet is a platform that lists syndication opportunities but they also do a lot of due dillegence on syndicators as well . There are many syndicators active here on BP as well.

Active real estate wise I’d say flipping or new construction will give you the highest returns . Finding property that is not being used to its best and highest use . Getting property rezoned etc

This seems to be where the big money is but of course it’s more complicated .

Cash can buy what banks won't lend on because of too many repairs needed or an 'odd' property you can make standard with massive ROI value adds. This limits competition and brings the sellers to you.

Also my last cash buy had a 2 day delay in closing, oh well, and costed $471 in total closing costs.  A loan would have costed at least $4kand the delay would have caused a dominoe of problemx.  $4k in savings sounds like a little more freedom to me!

if its just a property on the MLS that banks will lend on anyway, you're not maximizing the real power of cash.

 Assess your sophistication level in all things financial and then talk with a good CPA or financial advisor do not take advice on the internet LOL  that would be one thing for someone with a million in cash to consider.

Real estate is simply one of many options to invest in.. 

AS you came to BP for advice it will be slanted towards buying rental real estate which is fine if you truly are up for being a landlord.. not all folks are.. 

although with a million in cash you certainly could look at investment grade real estate not low end rentals.

also there are some great syndicators out there were you could spread your funds around in their deals.. but choosing the syndicator wisely is mission number one.. you could simply invest in REits that are publicly traded gives you instant liquidity.. 

but do get some advice if your not an experience property owner or income producing property owner.. Lots of well meaning folks on BP but again there is a bias and slant to landlording..