All Forum Posts by: Kylie A.

Quote from @Kylie A.:

To all the millionaires out there, where do you think is the best place to put your money to let it grow while still being able to pull it out when needed? Personally, I prefer being able to access my money without penalties since it's mine. Do you favor a Roth IRA, high-yield savings account, or life insurance as an investment tool? How do you balance growth and liquidity?

Soft currency, hard currency, it’s equivalents and commodities (natural resources)
From there, For local economy cash flow (spending money where you live), you’ll probably get into real estate and local business cash flow activities and it’s deviations 

Nothing has changed for us. When we get leads I send my cash buyer to the property and tell him "do what you want, I want a $50K assignment fee), they make the offer, sign the contract close, and they pay me my fee!

Let them come up with any laws all day. They can;t touch my Wholesaling method.

We get the biggest and best deals and leads, so any buyer wouldn't think 2ce screwing me over.

Done!

I ran a nonprofit for about 5 years and have been part of creating several others. The paperwork isn't too bad, at least here in Texas. Once you have your directors and can clearly articulate your mission, you can create one relatively easily through LegalZoom. Cost will be around $600. After incorporating you'll want to then file for a tax exemption with the IRS. On an annual basis, the administration is mostly meeting minutes, resolutions, and annual filing of your 990, most of which can be outsourced depending on your budget. Happy to answer any specific questions.

Yes, I feel that directly owned single-family rentals are really a business and not a passive investment.

There are a lot of things that can be done to automate it like taking rent over the Internet, using Zillow and other apps to bring in new potential renters, etc

But others require manual labor. And a property manager is expensive and profit margins on rentals are fairly small. That’s especially the case of someone holding a mortgage. And the manager is not financially aligned (and in my opinion, doesn’t do as good a job of screening tenants, etc., as I can). Others will disagree with this and think that hiring a property manager is fine.

To answer your other question: yes I do diversify into a lot of different asset classes. I have my public market portfolio, which is the usual stocks and bonds, etc. And on the alternative investment side, I have real estate, private equity, venture capital, GP Stakes, music royalties, litigation finance, etc.

I don’t feel comfortable, sharing my portfolio amounts etc on the public Internet.

If you want to hear how they’ve done, you can private message me and I’ll send you more info.

Quote from @Kylie A.:

Has anyone here invested in real estate crowdfunding? If so, what were your initial investment, return, and overall thoughts on the experience? I'm planning to invest in real estate crowdfunding instead of stocks in the near future.

Crowdfunding is essentially old-school syndications that use newer regulations that allow them to market over the Internet. And I have a 7 figure portfolio invested in both direct real estate (via residential rentals) and syndication/crowdfunding passive investments (because I feel both have their strengths and weaknesses and I want both in my portfolio).

To backup a second: You can find virtually every type of real-estate investment strategy ( core, core plus, value-added , opportunistic) and asset type ( multifamily , self storage, office, mobile home parks etc.) via syndication/crowdfunding. and you can find an almost unlimited variation on risk ( from low to high leverage, both floating and fixed rate debt, from no to high skin in the game, etc). And there are sponsors that have survived multiple cycles with little to no money lost and sponsors that are brand-new (and everyone in between)

So these all come with a wide range of projected returns, actual returns and experiences. So there is no single projected return, no single actual return, no single experience (and it instead is a huge variety).

I feel one of the main advantages of passive investments (via syndication/crowdfunding) is that I can hire a manager who has years more experience than I can ever hope to obtain myself. And once I finish the due diligence, my work is done: it's completely passive. Also, rather than taking a large amount of money and investing into one single directly owned property, I can split it up into much smaller chunks across many different passive investments. This gives much better diversification protection across geographies, asset types, strategies, investment subclasses etc. versus putting all the eggs into one basket.

The downside is that it's not for everyone, and a person has to be comfortable with turning over control to someone else. That means learning how to vet a manager. Not everyone has the time and ability to do that and not everyone feels comfortable turning over control. So I feel it's not a fit for everyone. Also there is a management fee to pay for all of the above. So someone who is looking purely to maximize potential return (and has unlimited time) is unlikely to find this a good fit.

Quote from @Kylie A.:

Quote from @Henry Clark:

OP looking at your previous posts you do wholesaling?  If you’re a millionaire liquidity is a small part of your investment strategy since the return is low.  Anything you do is fine since the objective is not higher return.  

 I like just be able to have cash and it not be stuck, yes I'm a wholesaler

I would approach this from a personal situation level.  How much cash?  How fast do you need it?  Why would you need it?  Don’t answer.  

A millionaire would have different approaches and answers probably.  

Example:  if a person had $10,000 in cash and that was 50% of their wealth they might do a money market account they can pull in 3 days.  If they had $200,000 in cash they might do a higher interest rate MM but have it tied to a loan to get a lower interest rate on the loan, but a higher return on the MM.  

Agree with what Jay outlined above.  1% is right around the going rate but things can fluctuate based on the specific deal, lender, capital available, etc... 

Happy to hop on a call and walk you through the process if you have questions.