All Forum Posts by: Seth M. Jones

@Mark S., with everything that I've read, I'm amazed that the exact approach that you just mentioned isn't touted more... Thank you for sharing

Powerful illustration with the 2003 apt building versus REIT example... Makes a powerful argument that I should scale my real estate portfolio as large as I can effectively manage prior to focusing too much on diversifying. Thank you for weighing in.

It sounds like we are working towards the very same goal, except we're working in different markets. I currently have 4 properties free and clear 1 leveraged... I'm much more conservative in my approach then many investors on BP, however I have the "slow and steady" mentality

@Cory O'Dell, love the approach... I've always thought about doing it the reverse way. Build a base with Real Estate, and establish a strong, reliable passive income stream then add in additional asset classes as I grow my wealth to further diversify and add truly passive income

@Scott Jensen thank you for your feedback. I definitely understand that it is a personal decision for everyone, and I've personally been feeling like I should have more of a 50/50 approach as opposed to real estate dominating my portfolio. 

@Dale K Poyser, great feedback as well, I've definitely identified my number which is $10,000 a month net. To your point, I'm at the point where I do feel the need to diversify my income streams somewhat, and have already added a REIT to mix, and am beginning to incorporate a balanced index fund approach via Vanguard.

I suppose I was looking for a bit more in terms of insights regarding specific allocations, and maybe I should have worded my question differently. I guess I should have asked, what asset allocations are working for you (beyond just real estate)?

For me, I have a rough plan of slowly building towards 35% Real Estate, 15% REIT, 40% Vanguard Balanced Index Funds and 10% Cash. Does anyone have any specific thoughts on that specific asset allocation? @Scott Trench (worth a shot)

@Kyle Mccaw, thank you for your perspective. Very interesting to hear a stock broker advocate so strongly for real estate. 

There are many schools of thought out there regarding asset allocation... There are hardcore Real Estate Investors that will only invest in Real Estate and hold cash reserves, and there is a substantial part of the FI (Financial Independence) community that advocates for Index Fund investing (a la J.L Collins' "Simple Path to Wealth"). Leaving alone the whole stocks vs. bonds discussion, I'm really curious what are some "seasoned" investors thoughts on holistic asset allocation?

Currently, my portfolio (net worth) is 85% Real Estate Equity, 10% Cash, 5% Stocks/Bonds. This is primarily due to a focus on aggressively growing my real estate portfolio in my 20's. Now into my 30's I feel compelled to rebalance a bit, though I'm really interested to hear what others have to say about asset allocation?

Specifically, what are your thoughts on the "ideal" (let's pretend one exists) asset allocation? Looking forward to hearing some thoughts. 

@Jeff S. I would not borrow to rebalance my portfolio... I have a high savings rate which allows me to save and invest at a high rate. I would just shift my focus from acquiring more properties to building a nest egg in a Vanguard Index fund... I'm curious Jeff, did you ever stop acquiring property? Was there a magic number of units/properties for you? Was it a monthly income number? 

There are many schools of thought out there regarding asset allocation... There are hardcore Real Estate Investors that will only invest in Real Estate and hold cash reserves, and there is a substantial part of the FI (Financial Independence) community that advocates for Index Fund investing (a la J.L Collins' "Simple Path to Wealth"). Leaving alone the whole stocks vs. bonds discussion, I'm really curious what are some "seasoned" investors thoughts on holistic asset allocation? 

Currently, my portfolio (net worth) is 85% Real Estate Equity, 10% Cash, 5% Stocks/Bonds. This is primarily due to a focus on aggressively growing my real estate portfolio in my 20's. Now into my 30's I feel compelled to rebalance a bit, though I'm really interested to hear what others have to say about asset allocation?

Specifically, what are your thoughts on the "ideal" (let's pretend one exists) asset allocation? Looking forward to hearing some thoughts. 

I'm a vet and a Mortgage Broker... VA financing is only available for primary residences, not for secondary or investment properties... additionally, you can't finance land with VA financing unless you find a lender who offers the relatively rare VA construction loan.

If you are looking to buy your first home to live in, then VA financing is nearly always the way to go... especially if you are a disabled vet (no VA funding fee). The primary benefit to using VA financing is that you get to put 0% down, and also not pay mortgage insurance (though most vets do pay a funding fee which is added to the loan). Rates on VA loans are great as well. I hope this helps :)