All Forum Posts by: Everett E.

I've been talking to a friend about going in on a sweat equity deal together in a market I feel has a lot of potential in the near term. I'd put in the down payment and pay for materials and he would live in the home and remodel the house. After a few years, we would split the profits, defined as appreciation minus costs. I've never done something like this and am curious about the best way to structure it. Would I create an LLC for the property with an operating agreement? Would I just have him sign a lease with these stipulations in place?

As far as exit criteria, we'd hold onto the property one of us wanted out, in which case we'd sell the house or one of us would buy out the other. Any advice would be greatly appreciated.

I'm currently talking to a financial advisor with RBC Wealth Management that I met through the Bigger Pockets forums (Hi Dan, if you're reading this) about investing an inheritance from my grandfather in real estate syndications as a form of passive income. There is a 1% annual fee on the total investment, but he's telling me that the syndications they have access to have a proven record of bringing in mid teens. This significantly outperforms my original plan of investing a chunk of the money in Fundrise, but I wanted to get some second opinions. I know syndications carry an element of risk and it brings comfort knowing that the ones I'm using are being vetted by a professional, but are there benefits to doing this myself and not using a middle man? What are some things I should watch out for here? 

I really appreciate you guys being willing to share your collective wisdom with a novice like myself.

Any you would recommend?

What's your reasoning for predicting deals a year from now? Mortgages failing due to COVID?

 Thanks for double checking that.

 Thank you for the informative response and addressing the haters.

Thank you for the thoughtful response, those were some very helpful things to consider.

 Who hurt you?

I made a post about a year ago asking for advice on investing some inheritance money. My grandpa's estate turned out to be incredibly complex and still hasn't been distributed, but due to some other deaths in the family it looks like my share is going to be closer to $2.5 million (500k of which is ownership of a commercial bank building). I feel the investment climate has changed radically since my last post and wanted to get some advice on the safest places (diversification, I believe, is key) to park the remaining cash that would generate enough passive income to semi-retire (these recent deaths have left me emotionally and physically exhausted and I feel I need a year or two to recover on a beach somewhere). My rough math says that with smart investments, I should be able to get between $150k and $200k in passive income, which sounds very comfortable.

With all this government money printing, I feel like inflation is about to be a huge deal and that I should convert away from fiat currency ASAP. I'm currently thinking of the following breakdown:
600k in Fundrise (seems safe and low effort)
500k in a triple net commercial property in a growing neighborhood in Arizona currently housing a BMO bank
500k in a multiunit apartment complex deal with a friend and possibly including my brother who is also getting $2.5M
300k in one or more local single family homes, Airbnb or long term rental (I think my current market has a lot of room for growth)
200k in medium risk CrowdStreet investments
200k in gold
100k in cryptocurrencies
50k for higher risk investments
50k in cash

I feel like stocks are way overpriced at the moment, and don't feel attracted to bonds (though to be honest, I haven't done a lot of research on bonds). I've been investing in Fundrise for over a year now and am pretty impressed. I haven't tried CrowdStreet but it appears to offer some higher risk/higher reward options than Fundrise. 

I'm torn between wanting to be an active investor in my current area with my own properties vs letting other people manage my money. I have a local friend who already hosts Airbnbs that would be willing to add a few more to his portfolio for some commission, but that model also seems a little risky at present.

I know gold and Bitcoin don't provide any passive income, but I think they could be a good hedge against inflation. 

Anything I'm missing as a must? How might you rebalance this portfolio?

 Thanks, I was not aware of syndications, but I'll do some research.