A partner can help limit your risk exposure and can help with additional resources to scale to another property too.  

Price and Exposure.

I think both types of investments have advantages, and diversification helps with risk management.I'll admit, it's tough to complete a real estate deal and then spend the next few months quietly pouring a similar amount of money back into my portfolio... definitely feels a little boring at times.Your ratio is your choice, but I think it's good to think of it in terms of the relative advantages of each bucket and then manage accordingly:ETFs / Mutual Funds / Robo Advisors:- Diversified, by definition- International exposure- Higher liquidity- Very low overhead- Efficient + arbitrage opportunitiesReal Estate Investments:- Lower correlation with stock market in general (depends on your type, to be clear)- Typically higher income when compared with dividend payouts- Tax advantaged- Sweat equity, local knowledgeOn a personal note, I think that anyone who goes into real estate investment 100% should be doing it full-time.

In the end, if the amount of profit you are realizing is sufficient for you and justifies the risk/exposure you have in the deal, then it really doesn't matter what % anyone else is talking about.However, generally, you would calculate the ROI by dividing your profit by the cash you have involved in the deal.  

Schools are shutting down right and left from exposures.

Being around people with experience can give you the information, wisdom, and exposure you need.Maybe you can take some off and go out on a job or two with your friend with experience.

My wife and I are here in Nashville bringing her 10+ years in the local market now being the principle broker/agent for our own real estate company as well as myself coming from 15+ years of construction management.Looking to make local connections for strategies and exposure to a variety of real estate ventures from flips of any scope and size to long term holds of SFHs to multi-family/commercial properties.Thanks and we look forward to using BP and our local community to the fullest! 

@January JohnsonIf this 38K is a superior lien odds are the 2nd is going to bid enough to cover their exposure.

If you have projects that turn every 3 months the exposure isn't as bad as ramping up on projects that take 8 to 10 months to exit or years.If your track record is good you should have no problem lining up capital unless this was a local investor giving you way below market rates.

You will get the greatest market exposure and the highest price on the MLS.