Real Estate Investing

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
impartial_truth
Posts: 10
Joined: Sat Oct 30, 2021 12:43 pm

Real Estate Investing

Post by impartial_truth »

Hello everyone and happy holidays!

I am thinking about investing in real estate however I don't know where to begin. I am debt free, with about $10K emergency fund. I have my retirement accounts locked and loaded in good mutual funds and a paid for home. I want to diversify my portfolio by investing in real estate and farmland however Im not sure where to get started. I've heard some things about a Delaware Statutory Trust however Im not sure exactly how that works. Does anyone have some advice for someone who wants to invest in real estate? Are there any good books for real estate investing? Thank you!
Topic Author
impartial_truth
Posts: 10
Joined: Sat Oct 30, 2021 12:43 pm

Re: Real Estate Investing

Post by impartial_truth »

Because I hear that there are good returns in real estate..and it will add variety to my overall portfolio. I didnt know much about the stock market when I began investing in stocks, and now I believe I know a good amount about stock market investing. But now I want to build a diversified real estate portfolio however Im not quite sure yet how to go about that.
User avatar
willthrill81
Posts: 32250
Joined: Thu Jan 26, 2017 2:17 pm
Location: USA
Contact:

Re: Real Estate Investing

Post by willthrill81 »

Read this post on the topic. It was written by a resident BH, Dr. Jim Dahle, and is a great resource for a beginning real estate investor.
The Sensible Steward
SashaWalpole
Posts: 46
Joined: Thu Nov 07, 2019 2:17 pm

Re: Real Estate Investing

Post by SashaWalpole »

There are many different ways to invest in real estate ranging from very passive to very active, and i'm not really sure what specifically you're interested in. In terms of general information, i'd always recommend Brandon Turner's books "The book on rental property investing" and "the book on managing rental properties", and i recommend Biggerpockets.com as a resource.
retire2022
Posts: 3285
Joined: Tue Oct 02, 2018 6:10 pm
Location: NYC

Re: Real Estate Investing

Post by retire2022 »

impartial_truth wrote: Fri Nov 26, 2021 5:14 pm Because I hear that there are good returns in real estate..and it will add variety to my overall portfolio. I didnt know much about the stock market when I began investing in stocks, and now I believe I know a good amount about stock market investing. But now I want to build a diversified real estate portfolio however Im not quite sure yet how to go about that.
I spent 34 years as a building manager and government regulator in housing and I can honestly tell you passive index investing is easier.

My 2.7 million portfolio built over 34 years with cost basis of approx 600k, required no tenants to talk to.

see this long thread for pointers:

viewtopic.php?f=10&t=362343&sid=d69af26 ... d522c54e22
User avatar
LadyGeek
Site Admin
Posts: 95466
Joined: Sat Dec 20, 2008 4:34 pm
Location: Philadelphia
Contact:

Re: Real Estate Investing

Post by LadyGeek »

I removed an off-topic post. As a reminder, see: General Etiquette
We expect this forum to be a place where people can feel comfortable asking questions and where debates and discussions are conducted in civil tones.

...At all times we must conduct ourselves in a respectful manner to other posters. Attacks on individuals, insults, name calling, trolling, baiting or other attempts to sow dissension are not acceptable.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.
Topic Author
impartial_truth
Posts: 10
Joined: Sat Oct 30, 2021 12:43 pm

Re: Real Estate Investing

Post by impartial_truth »

retire2022 wrote: Fri Nov 26, 2021 7:11 pm
impartial_truth wrote: Fri Nov 26, 2021 5:14 pm Because I hear that there are good returns in real estate..and it will add variety to my overall portfolio. I didnt know much about the stock market when I began investing in stocks, and now I believe I know a good amount about stock market investing. But now I want to build a diversified real estate portfolio however Im not quite sure yet how to go about that.
I spent 34 years as a building manager and government regulator in housing and I can honestly tell you passive index investing is easier.

My 2.7 million portfolio built over 34 years with cost basis of approx 600k, required no tenants to talk to.

see this long thread for pointers:

viewtopic.php?f=10&t=362343&sid=d69af26 ... d522c54e22
I use actively managed mutual funds in my retirement accounts and an S&P 500 Index fund in my non-retirement account. I want to build a real estate portfolio for fixed-income. I am looking for some advice on how to build a diversified real estate portfolio.

Equities - Mutual Fund Portfolio
401k - Vanguard Institutional Index

Roth IRA:
25% Growth and income
25% Growth
25% Aggressive Growth
25% International

Fixed-Income - Real Estate Portfolio
Residential
Commercial
Farmland

Cash Reserves
Vanguard 500 Index - used for real estate purchases
Vanguard Treasury Money Market
Last edited by impartial_truth on Fri Nov 26, 2021 10:29 pm, edited 1 time in total.
retire2022
Posts: 3285
Joined: Tue Oct 02, 2018 6:10 pm
Location: NYC

Re: Real Estate Investing

Post by retire2022 »

impartial_truth wrote: Fri Nov 26, 2021 10:24 pm I want to build a real estate portfolio for fixed-income. I am looking for some advice on how to build a diversified real estate portfolio.
viewtopic.php?f=10&t=362343&sid=d69af26 ... d522c54e22

read long thread above
User avatar
JoeRetire
Posts: 15381
Joined: Tue Jan 16, 2018 1:44 pm

Re: Real Estate Investing

Post by JoeRetire »

impartial_truth wrote: Fri Nov 26, 2021 4:58 pm Hello everyone and happy holidays!

I am thinking about investing in real estate however I don't know where to begin. I am debt free, with about $10K emergency fund. I have my retirement accounts locked and loaded in good mutual funds and a paid for home. I want to diversify my portfolio by investing in real estate and farmland however Im not sure where to get started. I've heard some things about a Delaware Statutory Trust however Im not sure exactly how that works. Does anyone have some advice for someone who wants to invest in real estate? Are there any good books for real estate investing? Thank you!
Apparently my original response was considered snarky, so it was removed and I was issued another board warning.

I apologize. It wasn't meant to be snarky or a criticism, but rather a warning. Hopefully, I can answer without any snark this time.

What I meant to say was that I wouldn't want to invest in something that I didn't understand. I worry about all the ads I see for "Learn how to make big money in real estate by taking my course" that can attract some folks. And I personally know a couple that decided to "invest" in a local house-flipper who took their money, flipped a number of houses somehow without generating a single dollar of "profit" and returned nothing to them.

I wish you well.
This isn't just my wallet. It's an organizer, a memory and an old friend.
User avatar
Sandtrap
Posts: 19582
Joined: Sat Nov 26, 2016 5:32 pm
Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.

Re: Real Estate Investing

Post by Sandtrap »

JoeRetire wrote: Sat Nov 27, 2021 7:07 am
impartial_truth wrote: Fri Nov 26, 2021 4:58 pm Hello everyone and happy holidays!

I am thinking about investing in real estate however I don't know where to begin. I am debt free, with about $10K emergency fund. I have my retirement accounts locked and loaded in good mutual funds and a paid for home. I want to diversify my portfolio by investing in real estate and farmland however Im not sure where to get started. I've heard some things about a Delaware Statutory Trust however Im not sure exactly how that works. Does anyone have some advice for someone who wants to invest in real estate? Are there any good books for real estate investing? Thank you!
Apparently my original response was considered snarky, so it was removed and I was issued another board warning.

I apologize. It wasn't meant to be snarky or a criticism, but rather a warning. Hopefully, I can answer without any snark this time.

What I meant to say was that I wouldn't want to invest in something that I didn't understand. I worry about all the ads I see for "Learn how to make big money in real estate by taking my course" that can attract some folks. And I personally know a couple that decided to "invest" in a local house-flipper who took their money, flipped a number of houses somehow without generating a single dollar of "profit" and returned nothing to them.

I wish you well.
Good points.
Well said.

Thanks.
j :D
Wiki Bogleheads Wiki: Everything You Need to Know
User avatar
Sandtrap
Posts: 19582
Joined: Sat Nov 26, 2016 5:32 pm
Location: Hawaii No Ka Oi - white sandy beaches, N. Arizona 1 mile high.

Re: Real Estate Investing

Post by Sandtrap »

willthrill81 wrote: Fri Nov 26, 2021 5:16 pm Read this post on the topic. It was written by a resident BH, Dr. Jim Dahle, and is a great resource for a beginning real estate investor.
Excellent write up and overview.

thanks!
j :D
Wiki Bogleheads Wiki: Everything You Need to Know
Flextruck
Posts: 71
Joined: Thu Dec 26, 2019 10:24 am

Re: Real Estate Investing

Post by Flextruck »

As a person who has dabbled in real estate, I would tell you to wait a bit before entering the market. It is a seller's market right now, prices are very high across the country. The latest RE surge floated all boats; meaning the large majority of people have made plenty of money on their holdings.

I have a single wide trailer on a double lot that I paid 44k for in 2014. We will sell in the near future for 110k. I also have an inherited rental property that my buyout was 15k to my sister. I can sell it tomorrow for 175k-200k. Probably the best example is my latest purchase in February of 2020. I paid 55k and it's now worth 110k...in less than 24 months.

Scour the your area for deals, price entry is CRITICAL!!
User avatar
Ralph Furley
Posts: 175
Joined: Fri Nov 29, 2019 9:42 am

Re: Real Estate Investing

Post by Ralph Furley »

If you're truly interested in investing in real estate, I suggest you enter an education period. The primary reason that I suggest this is that if you are investing directly in physical real estate (not a REIT, crowdfunded deal, etc.), you will likely be applying leverage. Leverage is powerful and can cut both ways. Educate yourself before you step into a leveraged investment.
Post Reply