What % of your portfolio is in Real Estate??

[Estrogen Hostage]

I'm just curious here. I'm a young investor and I'm buying real estate because it's cheap right now. About 3/4 of my portfolio is in real estate, with the rest in mutual funds. I can't bring myself to buy stocks, and commodities are through the roof right now.

So how do you diversify? Real estate is risky too, although I think it's not risky if it's bought right.

[jfpen]

I'm just curious here. I'm a young investor and I'm buying real estate because it's cheap right now. About 3/4 of my portfolio is in real estate, with the rest in mutual funds. I can't bring myself to buy stocks, and commodities are through the roof right now.

So how do you diversify? Real estate is risky too, although I think it's not risky if it's bought right.

I can't tell you what the right thing to do is. However, I am currently:

60% CASH
25% Real Estate
7%   Stocks
7%   Precious Metals
1%   Currencies

[Estrogen Hostage]

I understand you're not offering advice!!

Does your % given for real estate represent an equity position or a total value of real estate owned?

[jfpen]

I understand you're not offering advice!!

Does your % given for real estate represent an equity position or a total value of real estate owned?

total value

[jmd_forest]

20% Real Estate (equity at a realistic market value for today)
80% Cash

[justin0419]

6.5% Mutual funds
93.5% RE (total value, about 43% equity in the RE)

Not a good mix, I know...  Costly divorce in 2004...started investing for retirement in 2006 and of course, that's taken a beating the last few years...bought first property in 2007 and went crazy with it from 2008 on...
Will work on the cash position, but wanted to get a bunch of properties while prices were good.
I suck at stocks..  If I could make money by clicking to buy/sell, I'd do that but I understand REI.

[rookieNYC]

%25 CASH..
%25 Mortgages..Hard Money Loans
%15 Real Estate
%35 High yielding Business leases

Having too much cash in an account is a bad thing..Meaning having an immense amount of cash in a account gets eaten up by inflation at the rate %3 a year..In these times there is too many high yiedling opps to sit on cash...The banks are taking the money we dont use and lend it out at much higher rates..I rather make that money...

*notice* I have %0 in stocks,equities,bond funds etc..I sold out of my entire portfolio and my wife's portfolio early in 2011...I could not rationally explain to myself why the market kept climbing..

I also will add having an immense amount of cash high and dry is better than exposing it to risk and loss..But at the same time the real estate market's tumble has made for ample oppurtunity to put some cash to work..Also age is a huge factor how someone has their assets allocated...Im 40 years old...If I was 65+ I would have a different allocation..

[Estrogen Hostage]

I am surprised by the amount of cash people here have. Is that because of fear in the market?

Mine is 65% SFH RE
25% tax deferred accounts in stocks
10% cash.

I know I need more cash in there.

[jmd_forest]

Yes, fear of the market is my reason for the high cash.  15% of my cash is in tax deferred accounts, the rest in "normal" cash accounts. This is my retirement nest egg. If I'm lucky I could need it for the next 40 years and I simply can't afford to throw it away at the market.

Per rookie's statements, cash can be eaten up by inflation but, in my experience, eaten much faster by a down market ... lost almost $100K from 401K accounts at the end of 2008 but was lucky enough to get out before the next big drop in early 2009.

At least with the real estate when I buy I KNOW I am buying much cheaper than the general public and can weather another market drop of at least 30% before losing money. Plus I make at least 10% COC returns on rental income.

[InvstrPaul]

I don't have much since I've only been saving in my IRA for a few years but I am soooooo glad I moved out of the mutual funds into a money market.  I lost about 12% this year but I would be down so much more if I had stayed in.  At this point I'm all about preserving what little capital I have.  Right now I'm trying to decide if I want to transfer to a cheap brokerage and invest in blue chips or mess with texas tax deeds.  Oh and I have around 10% in silver.

[Gold River]

Hi,

    Roughly as I have not defined a value for my business stock but I think this is close!

1% cash
1% currencies (Forex)
1% stock market
3% personal real estate
3% planes, trains and automobiles
15% physical gold
2% venture capital
7% business investment
8% coal mining
25% precious metals mining
5% equipment
3% land
7% hotels
7% office & retail
7% apartments
5% development

We are 23% or less LTV on our investment real estate! We hold cash reserves within our corporate businesses!


                         GR

[rookieNYC]

I also will add having an immense amount of cash high and dry is better than exposing it to risk and loss

jmd...

I do agree that exposure to risk is greater than inflation losses...In the same I dont believe equity markets are a proper investment vehichle for everyone...I feel that many of us such as myself were grown up around the stock market being the place to be ..I stopped feeling that way over the lost decade...I navigated it well and made money but the average investor did not fare as well..I have many friends who have lost their nest egg more than once in the market..

There is an old saying,the only thing scarier than investing is NOT investing...You and I and many here are well versed in the RE market and all that it entails...I much rather hold something that actually has intrinsic value (RE) vs something that doesnt (equities)...I dont believe I need anymore than 10 years worth of  cash stashed for bills...I much rather have a decent % of cash creating an income flow for me...Or that lump sum just gets slowly chipped away...

GR,
 Thats some breakdown....Good stuff...

[jmd_forest]

rookie:

I agree with your feelings regarding investing a decent % of cash to create an income flow; I feel the same way. I've chosen to invest in RE to produce that cash flow and would gladly purchase more properties of I could only find more properties that meet my criteria.

[allagash]

I've chosen to invest in RE to produce that cash flow and would gladly purchase more properties of I could only find more properties that meet my criteria.

Jmd,

How do you find the properties that meet your criteria?

Have you implemented a plan (similar to what fdjake uses).....so that you're one on one with a seller without use of MLS retail?

-Mike

[allagash]

We are 23% or less LTV on our investment real estate!

GR,

What means do you employ to achieve that?

Thank you,
-Mike