/biz/ - Business & Finance

[Anonymous No.11942976]

Anyone here not a teenage brainlet who freaks out over their $500 investment in crypto every time the market moves?

I'm 32 years old and about to inherit a modest real estate portfolio. I currently have about 1.2MM worth of real estate to my name (was transferred to me a few years ago), and stand to inherit an additional 5.5MM. None of the properties have any liens or mortgages, so all generate income at around a 3% cap rate... which is not amazing, but all these condos are in popular US cities, so the value growth of the property itself is enough to offset lower cap rates.

So basically:
I have 1.2MM in properties that I can use to take out a HELOC at about 60-80% (according to some preliminary talks with loan brokers, they could just be trying to pull me in, 80% sounds high, but 50% is definitely doable with large banks such as BOA.
Every month I get about 2.5k net income which I use to live, and the property I live in is currently owned by my parents which I should inherit within 4-5 years. Worth about 1.4MM.

What should I do? I've been encouraged to continue buying properties by taking out loans, and using rental income to pay off the mortgages and carrying costs... but I don't really feel like doing that. I feel like 6-7MM worth of real estate and passive income is enough, and instead of doing the same thing my parents did I should use this in a different way.

I'm also not comfortable with taking out massive loans since I think we're in a currency bubble, and thus an everything bubble. I'd much rather try to use passive income and my sizable savings (about 350k, mostly from crypto last year, also own about 40k in stocks, still have 50k in crypto after this crash) to make a move. Any suggestions Biz? I'm home for the holidays in the boring town I grew up in so I will be here all night.

[Anonymous No.11943005]

>condos

Yikes dude sell that shit asap while the market is decent and buy ETH

[Anonymous No.11943031]

>>11943005
>selling tangible assets that will always be in demand which passively generate great income/month to buy a scam coin that will go to zero which was created by a heroine addicted child molester

ok

[Anonymous No.11943058]

>>11943031
sell everything and buy link, you tangible retard

[Anonymous No.11943070]

>>11942976
fuck loans, travel the world and enjoy your money

[Anonymous No.11943074]

>>11942976
>passive income

who handles all the property maintenance and day-to-day affairs?

[Anonymous No.11943093]

>>11942976
>was transferred to me a few years ago

you lost all credibility there, you fucking loser inhericuck. You are not a valuable person, and all you do is leech of your predecessor's success. Do your bloodline a healthy favor and proceed to neck

[Anonymous No.11943104]

>>11943093
jealous?

[Anonymous No.11943110]

>>11943031
ahh geez... I just know you're not going to make it, even by all accounts you've made it through no fault of your own

[Anonymous No.11943111]

>>11943058
maybe I'll buy link when it goes to zero. seems like a good time to invest then.

>>11943070
I've traveled the world. World's boring. People are the same everywhere, globalization has already ruined most first/second world cultures, you can buy anything from anywhere in the world and have it shipped to your doorstep (so you can't even really find unique gifts anymore), and if you go to third world shit holes like Africa you will be BLOWN AWAY by how retarded niggers are.

Japan is a special country and different than anything I've been to because of it's strong culture and ethnic homogeneity, would recommend that, Greece for the beautiful islands and beaches, and Italy if you have a time machine and could go 10 years ago.

[Anonymous No.11943141]

>>11943104
No, just seething at this massive faggot. OP is the biggest fag on this board, no doubt. Humble bragging prick, you're supposed to be 90% down for ATH like the rest of us

[Anonymous No.11943147]

>>11943074
I handle management for most of them, but I have a property manager for two properties that are on the opposite coast.

We only bought high end condos that were in good condition and recently renovated, so that's not a crazy amount of work to do and I've been lucky with tenants.

>>11943093
Most people who are wealthy inherited some degree of their wealth. It takes a life time to accumulate wealth and some never manage to do it. It's just how life works, I don't feel bad about it anymore.

[Anonymous No.11943152]

>>11943031
Condos are absolutely retarded investments that are about to nose dive into Oblivion

[Anonymous No.11943185]

>>11943152
incorrect, condos in nice parts of major cities are THE WAY to go.

Properties with land can be a hassle, and you can end up with major costs to maintain shit like roofs and garages.

[Anonymous No.11943270]

What stocks do you own?

[Anonymous No.11943295]

>>11943270
75% in on Tencent, rest are in FAANG which got me rekt

[Anonymous No.11943362]

>>11942976
>I've been encouraged to continue buying properties by taking out loans, and using rental income to pay off the mortgages and carrying costs... but I don't really feel like doing that. I feel like 6-7MM worth of real estate and passive income is enough, and instead of doing the same thing my parents did I should use this in a different way.
I'm in a similar boat (although my parents' fortune is much more significant). Real estate is a dead meme in 2018+. Boomers got rich off it in the 80s-90s before the internet and globalization. Now REITs took over everything.

Your best bet is simply to maintain the boomer wealth rather than trying to flip it into more. You don't want to become a poorfag, do you?

Just sell everything, start renting instead of homeowning, and put all the money in a boomer index funds and dividend aristocrats. Crypto gamble with the stock dividends and proceeds from the side hustles you do.

[Anonymous No.11943389]

>>11943362
nice larp kys.

[Anonymous No.11943409]

>>11943389
literally not larping. why is it so unbelievable that someone on 4channel could have richer parents than yours? I didn't earn it. In earnest I'm just as much a loser as everyone else here.

[Anonymous No.11943433]

>>11942976
So you got properties worth 1.2M, paid off, but they only make 2.5k net per month. Honestly, something doesn't add up, the ROI is nonexistent.

[Anonymous No.11943435]

>>11943093
>you fucking loser inhericuck. You are not a valuable person, and all you do is leech of your predecessor's success. Do your bloodline a healthy favor and proceed to neck
seething poorfag

what if you achieve your goal, "make it", get rich, and have kids--what would you do with the money you earned when you die? give it to niggers in Africa? let the government divvy it up to niggers in your country? let your wife have all the money so she can waste it with her new boyfriend after you die? or give it to your flesh and blood.

you can't be against inheritance unless you have given up all hope of success and have become a full on Marxist.

[Anonymous No.11943437]

>>11943435
Obligatory

[Anonymous No.11943453]

>>11943433
that's standard in most urban real estate markets, 2.5 cap rate. some places like LA are even lower. holding real estate is a really, really bad investment if you're looking for gains.

[Anonymous No.11943454]

>>11943409
Real estate has boomed more in the past 15 years than in the past 25 before that, if your family even had a small amount of properties you'd know that.

Also your advice is so retarded that I can't help but accuse you of larping.

[Anonymous No.11943477]

>>11943433
>>11943453
Yeah, I'd say 3% cap rate in popular US cities is decent. You should go for 5% but with taxes, hoa fees, maintenance, etc you lose some points.

The reason you buy in large popular cities is 1) you're able to sell quickly if you want because there is always demand 2) 5-10% increase a year is common

[Anonymous No.11943496]

>>11943454
>Real estate has boomed more in the past 15 years than in the past 25 before that, if your family even had a small amount of properties you'd know that.
didn't say the real estate market hasn't boomed. I said it's harder to get rich off it now.

back before the internet in 1991 my dad made 9 million in a year buying buildings from retards who didn't know what they were worth and flipping them. you can't do that today with the internet and the fact that deep pocketed institutional investors gobble up all the opportunities before you can find them.

[Anonymous No.11943548]

>>11943496
You said real estate was a dead meme, it's definitely not.

Also you're suggesting I sell off 6-7MM worth of real estate which will generate over 14k net income per month, pay enormous capital gains tax reducing asset value to 4MM in cash, taking 4MM in cash and putting it into index funds just in time for US fiat to collapse?

Sounds pretty fucking retarded bro

[Anonymous No.11943569]

>>11943548
>just in time for US fiat to collapse
if this happens, who's going to pay you rent?

your real estate will crash before index funds do.

[Anonymous No.11943593]

>>11943569
sure, but real estate will always recover unless there's literally an apocalypse on a Biblical scale.

Index funds however, won't.

[Anonymous No.11943601]

>>11943593
oh, and rich people will pay rent, which is why you want to own properties in mega costal cities.

[Anonymous No.11943623]

>>11943593
>real estate will recover
>index funds representing stakes in all business in the country, without whose successful operation no one could afford to pay rent for your shitty condos, will not recover
t. retard

[Anonymous No.11943666]

>>11943623
yeah hard to believe right? almost like people will always need a place to live, even if 80% of businesses die

[Anonymous No.11943690]

>>11943593

Do both retard. Never go all in one asset class especially when you have millions.

[Anonymous No.11943704]

>>11942976
>that humblebragging

[Anonymous No.11943709]

>>11943690
that's the point of this thread. I don't feel like diversifying into stocks and index funds. I'm looking for other options

[Anonymous No.11943761]

>>11943709

There aren’t really that many good options. You can buy unique cars, art, precious metal, start a business, etc but those all come with their own huge down sides. I would do a bit of each

[Anonymous No.11943790]

>>11943433
wow that really does not make sense I am from europe and my parents rent PART of $350k property for $2100 net profit monthly

[Anonymous No.11943792]

>>11942976
this has to be a larp
you've had this shit handed to you and now you want to make big decisions. These assets you own took years to put together. Youre just a young dumb owner and people are trying to take advantage of you. Just save your passive income until you are smart enough to buy with cash. You dont need the money lenders anymore.

[Anonymous No.11943795]

Tfw when also 32 but self made and reading about muh inheritance from some zero who starts by denigrating teenagers with little to invest

Some of you will make it - and it will feel good

[Anonymous No.11943805]

>>11943792
And real estate is borderline about to crash. Im actually selling properties right now.

[Anonymous No.11943858]

>>11942976
>$1.2mm in note free income property
>generates $2.5k of income a month
If you are in MO, I own an RE investment consulting and asset management company. The largest portfolio under my management consists of holdings quickly approaching 8-figures and is owned by two guys your age. I am 28, quickly expanding my own business while growing investor portfolios, and would be interested in getting in touch.
If you aren't in MO (or an adjacent state; I am growing) I recommend investing in some sort of asset/portfolio management and figuring out what it is that you really want to do. You are in a fortunate position, make the best of it. If you are into podcasts, I recommend the BiggerPockets Podcast. You may find that, with your resources, you would like to become a flipper, more involved investor, or something else. Hell, maybe you love trim carpentry and can make a modest or better income from doing that.

[Anonymous No.11943870]

>>11942976
>inherit...

[Anonymous No.11943893]

>>11943858
my point exactly

[Anonymous No.11943930]

>>11943070
absolutely blue pilled.
>>11943111
absolutely red pilled.
>>11943362
>start renting instead of homeowning
absolutely dumbpilled.