Your friends have saved and built up an impressive portfolio, considering their age and jobs. Even if the properties are not very profitable, they still have a lot of equity that they can access. I suspect that they have accumulated a good amount investment and business acumen, even though they do not have 401k, IRA, stocks, or bonds.
From owning quite a few rentals and being in a large real estate club myself, I know that rental expenses are much higher than 2% of rent. Adequate estimates will require much better assumptions than we have to work with, and we probably don’t need to be making these guesses for them anyway. They’ll probably be able to figure out how profitable & valuable their rentals are, better than we could.
It might be educational for you to introduce them to Bogleheads investing. Maybe it will resonate with them. However, they sound like the kind of people who could figure out the real estate part of their portfolio once they move—since they figured it out once before. Changing the structure of their business and investments to a completely new investment method also has risks. It could also be unnecessarily expensive due to taxes and transaction costs.
From owning quite a few rentals and being in a large real estate club myself, I know that rental expenses are much higher than 2% of rent. Adequate estimates will require much better assumptions than we have to work with, and we probably don’t need to be making these guesses for them anyway. They’ll probably be able to figure out how profitable & valuable their rentals are, better than we could.
It might be educational for you to introduce them to Bogleheads investing. Maybe it will resonate with them. However, they sound like the kind of people who could figure out the real estate part of their portfolio once they move—since they figured it out once before. Changing the structure of their business and investments to a completely new investment method also has risks. It could also be unnecessarily expensive due to taxes and transaction costs.
Statistics: Posted by DaBombCat — Mon Mar 03, 2025 1:24 am — Replies 3 — Views 398