What's best income stream vehicle for retirement nestegg of $1 mil?
Posted 12-08-2019 at 11:23 AM by jdhpa
Quote:
For my current situation (50+ yrs in PT RE transactions / holdings, both parents were contractors (commercial and residential))
Investment RE: (Pre- medicare / SSA age, active and ABLE to manage (at the moment, not forever))
I have about 40% in RE equity and currently 70% of my income comes from positive cash flow investment RE.
Invest RE substantially grew my wealth for many years (not forever)
I do not consider it a Nestegg, it is a business (+/-) stuff happens including BIG stuff (liability / market pressures / banking / monetary policy / recessions / land use changes / weather / fire / tenants / chemical spills (Super Fund...)
For the hardy / foolish / purposed... I use a very simple formula and extensive 'due diligence'.
Thus:...
I prefer NNN Commercial and am looking specifically in NV (Not LV) for a single sector RE investment. (Have been looking for this for 15 yrs, it will come around)
Investment RE: (Pre- medicare / SSA age, active and ABLE to manage (at the moment, not forever))
I have about 40% in RE equity and currently 70% of my income comes from positive cash flow investment RE.
Invest RE substantially grew my wealth for many years (not forever)
I do not consider it a Nestegg, it is a business (+/-) stuff happens including BIG stuff (liability / market pressures / banking / monetary policy / recessions / land use changes / weather / fire / tenants / chemical spills (Super Fund...)
For the hardy / foolish / purposed... I use a very simple formula and extensive 'due diligence'.
If it can't rent for 1% capital cost / month - I move on.
If I can't sell it for 110% TOMORROW - I move on.
If there is any LT risk to particular market segment - I move on
If it had a bedroom (private residence) , I prefer to move on, tho current have several residential props (all with a specific purpose... view, commercial rezone potential, 24 month Capital gain reap potential, highly marketable, Cap rates 10%+...)
Thus:...
- Location, Location, Location
- All my Invest RE is in income tax free states, as is my domicile. (+/-)
- I self manage (at the moment)
- I have Self Directed IRA's that hold RE investment props (+/-)
- I utilized the 'income offsets' of Depreciable investment props (+/-)
- I consider my Invest RE as 'diversification' (other options exist)
- I consider my RE as 'risk mitigation' asset class (consider other options)
- Closely held RE is a business, not 'passive' (there are options)
- This is only for a season (yeah)
I prefer NNN Commercial and am looking specifically in NV (Not LV) for a single sector RE investment. (Have been looking for this for 15 yrs, it will come around)
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