Real Estate Investing while working in IB
Pretty much title. Has anyone consistently invested in real estate while working in IB? Obviously, the high salary and bonuses would help a ton with down payments on large properties. Curious to hear if anyone is doing this and what their experience has been like and any difficulties they have faced.
just buy biotech stocks
Oh, you bet! There are quite a few folks out there who've managed to juggle real estate investing while working full time in investment banking. It's a bit like swinging from tree to tree while juggling bananas, but it's doable!
The high salary and bonuses from IB can indeed be a great help for down payments on properties. However, it's not without its challenges. The biggest one is probably time management. IB is known for its demanding hours, and real estate investing requires a good deal of time and attention, especially if you're dealing with buying and flipping or managing rentals.
Another challenge is the learning curve. Real estate investing has its own set of rules and strategies. It's not something you can just jump into without doing your homework. But don't worry, there are plenty of resources out there to help you get up to speed. For instance, you might find these books helpful:
Remember, it's all about balance. If you can manage your time effectively and are willing to put in the effort to learn, you can definitely make real estate investing work alongside your IB career. Just don't forget to have some fun along the way!
Sources: Investing in Real Estate while working full time in banking, Building Personal Real Estate Portfolio, Can you really be rich by working as an investment banker?
Have a friend in the Midwest who does this, but don’t know anyone else who does.
Maybe just focus on IB. This is cutting into your sleep. You need your sleep. Maybe focus on more passive investments.
As a former IB person who is now in RE, this isn't a good idea. I mean, investing in REIT stocks or something relatively passive is obviously fine, but managing real estate takes work. It's at least a part-time job, and that's if you know what you're doing. Hell, owning a home is a fair amount of work, and you're just scratching the surface of what it takes to run an investment property. Without scale, you can either pay others to run the building(s) for you, and that will at the very least eat up all your free cash flow, or you can self perform some of it... but that's functionally impossible when you're working a 60+ hour a week job. If the boiler in your building craps out on a Tuesday, you don't get the luxury of waiting until you have a free morning on Saturday to fix it.
We are in complete agreement for once. Cheers.
Thanks both of you guys for the advice. My plan was to just get a property manager but the more I think about it, the more issues that keep popping up in my head that I'd deal with even with a PM, while working 80-100 hours a week.
I wouldn't. Just invest in REITs or something.
Are REITs a good investment compared to equities? Despite how they supposedly keep up with or outperform s&p 500 over the long term, i haven’t seen spectacular long term gains from most REITs I’ve come across, including the more diversified ones (but also not a space I’m super familiar with). Do people hold these more for dividends?
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