Investing 1-2MM for Family. Best books/advice for personal RE investments?
Hi all,
Older relatives have 1-2mm cash they would like to invest in stable RE investments. They don’t know anything really and they’re older, so I’ve offered to help them. I want to read as much as possible so I’m able to make informed investments - last thing I want to happen is to invest this poorly for them. Thought this would be a good community to ask for reading recommendations or any other advice.
Thank you.
Sounds like you shouldn’t be helping them make a real estate investment, just because you do IB doesn’t make you an expert investor, and frankly it probably makes you less qualified.
But In all seriousness, unless you have real estate experience and know what you’re doing don’t go around risking other people’s money. This is a recipe for disaster on a financial and personal level.
Tell them to just go buy REITs while they’re still at a discount.
just buy a Vanguard fund or something, this doesn't sound like a good idea
I agree with the other posters that this isn't a good idea (unless you were already planning to be a RE investor yourself) but you're on the wrong forum IMO. To answer your question, you're going to want to head over to BiggerPockets and read up on general personal finance/investing blogs like J Scott, JLCollinsnh, Financial Samurai, etc...
Good luck.
Pay me a $500K acquisition fee and I will do it for you
My guess is that if someone asked you for a book recommendation that would make them a competent investment banker after reading it once through, you'd laugh in their face. If it was that easy, everyone would do it. Real estate is the same thing (as are most industries). It takes years of experience and specialized knowledge to become competent enough to go invest millions of dollars confidently, and doing this for your family, novice or no, is always a mistake. There isn't any upside for either party for you to do this.
They should invest in family office debt and clip coupons of 8%-20%. Put like 50k in each deal.
^^^ This
Alternatively, if you want something a bit more hands on... You can find an experienced syndicator and build a relationship with them. If they're really active you can probably invest $100-200k per deal and form a relationship with them over a year or two. If they're local and you're willing to actively work with them, you may be able to Co-GP at some point. I have a good friend who actually got into RE this way and does it full time now
If either of those seem to complex and they want RE exposure then throw some money in a REIT
Buy your neighbours house
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