Thread: Investing 102
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Old 05-14-2018, 03:42 PM
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nickcornilsen nickcornilsen is offline
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Originally Posted by CJD Automotive View Post
Hey guys, I have a question, or more of a, "what do you think is best" question.

I am not a market investor, I've always been more comfortable with property, so please forgive any ignorance.

I have one property that generates roughly 70K a year in leases, but can sell for 800-900K right now. I think I am better off selling the property and then investing the money with an advisor (never used one). Even if I get a 10-12% return, it's still more than the property generates in leases. Just trying to weigh this out and figure it. I have my properties under a separate LLC, so not sure how that works investing as a company?
I'm not sure how to move your LLC's assets into some sort of fund or equities investment, but generally, I would never hold an real estate asset that could not bring in 1% of it's current value as rent per month; unless I was going to invest more money into to get that rate of return, OR was going to flip it. The liabilities and opportunity costs are too high. So I think selling it is the right thing to do.

As for your investments, be wary before putting it with an adviser. Know the fees... load fees, back end fees, expense ratios. You can't control the market, but you can control fees. Know that the difference over a couple decades between .01% expense ratios and 1% Expense Ratios can be 40%!

My philosophy has always been to do the index fund thing, ignore it, and let it grow. Day trading has always seemed like gambling to me, as I rarely have information that isn't already priced into the market.
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