Quote:
Originally Posted by CJD Automotive
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 need to be very careful here because of my level of Cancer meds on board.... but here's a couple thoughts having just gone thru this type of "review".
Property (actually all investments) really needs to be looked at with a view toward two things ---- Diversity of investments ---- Tax situation.
Real returns are based on individual situations and should only be calculated with an accounts input because he'll have important feedback on how the investment affects your total tax bill etc.
So --- Here's my thing on Real Estate..... it IS NOT a hedge against market moves. Typically the real estate market will suck right alongside the stock market if the market sucks. It is NOT LIQUID which is the #1 negative to me IF a guy doesn't have a bunch of other liquidity he can touch if needed. It is generally a great buy and hold investment.... and I think everyone should try to reach a point in their investments that they get to hold commercial real estate.
Some real estate investors are ill equipped to hold a property thru a long term recession when the property goes negative cash flow.... and of course --- that negative cash flow is what triggers the "I should sell" brain waves... and commercial real estate is valved based on it's POSITIVE cash generation over time. Guess what it's worth when you're feeding the SOB every month....
Now -- back up here somewhere is a post about an apartment complex we have that's up for sale. I pushed for the sale because of the current math.... the property is worth double... the income is fixed.... it's a nice return of capital in a pigs get fats and hogs get slaughtered kind of real estate market IMHO.