Asset Allocation Secrets of Real Estate Investors

Rules of thumb exist for folks investing in stocks and bonds (X% in stocks, Y% in bonds based on your age). However, until this class, no great rules existed for those investing in rental properties and other real estate. In this class you'll learn:

  • What should your asset allocation vary with?
  • Everything has risk. How do you evaluate risk versus reward?
  • Some historically common asset allocation models
  • Traditional asset allocation rules of thumb (for stocks and bonds)
  • Rebalancing your asset allocation and a discussion on frequency of rebalancing
  • A discussion on retirement date risk, sequence of returns risk, portfolio size effect and glide paths
  • Diversification: friend or foe?
  • What are bonds? How does this relate to real estate investments?
  • Are bonds dead?
  • The source of real estate equity
  • The accessibility of real estate equity and its impact on asset allocation
  • The two types of real estate equity: real estate equity and James' Bond-Like Real Estate Equity™
  • Should I pay off my mortgage?
  • An introduction to James' concept of True Net Equity™ and how this impacts asset allocation
  • Optimizing Safe Withdrawal Rates for Asset Allocation with real estate investments
  • The role of reserves on your real estate asset allocation
  • An alternative perspective: using the Barbell Asset Allocation model

Duration: 1 hours and 52 minutes
Recorded: May 12, 2021
Instructor: James Orr