Ep 108 - How Much Of Your Portfolio Is Dedicated To Real Estate?

Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to another episode of our.

Podcast, which is called Freedom through passive Income.

That's correct. Thank you very much. This episode is entitled how much of your portfolio is dedicated to real estate?

Yeah. So the reason that this topic came up is because we've talked about 40, 40, 20 before, right? And a lot of people are focused on different aspects of what they're investing in, why they're investing, how much are they investing. And so we thought it would be important to talk about this because real estate has such great advantages. And so we had talked about 40, 40, 20. I just said that. Do you want to just briefly explain.

That there's a 40 and then there's another 40, and then there's the 20, which is what I get.

40 is your safe kind of bucket, right? It's lower returns, but it might include like active income, things like that. Next 40 is a little bit higher returns, not. Not really necessarily risky. It's still solid investments, and that's really kind of the real estate bucket where it falls into. And then 20% is the shoot for the moon, right? Shot for shot of glory. Burn your money, lightning on fire.

You're giving it to fl.

So that was an example that we learned from Dan Fleshman at one of our masterminds as to how he does it. And the lesson in that episode you can go back to, it was really like, if you're going to invest in volatile investments, then make sure it's a small portion and you're intentional about it being a small portion that you're okay with just lighting it on fire. It could go somewhere, it could not go somewhere. You could completely lose it all, or you could make a million bucks. Who knows? But at least it's a portion that you feel comfortable with going, eh, because you've got your 40 year, 40 year. So you need to decide what. What your percentage is. Is it 40, 40, 20? Is it something else? I will say for us, it's like 90, 10. I think we're 90%, like all in. In real estate. Real estate is the most. It's. It's what we know and it's what we love and it's our passion. And there's so many benefits to real estate investing and that counts our businesses too. And I say that still in real estate because our businesses are real estate focused. So I'm just going to call the whole thing. But then there's 10% that Flippy over.

Here plays on way less than 10%. Way less than 10%. But, but, but, yeah, it's just, it's money to burn. I mean, you know, and it's, you know, there is some, you know, crypto.

But we really know nothing about.

But we're dabbling. Yeah, well, I was like, oh, yeah, I look, I invested it, I already lost 40 cents, like matter of two seconds. And so far in the six or so months that we've been investing in it, it has not made it back up to the amount we've invested. So we've not made one penny. That's awesome. And I check it every 10 minutes.

Oh, man, we've done so many episodes about this, the whole conversation, haven't we? I think another thing that is important to understand is not only deciding your percentages, right? Whether it's 40, 40, 20 or like us, let's just say it's 90, 10 or 95, 5, whatever it ends up being. But once you've defined those percentages, not looking past you know, maybe things like minimum investment, right? A lot of investments are like, if you're a private money lender, you need at least $50,000. A lot of our syndications, at least $50,000. I think even our debt fund is probably around $50,000. I don't even know right now. And we're not. This is not a solicitation or offering or anything like that. We're generally talking about investments right now because many of our investments are 506B, which means, it doesn't really mean buddy, but it's how we remember that we have to have a relationship with you before you actually see investments and talk about returns, things like that. So just wanted to make that quick disclaimer. But you're focused on the wrong things. Really. The thing that you should be focused on is what your allocation is, what your diversification is, what your risk level is. Those types of things for you to understand. Now that I understand and I've defined these things, here's the goal. So that whoever it is that you're talking to can understand your goal, but also understand how you're splitting up those funds, what type of diversification you want, how risky you want to be so they can understand the buckets that it goes in in order for you then to, you know, go forward and start making your plan come true or come to reality. So one of those things is there's lots of resources, right? One of the resources is self directed IRAs. Like if you've got a 401k or any type of retirement Account you, you can shift those into a self directed account and take control of those investments. Because how many people have buckets of money that are sitting in the stock market and they're not achieving their goals? They have not had the conversation of this is how much I want Here, here, here. They've just got a bucket of stock market stuff. And stock market is just. It's not the place to put a good majority of your money in order to build long term wealth.

Right.

It's just not. Look at the history. I'm just gonna sit there. But you wanna be able to take control of this. You know, don't wait 5, 10, 15, 20 years and suddenly be like when all you needed to do was spend a Saturday and have a conversation with your significant other family, whoever it is that helps you make decisions and then draw up what you think you want to do. And then talk to somebody who maybe has more experience to give you some feedback on what you've decided. And then you can start making some really good intelligent decisions because you took the time to put in and think it through. It has very much to do with our business plan that we just did an episode about. Right. We took a lot of time digging into strateg nature of making decisions for this property. What am I missing? What else do we talk about?

You want to avoid the person that tells you that they have oceanfront property in Arizona. Is that not on there?

I do not know. How do you come up with this stuff?

I don't know.

I did say you were in charge of fun on these episodes, huh?

Yeah.

So you're just giving me a goofball.

Uh huh.

Okay.

Yeah.

Anyways, I think that we've covered it and I think that it's just. We're advising you to. We're encouraging you to do your homework a little bit and do some pre planning. Really not homework, just do some pre planning. Because if you're listening to this episode because you want to reach, you want to get freedom through passive income just like all of us. So this is one of the places that you start.

And actually in all seriousness, I think what I've heard more than once is I was just scared.

Yeah.

You know, I didn't want to take that first step. I didn't want to make the first call. I didn't want to talk to somebody about it because I figured I was going to look dumb. No, trust me, you can talk to me all day long. I'll make you feel very smart. So it's. But it's, you know, don't be afraid of this. It's. It's nothing to be afraid of at all.

Yeah. Good. Awesome.

There we go. Well, we like to try to keep these as short and sweet as possible. Make sure you're heading down to freedomcapitalinvestments.com and make sure you're going over there to join our investor club. But we have also got our groups on Facebook and LinkedIn. The whole team's over there. If you have any questions, make sure you get into the guys and gang over there. But if you're watching on YouTube, make sure you hit the subscribe button. Give us reviews, let us know how we're doing, all that, but we always like to end with invest smart, live happy. Bye, everybody. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed or all investment strategies have the potential for profit or loss. Y' all.