Hannah HammondFounder & CEO, HB Capital & The Firm RE · CEO of HB Capital | Helping CRE Developers & Investors Fund Deals Nationwide | Host of The Hannah Hammond Show

Debt Fund Vs. Real Estate 🏠 👀

Name: Debt Fund Vs. Real Estate 🏠 👀
Uploaded: 2024-11-03T00:36:05+00:00
Duration: 1 min 29 s
Channel: Hannah Hammond
Description: Hannah Hammond compares putting $100,000 into a debt fund versus using it as a down payment on a $500,000 home. Direct ownership gives you control over…

3 Nov 2024 · 1 min

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1:29

Hannah Hammond compares putting $100,000 into a debt fund versus using it as a down payment on a $500,000 home. Direct ownership gives you control over rents and forced appreciation through active management, while funds offer liquidity and let you take smaller slices of bigger deals through partners. The right choice depends on how much time you have and whether you want to actively manage property.

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Tell me why you think you'd be better off investing $100,000 into a debt fund potentially, versus $100,000 buying a $500,000 residential home.
Yeah, and they both have their pros and cons. And it really depends on where you're at in your life and where you're at with your time and what you enjoy too. If you really have time and you choose to have real estate as your business, like real estate investing. And you want to be a property manager, even if you have property managers, you still got to manage the managers. And you want to deal with like Zach keeps. He likes to do it. He's been doing. It's got 300 houses. He manages himself, and that's his thing. And if that's your business and that's your job and that's your thing, then that could make sense, you know, versus investing into a fund or. Or somewhere else where you may not get the full depreciation benefit. You may be able to have. You have more control, so you have more control over your exit, you have more control over your rents, you have more control over the project. So there's a lot of benefits. And with my own deals, I've. It's been great to be able to really rapidly force the appreciation as I was going from zero to. To getting into the millions as I was getting started. But now that I have enough cash and liquidity and time as my greatest resource, now it makes more sense to find who is the strategic sweat labor partners who really have the experience, have access to deals, and I can just take a smaller piece of a bigger pie and put my investments in a bunch of other areas so I can free up my time to do what I do best and continue to make money that way.