Just curious to see what other options I may not be aware of haven't considered if others have any insight. For some context, we are good on retirement savings, 529's, and our house, so trying to explore alternative investments that may not terribly time consuming while we have young kids taking up most of our spare time. TIA!

Real Estate.

I'll let others chime in on if that's a smart investment right this minute though.

Anything specific within Real Estate? Feel like there are lots of directions to go within that.

Bunbury said:

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Just curious to see what other options I may not be aware of haven't considered if others have any insight. For some context, we are good on retirement savings, 529's, and our house, so trying to explore alternative investments that may not terribly time consuming while we have young kids taking up most of our spare time. TIA!

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I think this might be exactly what you are looking for.

Earl Rudder Way | TexAgs

We bought a house in College Station in 2014. Bought it to use as a game day house, place to meet kids and grandkids and then we just enjoy going to Aggieland. Did not buy it for investment purposes but in the long run it will turn out to be a good investment.

SW AG80 said:

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We bought a house in College Station in 2014. Bought it to use as a game day house, place to meet kids and grandkids and then we just enjoy going to Aggieland. Did not buy it for investment purposes but in the long run it will turn out to be a good investment.

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you should Airbnb the house on game weekends and you can use that to pay for those grandkids college education.

Bunbury said:

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Just curious to see what other options I may not be aware of haven't considered if others have any insight. For some context, we are good on retirement savings, 529's, and our house, so trying to explore alternative investments that may not terribly time consuming while we have young kids taking up most of our spare time. TIA!

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when you say "we are good on XXX" what does that mean? Did you pay off your house? You have plenty of retirement savings?

I'm 59 and did family mortgages for three of my kids (my fourth is still in college).

They got really attractive rates with me acting as their mortgage company.

This was a way for me to help my adults children avoid a lot of banks fees like oririgination fees, PMI, much higher interest rate etc.

The upside for me was to diversify into real estate and get paid a steady income from the mortgages.

Having said that I still have a lot of $ in the stock market.

Real Estate might be something to consider, but you're going to need more than $100,000, unless you plan to borrow money.

My adult children are all Aggies and we just recently loaned to our third child to buy a house in Bryan.

If you could come up with about $250,000 to $300,000, real estate in BCS is a good investment.

The area will continue to grow as Aggies retire in BCS and Texas is growing in general.

Depending on where in BCS, you would rent out the house to students or AirBNB it on game weekends or just have a normal rental property .

Gold

Have you invested in properties in BCS? I'm actually in a place where I'm seriously considering that and would be looking for any agent referrals and/or thoughts on the best areas today for such an investment.

.

Bexar Ag said:

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Horrible idea if you have zero experience. Hope you're not a FA

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Not all real estate investing is manual. Like the link I posted above, some of it is as simple as buying a stock. You become a limited partner. Essentially, you are the money while the general partner is the experience, the plan, the hard work, and the vehicle that maximizes the asset's ability to generate a return.

You Bet meant owning, flipping or renting a property.

We decided when we bought it that we were not going to rent it out. We put too many personal items in it.
I do get a little peeved when an Aggie friend of mine, who also has a second house in Aggieland, has to stay with us because his house is rented out!
But we have known each other for 45+ years and he makes up for it with food and liquor.

Bexar Ag said:

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Horrible idea if you have zero experience. Hope you're not a FA

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Easy killa. It was a suggestion. There is a reason I said I would let others comment on timing of it because the current market isn't fantastic and I know there are options out there that may still make sense.

My parents had zero experience and they are living off the passive income of RE and have never touched their retirement nest egg. What dumbasses!

Yes. We bought a property at auction and flipped it and then we co own a property we purchased in May with my daughter. The house is in Bryan.

It depends on how much you want to invest. BCS is definitely an unusual market

My son in law is part owner in maybe 20 different fast food restaurants. Fuzzy's, Chick Salad Chick, Dave's Hot Chicken. His full time job is owning the 2nd largest title company in FW with 6 offices, so obviously those joints aren't time consuming. And I can tell you he's making coin.

OldArmyCT said:

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My son in law is part owner in maybe 20 different fast food restaurants. Fuzzy's, Chick Salad Chick, Dave's Hot Chicken. His full time job is owning the 2nd largest title company in FW with 6 offices, so obviously those joints aren't time consuming. And I can tell you he's making coin.

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I'm curious how he got into partial ownership. Is this a group or partnership he's a part of, or did he go a different route?

Real estate if you don't want to pay income tax anymore.

Every is taxed. Selling real estate for a gain . Short term or long term capital gain. Rental property, rental income .

You can't hide from the tax man

txaggieacct85 said:

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Every is taxed. Selling real estate for a gain . Short term or long term capital gain. Rental property, rental income .

You can't hide from the tax man

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Yes. But real estate is one of the best. While it appreciates it's listed as a depreciating asset. Truly an excellent way to manage your taxes. Everything is deductible from management fees to repairs. And if you sell it you can buy another property without penalty.

techno-ag said:

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txaggieacct85 said:

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Every is taxed. Selling real estate for a gain . Short term or long term capital gain. Rental property, rental income .

You can't hide from the tax man

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Yes. But real estate is one of the best. While it appreciates it's listed as a depreciating asset. Truly an excellent way to manage your taxes. Everything is deductible from management fees to repairs. And if you sell it you can buy another property without penalty.

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"if you sell it you can buy another property without penalty."

What does this mean? what penalty?

txaggieacct85 said:

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techno-ag said:

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txaggieacct85 said:

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Every is taxed. Selling real estate for a gain . Short term or long term capital gain. Rental property, rental income .

You can't hide from the tax man

---

Yes. But real estate is one of the best. While it appreciates it's listed as a depreciating asset. Truly an excellent way to manage your taxes. Everything is deductible from management fees to repairs. And if you sell it you can buy another property without penalty.

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"if you sell it you can buy another property without penalty."

What does this mean? what penalty?

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1031. Though the description given above makes it seem much more simple than it really is.

txaggieacct85 said:

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techno-ag said:

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txaggieacct85 said:

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Every is taxed. Selling real estate for a gain . Short term or long term capital gain. Rental property, rental income .

You can't hide from the tax man

---

Yes. But real estate is one of the best. While it appreciates it's listed as a depreciating asset. Truly an excellent way to manage your taxes. Everything is deductible from management fees to repairs. And if you sell it you can buy another property without penalty.

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"if you sell it you can buy another property without penalty."

What does this mean? what penalty?

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1031 exchange avoids paying taxes on the earnings. Surprised at the hostility here. Real estate is one of the best tax strategies of all time.

techno-ag said:

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txaggieacct85 said:

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techno-ag said:

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txaggieacct85 said:

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Every is taxed. Selling real estate for a gain . Short term or long term capital gain. Rental property, rental income .

You can't hide from the tax man

---

Yes. But real estate is one of the best. While it appreciates it's listed as a depreciating asset. Truly an excellent way to manage your taxes. Everything is deductible from management fees to repairs. And if you sell it you can buy another property without penalty.

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"if you sell it you can buy another property without penalty."

What does this mean? what penalty?

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1031 exchange avoids paying taxes on the earnings. Surprised at the hostility here. Real estate is one of the best tax strategies of all time.

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I'm not being hostile. just saying avoiding "penalties" is not sufficient.

What Is a 1031 Exchange? Know the Rules (investopedia.com)

What Is a 1031 Exchange? Know the Rules (investopedia.com)

txaggieacct85 said:

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techno-ag said:

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txaggieacct85 said:

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techno-ag said:

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txaggieacct85 said:

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Every is taxed. Selling real estate for a gain . Short term or long term capital gain. Rental property, rental income .

You can't hide from the tax man

---

Yes. But real estate is one of the best. While it appreciates it's listed as a depreciating asset. Truly an excellent way to manage your taxes. Everything is deductible from management fees to repairs. And if you sell it you can buy another property without penalty.

---

"if you sell it you can buy another property without penalty."

What does this mean? what penalty?

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1031 exchange avoids paying taxes on the earnings. Surprised at the hostility here. Real estate is one of the best tax strategies of all time.

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I'm not being hostile. just saying avoiding "penalties" is not sufficient.

What Is a 1031 Exchange? Know the Rules (investopedia.com)

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and it means you defer tax, not avoid tax

The Internal Revenue Service reminds taxpayers that there are specific guidelines to be followed when deducting travel, entertainment and gift expenses (irs.gov)

"WASHINGTON Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free. "

I plan on deferring until death, as much as possible.

Bunbury. I'm in Costa Rica until next Monday. I'll reach out to you next week on your question. Pura Vida.

1031s are great. My parents did a 1031 on their duplexes for rental homes. Worked out well for those morons.

txaggieacct85 said:

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Every is taxed. Selling real estate for a gain . Short term or long term capital gain. Rental property, rental income .

You can't hide from the tax man

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Opportunity Zones beg to differ. These are pretty niche, but just one way to hide from the tax man in plain sight.

If you are investing in ways incentivized by the tax man, there are some sweet deals to be had if the facts align.

Between Opportunity Zones, owning businesses in USVI (90% reduction on the few I worked on about 15 years ago), and various tax credits for certain businesses, among other concepts... these fully above the board ways to seriously reduce or eliminate taxes.

If you really want to avoid any correlation with financial markets, you can now buy ETFs for art, baseball cards, and other collectibles.

Real estate. Some of my best deals the past few years have been in real estate. As others have said it's a much tougher market right now with the crazy inflated prices and rates where they are at.

Don't listen to whoever said it is a bad idea if you have no experience. You gotta start somewhere and there are many ways to get into the space.

My main goal is to stack as many doors as I can in my portfolio that eventually I can live off my passive income.