3 Reasons You Should Consider Putting Your Money in Real Estate (NOT Stocks)

3 Reasons You Should Consider Putting Your Money in Real Estate (NOT Stocks)

2 min read
Sterling White

Sterling White is a multifamily investor, specializing in value-add apartments in Indianapolis and other Midwestern markets. With just under a decade of experience in the real estate industry, Sterling was involved with the management of over $10MM in capital, which is deployed across a $18.9MM real estate portfolio made up of multifamily apartments. Through the company he founded, Sonder Investment Group, he owns just under 400 units.

Experience
Sterling is a seasoned real estate investor, philanthropist, speaker, host, mentor, and former world record attemptee, who was born and raised in Indianapolis. He is the author of the renowned book From Zero to 400 Units and the host of a phenomenal podcast, which hit the No. 1 spot on The Real Estate Experience Podcast‘s list of best shows in the investing category.

Living and breathing real estate since 2009, Sterling currently owns multiple businesses related to real estate, including Sterling White Enterprises, Sonder Investment Group, and other investment partnerships. Throughout the span of a decade, he has contributed to helping others become successful in the real estate industry. In addition, he has been directly involved with both buying and selling over 100 single family homes.

Sterling’s primary specialities include sales, marketing, crowdfunding, buy and hold investing, investment properties, and many more.

He was featured on the BiggerPockets Podcast episode #308 and has been contributing content to BiggerPockets since 2014, with over 200 posts on topics ranging from single family investing and apartment investing to mindset and scaling a business online. He has been featured on multiple other podcasts, too.

When he isn’t immersed in the real world, Sterling likes reading motivational books, including Maverick Mindset by Doug Hall, As a Man Thinketh by James Allen, and Sell or Be Sold by Grant Cardone.

As a thrill-seeker with an evident fear of heights, he somehow managed to jump off of a 65-foot cliff into deep water without flinching. (Okay, maybe a little bit…) Sterling is also an avid kale-eating traveller, but nothing is more important to him than family. His unusual habit is bird-watching, which he discovered he truly enjoyed during an Ornithology class from his college days.

Education
Sterling attended the University of Indianapolis.

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When people talk investing, the first thing that pops into most people’s minds is Wall Street, shareholders and hedge funds. However, if you have extra dollars just lying around in a bank account, perhaps instead of investing your buck in “convenient” stocks, bonds and mutual funds, you should seriously consider investing in real estate. Here are the reasons why.

3 Reasons You to Put Your Money in Real Estate (NOT Stocks)

Because people will ALWAYS need homes.

One of the many benefits of real estate is that it is a hard asset, meaning that you can touch it and see it. With the population increasing by the year and with more and more families needing somewhere to live, the demand for single-family homes, apartments and other property types is not going away anytime soon.

So despite the need for ongoing care, due to the lasting demand for homes, the influx of cash should be steady, regardless of whether you choose to sell it or rent it. This makes real estate a sturdy alternative to the ever-fluctuating stock market, where the changes in demand are not quite so predictable.

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Related: 5 Ways Real Estate Wins Big Where Stocks Fall Short

Because you don’t need an advanced degree to understand the financials.

It is by no means surprising that understanding the rental figures in real estate is so much simpler than that of a full blown stock market’s annual report. So unless you are a business or economics major, it is likely that getting your head wrapped around the stock market will be a lot harder than just reading a spreadsheet about rental figures on real estate. After all, real estate is known as a “dumb man’s game.” Once you have firm grasp on the major concepts, nothing will be able to drag you down.

Because it’s your best bet at keeping up with the inevitable force of inflation.

Real estate has a well-known history against inflation. Generally acting as a protective shield against rising prices, rental rates and home prices increase as inflation increases. This helps shield you financially in terms of both your rental income and the property value. Not to mention, if you are smart enough to choose a fixed mortgage payment, if inflation does occur, it will no doubt offer a great deal of benefit over time. Meanwhile, stocks don’t have the privilege of being directly linked to inflation. It is true that prices do tend to rise over time, but unfortunately, the stock market can’t offer an equivalent protection against potential inflation as real estate.

All in all, you can see just some of the many advantages real estate has over stocks, bonds and mutual funds. Not everyone would agree, but for anyone who wants to a have a steady investment that will help them reap in a nice tidy profit every week, real estate is your best bet.

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Related: Are You Still Picking Stocks? You Are Ridiculous. Here’s Why.

From the sturdiness of real estate to its simplicity in understanding financials and with the protective backup of inflation insurance, these investments offer a potential for serious power over a stock portfolio. So what are you waiting for? Analyze your market, find a steal for a investment and don’t get too stressed seeing that steady influx of cash!

Investors: Why do YOU love investing in real estate over the alternatives? (And if you don’t — why not?)

Leave me a comment!