Business Management

Why I’d Choose to Invest in Real Estate Over Stocks Any Day of the Week

Expertise: Real Estate Investing Basics, Personal Development, Landlording & Rental Properties, Real Estate News & Commentary, Business Management, Flipping Houses, Real Estate Deal Analysis & Advice, Personal Finance, Real Estate Marketing
235 Articles Written
Close-up Of A Businessperson Pointing On Stock Chart Over The Tablet Screen

Let’s talk about investment strategies. Should you invest in stocks, or should you invest in real estate?

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Around five years ago, I was given a book that absolutely changed my world. I’ll tell you the name of the book if you comment on this post below. What it did was motivate me to start looking into how I could invest my money to produce residual income and increase my cash flow instead of just slaving away in a 9 to 5.

I initially started investing in an Australian healthcare company, because I believed that as Baby Boomers started aging and retiring, there would be a greater need for healthcare.

My first mistake was that I invested that money when I really couldn’t afford to spare it. So, it really wasn’t the right thing for me to do at that time. Additionally, at the time, I had an unfortunate car accident without insurance and had to sell off my stock portfolio to survive for six months while recuperating.

What I Learned From Investing Poorly

What I learned from my initial investing experience is that the stock market is very, very volatile. Sometimes there are big changes in a day. But most of the time, it varies month to month, or there could be a huge crash and it might fall to crap overnight. Even after my bad experience, I still believe you can make a lot of money in the stock market.

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

When you invest in stocks, you can do your due diligence online to get to know the company, but you are just one vote out of tens of thousands—if not millions—of other shareholders. So, you cannot choose what direction the company is going to take—what products they create, who they hire, and how much they’re going into debt.

Fast-forward five years, and I’ve done over 500 real estate deals and am running a multi-million dollar real estate investment company.

Here’s Why I Think You Need to Invest in Real Estate

First and foremost, you are the CEO and board of directors of that property, venture, multifamily complex, or commercial building.

You get to choose:

  1. Where you buy
  2. How much you spend
  3. How much debt you get into
  4. What kind of renovations you are going to make
  5. Who the tenants are going to be
  6. Who your property manager is going to be
  7. Who your contractors are

You are entirely in control. You choose when to sell when to hold.

So, in my opinion, brick and mortar is a much safer and better investment. You get to touch it, you get to feel it, and you are in control of it!

What’s your preference—stocks, real estate, or a combination of the two? (Or something else entirely?)

Let me know with a comment!

Engelo Rumora, a.k.a."the Real Estate Dingo," quit school at the age of 14 and played professional soccer at the age of 18. From there, he began to invest in real estate. He now owns real estate all over the world and has bought, renovated, and sold over 500 properties. He runs runs Ohio Cashflow, a turnkey real estate investment company in the country (Inc 5000 2017 & 2018) and is currently in the process of launching a real estate brokerage called List’n Sell Realty. He is also known for giving houses away to people in need and his crazy videos on YouTube. His mission in life is to be remembered as someone that gave it his all and gave it all away.

    Hernan
    Replied over 2 years ago
    I like real estate for the same reasons that you mentioned. Where you discouraged when you lost your money in the health care industry? If so, how did you overcome that setback? Thanks for your story!
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks for your comment Hernan, I wasn’t discouraged but it was frustrating having to sell my stocks. I would definitely look at investing again if the right opportunity came up. Real estate is my bread and butter tho. Much success
    Marcus
    Replied over 2 years ago
    Great Post! The harsh reality is if the market tanks for any catastrophic reason, it effects your stock(s). I’ve known many (including myself), who sell stock to buy cash flowing properties. Marcus
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks Marcus, The stock market is pretty hot right now. Maybe it’s a good time to pull some money off the table lol I’m “stashing cash” now and waiting for the next bear. As soon we see another big big drop, I wouldn’t mind jumping in. Much success
    Joshua Robles
    Replied over 2 years ago
    I stopped investing in my 401 a year ago I invest in single family homes and multi units close to my goal of leaving my 9-5
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Awesome stuff Joshua, How many do you own now if it’s not a secret? What is your “end goal” before you can leave your 9-5? Thanks
    Corrie Jacob from New Castle, Pennsylvania
    Replied over 2 years ago
    I’m almost 2 years of out college and starting to educate myself on real estate investment,as that seems to be the best route for combining my interests with income. It scary! Whats scarier though is living a life and toiling away at a job that you hate. I am choosing real estate rather than stock investments becasue it allows for creativity and tangible results. Anyways, real estate has been on my mind for a while now and its time I take action!
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks Corrie, Great way of thinking and the only thing you should be scared off is “regret”. Regret of not taking action. It seems like you’re on your way and just keep immersing yourself in everything and anything real estate related. I wish you much success
    Karen O. from NYC, NY
    Replied over 2 years ago
    I’m glad you found what works for you. I believe in diversification. Having some RE, some stocks, some bonds and some cash helps me sleep better. The hope is that if one of them tanks, the others can hold the line through a recovery. The trick is getting the mix or the allocation right and adjusting periodically to maintain that allocation. If 2007-2008 taught me anything, it’s that nothing is full proof.
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks Karen, I’m not a big believe in diversification. I’m happy having 90% of my money if not more in real estate. It’s my bread and butter and as long as rents are coming in the price fluctuation doesn’t bother me. “Is cash is King, then cashflow is Queen” Thanks again and have a great day
    Anders
    Replied over 2 years ago
    Hey Engelo! Right now our family is investing in stocks and funds simply because it’s a lower threshold to get into the investments, you can just put aside some money each month without any other cost than the fee the transaction cost. However, our intention is to save up enough to have money for a downpayment on some kind of real estate. Which kind we will go for first I don’t know yet. I’ve not done my research yet since we’ve got quite a bit left to save. I guess our choice to start with stocks was also in part influenced by what seems to be a common misconception, that the stock market yields a higher return than investing in real estate. Just a few days ago I read a good post on PTMoney that explained a bit more about how to analyze real estate in a deeper way, and how that impact the returns too. This was really important for me to see to understand better why we also should invest in real estate – if nothing else, just to diversify. Oh and Engelo, which book was it that you read? 🙂
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks for your comment Anders, The stock market is very expensive now and if I was you, I’d rather hoard cash and wait for a downturn over putting the money in stocks. Just my opinion 🙂 The book was Rich Dad, Poor Dad. Much success
    Anders
    Replied over 2 years ago
    All opinions are valued. 🙂 And thanks for the advice on the book!
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    No worries 😉 Much success
    John
    Replied over 2 years ago
    I second Karen’s position. Diversification is key to any investment portfolio….
    John
    Replied over 2 years ago
    I second Karen’s position. Diversification is key to any investment portfolio….
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    I don’t agree. Diversification is safety if your not 100% confident in what you’re doing Just my opinion Thanks
    Gerald Marshall Investor from Cumming, Georgia
    Replied over 2 years ago
    Completely agree. I’m 100% invested in real estate. I like to have control of my future and have f I want more $$, I go out and work for it. Investing in the stock market doesn’t give you that option.
    Hernan
    Replied over 2 years ago
    I agree with Engelo. Stick to your expertise. Why gamble with your money on something that you are not too familiar with? Great article!
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    I wouldn’t necessarily agree. if your confident in your investment decisions than going “all in” into one category or investment is fine in my opinion. Thanks
    Tammy
    Replied over 2 years ago
    I was “taught” that diversification is key by other people I knew when I did not have an opinion of my own. People like investment advisors, other people of similar financial background as me, who were diversified. Since then I’ve taken it upon myself to learn what the most successful people do. Not people “like me” but people “who I want to be like”. And I was shocked when I learned most of them do NOT diversify. They find a core competency, master it, go all in on that mastery, and maximize. So i’m currently all in cash or real estate. If you know the market, maybe you would be all in there. I know real estate and I’m all in! Reply Report comment
    Tammy
    Replied over 2 years ago
    I was “taught” that diversification is key by other people I knew when I did not have an opinion of my own. People like investment advisors, other people of similar financial background as me, who were diversified. Since then I’ve taken it upon myself to learn what the most successful people do. Not people “like me” but people “who I want to be like”. And I was shocked when I learned most of them do NOT diversify. They find a core competency, master it, go all in on that mastery, and maximize. So i’m currently all in cash or real estate. If you know the market, maybe you would be all in there. I know real estate and I’m all in!
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks for your kind words Angela, Have a great day.
    Frank Boet
    Replied over 2 years ago
    I absolutely prefer to trade/own stocks, then to invest in real estate. Stocks are 100% liquid. I can sell all my stocks in one second if catastrophe happens, where it would take me months to sell a piece of property. I have a rental sitting in the market for 4 months and I haven’t found a qualified renter yet, in the meantime, my holding costs are $1,000/ month. On the other hand, my stock portfolio has gained over 30% year to date in this “Trump Rally”. Goooooooo TRUMP! I also have another account where I trade stock options. That one is more volatile, but the gains can be potentially huge. It’s all about diversification, knowledge, experience and risk tolerance. But, I choose stocks over RE any day!
    Ed
    Replied over 2 years ago
    This is a great point and a big factor that wasn’t addressed. Real Estate investment requires a TON of time and energy that stocks simply do not. If you choose to have multiple investments in real estate, it WILL become a full time job sucking up hours and time from your life. Stocks require NOTHING from me once I buy them.
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Not true Ed, All good things take time and effort. I have 14 full time staff and we do 5-10 flips per month. I also have other businesses that produce cashflow. I wouldn’t say it’s easy now but I hustled much harder at the start and now I’m working smarter. Even Warren Buffet pulls long hours. if you want to win the game you have to train and play long and hard no matter what the game is. Thanks
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks Frank, Your probably paying a fortune in transaction costs and taxes by trading stocks. Slow and steady wins the race. Long term buy and hold. $1,000 per month in holding costs is huge. Did you take on a lot of debt? Thanks
    Claire Austil Investor from Moore, SC
    Replied over 2 years ago
    What book was it that started your journey 5 years ago? My husband and i just finished with the “Rich dad Poor Dad” that really helped open our eyes on many options we had not a clue about and now we are trying to figure out what type of investments would match our temperament and schedule. Thank you for your article
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Yep, Rich Dad, Poor Dad it was. Great book to open up the mind to the basics of investing. Thanks and much success
    Brian Jo
    Replied over 2 years ago
    My wife and I bought our first home last summer and we’re house hacking our way to obtaining our second income property. It’s just taking a little convincing to get our money out of stocks.
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Awesome Brian and congrats. The stock market is hot right now and maybe a good time to take some money off the table. Have a great day
    Kalinka Ivanova
    Replied over 2 years ago
    Great post , you realize stock investing is risky when you lose. Robert Kiyosaki has a few good books why invest in real estate.
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks Kalinka, Both are risky if you don’t know what you’re doing. In my opinion real estate is less risk as you can touch, see and feel it. You are also in more control. Much success
    Jens Nielsen Investor from Durango, Colorado
    Replied over 2 years ago
    Brian, I’m coming to the same conclusions as you. I’ve moved a good chunk of my taxable savings into 3 small apartment buildings, and moved some of my IRA money into a note fund. Now I’m looking to move more IRA money into various real estate investments. There are a lot of opportunities out there, you just need to look! Jens
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks Jens, You are 100% correct. There are a tonne of ways to make money in real estate. The opportunities truly are endless The #1 thing to keep in mind is to always surround yourself with the right people. Have a great day.
    Account Closed Investor from Aurora, Colorado
    Replied over 2 years ago
    Good post. We have most of our investments in real estate right now. I think for me, real estate is a more tangible asset. I like the idea of seeing it, going over to a rental property, making my own adjustments, repairs, as needed. It makes me feel like I am more in control of it. When the housing market crashed, we had just purchased our second property. The property went down about 50k from our purchase price in about a year. It made me feel like we made a horrible mistake, but then again, how can you time the real estate market? I don’t think it’s possible to time either real estate or stock market to be honest. With real estate, you can kind of see an ebb and flow with things, but we can be on the cusp of another bubble and not even realize it. Anyway, after that downturn, we kept the property and always had it rented. So we were able to float it until the market came back. We just recently sold it and it ended up averaging about 8% a year. That does not count the depreciation though, so maybe more. More than stock market, which was nice. As far as stocks over real estate, I kind of think either route is fine. Whatever you are comfortable with. Both go up and down and for investing, you need to be a buy and hold kind of person to see the fruits of your labor. For us, that was about 10 years of holding our properties. I tried picking individual stocks way back in the day when I thought I knew what I was doing lol, it was always a losing proposition. You take some advice from a “next hot stock tip guy” and low and behold, you realize he is more broke than you are! So as far as investing in the stock market, we like Vanguard Index funds. Lazy mans approach.
    Eric Almonte from Cuyahoga Falls, Ohio
    Replied over 2 years ago
    Thanks Christina. There are 80 top companies in the World, best Balance Sheets, that I will invest in. Many many people don’t know this Common Sense strategy. Biggest and boldest companies are the ones to invest in. And there are other secrets too because I and my best friend studied under Billionaire Investors, as a side study!!…God bless!!!….
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    There are Eric and they are pretty safe investments. Best time to be investing in stocks again is when it all falls to S#[email protected] Seeing 2008 and the rock bottom prices, I wouldn’t touch stocks at these prices right now. Have a great day.
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks Christina and agreed. When investing in buy and hold and thinking long term, it’s hard to loose money. Over time, everything tends to appreciate in value. As for timing the market. It’s not impossible. You won’t be able to time the exact day but if you mingle with some of the “suits” as I like to call them. The Wall St guys and large heads of finance companies, etc… You will be able to get very close to when it will all collapse again. Much success
    Chad Simpson from Louisville, Kentucky
    Replied over 2 years ago
    Thanks for the great article Engelo! One thing I also appreciate is that when it comes to retirement they always talk about the fact that your return needs to be enough to account for inflation. The great thing about real estate investing is the fact that if you have a property in a desirable the rents should continue to rise in relation to inflation. Also, the tax benefits and appreciation potential make it, in my opinion, superior to stock investments.
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks Chad, I love real estate and see it as a better and safer investment than stocks. I still see myself investing in stocks in the future. Waiting for another crash and will then throw some money into Vanguards S&P 500 Fund hehe Much success with your endeavors.
    Km W from El Macero, California
    Replied over 2 years ago
    In all investments or businesses, you gotta know your numbers. You cannot predict numbers ( Roi, risk) for stock investments- you can only predict oerfirnance based on past trends, and all it takes is one bad news day to reduce your portfolio value significantly. Not an issue if you are in for the long haul, but a problem if yiu need $ just when the market dives. In real estate, you control the numbers- or you should. If you are a newbie who doesn’t pay attention to the numbers in real estate, you can be burned just as badly in the stock market. The difference is with real estate, there is no excuse for you not knowing your numbers. Because …. You gotta know your numbers.
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Yes and Yes KM, It sure is all about the numbers. Another thing is ‘time”. “Time” in the market will allow you to see greater returns. Buy and hold with a long term plan in mind is the way to go. Thanks
    Andrew Deveau Investor from Dartmouth, Nova Scotia
    Replied over 2 years ago
    Great Read, Early on I learn that with the stock market there is always some on the winning side of the trade and someone on the losing side of the trade. Sometimes and for a lot of different reasons you never know which side you are on until much later. I have really enjoyed and have benefited from being in full control of the real estate investments I have made, exactly to your point. When you buy stocks in a company you have no decision making powers and have to rely on the knowledge, skills and in some cases the luck of the organization and the people that are employed there.
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks Andrew, Even in real estate tho someone is on the “winning” side and the other person is on the “loosing” side. There are many distressed sellers out there that lost their A$$ as they didn’t know what they where doing. Well, I guess a happy first time homebuyer that loves the house thinks they are “winning” But in my opinion as I would never want to be bogged down in the same house for 30 years, they are actually loosing the freedom to move around freely. Control is very important to any investment. The more control you have the safer the investment is. As long as you know what you’re doing. Thanks again
    Mark
    Replied over 2 years ago
    Enjoy the concepts and opinions, wouldn’t mind if you slowed down just a bit.
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks Mark, I’ll do my best to slow down next time. It’s hard tho as I’m too passionate and always on the edge lol Have a great day.
    Tobias Madigan from West Hollywood, CA
    Replied over 2 years ago
    Thanks for the article, would love to know the name of the book 😉
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks Tobias, Rich Dad, Poor Dad is the book
    Tobias Madigan from West Hollywood, CA
    Replied over 2 years ago
    Also I currently live in California but I am from Toledo Ohio and have friends and family there, I currently am at the point where I want to invest in real estate and if you have any opportunities that would be good for me I am willing to listen . Would be fine with a place that breaks even or some cash flow after some repairs, but I am not in a position to buy with cash as I only have $40,000 saved.
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks Dominic, Do you own many rentals?
    Tyler Chartrand Investor from Scottsdale, Arizona
    Replied over 2 years ago
    yea i love the tangibility of real estate. when working as a cog for a global 50 company i saw people nearing retirement age who had 1/3 or more of their portfolios lost to the “great recession”. I do not trust the financial industry to do anything other than seek profits and serve big business
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks for your comment Tyler. Having the most control over your investments is crucial. Or entrusting the right people is another option. It’s tough to find the right people tho. Much success
    Joel Galindo from Elko, Nevada
    Replied over 2 years ago
    Hello Engelo, I am a real estate investor who currently has 5 rental properties and I am in the process of buying my first multi family unit (fourplex), I also have a day job, I work in a gold mine, I never knew much about investing in stocks until know, I am currently studying to become a stocks trader, I took a 3 day stocks seminar that change my whole perspective about investing in stocks, in the seminar I learned about many investing strategies but what I liked the most where the cash flowing strategies which you buy a stock and rented it out for monthly cashflow (covered call) and you can get between 3% and 5% monthly return, another strategy that I really like is called an iron condor and in the one you can make up to 15% monthly return and what I like most about those strategies is that they are conservative strategies where you have a high propability of success of up to 93%, I know that I will take me time to learn how to do all those strategies but I will keep learning and studying until I master them and I will also continue to invest in real estate and hopefully I can become financially free in one year.
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Awesome Joel and thanks for your comment. Seems like you are working very hard. I wish you much success with your endeavors.
    RAMON RODRIGUEZ
    Replied over 2 years ago
    You make so easy to understand why I should invest in real estate instead of stocks. This is about results; tangible results. When running properly, with real estate I own the source of the investment. No one can take it from me, and it’s limiteless. It is like paving your own path and enjoying the fruit of your labors.
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks Ramon, Much success
    CKip
    Replied over 2 years ago
    Engelo, Please do not forget about stocks that invest in real estate REITs – Real Estate Investment Trust. I would argue that it is easier for a new investor to buy a stock REIT that invests in a particular area of the real estate where a fund manager with experience in real estate is picking the real estate to buy and sell. By following the chart of such stock, say for instance ARR (up over 19% in the last year) go to yahoo finance, type in the symbol and watch the daily price. If it is going up week after week and paying a good dividend, (ARR is yielding over 9% and pays the dividend monthly, this is like having rent payments) you bypass all the problems with real estate. Also you have instant liquidity to your money as you can sell and be out by selling the REIT, rather than hoping for a buyer of your property. Just another way to skin the cat. Thanks ckip Reply Report comment
    CKip
    Replied over 2 years ago
    Engelo, Please do not forget about stocks that invest in real estate REITs – Real Estate Investment Trust. I would argue that it is easier for a new investor to buy a stock REIT that invests in a particular area of the real estate where a fund manager with experience in real estate is picking the real estate to buy and sell. By following the chart of such stock, say for instance ARR (up over 19% in the last year) go to yahoo finance, type in the symbol and watch the daily price. If it is going up week after week and paying a good dividend, (ARR is yielding over 9% and pays the dividend monthly, this is like having rent payments) you bypass all the problems with real estate. Also you have instant liquidity to your money as you can sell and be out by selling the REIT, rather than hoping for a buyer of your property. Just another way to skin the cat. Thanks ckip
    Engelo Rumora Specialist from Toledo, OH
    Replied over 2 years ago
    Thanks CKIP, I have no trust in REIT’s especially after seeing some of the S#$% they have been buying for years. That is just a disaster waiting to happen IMO. Have a great day
    Michael Herndon
    Replied over 1 year ago
    I agree, the stock market can be very risky. Thanks for sharing
    Jack Chambers
    Replied over 1 year ago
    great article.
    Engelo Rumora Specialist from Toledo, OH
    Replied over 1 year ago
    Thanks
    Joseph D Chapman Rental Property Investor from Greeley, CO
    Replied about 1 month ago
    I was never interested in the stock market but have always been very interested in real estate getting ready to sell out house soon and buy a duplex or four Plex but I need to read more book and find some people that I can learn from so that’s what I’m working as of right now... So what was the book you read?
    Engelo Rumora Specialist from Toledo, OH
    Replied 27 days ago
    Thanks Joseph, I believe the book was Rich Dad, Poor Dad. My apologies as this is one of my older blogs. Much success
    Boryana Delov from Scottsdale, Arizona
    Replied 29 days ago
    What about diversifying? (sorry, if it’s been discussed earlier) I’m 100% in re as of now but have been looking into stocks lately. Do you recommend sticking with re instead?
    Engelo Rumora Specialist from Toledo, OH
    Replied 27 days ago
    Diversification is good but you don't need it if you know what you're doing and exactly where to invest. Much success
    Ionut Mihai Lapadat
    Replied 29 days ago
    Congrats on finding your path!I am on the same quest,finding real estate deals,partnering up,and always,always learning!So,what is the name of the book though? Cheers from Spain!
    Engelo Rumora Specialist from Toledo, OH
    Replied 27 days ago
    Thanks I believe the book was Rich Dad, Poor Dad. Thanks again :)
    Chris Brown
    Replied 29 days ago
    Definitely real estate. I will probably always have some money in stocks but primarily in real estate... At least that is the goal, as I am just getting started in the real estate endeavor.
    Engelo Rumora Specialist from Toledo, OH
    Replied 27 days ago
    I think it's a good time to invest in stocks when you see the stock market at high lows. Not like it is no (All time high's). Always have some cash ready to pounce. Much success
    JOHN MASCARO
    Replied 29 days ago
    Thanks Engelo. I've been investing in multifamily residential real estate for only 2 years and have already seen the amazing benefits of cash flow and residual income
    Engelo Rumora Specialist from Toledo, OH
    Replied 27 days ago
    Congrats and keep the dream alive :)
    Tushar Prasad
    Replied 29 days ago
    One stock I bought went 35x in 5 years. Even index funds have returned 4x in last 10 years. Can I buy a house for 250k that will be worth 1 million after 10 years, with zero effort? One important thing that is needed for stock investing is a solid stomach to handle the volatility - easier said than done, but guaranteed to provide better return than real estate, with zero effort.
    Engelo Rumora Specialist from Toledo, OH
    Replied 27 days ago
    I like index funds. The cashflow is much better in real estate and it's more in your control. Much success
    Brad Cowger
    Replied 29 days ago
    I agree. I have made a lot more money on my real estate investments and have less cassh invested.
    Engelo Rumora Specialist from Toledo, OH
    Replied 27 days ago
    Well done mate
    Speare Valasakos
    Replied 29 days ago
    Great post to help people get off the hump. I bought my 1st property in 1982 and never looked back. interested in the book you mentioned.
    Engelo Rumora Specialist from Toledo, OH
    Replied 27 days ago
    Awesome mate, Well done Rich Dad, Poor Dad. Much success
    Andrew Syrios Residential Real Estate Investor from Kansas City, Missouri
    Replied 29 days ago
    Amen brother!
    Engelo Rumora Specialist from Toledo, OH
    Replied 27 days ago
    Grazie mille :)
    Greg Gallucci from Colonia, New Jersey
    Replied 29 days ago
    There needs to be some clarification here. You have a business which invests/purchases real estate. That is very different than investing in stocks. Unless you’ve ran a hedge fund. Which would be a business that invests in the equity market. The comparisons made here are grossly inaccurate. If you are truly passively investing then diversification is what you should strive for. If you are building a business then lack of diversification is common but also carries significantly more risk wether you are a 100% confident or not. For every billionaire business person there are thousands who have risked it all and lost. I would bet most of them were 100% confident as well.
    S. Jeff Cold from Charlotte, NC
    Replied 29 days ago
    We have invested in real estate on/off throughout my teaching career. At a time when colleagues were selling blood plasma to get by, we were learning to install VCTs at $.15 / sq. ft. At first we thought we couldn't do it and hired it out. The installer botched the whole job. We just had to read the manufacturer's instructions! (Start in the middle of the room, adjust for at least 4" widths at the wall) The worst RE deal I ever did, I still made $400. I don't even want to talk about the worst stock trade I ever made -- we'll just leave it at I lost money. I retired at 57 to have more fun. What book did you read?
    Andrew Hansen
    Replied 29 days ago
    Investing in real estate is awesome because you can make a leveraged investment more easily than you can with stocks. For example, if you buy a $100K property with 10% down and the property goes up by 10% you made a 100% profit on your investment. Any leveraged investments in the stock market are volatile and you really need to understand what you are doing. I agree with you on the aspect that you have greater control of the destiny of your investment with real estate, and never really considered that. I disagree with you about putting all your eggs in one basket as you talked about at the end of your video, we never know for sure which basket will grow the most so we should use multiple baskets, in my opinion. Please let me know the name of the book
    Jay Kaulitzke from Colorado Spgs, Colorado
    Replied 28 days ago
    Initially I started investing in Index funds because I didn't have enough money to invest in real estate. What I found though was that even if I was just passively investing, just buying and holding, I could still earn 10% a year or more on the S&P 500. Not far off from what some people make in their real estate deals. Then when I started getting more proactive, buying low and selling high, I started seeing even better returns. Right now I am making better returns in the stock market then most people do with real estate but real estate is still something I want to get into. With a good system and property manager I think it could be a good long term strategy to build a mostly passive cash flow.
    Jay Kaulitzke from Colorado Spgs, Colorado
    Replied 28 days ago
    Actually one thing I forgot to mention is that I want to learn to buy real estate with no money down. I know there are a few strategies on how to do that. You might not see as much cash flow on those kind of deals but if you don't put any of your own money into the deal then you are essentially making an infinite return.
    DT B. from San Diego, California
    Replied 28 days ago
    I am interested in REI, but there is much misinformation this video. RE investment is great, but the stock market is by far easier to manage and arguably more profitable (when not counting leverage). First, not having reserves and needing to be liquid at a bad time has nothing do do with your type of investments. This could happen with a bad tenant or turn in a market. Arguably, you would be better off in stocks due to trading volume and velocity being much higher. You are much more likely to get "market" price for your investment if you need to panic exit. You can also pull out portions of your investment as needed. How could you get back 10-100% of your investment RE down payment in 3 business days without massive costs? Stocks you can get market price and do it for ~$5. Second, there is a difference in trading (speculative flipping) and investing (buy and hold good assets). Timing and flipping investments requires luck, skills, and temperament that most people lack. In the age of low interest rates creating yield hungry money, much of this speculation seems sound. If interest rates change or banks get scared, all hell will break loose in stocks and real estate. Let's say you keep your day job... If you hold a hedged $500k portfolio of a broad market index paying 2% dividends and it crashes by 50%, how has your life materially changed? Other than your dividend now being reinvested at 4%, it hasn't. Contrast that with a 10 home portfolio of $500k. Not saying it isn't doable, but it is far more complex to manage. Third, do we really have control or is that an illusion? Interest rates, foreign investors, lending standards, taxes, local jobs, demographics, politics, pensions, etc... Much of this is out of our control once we buy a rent home. The prospects of a city can turn on a dime with a shift in politics, economic policy (trade, rents, etc...), or outlook on a resource. The same can happen to individual stocks inside of an index, but investors are shielded from most of this. Corporations exploit opportunity and add that value back into the index. Just keep putting your money in maintaining your hedge. Also, what about folks in high cost areas? Long distance REI is an example where even more trust/faith is required. Fourth, making all of our own decisions is sometimes overrated. If you bought just 5-20 stocks in different industries, do you actually know enough about each industry to lead the corporations? Nope. Just as RE teaches us to form good teams and trust them... Most people should be indexing and hedging said indexes. Let the industry professionals do what they do, i.e., preserve and grow shareholder value. Trusting the team isn't a bad thing. How many metro areas can we be experts in? Lastly, most funds have eliminated all but the smallest minimums ($10) and one can set up accounts as desired. Broad funds let investors toe in and test out full theories for as little as $25. For $100 you can set up a portfolio you want and sit back and watch it. For $500, you can build 5 different $100 portfolios and compare them. And yes, you can invest in RE via funds. RE is cool and I am here to learn about it, but all things being equal, the long term index investing in the stock market is a slam dunk for most busy people and a great way to raise seed capital while learning to build confidence.
    Steve Jones Real Estate Agent from Richmond, Virginia
    Replied 27 days ago
    100% invested in equities now. Looking for some passive income via Real Estate.
    Brad Shepherd Syndicator from Austin, TX
    Replied 20 days ago
    Stocks have had a good run so you've probably done well there. But the right real estate assets will weather a downturn better than those equities. But if you're truly looking for passive, don't think that single family rentals are a "set and forget" strategy. Even with a property manager.
    Engelo Rumora Specialist from Toledo, OH
    Replied 27 days ago
    You can't beat bricks and mortar mate. It's a safe bet IMO. As long as it cashflow's well. Much success
    Alex Limauro Rental Property Investor from Shelton, CT
    Replied 26 days ago
    What was the name of the book that motivated you?
    Jomael Ortizperez Investor from Oahu, HI
    Replied 23 days ago
    Hello, I have been investing in stocks, ROTH IRA, and ROTH 401k since April 2016. This year in July I invested in my first property and now I want more. My question to you is should I stop investing in my current online investments so I can save more cash and continue to buy real estate at a faster rate? Side note: I Max my IRA and 401k.
    Jesse Evans Real Estate Investor from Heiskell, Tennessee
    Replied 17 days ago
    I think it is better than stock market as long as you got management under control and buy correctly it is a great investment. I personally managed my own and it can be a challenge. But hey it suppose to be