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

Engelo Rumora
2 min read
Why I’d Choose to Invest in Real Estate Over Stocks Any Day of the Week

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

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!

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

Let me know with a comment!

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.