Stocks/Bonds vs Remote REI?

[Gary Dezoysa]

Hi,

Has anyone compared the returns of a stock/bond portfolio against investing remotely in real estate? I see both of these as less involved forms of investment although remote REI will require managing the manager. Was just curious how you guys thought they compared and whether the extra returns of remote REI were worth it.

[Ali Boone]

I wrote an article on just stocks/bonds versus real property in general-

https://www.biggerpockets.com/renewsblog/2016/02/0...

Then more specifically about the 'less involved' part... I live in LA and have always invested remotely and I'm extremely hands-off. I only manage the property manager, and when they are doing well, that's basically no time investment for me. The passivity of the real estate investment is completely dependent on how you structure it, so that's important. 

I will say I could see major perks in not having to deal with or hear about tenant drama, or waiting to hear if a recent hurricane tore up any of your houses (like I am right now), but there are big financial benefits to it if you're willing to deal with all that.