Investing in my own business vs real estate

[Niko Cummings]

Currently I’m in college and in the process of becoming a MLO. I have a connection that will allow me to smoothly transition into being a broker after 2 years (about a year after I graduate). To me, the most significant benefit of investing in real estate is the passive income. It’s a beautiful thing. However I’ve been thinking about my future business and realized that my business will generate passive income as well. If I have 5 MLO’s working under me and I’m receiving a part of their commission, that’s technically a form of passive income because I’m not doing the work.

Wouldn’t it be a better cash on cash return to just hire more MLO’s? It would cost me $1000/month for a new hire but $3,000/month of their commission would go to me. That’s a 67% return on investment.

Why would I invest in real estate when a GREAT and rare return is about 30%?

I’m genuinely asking, all help is appreciated. Thank you!