Would you compound $100,000 @13% or buy Real estate ?

[Jeffrey Rust]

I have been lending money to RE investors & earning 13% plus points sometimes.

I am curious as to the pros & cons of continuing rolling my investment into other investors deals or starting to build a real estate portfolio myself.

The compounding of $100,000 over 10 years is $ 339,456

Over 20 years its $1,152,308 which for me at 45 is a nice retirement age & would provide a nice income.

What this does not take into account is tax on earnings (I'm not sure how this is taxed), keeping the full amount invested at 13% for 20 years with a steady stream of investors to lend to, inflation & I'm sure there are a bunch of other things..

Building up a rental portfolio will require more work initially, is much more uncertain as to outcomes but will potentially provide larger returns & I'm sure be more interesting.

I realize this is a very broad conversation however I would like to here others thoughts on what they like or dislike about either option.

[Jerry W.]

I like real estate and have over 30 rentals now, but if I had a 13% return I would probably do that right now.  The only problem is risk.  You can lose money by lending it as well.  I started on real estate because of the ability to leverage my money into more, and I could value add to properties.  The big appeal of lending to me would be the lack of work.  No painting, no drywalling, no fixing leaky faucets or toilets, etc.  Maybe to both?  Good luck.