Why Real Estate

Question

Asking all investors why they choose Real Estate as their form of investments!!!!

Of course, a lot of investors like to spread their investments out. What is your opinion?? Do you put most of your money to stocks? Bonds? Real Estate? Would love to hear from everyone in the community!!!!

James Mc Ree · Answer

I wanted investments that were reliable and not correlated with the stock/bond markets. I already had a 401k, IRAs, etc that invested in stocks, bonds and funds. Though they were diversified, massive impacts would occur with little or no warning or opportunity to escape: savings & loans, Sep 11, GFC, COVID, etc. I didn't want to be completely at the mercy of China, Russia, North Korea, Iran, Republicans/Trump, Democrats, Fed, etc. Everyone has to live somewhere and so long as they can afford to pay rent, that income stream is safer and more predictable than the rest of the world. It's not perfectly secure, but probably won't crash tomorrow.

Dan H. · Answer

I invest in items with positive return/risk outlooks.  Recognizing these opportunities is the challenge.

My RE projects the best return because in general I combine value add with leverage.   I expect the over 20%/year and receive very of my investment in no more than 4 years.  I have achieved incredible active RE returns.

My recent stock return has been outstanding, but I would not forecast that return going forward.

The syndications I have participated that have exited have done outstanding, but my current syndications seem likely to produce mixed results.  For the first time I expect to lose some of, or all, of my investment.

When I first invested in mineral rights, fracking was not a household term.   I purchased rights where fracking was not implemented largely based off the current extraction.   I was confident that fracking would be introduced shortly.  Fracking greatly increased the extraction.  It was not long before we were getting $16k/month payout on a $300k acquisition.   This opportunity vanished long ago.

RE will likely always have leverage and value add opportunities.   I have been more focused on sophisticated value adds than rehabs or development.   Tough to beat a sophisticated value add combined with leverage.  Low risk, high return.

Good luck

Michael Eskenasy · Answer

I like real estate because it’s one of the few investments where you can actually change the outcome after you buy it.

If I buy a stock, I’m mostly betting on someone else executing well.

With real estate, I can buy poorly marketed property, fix operations, improve the asset, change tenant quality, restructure debt, raise NOI, change the exit, or sometimes change the use entirely.

That’s the part people miss when they compare real estate to stocks by historical return.

Real estate isn’t just an investment. It’s an investment with controls.

The leverage, tax treatment and appreciation are nice. But the real advantage is that I’m not forced to sit there and hope management makes good decisions.

I get to be management.

G. Brian Davis · Answer

I’ve invested in real estate for a long time, both directly and passively, and I still like it for the same reasons: cash flow, appreciation, and the tax benefits. I also like that real estate is a tangible asset and there are things you can do to improve the investment rather than just sitting back and hoping the market goes up.

Although I wouldn’t put all my money into real estate. I like having stocks and other investments too. Real estate is a big part of my portfolio, but I think diversification is important

Chris Seveney · Answer

I chose real estate but I spent my w2 career in real estate and it is something o understand. My wife handles our other investments because she has a much better grasp on that area of investing

so one thing I always preach is to invest in something you understand.

Why Real Estate

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