Originally posted by @Jay Hinrichs:
Originally posted by @Josh E.:
@Mike M.
I believe your argument is flawed, as you are comparing apples to oranges. You put in 17 hours of work for your 76,000 gain. That is fantastic by all accounts, but you are describing a job, not an investment. The gain would not happen without you working those 17 hours or your prior experience in putting together similar deals.
Putting money into the stock market takes all of 30 seconds to do. The market goes up and down, but you are not spending any more time or effort to create the growth.
Real estate is a powerful tool, and many times can work out to be more advantageous than the stock market. But saying you have to work 6 months to even enter the market is obviously not correct, as you can buy an etf or mutual fund that owns the entire market for as little as 100 bucks, and without fees no less.
In summary, your job working 17 hours to get 76,000 is a fantastic job. But it still is a job that requires time, energy, effort, and experience. You are therefore compensated for the specific skills that you possess. An investment into the market is not a job, takes no time or energy, and requires no skill other than knowing to buy a correctly diversified mutual fund or etf. Comparing them in this manner doesn’t make sense.
Exactly Mikes deals don't fall off of the turnip truck right into your lap.. and its more of an advertisement of what he does LOL.. but that's OK we all do it.. The more experience you get over time the easier the deals come to you.. Most folks that find distressed off market properties have LARGE to gigantic marketing budgets.. So you do have to factor that in.. and in the stock market you just click a mouse and your invested.. So I guess I just had a stock market windfall personally.. My local bank needed capital a few years back.. I bought a bunch of shares to help them with their liquidity issue at 3 bucks a share.. and it just got bought and my shares are now on the Nasdaq at 18 bucks a share.. and that was as passive as it got.. I wish I had dumped ALL my real estate and put it in this bank stock.. Hindsight right.
I've been listening to some of these podcasts that discuss the systems that certain players have, spending $10k - $50k a month, having a team process leads, etc. The reality is most beginner investors aren't getting those deals if they don't have the huge marketing budget and system. There are deals to be found everywhere...but if anyone has a deal where I can purchase a house for $9k and make over $70k, feel free to PM me! :)
Therein lies why most people look to the stock market to invest. Investing in real estate is harder. It's less liquid. It takes a lot of work. I think real estate is amazing, particularly because you can use leverage, but not everyone wants to put in the effort.
