4 Reasons to LOVE Real Estate Over Any Other Investment Out There

by | BiggerPockets.com

None of this is really new news, but it certainly can’t hurt to remind everyone out there why we get into this crazy world we call real estate investing. I mean, it’s not the easiest industry out there (mostly because not one of us probably grew up getting any education in it), and it can be risky and complicated.

So why do we do it?

Here are the 4 reasons I think everyone should invest in real estate — assuming you have the guts to do it.

How I Bought, Rehabbed, Rented, Refinanced, and Repeated for 14 Rental Properties

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When’s the last time you heard that leaving all of your money in a bank account was a good idea? Definitely not in the last several years where the interest rates are about 1% or less. There’s no point in that — you aren’t making any money. Maybe you are investing in stocks or CDs or mutual funds or something, but how long has it been since those have really worked out that well for you? Either way, it never hurts to diversify up your funds, not only for protection but for figuring out what avenues produce the best returns.


Related: 6 Reasons to LOVE Multifamily Investments Over Single Family Homes


For some ungodly reason, people feel better about investing in stocks rather than real estate. When was the last time you had any bit of control over your stock investment? Never. You can’t control anything with it. You are at the mercy of the company or stock you have invested in, and you don’t have a single say. No control.

But with real estate, you can control a lot (shout out to all my fellow control freaks!). If something isn’t working with a property you have invested in, you can do something about it. Change things up, make adjustments, whatever you need to. You can do things about it! My property manager has sucked on more than one occasion — I fire him and hire a new one! A flip gone wrong? Well, I have no idea how to fix that, but at least the decisions are yours, and you aren’t relying on someone else to determine the worth of your dollar. You can boss people around, you can make changes, you can buy or sell something — you have some control over the situation when you own real estate! You might not be able to make up for every problem with a real estate investment, but at least you can make choices around it.


Stress aside, you can (and should) have some fun in this industry. It’s like exploring new territory. If you are a serial learner or entrepreneur like I am, this industry is gold! There are so many things to explore, most of which you’ve probably never explored before because no one taught us any of this in school, and more than anything else, you can really make your work in this industry whatever you want it to be. There are so many different ways to invest and things you can do with investments and business models you can build out of it — the sky is the limit, and you can choose how you want to float through it!


Related: 4 Reasons to LOVE Owning Real Property (Over Stocks, REITS & Notes)

Financial Gain

Oh, well, and the obvious reason to get into real estate investing. You really can make a lot of money in this industry. Yes, you are at risk for losing money, but if there weren’t some kind of risk, everyone would do it. The risk is part of the excitement. But implement some risk mitigation, get educated, learn the options, and pursue the aspect that calls to you the most, and you are really in a good place to potentially make a lot of money! Where else can you make so much money? Maybe a super high-paid job, but if you don’t have one of those already, where are you suddenly going to get one? There are so many ways to make money in real estate investing, enough ways to fit all types of people and personalities and skill levels, so why would you not invest? Sure, fear can be a thing, but what’s the worst that’s going to happen?

Come on, are you motivated yet? If you aren’t just by knowing those things, maybe REI isn’t for you. The keys to doing it right, once you have your motivation, are to get educated and research and learn a lot about what you are trying to do so that you know what to watch out for and how to mitigate risk. After that, it’s all about following what is natural for you and knowing that “failure” is not only OK, but it’s the first step to bigger successes.

Experienced investors: Why do you invest in real estate? Newbie investors: What has you interested in real estate investing?

Let’s hear from everyone!

About Author

Ali Boone

Ali Boone(G+) left her corporate job as an Aeronautical Engineer to work full-time in Real Estate Investing. She began as an investor in 2011 and managed to buy 5 properties in her first 18 months using only creative financing methods. Her focus is on rental properties, specifically turnkey rental properties, and has also invested out of the country in Nicaragua.


  1. Wilson Churchill

    Reasons why RE is one of the best:

    1. Rents and values that increase with inflation, while any existing debt does not increase with inflation

    2. The value of the investment can be improved

    3. LEVERAGE – This is what separates RE from the rest

  2. Ali,

    Great comments and when you stated “For some ungodly reason, people feel better about investing in stocks rather than real estate. When was the last time you had any bit of control over your stock investment?” you pulled back the drape concealing the little man (he works for NAR) pulling the levers in the Wizard Of Oz.

    If I may let me address you concern about “For some ungodly reason …”.

    I have been fighting this battle for decades and the truth of your statement is evidenced by the fact that Wall Street CONTROLS 95% of the Six Trillion dollars invested in IRAs while real estate’s percentage as an investment is an embarrassing 3% – 5%. Why such a disparity?

    Because over the decades Wall Street has spent zillions convincing the public that it is too dull witted to make investment decisions on its own. During the same time period NAR with its 1,000,000 Members has done zilch, nada, zip to promote real estate and Realtors® as worthy investment vehicles and advisers.

    When is the last time a Realtor® approached you and asked “What’s in your IRA, maybe it should be real estate?”

    Can you imagine if NAR dedicated just a small portion of its annual war chest collected in dues from 1,000,000 faithful to promote real both for residential reasons and for investment reasons.

    For example, envision a TV commercial where you see a Realtor® handing house keys over to a young couple for their first home while saying, “Don’t forget, real estate is also an excellent investment product. I’m here to help you”.

    Next you see the same couple, maybe five years older with a dog at their side and a baby in mom’s arms as the same Realtor® hands the couple the keys to a duplex while saying, “Your first investment, congratulations”.

    And again, you see the same couple with a five year old and a new baby and an aging dog while the same Realtor® hands over keys to a fourplex while the husband/wife exclaims “And we didn’t pay a dime in taxes when we sold our duplex because our Realtor® told us about 1031 Exchanging”.

    And yes, again, you see the same couple with a ten and five year old with the same Realtor® handing over the keys to an eight unit apartment house while the husband/wife exclaims “And thanks to our Realtor® we didn’t pay a dime in taxes when we sold our fourplex because our Realtor® told us about 1031 Exchanging.

    And finally, with graying hair the same couple receives keys from the same Realtor® to a twenty unit apartment house while saying, “Not a dime paid in capital gains taxes and look what we have for our retirement and to leave our children”.

    Corny, maybe, powerful, yes.

    Only NAR has the power, the money necessary and the ability to launch such a campaign. Will NAR do it?

    I doubt it, NAR hasn’t seen the need to educate the public that Realtors® can also be real estate advisers for fifty years all the while content to sit idly on the financial sidelines allowing Wall Street to remain dominant over SIX TRILLION DOLLARS in IRA money.

    It’s like a fantasy Superbowl, NAR v. Wall Street, except no one told NAR where to show up at game time and predictably again Wall Street wins 100 – 0.

  3. Hello Ali,
    The article touched on my motivation: (a) learning something new and (b) controlling my destiny. Thus far, I have had a wonderful journey with BP help, I am excited about the potential real estate can offer.


  4. Luke Piper

    Great article.
    I love the fun, but I’ll settle for more control over my investments!
    I hate seeing my future (stocks and other fund investments) yoyo about by yahoo’s who don’t even know me and what I want and need in my life.

  5. I think the best part of real estate investing is the financial gain point – regardless of your investment strategy in real estate…you’re the boss. If you’re a flipper, buy and hold, or owner financer – you’re the boss of your real estate empire. You’re limited to how much cash you can make at an 8-5, but you do have financial freedom in your real estate investing empire!

  6. I don’t know if anyone has touched on probably the single greatest benefit of real estate investing, i.e. if properly structured ALL PROFITS can be tax free for you, not “tax deferred” rather “tax free”.

    You can 1031 Exchange multiple times over the decades and never pay taxes if you do just one thing, eventually die. Your heirs will inherit on a Stepped Up Basis and during your life time you will have effectively beat Uncle Sam’s long arm of the IRS.

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