Why I Choose Real Estate…Over Stocks
The short answer to this question. Because it’s Awesome!
Seriously it is, but truly the main reasons among others is control….Unlike stocks and other investments, you have way more control with real estate. When it comes to stocks you really do not have much say.
Sure, you can join their quarterly and annual shareholder meetings, but unless you are a majority shareholder…I hate to break it to you…Your opinion means nothing.
Yikes…
The CEO does not care about you, the board of directors, they only thing on their mind is their next tee time. And all the other shareholders just roll with the status quo.
You do not experience this with Real Estate. You are the owner, you are the CEO, and board of directors??? Pftt…you are that too.
YOU MAKE ALL THE DECISIONS!
Which means you make the decision of whether you have a good deal or a bad deal. If a property is not performing the way you want it to, you have all the rights to change that.
You do not get that control with stocks.
Control is important, you need control. With control you can plan accordingly. With stocks you do not know if you are going to get a 2% return or a 15% return. With rental properties, you can typically gauge what your return should look like for the year. Or at least have a solid idea.
You will know that if an investment property brings in 300 buckaroos a month after all expenses, you have a good chance of making 3600 buckaroos for the year.
Another reason is leverage aka debt. Leverage is getting a loan, usually from a bank or a family member. Do not fear debt, embrace it.
You can’t leverage stocks like you can real estate.
Use it as a tool to boost your rental portfolio into orbit. Without leverage, it will be tough. Not impossible…but tough. Leverage allows you to purchase properties that otherwise you would not be able to afford.
Want to know the best part about payments towards your real estate debt?
Your tenants will be paying them.
So not only are you receiving a few extra hundred dollars per property, you are also paying down debt with other people’s money…and the tax advantages…oh boy…the tax advantages…
Did I mention real estate is awesome?
Stocks are cool too. They have their place. But I believe real estate to be the better investment vehicle. The amount of control you have is second to none…it comes at a price of course.
Stocks are much more passive but if you set up your real estate empire correctly you can have a pretty passive experience too…
With today’s technology you can be making decisions from the Dominican Republic (we go there annually, it’s amazing) you can get direct deposits into your bank account if you are on a TDY (been there done that) and you can increase your net worth every month using someone else’s money from anywhere in the world while you fight off the camel spiders in the desert….screw those things.
Real estate has allowed me to live a life I used to dream about, and it can help you reach your dreams too. Don’t’ wait for later to come, do your research now and get moving!
Or you can stick around and wait for me to drop some knowledge…
Look out for more…we are just getting started!
Cheers,
Tariq