Stock market versus Real Estate Investment

[Account Closed]

I have been looking at the pros and cons of investing in RE versus placing money into the stock market (example JNJ) and enjoying the dividend and appreciation of that stock. Clearly there are risks in both approaches, but I would appreciate everyone's views. What do you think is the right approach and why?

[Matt Schelberg]

If I HAD to be in one or the other, it would be real estate. In the stock market everyone is generally using the same information, and while there are market inefficiencies that create opportunities, there is little that gives small investors an edge over the big players (hedge funds, mutual funds, and private equity).

In real estate, the big players are simply not interested in the $200k investment because it won't even move the needle for their massive funds...it's not worth their time. The small investor can get an information edge by knowing a market street-by-street and by performing the due diligence no one else bothers with.

-Matt