Buying a business vs buying real estat

[Brian Kehoe]

In the current market with the prices of homes being so high does it still make sense to be investing in real estate or to be accumulating cash and waiting to see where the market goes? I’ve been reading articles stating how baby boomers are starting to retire and selling their businesses at a discount. I’ve been researching businesses for sale and many look profitable on paper. My question is in the current market would buying a high cash flow business where I can be an absentee owner be a better decision then investing in real estate now? My thought process is make the cash now and invest in real estate later but I’d love to hear anybody else’s insight. 

[Don Konipol]

Being successful as an absentee owner of a small or even mid size business is close to impossible.  Small and midsize businesses can not afford the quality of general manager that can successfully lead a business, wear the many hats necessary for a small business, or exhibit the entrepreneurial traits needed to ensure success.

The exception used to be the high end franchises like McDonalds.  However, with the more complicated operating systems and heavy competition, that’s not true anymore.