Regular financial advisors advice against real estate???

[Mo Muigai]

I’m a newbie looking to remodel my current house and obtain a duplex/triplex in a few months. Unfortunately today I Got my bubble bursted by my financial advisor after I expressed my interest in real estate. He basically told me to be wealthy I need the stock market with 401k and stocks. He insisted the fees are ridiculous in RE and insisted to explain that the market is bad right now and it will be bursting soon so I shouldn’t think of property for a few years. He also told me he has worked with RE investors who regret it have gone bankrupt including his parents in laws. He just wants me to put my money in Vanguard and save for 35 years and by the time I retire I will be a millionaire. Is it true that we shouldn’t buy now, and is firing this guys a good idea? I’m too determined to listen to such advice, but I don’t want to make mistakes either.

Thanks!

[Eric H.]

@Mo Muigai Greetings,

HAHAHAHA

I would say fire this guy or gal, but I am bias. And he or she is biased too. He is an expert at his opinion. His opinion comes from his experiences. All investing involves risk. Ultimately, you have to choose your 'hard'. I like real estate and index funds. I lost my shirt in 2008 in the stock market, and until recently I cursed the stock market. But now I understand the risk involved in real estate and stocks, primarily from experience. My issue with the stock market when I first started investing was that I didn't understand it's a long term play. Instead of selling in '08, I should have been buying like crazy. I didn't know what I didn't know. Furthermore, you can not time any market, real estate or stocks. This advice I would run away from. There are deals to be had in every market, up, down, sideways. The key is being able to identify what type of market you are in and adjust accordingly.

I wish you the best!