Would you compound $100,000 @13% or buy Real estate ?

[Jeffrey Rust]

I have been lending money to RE investors & earning 13% plus points sometimes.

I am curious as to the pros & cons of continuing rolling my investment into other investors deals or starting to build a real estate portfolio myself.

The compounding of $100,000 over 10 years is $ 339,456

Over 20 years its $1,152,308 which for me at 45 is a nice retirement age & would provide a nice income.

What this does not take into account is tax on earnings (I'm not sure how this is taxed), keeping the full amount invested at 13% for 20 years with a steady stream of investors to lend to, inflation & I'm sure there are a bunch of other things..

Building up a rental portfolio will require more work initially, is much more uncertain as to outcomes but will potentially provide larger returns & I'm sure be more interesting.

I realize this is a very broad conversation however I would like to here others thoughts on what they like or dislike about either option.