How can real estate out perform stocks?

[Quinton Huntley]

How can real estate out perform stocks or even be better when the stock market does around 8-10% or even someone who can beat the market and get 15%? I understand every deal is different just like every stock is different but what would be an average or a expected return with real estate?

[Taylor L.]

We have major tax advantages and cheap leverage. Stock investors straight up do not have those. We also have a much murkier, more complicated market than publicly traded securities. That leaves a lot of room for real estate investors to make a return from market inefficiencies.

Great real estate investors do way better than 15%. The best people in the game use other people's money to earn a return, while making a return for those other people. If you do a deal where you make $40k, but you didn't have a cent of your own money in that deal, then what % return did you make?