Top 3 Reasons to Choose Real Estate over the Stock Market
1. Cash Flow – When you buy a stock, you cannot gain or lose money until the stock has been sold. When you buy a two flat, three flat, or four flat, you can earn monthly cash flows regardless of where market value is trending and you get the added bonus of earning extra money upon sale just like a stock.
2. Control: What does a stock look like? Good question right? How do you control the performance of your stock? The real answer is that you cannot control it. Those that run the company either make good or bad decisions on behalf of their stockholders and you stand to win or lose from someone else’s management performance. Why leave your investment’s performance up to chance or to other individuals? With real estate, you buy a cash flow positive property, choose where you want to buy it, who you want to make money from, how you want to maintain the property, whether to occupy your investment, and whether to transfer your investment to family. How well do you want your investment to do? You have the influence and power to control your investment’s performance with real estate.
3. Flexibility: Realestate is a tangible investment meaning that it is something that you can physically touch. This asset has so many uses, I’m surprised that more people aren’t spending their retirement savings here. It can be used as a monthly cash-flow vehicle. It can be a long-term appreciating investment. It can be a home for your aging parents while you live upstairs. It can be a home for your sons or daughters when they graduate college. With a few of these, and their mortgages paid, it can be your full time job. It can be converted to a single family home when the area gentrifies. It can be passed along to heirs. It can be transferred as a gift to someone you really appreciate (think of me, I’ll take good care of it). The bottom line is, stocks are for buying and selling and cannot truly be appreciated unless they make you money. Real estate can make you and others happy and/or wealthy every month for the rest of your life.
Whether it’s the cash flow (my favorite), control, or flexibility that peaks your interest in real estate, please remember that all results in this business are a product of your own actions and performance as a manager. This is the exact opposite of the stock market where all results are a product of someone else’s actions and performance. So do yourself a favor, and take action and manage your property well.
Learn more at my website, www.chicagoREinvestment.com.
Comments