Stocks or Real Estate? That is the Million-Dollar Question
The truth is Real Estate and Stocks are both investment vehicles that can drive you to riches or destroy you financially. The question you should be asking yourself is who is driving it and how safe is your vehicle really?
When I began trading stocks back in 2003, I honestly did not understand how complex the market really was. It took several rounds of bad investments and years of learning before I became consistent enough in my trading patterns to begin day trading as a profession. If I didn’t truly have a passion for the market, I would have given up long before.
This is even more challenging if you live on the west coast as I do, since the New York Stock Exchange opens at the break of dawn. Yes, I was the crazy PTA mother of two, submerged with handling wife and mommy duties at home. And still tackling the 3:30 am Before the Bell news, before I had my first sip of coffee. That was just the start before I would scan the stocks and be ready to trade at 6:30 am! All the while having spent four hours the night before studying and creating a watch-list that was now probably not as strong as I had hoped. It was brutal, but I truly loved working with money.
It was not till years later when I met Abraham Mehrian with 20 years of financial industry experience, that I realized that the same can be done with real estate. It was Abraham with his 11 years of licensed expertise dealing with traditional investments and 9 years of experience in the private placement sector who made me realize real estate is a much safer and easier investment vehicle than stocks. Sure I was making money in stocks but I was losing money too. That’s not the same with real estate because commercial multifamily real estate always appreciates in value. Renters will always need a place to live and we have the means to provide it for them.
The most important lesson I learned during my trading days is how not to be an emotional investor and more importantly that there is an opportunity for the professional investors in any market condition. You’ve heard of real estate tycoons and you’ve heard of stock market tycoons but I bet you never heard of renter tycoons or cash tycoons.
Here are some things you can do in real estate that you cannot do in stocks:
1) In stocks if you transact based on insider information, you are a felon! But if have insider information on a Real Estate deal, you are a savvy investor.
2) Financial institutions will lend you money to buy real estate, but won’t lend you money to buy their own stock. If you notice in the video “Stock Vs. Real Estate”, Abraham mentions this point.
3) The fact is real estate is “real” and more calming to the nerve. Also, it can be a great source of cash flow. The stock market is very volatile, unpredictable, and far riskier than any real estate investment.
4) Real estate is a great hedge against inflation.
5) Real estate can be used as a collateral for other investments.
6) Historically real estate has always increased in value in a long term strategy.
7) Real estate has tax benefits, which stocks do not!
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