Real Estate vs Stocks

Disclaimer

image1

Let's make one thing clear from the beginning . . . We are NOT discouraging investments in Stocks, Bonds, Commodities, etc. We fully understand that stocks are the mainstay of most people’s investment portfolio. And we are not suggesting that you dump all your stocks for Real Estate Investments. Rather, Real Estate Investing should be used as a means to:

(1) Diversify your stock heavy investment portfolio. 

(2) Provide a steady monthly/annual income and/or 

(3) To begin your investment portfolio in lieu of the more volatile stock market.

Steady Cash Flow

image2

Real Estate provides a steady and predictable cash flow on a monthly / annual basis. That monthly rent check arrives every month. The income received is predictable and steady. And although Real Estate is going to incur some unexpected maintenance and repair issues at times, if you plan for these issues in your initial proforma, these unexpected repairs will not affect this steady and predicable monthly cash flow.

 
And if the economy hits the skids? Stock values fall, Real Estate values fall . . . but you still have that monthly cash flow.

Strangers Hand You $$$'s!!

image3

Ah, probably the best part about income producing Real Estate. What other investment could you possible find where you have a total stranger literally handing you money every month to pay for your investment? Seriously . . . a total stranger handing you money monthly for your asset growth! This outsider is paying your mortgage (if you have one), paying for yourexpenses & overhead, taxes, insurance . . . everything! And if you have purchased intelligently, a positive cash flow to make other investments with. Do you have anyone purchasing stocks for you monthly? 

Tax Write-offs & Appreciation

image4

Depreciation tax write-offs on an appreciating asset! Increased value (profits) over time. (Yes, there are dips in the market, but a longer-term hold will most always reward you with an appreciating asset.) So, you have a profit from the monthly/annual rent revenues, a depreciating entity for tax purposes, AND an appreciating asset producing long term gains.

The Investor is in Control of his/her Investment

image5

You are in control of and make decisions about your asset and how the real estate performs. Stocks; you are at the mercy of the company’s performance, the mood swings of the market, news events, as well as political posturing and decisions. With Real Estate . . . that monthly check just keeps on coming.

NO Tax Liability When You Sell? Seriously?

image6

And what other financial investment do you have where you can sell your asset at a profit, reinvest that principle and profit in another investment . . . and can defer the taxes on that profit? You certainly don't have that option with stocks. A significant stock capital gain, you pay a large tax liability - then you purchase more stock with what is left over. Sell Investment Real Estate at a significant gain - and reinvest ALL of the gains - principle and all realized profits. (research 1031 Tax Exchanges)

Summary

If you make an intelligent and well analyzed Real Estate purchase, there are substantial profits and income to be generated – and if done properly, at very little or no risk. And best of all, you have someone else purchasing and paying for your asset.

 
 

If you are like most of our clients, you have a basic understanding of how profitable and secure the Real Estate Investment is, but like your stock purchases, you simply don’t have the time to put into the education, search, and management required. And that is why we call ourselves your stock broker in Real Estate. Let Real Estate Investment Brokers locate, analyze, acquire, and manage your Real Estate portfolio. 

8 Steps to Successful Passive Real Estate Investing