Best Investing Strategies: Real Estate vs Stocks

Investment Strategies
If you’re new to investing and trying to determine if you should invest in stocks or real estate, you’re in the right place. Today I’m sharing the pros & cons of both real estate & stocks, plus how to determine which investing strategy is right for you.

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Best Investing Strategies: Stocks vs. Real Estate:

5 Downsides of Working with a Full-Service Real Estate Team:
Taking the time to research the best investing strategies is the best avenue to get on your way to financial freedom.

Today we’re diving into the two most popular investment vehicles – real estate and the stock market. Which one is better for you? This is going to be individualized, it depends on your goals, preferences, and much more.

You may already have a stock-based investment plan and understand the concept. If you’ve got a 401k or IRA plan, you’re already investing in the stock market. But for those who don’t have a full understanding of how stocks work, here is a simple and brief explanation: A stock is a security that represents ownership in a piece (or share) of a company. When an investor owns shares in a company, they will have financial gains and losses that correspond to how the company performs. Individuals can also invest in a bundle of stocks for diversification with what is known as an ETF – exchange traded funds, as well as a mutual fund.

On the other hand, let’s talk about real estate. Specifically, a buy and hold real estate strategy involves buying rental properties. A property manager is often put in place to take care of everything moving forward, and a tenant rents out the property. Once the tenant is in place, the investor receives a rent check every month like clockwork. They hold on to this property with the intention of keeping it for years to come. Typically, more properties are purchased. The real estate investor then has several properties in their portfolio, with multiple streams of income rolling in.

Now let’s go deeper into the pros and cons of each strategy.

Pros of investing in stocks:
– easy entrance
– potential to grow your money
– easy to diversify with a variety of stocks

Cons of investing in stocks:
– volatile, high-risk market
– can be very time consuming
– no control – hand over your money to a broker

Pros of investing in real estate:
– steady, consistent cash flow
– if you invest in the right markets, largely recession resistant
– the tax benefits are unmatched

Cons of investing in real estate:
– if you’re new, it can be easy to make costly mistakes without the right team
– some investors may not want to invest in out of state properties
– it may just not be right for your personality type (see my video on 5 downfalls of full-service real estate for more)

I’ve invested in both, and I have to tell you that I personally prefer investing in real estate. However, it’s not right for everyone and it’s important that you do some soul searching before you determine what’s right for you.

For more, check out my full blog post on this topic:
DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.

AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.

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