Why Is Real Estate Better Than the Stocks?
With the recent economical situation and the big losses in the stock market, people are starting to look for alternatives for their investments.
Most people I know have all of their investments in “diversified” mutual funds. The big problem is that their diversification was still within one vehicle, the stock market.
The other problem is that they really don’t have control over their investments. Real Estate Investing should be considered as part of your larger portfolio.
One of the nice things about owning Real Estate as an investment is that you have more control.
For example, a fix and flip that you can’t sell could be easily converted into a rental property.
There are many ways you can get involved in real estate investing.
You can also diversify your Real Estate investment portfolio to a certain degree and you can chose to be active or passive.
You could invest in rental properties and partner with someone else to manage it. You could manage the investment and partner with someone else to be the primary investor. You could be the mortgage holder of an investment. You could get involved in Lease Options or even fix and flip projects. You could even be the second mortgage holder of someone else’s investment or buy second mortgages at a discount.
Don’t want to own anything but you are a great salesman? How about doing some assignments or referrals.
All of these investments need to be looked at as part of your larger portfolio and your level of risk and whether you are passive or active.
Ideally, your goal is to become a mostly passive investor so you can achieve your ultimate goal of financial independence.
Some people call this retirement.