2 Big Reasons Real Estate Investments Are Better Than Stocks

February 28, 2020
2 Big Reasons Real Estate Investments Are Better Than Stocks

Whether you’re an active real estate investor or you’re thinking about becoming one, you may wonder if real estate investing is better than investing in stocks. This has long been debated by investor enthusiasts through the years weighing the pros and cons of real estate vs. the stock market.

Of course, many experts will tell you that both are valuable. There have been plenty of people who have found success in both areas. Real estate and stocks are avenues where you can invest your money for a return, essentially growing your money. Some make huge profits in REI and some make huge profits in stocks.

However, we tend to lean on the side of real estate investing as being superior to stocks and here’s two reasons why we think so:

1. Control

As an active real estate investor, you have more control over your investments. As a business owner, you’re out there working on your business every day. You’re marketing, making calls, searching for your next deal, talking to motivated sellers, and so on. You’re taking action consistently with the assumption that you’ll make a good return on your real estate investments. (And, chances are you will!)

2 Big Reasons Real Estate Investments Are Better Than Stocks

With the stock market, you don’t have that control with your investments. Sure, you can buy and sell, but you have no control over whether your stocks will go up or down in value. The market has all the control and you hope for the best. You do your research and make educated decisions, but still, the rate of return on your stock investments is something you may not be able to predict well at all.

With real estate investing, you can usually predict pretty closely your rate of return, especially the more experienced you become.The better you get at crunching the numbers, the better you’ll be able to predict just how much of a return you’ll make on your real estate investments.

2. Collateral

As a real estate investor, you own your investments, giving you collateral. This means that you have the opportunity to take a chunk of the property you own and use it as leverage if you want. And, you can take it back if you need. For example, if your tenants stop paying you, then you can take that property back and put it in the hands of tenants who will pay you.

Having collateral allows you to have a kind of control that the stock market doesn’t.

This isn’t to say that investing in the stock market isn’t a good idea, because there’s potential for a good return on investment there. However, due to you having more control and collateral, we feel that real estate investing tends to be superior to stocks.

Marko Rubel
Marko Rubel is a bestselling author, self-made millionaire, and master real estate investor. He immigrated to the U.S. from Croatia as a champion boxer in his 20s without speaking English and having little money.  He has been named a real estate expert by the National Real Estate Investing Association that represents over 40,000 investors nationwide. After years of trial and error in wholesaling and rehabbing, he created his own strategies. He is now considered one of America’s leading real estate experts— helping others on their real estate investing journey.