IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET?
More people are choosing to invest in real estate, but is real estate a better investment than the stock market? Let’s see which one is better for building wealth!
This is one of the questions that’s a “hot potato.” The answer depends on who you are talking with, what they are experiencing with their investments, and what they are reading.
I’m Ted Thomas, and I’ve been involved with an alternative investment in the real estate category. It’s a little-known but highly profitable subset of real estate called tax liens and tax defaulted real estate tax deeds.
Want to learn how you can make big profits from bargain real estate? Would you like to buy mortgage-free homes for pennies on the dollar? Or earn outrageously high interest rates? You can live the life of your dreams. Learn how with this FREE mini class!
IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET? – TAX DEFAULTED PROPERTY
Tax liens and tax deeds are properties that are unwanted by the owner, and those property owners have defaulted on their property taxes.
Many of the properties are used and abused. Some are junk and worthless. Others may be residential but buildable lots, and still others might be a nice mom and pop reasonable-quality property.
Only a few properties are in the country clubs. Most are in working class neighborhoods. There are plenty to choose from.
IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET? – GOOD AND BAD ADVISORS
Today, I’m answering your question, “Is real estate a better investment than the stock market?”
Is it better to invest in shares or property? Everyone has an opinion, and most people are generous and take your time giving their opinions. Many of those people don’t know what they are talking about.
My overall response is to listen, however, unless the person has a high net worth and has earned the money themselves or has experience and has been successful at another business, I take it with a grain of salt.
Not all opinions and advice are equal. The value of the answer depends on the experience and the success of the person you are listening to.
IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET? – REAL ESTATE VS STOCKS
So, is real estate a better investment than the stock market? It’s apples and oranges.
Both are good for you if you know what you are doing and if you know what kind of investor you are. For example, are you hands-on, or would you prefer someone else to chart the course and do the management?
Most real estate entrepreneurs are purchasing single family homes, possibly small apartments, residential buildings, even residential lots, and from time to time, maybe a small agricultural property.
All of these types of real estate are hands-on, and up until now, the high-speed traders have been unable to standardize and trade this real estate on the stock market.
IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET? – AN ABUNDANT MARKET
There is a massive market for fixer uppers; they’re always for sale.
The business of tax liens and tax deed properties is abundant. Those are properties investors spend little money and time researching.
I have a free gift for you, a 1-hour, streaming-video Mini Course that will teach you how to invest in real estate tax liens to earn a safe, secure passive income, and also how to create massive cash flow from tax deeds.
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IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET? – FORECLOSURES
There are millions of foreclosure properties annually which are delinquent and in default on bank mortgaged loans. These are mostly single one-on-one transactions.
The market is flooded with individual properties for sale. For example, HUD (Department of Housing and Urban Development), the VA (Veterans Administration) and the Farm Bureau all have real estate which is sold one-on-one.
It’s all hands-on and when they are combined, a massive market opens to everyone.
IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET? – A HANDS-ON INVESTMENT
For example, flippers and wholesalers are in the market for quick sales.
Fixers and rebuilders are in the market to create value and sell for higher prices. All of these opportunities are hands-on.
A few entrepreneurs develop a small group to do half a dozen houses a year.
In my opinion, these investors control their own destiny to the extent that they buy and sell for profits.
IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET? – STOCKS
Today I’m answering the question, “Is real estate a better investment than the stock market?” so now let’s talk about stocks.
Those who invest in the stock market are a different group of people, and their strategy and business model is also completely different.
They analyze the deal of buying stock based on different and not so controllable decision points.
IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET? – COMPANIES
Stock market investing require them to have faith in the company’s business plan, judgment about the product the company is selling, and confidence in the management of the company.
Most stock market investors have no intimate one-on-one relationship with the company. The broker is simply selling a stock. They are not depending on faith.
Real estate is a gamble as to the condition of what you are buying. Stocks are also a gamble based on market conditions, company leadership, management and employees.
IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET? – SPECULATION
Stocks are a question mark. Is the management team qualified? Are the employees qualified? Do they understand return on investment?
Stock market investors must ask if this is a cash flow investment, or are you speculating the company will grow? If it will grow, why will it grow?
Stocks are easy to buy. Just push a button on your smartphone. Or turn on your laptop and tap on the keyboard. It’s clean; it’s sanitary, and it works for many. In seconds, the money is out of your account.
Think of the position, what’s your choice. Do you have the ability to find stocks that are hidden gems? Did you see and understand Tesla years ago? Do you understand why Apple makes its money?
IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET? – UPS AND DOWNS
Can you determine why the stock will go up? Do you have insight and ability to use your intuition? Or are you a fact-based investor?
The stock market changes up and down daily with lightning speed. Overnight, some investors get wealthy. It’s also possible for it to become a nightmare overnight .
The market for stocks is topsy-turvy. This is an understatement.
So, real estate or stocks, which will make you richer? If you have a six figure lump sum, do you invest 100K in stocks or real estate?
IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET? – REAL ESTATE
Real estate is full of headaches, maintenance, evictions, repairs, and weather.
Real estate can be ugly hands-on for many. It’s not pretty if it’s not taken care of. There’s plenty of opportunity to change and modify properties, build value and charge rent.
Can you sell it? How many markets are available to sell it? Are you willing to become the banker? Why is seller financing so good?
It takes time to make money, and it takes time to create value with improvements. Will the improvements increase the rent? Will they accelerate the sales process?
IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET? – TAX LIENS AND TAX DEEDS
I have a solution. It’s not sexy; it doesn’t require a computer model or a program. This works for the little guy, and it’s been working for decades.
30-years ago, I discovered tax liens and tax deeds. These are properties that are unwanted by owners who have refused to pay their property tax.
The local government is authorized by the legislature of the state and the county commissioners or board of supervisors to confiscate tax delinquent property.
The counties levy tax, attempt to collect tax and will put the property into default. Then the treasurer will seize and confiscate the property and sell it with starting bids of only the back taxes.
IS REAL ESTATE A BETTER INVESTMENT THAN THE STOCK MARKET? – BARGAIN REAL ESTATE
You can buy tax delinquent properties at 60%, 70%, and 80 % discounts with no mortgage.
Imagine buying property for 20 cents or 30 cents on the dollar and then reselling it for 60 cents on the dollar, below the market price. That allows you a competitive advantage.
Just try getting a competitive advantage in the stock market. The frosting on the cake for real estate is a second profit model.
First, you make money on the margin between the purchase and sale price. Second, you make money on the financing. Work once and get checks for 10 years!
We hope you enjoyed Ted’s lesson, “Is Real Estate a Better Investment Than the Stock Market?”
Real estate and stocks are like apples and oranges. Both can be lucrative. It really depends on the investor. What type of investor are you? What amount of control do you want to have over your investment?
Real estate is very hands-on. Conversely, with stocks, your profits are dependent on a lot of factors that are beyond your control. In the stock market, fortunes can be made and lost overnight. Real estate, though it can still be risky, is less of a gamble.
Ted Thomas has a solution that mitigates the risk of real estate investing, and that is buying and selling tax delinquent property.
At a tax defaulted auction, the bidding starts around the amount of the unpaid property taxes, which are a fraction of the property’s assessed value. So, you can purchase mortgage-free properties for pennies on the dollar.
The large profit margin reduces your risk and enables you to sell the property quickly since you can sell it for a discount. If you buy for 20 cents on the dollar, and sell for 60 cents on the dollar, you can sell it fast.
For even more profit, you can offer seller financing to make money from the financing as well as the sale price and receive years of residual income! See what Ted’s students have to say about it.
If you’d like to learn more, there’s no one more qualified to teach you how to invest in tax delinquent property than Ted Thomas, America’s leading authority on tax lien certificates and tax defaulted property investing.
Ted Thomas is the only one who provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops & web classes, and personal one-on-one coaching.
Get started today at no cost with Ted’s FREE Master Class, that reveals the incredible opportunities available in tax lien certificates and tax defaulted property. The class is only about 1 hour of streaming video and contains life-changing information! You can’t afford to miss it!