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Good day subscribers thank you so much for joining me today i am jeremy this is the financial education channel in today we’re talking about how real estate investing can be better than stock market investing i’ve spent months in months researching to try and find how real estate investing can be better than stocks and i didn’t find anything guide so that’s the end
Of the video proof just kidding i found five things there’s five things that i’m really going to talk about today guys on how real estate investing can be better than stock market investing now this is a response video to a video i did about a week or two weeks ago on how the stock market is much better for most people to invest in real estate and i gave like 10
Different reasons on why i believe that and i in that video i specifically asked if you guys want to see a video like this i got a ton of you guys wanted to see a video like this in the interesting thing about that video was i got some comments in it that were like jeremy you’re so biased towards stocks in blah blah blah and it’s like no on bias toward stocks like
That’s like saying you know it’s like talking to a die-hard catholic insane you’re so diving you’re so biased toward catholics yeah no kidding like you like that’s the whole point so i’m obviously biased toward stocks because i believe it’s the best way you can invest however however if somebody is to say to me stocked i don’t want to do i don’t want to do stocks
Then the best next best thing in my opinion as far as investing is real estate investing and then probably commodities after that then probably bonds after that then probably small business investing after that so there’s definitely some steps to it but like it’s like i have no problem with real estate investing i just think stock market investing czar much better
Route overall long term to go but that’s my opinion and that’s what i share the most that’s why we talk about the most in this channel but today’s video we’re solely talking about real estate and how real estate can be better than stocks guys so i got 5 things for you today hope you enjoy hit that thumbs up button if you do and let’s get into this so number one
The chances you’ll lose 30% or more your money in real estate investing very very very low that is an extraordinary situation if you happen to lose 30 plus percent on real-estate it almost never happens guys however i can give you a laundry list filled to the sky of stocks that are down 30 plus percent just this year i can give you it never mind last year in 2016
I can give you a massive list of stocks that are down 34% 2015 2014 times we’re in a pretty good economy just the companies struggle some of them guys so now real estate the chances you’re going to lose 30 plus percent it’s so few and far between the worst ever was around 2008 right the 2008 housing crisis you know in some states like my old state arizona nevada
We saw prices dropped 40 50 sometimes even 60% that was the worst ever in history and worst real estate bubble is certainly in modern times if not literally in the history united states guys that was the worst and that was a few select states that really got hammered most states real estate prices definitely struggled but they went down more like 10 to 20 maybe
25 percent and that was the worst ever so the chances you know real estate is going to drop you’re going to buy a rental property the value of that rental property is going to drop 30 percent or the amount of rent you get for it’s going to drop 30 percent it’s so slim it’s like it’s such a small amount of chance so definitely a lot less less volatility in real
Estate and that’s reason number one why real estate investing can be better than stock market investing it’s just a lot less risky and number two when in real estate investing you could write off a lot of stuff you can write off a lot of stuff on your taxes that can go against basically whatever you’re getting for rent if you’re renting houses if you’re flipping
Houses like you can write off improvement capital improvements you may do the house depreciation your property damage of property damage happens when you’re renting it out to somebody like a lot of that stuff you can write off on your taxes which will then bring down your tax bill to make make whatever income you have from that property not nearly as steep as it
Seems so whereas where stock market investing you might be initially taxed lower but there’s really nothing you can write it off against that it’s not like if i buy a new ipad or if i’d buy a new mac so i can research some more stocks i can’t write that off against my gains on stocks i can’t but real estate investing you can you can write off depreciation all that
Stuff guys so you could end up paying a lot lower tax bill with real estate investing then stock market investing if you do it right properly and if you’re good at doing your taxes and all those kinds of things number three real estate something you can physically touch and i think that’s what attracts a lot of people are real estate because when your stock market
Investing right for instance you’re never physically touching that stock like like it’s just a figment of your imagination right i mean when you buy a stock it absolutely represents a part and piece of ownership of an underlying company but it’s not like something you can physically touch it’s not like you can go down to the corporate headquarters every day and you
Know go for a tour and say you know i want to go see the back room today and this and that you can’t do that with when you buy a house you would touch the house every day if you want it might be a little creepy if you rent it up some but you’re going and touching the house but i’m saying like like you can physically be there you can physically see it it’s something
That that’s tangible guys so that’s definitely an attraction toward a lot of people at like real estate investing because it’s something you actually walk around in and look around in and whatnot guys it’s very different in stock market investing which just seems like you’re you’re just almost like placing money in something that’s invisible which it kinda is but
At the same time it does every share you buy it does represent an ownership and an underlying company you just can’t feel or touch it number four you don’t have to stress about dealing price fluctuations when you’re in real estate investing you there’s not a ticker symbol above that house that you buy right that you’re going to flip or that you’re just buying
To rent out to somebody else it’s not like a ticker symbol above it that says you know today for two hundred and twenty five thousand you know tomorrow is going to be worth 215 a know what’s down after market 205 like you don’t have to stress about that with stock market investing it’s very hard to ignore the stock market ticker symbols most people cannot ignore
Them they want to see what that stock price is because it’s available to everyday basis they can see all this happened and this happened and a lot of people cannot deal with that stress of seeing their stock down i mean if you buy a stock at 100 dollarz you think it’s a great long-term investment and also in a few months later to $80 a lot of people panic and
Seller they just get stressed about well why is it down to $80 it’s i’m done 20% of my money i put $100,000 in the company i already lost $20,000 what am i doing like like stressing like really stressing about it a lot of people cannot deal with that real estate investing you don’t have to deal with that you’ll have to look at that stock ticker symbol and like we
Already talked about prices don’t fluctuate much at all so it’s not like that prices going up or down dramatically and you’ll have to get caught up in that whole game of of what’s the stock with what’s the price of my in my asset today which which is what you do in stock market and also that can lead to some bad things in the stock market investing that can lead
To selling when you don’t want to sell it can lead to starting to gamble more on stocks and some things like that because you kind of get addicted to that action of oh wow i’ve made 10% today let me try to make 10% tomorrow it can lead to some bad things that i’ve actually been caught up in in 2015 guys so definitely definitely an advantage that you don’t have to
See a ticker symbol above that property every day number five real estate investing much simpler than stocks without question like not even close stock market investing if you want to be a good stock market investor you need to have so much knowledge about different ways on how to actually invest in how to value a company and how we think long term on especially if
You’re a longer term investor thinking where the company is going to three four years out like because so much can happen right management can screw the whole thing up like it can be screwed up so fast management can make some bad moves some bad decisions that can completely ruin that stock they can completely ruin it your the chances you’re going to completely
Ruin a piece of real estate not probably going to happen in the mountain you can value that real estate much simpler process you can look at the comps across the street what did that house sell for over there was the house down the street sell for what our house is in the general area selling for what’s the price per square foot coming in how much in upgrades what
Did this house need for work okay now i got a price figure it out where stocks you got to know you got to understand if you want to really be good at stock market investing you’ve got to understand income you can understand balance sheets that understand cash flows you’ve got to understand how to read an entire annual reporter in a company you’ve got to know how
To read an entire tank you you’ve got to listen to conference calls a lot of work you’ve got to understand management’s tone you’ve got to have a vision you got to have a vision for where company is going especially if you’re investing for the longer term you’ve got to be able to read analyst estimates and think you know are that realistic that the company can kind
Of beat these estimates the analysts have because you know if they’re going to consistently missles estimates what’s going to happen your stock is going to go down the tanks so you’re going to look at all this stuff guys it’s a lot of freaking work and it’s very complicated and you got to really have a passion for it if you want to be good at stock market investing
Real estate so much simpler it’s not even close guys not even close so those are five reasons why real estate investing can definitely be better than stock market investing let me know in that comment section what you guys preferred you prefer real estate investing do you prefer stock market investing do you like a combo of both i can tell you personally as i get
Older i’ll definitely do more combo both right now and 100% of stocks but ten years from now i might be more like 75 80 % stocks and more towards like 15 20 % real estate in who knows maybe when i’m in my 40s or 50s that might be a 50/50 split so so i’ll definitely diversify as the years go on but like i said at the beginning a video in my opinion especially when
You’re younger especially if you have a passion for stock market investing so much better long-term but that’s not the point of this video this is just all about real estate i hope you guys enjoyed today just came across this channel you may want to subscribe we talk personal finance in the channel i’m an actual business owner so we talk about a lot of entrepreneur
Type videos and we also talk to stock market the most of anything thank you for watching guys and have a great day you
Transcribed from video
How Real Estate Investing CAN BE BETTER than Stock Market Investing! By Financial Education
