You will get the answer you are looking for when you shake the magic 8 ball.

When asking if you should invest in real estate, you must first be able to tell an adviser what is the ultimate goal or outcome you are trying to achieve. If you are wanting to be set on a beach somewhere with your feet in the sand drinking a cold beverage every day for the rest of your life it may take a mix of both strategies and a few more.

A few years ago, I was reading an article that said more than 89% of the world’s millionaires were real estate investors. I was reading an article this past week that was discussing the age of NFL owners. In the article it went on to discuss their careers and where they earned the money that afforded them to buy an NFL franchise, almost 88% had made the majority of their money in real estate investments. I will say that almost 100% had stocks as well.

I’m a firm believer you get what you pay for, so asking someone for free advice on how or where to invest your money is not the best solution. If you ask a realtor, they will tell you to invest in real estate. If you ask a financial adviser or broker more than likely they will tell you the stock market is the way to go. If you ask me I will say it depends. It depends on your risk tolerance and the amount of money you have to invest.

Can I invest in real estate without any money of my own? Yes you can. It will cost you significantly more interest for a loan where you have “no skin in the game.” The lender will use the real estate as collateral and generally want you to give a personal guarantee. ( I will be posting another article later in September that goes into great detail on how this process works.)

Can I invest in the stock market with out any money of my own? Yes you can. Although it is more difficult to secure a loan from a bank on stock investing it can be done. The bank will typically want to hold the stock certificates in their possession. In most instances the stock has to be one that is proven and is less risky in nature.

A hybrid of investing is usually the best strategy is what most experts say. I know most of us have heard don’t have all your eggs in the same basket and if you think about that, logically it makes sense. If your basket gets smashed you still have another one to rely on. So when I say hybrid I’m speaking to a mix of stocks, bonds, real estate and other sources of income-generating investments.

Income generating investments or passive investments are where most investors miss the target. The more passive income you have coming in the quicker you can achieve or acquire the beach chair I referenced earlier. Stay tuned for an article coming out in October going into detail on passive income investing.

So should I invest in real estate or the stock market really depends on you? There is no one size fits all answer. It also depends on the market you plan on buying in whether it is the stock market or real estate; the subject investment has much to do with it. The investment world of today is high volatility with lightning speed transactions if you are in the stock market, remember that first and foremost. In order to offer clients some sense of stability, many financial advisors are offering REITS. That is a whole topic in itself  and will be discussed in a December article.

Disclaimer: I’m not an expert in the field of investing, I’m only sharing with you what I have learned over the years of studying the world of investing and my investment experiences. When making investments it is recommended that you seek the advice of a trained professional.

The following link takes you to an article that goes in a little more detail
https://www.investopedia.com/articles/basics/09/real-estate-versus-stock-investments.asp