Monday, March 18, 2013

Investing? Stocks or Real Estate? Who really knows?

In the past few months, I have watched Real Estate stocks going slightly up and it makes me wonder:  Where are these stocks really heading?

To me, investing in stocks has always been a losing proposition. I once had a substantial amount of money in mutual funds, bonds, stocks, etc. And, since that was about the time the economy took a dive, I lost basically 50% of the value.  I tried to wait for it to return, but, it only seemed to get to about 80% of the pre-crash value when I had to cash out for business operational purposes.

And, since, I really have never had an understand of how to invest in stocks, (I also did the e trade thing, too), I am very gun shy at going back into stocks again. To me, stocks have always had a reputation of being volatile. Their up and down value change -- even in good economic times -- makes this investment strategy too uneasy for me to stomach.

So, since my family's experience in Real Estate ownership goes all the way back to the Pilgrims, I feel more comfortable having my money invested in Real Estate. I will just say that real estate ownership has been well within my comfort zone for a long, long time.

And, since 2/3rd's of all US billionaires have made their billions in real estate, that's another reason why I feel the most comfortable in this industry.

So, when I read that Wall Street is buying stocks in Real Estate Companies, I got a little unnerved that Wall Street might screw the Real Estate market again. (The de-regulating of Wall Street was a bad idea!)

Also, recently, I have been researching various properties to acquire. A Local Realtor told me that residential investors are just buying up vacant Las Vegas SFR properties.  He said, these home investors are just buying them and they plan to just sit on them. He said they weren't even going to fix them up. They are going to wait for the Las Vegas Real Estate market to turn, then they plan to sell then as fixer uppers. Hmmm!

So, should you as an investor acquire stocks? OR, acquire a well located real estate property that is leased by a top national credit tenant in the form of a net leased income property that actually pays you cash once a month?

To be honest. either way you could lose.

Now, I consider myself an educated person. And even though I may be educated, stocks are still more like a 90/10 risk to me. (There is a 90% chance I will lose my money.)  Real Estate traditionally grows by +/-3% a year.

And since I know so much more about Real Estate than stocks, I know that I could earn a very good monthly income from real estate rather than a paper equity from stocks. So, to me even IF Real Estate was only a 50/50 risk, it is more inline and acceptable to me.  Especially, IF you own the real estate Free and Clear.

And, Real Estate has always had that tangible asset about it that you can touch and feel it to know it is real.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR 702-501-9388!

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