Real Estate Investing
Real estate has become a popular investment vehicle over the last half-century. It enhances the risk-and-return profile of an investor’s portfolio, offering competitive risk-adjusted returns. Real estate is also attractive when compared with more traditional sources of income return, for it typically trades at a yield premium to U.S. Treasuries. In general, the real estate market is one of low volatility, especially compared to equities and bonds.
Experts
Andrew Houghton
Anthony Dilweg
Barry Habib
Bill Walton
Bryan Cavalier
Carter Malloy
Chris Akbari
Chris Macintosh
Christophe Tanghe
Dan Alpert
David Steinbach
Dror Poleg
George Gammon
Hamid Moghadam
Harris Kupperman
Hayden Crabtree
Jack Durburg
Jeff Prince
Joe Fairless
John Spears
Josh Dorkin
Jussi Askola
Karen Brennan
Kevin Kelly
Kyle Kazan
Larry Kendall
Marc Brooks
Mark Podolsky
Matt Halstead
Mike Lafitte
Natalia Karayaneva
Nick Halaris
Phil Pustejovsky
Philip Kessler
Quinton Mathews
Sa'ad Shah
Tim Emanuels
Tim Wallen
Zac Goodman
PROS OF REAL ESTATE INVESTING
Lower risk than the stock market
The housing market isn't subject to as much of the same volatility as the stock market. You don't have the same earning potential, but you can count on a steady incline most of the time.
Steady cash flow
When you have enough rental properties going, you can generate a reliable revenue stream for your business.
Good tax breaks
Real estate investors can deduct all sorts of expenses from their taxes, including mortgage interest, depreciation, property tax, and more.
Long-term returns will usually be positive
Over time, most properties will appreciate in value.
CONS OF REAL ESTATE INVESTING
Potential returns aren't as high as the stock market
From 1991 to 2019, the S&P 500 gained over 600% while housing prices increased only about 160%.
Real estate investment can be cash-heavy
If you really want to get a steady income stream going, then you need enough cash on hand (whether your own or loaned) to pay for building improvements, maintenance, possibly a management company, and more.
Properties are not liquid investments
You can't turn a property into cash quickly like you can when you sell a stock.
Managing tenants and building maintenance is a challenge
Whether you hire a property manager or manage it yourself, running a property is full of unexpected problems with overdue rent, roof leaks, power outages, and more.