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.


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.


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.