The Factory That's both truth and because companies pay you for holding their shares. You don't have to wait No 20 , 40 years to see returns I'm up 47℅ today . That a bias information that he put out .
@Olivia P it totally depends on what company you invest and some economic luck. 10% per year in Brazil with stocks as stock holder is not out of reality. Big investors invest on different types of stocks around the world, so can we.
Great video though I think you were more biased towards Real Estates! Personally, I think stocks are "better". Major con however is that it needs your time, which is easily countered by working with/through an expert. Made my first million earlier this year through one. Have dabbled into Real Estates more than a few times, won't say I've been so lucky. Another advantage is that you need relatively lesser capital to go into stocks than real estate. Lastly, can you do the job of a Landlord? Can stocks call you by 12am about a broken pipe?
This is quite funny but true. Went into real estates sometime last year. Wasn't quite as profitable as I had expected. You mentioned something about an expert. Who's he? Sounds quite amazing?
@@marguritetheodore2194 A "she" actually "Nancy Lynn Lewis", she was in the news when she revived Grumac sometime in 2018. You can check her out online for more.
@@chriswilliams2061 Wow I know this little lady. Once attended a seminar she was also in attendance here in Texas,, Great speaker. I still think Real Estates is a safer bet
I hear the argument about "stocks calling you at 1AM" a lot by those who choose to not own property. While technically true, if you did due diligence and bought good property and do regular checkups, this is a RARE occurrence. So rare it's almost not worth putting into the equation. Repair is a real thing, but I have been investing in real estate for 20 years and have owned more than 20 properties before...I can count the number of 1AM calls on one hand.
Regardless of which one is better all that matters is that you start NOW don’t waste too much time dwelling on the 2 and let your money start working for you. 🤔
Oscar Martinez *You shouldn’t jump into anything recklessly because of FOMO (fear of missing out).* There is no need to rush in. Don’t start just for the sake of starting or you will lose your shirt. *In Stock investing and trading, you will definitely lose all your money FOMO’ing. It’s just a matter of time.* It usually takes a year or few to even get good at trading. *Educating yourself is the first priority, with either REI or Stocks, learn risk management, and invest for consistent profitability.* You want to be able to keep playing the game whether it’s REI or Stocks. This is marathon, not a sprint. Until then, people should keep their day jobs and save money.
I initially loved the idea of real estate investing (studied about the market for over a decade). But I never jumped in. However, the stock market has been great for me!
*2021 has alot opportunities for financial growth but I advices everyone to seek a financial expert to help to achieve financial growth.* *Experience definitely beats hard work and profits come from proper trade execution. Consult with an individual broker who is experienced and licensed, That's the best way to succeed and minimize losses. I hired the professional guide of an expert, Margery Gledson.... I made over €300k in a net profit from a €70k portfolio in less than 6 months, she's highly recommended.*
Rental income is quite fixed unless there is a general rise in the value of the land related to socio-economic traits. if you want to play safe stick with rental, now on the other hand stocks lol, Its quite easy to attain a million in this market simply because its not fixated like rental income, all you require is standard assessment and professional handling.
I just looked up this person out of curiosity, and surprisingly she seems really proficient. I thought this was just some overrated BS, I appreciate this.
They are probably 11 years old mom and dad take care of them. never had to pay rent. Never had to handle their own money. So they have no clue what's going on here.
If you own a lot of high paying dividend stocks, you'll also get cash flows. Thing is that you'll receive your cash dividends on a quarterly basis. Real estate is more headaches with lower returns, whereas the stock market is more heartaches with higher risk of losing your capital. Pros and cons to everything. Take your pick.
I think both are great! Real Estate can bring you a lot of money. However, it's a really big investment all at once and if something goes wrong, it can go wrong very hard...
I personally prefer investing in dividend stocks of good companies, the Warren Buffet approach. Investing in stocks helps grow the economy as it gives companies money to put towards improving productivity. Meanwhile Real Estate just exists and paying for a place to live is a huge strain on people's finances that they could be using that money to invest in something more productive, and encourage more efficiencies in the economy.
@@aspreedacore I understand your point. May I suggest you read rich dad poor dad and The richest man in Babylon? Those two books gave me whole new perspective about financial management. Hopefully it will do you good too. Good luck
Exactly!!! Companies can pay off your debts with their quarterly/monthly/yearly payouts and you don't pigeon hole yourself in one area of the country or world!
I have a question Jaspreet if you do a deal on an property yourself with investors, and the payment mortgage is 1400 on that investment home, how much is the average rent to where you make a profit ?
I like both but I’m starting with the stock market because it’s cheaper doing short term investments and gradually work my way up to owning real estate
You can litterly start doing real estate with little to no money as of today. This guy is mainly talking about rentals in real estate. Real estate is so much more than just rentals !
I like both. Dividends can also be considered cash flow and after all your cost in real estate the stock might be actually providing a person with more cash flow than a property.
I would invest my money into real estate and index funds. If you don't have the means to buy real estate (there are various financing options) ..the best way is to invest your money into a REIT (Real Estate Investment Trust) - you will still see monthly income - and as it is seen as monthly income it taxed accordingly
I prefer real estate as well, but you need to always wait until you have enough amount of capital to buy. So, I invest in stocs every now and then when i see good oppurtunity :)
Real estate is one of the best investment Since there's a 4 pipelines of income. 1.)Cash Flow 2.)Debt Pay down (paid by the tenants) 3.)Property Appreciation 4.)Great Tax Advantages DOING BRRRR (Buy, Rehab, Rent, Refinance and Repeat) is like buying a house for free as long as you buy properties in good location & numbers make sense when you buy!
I've watched a lot of videos on real estate investing and im sooo confused on how to start. I've wanted to but man it's confusing. But with the stock market there's soooo many apps that make it easy to understand and like you said it's easy to start investing in less than a week.
Purchase first property, invest rental income to the market, when market investment is enough to buy more real estate......buy more real estate.....repeat process, snowball effect is that more properties more income faster repetition of the process.
*Just the basic idea of people taking their financial life in consideration is great. That's why I like, and do both types of investing, just with different money that have different purposes. Depending on the duration of availability of your investment and some other indicators.*
I was always obsessed with real estate and have already started on building my portfolio. However, I do like the idea of investing in a bit of both and have recently started with stock investing. Wish me luck :)
@@CountryBlessingz I'm actually not in America (although I do hope to one day invest in real estate there). I'm in Jamaica where things like flipping houses are a lot more difficult (and expensive). What I can say to you is before you look at purchasing any property for passive income, be sure to work out the yield (both gross and net), look at the possibility of leveraging (but ONLY if it makes sense after calculating the yield), shop around for mortgagors (don't just settle for one bank because you "like" them, you'd be surprised at how many people do this) and do as much research on the community you are interested in as possible as opposed to just buying in a neighbourhood because you "like" it. All the best on your journey :) .
It always annoys me when people say stocks have no value, is based on nothing, is like a casino. But they’d have no problem understanding the value in being a part owner or Joes Hardware store.
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Invest in yourself ... start up a business in something you are good at ... other than that invest in assets you are using and can sell later!
It is important to do both. However, one big flaw when just getting started with real estate is if you do not have steady work history (steady income), you will not get a loan from a bank. You'd have to scramble to find private financing or to buy all cash.
Hoping to visit a house today that will be our 4th rental (assuming it all works out.) I agree that real estate is a great way to build income and wealth. Thumbs up!
@Jon Wayne The 4th one fell through (we looked at it, and it did not seem to add up to what was advertised, and we DO buy all of them wholesale then rehab them), but all of the other three and our share of a 78-door apartment (21 LLC members, various investment levels). In any event, I retired this week. I have other assets obviously, or I wouldn't have retired, but the good thing about real estate is that we generally have a one year lease (even on each apartment door), and here in Texas, since it is a state in which property taxes go up pretty much every year, we have a management company run comps. We have two coming up in, respectively, October and November, and the rent will increase $75/month on each. Again, that is based on area comps, and also it is a red hot rental market right now, at least here in Texas. The third single-family comes up in February, and we'll run comps on that as well, but we're already making a pretty good cash-flow on that one already. But renting/leasing is a business, not a subsidy to the folks who rent our property. That sounds cold-hearted, but you've got to stay arm's length from your customers. If something breaks, we get it fixed, and we are on the hook for either actual costs or at least insurance deductibles if it is external property damage (like a roof). I only wish I had started real estate 20 years ago, instead of 2 1/2 years ago, because it would have outperformed my 401ks/IRAs/etc by a large margin. If you are 40 or under, look into it. And I am not trying to sell you anything, I'm just someone who is making what boils down to very-low-taxed supplemental income, compared to a paycheck or even withdrawals from a traditional 401k/IRA (fortunately I have a couple of Roth's in each of those categories, but I'm leaving those alone for now so that they can grow, hopefully, and I can take more out later tax free.
If you're Indian, investing in farm (for investment) is best option. You get loan at lower intrest rate. You get tax benifit. Value of farm increases more rapidly as compared to plots or flats. So you get excellent returns.Thus you are generating passive income. Also by working on agriculture (in farm), you get extra income.
Good advice for people once they stop spending money on buying cars to impress other people, and buying a single family house so they can put Italian marble walls to impress others.
I prefer stocks (specifically index funds) because of the no work part. I can focus on my job and spend my free time doing what I want while my investments work for me by themselves. I may not get as much as through real estate but it's literally getting money with no work put in aside from picking which fund to invest in. And I do get dividends quarterly which can be passive cash income if you just have them go into your bank account instead of reinvesting them so you don't have to wait 40 years before seeing returns. But in the end it's a matter of preference, there is no best way, just different ways.
I do both stocks and real estate but prefer real estate because of the up side that stock is limited in. For example real estate has an edge on: tax favors (assuming buy and hold, 1031 exchange, or property tax exclusion up to 250k single or 500k married), ability to generate cash flow (stocks you have dividends but let's face it, you have to invest massive $ to get a return worth relying on), small leverage from the banks for huge gains.
If you save or invest atleast 15% of your income before the purchase and still have enough to go through the month then go right ahead. This is financial education 101. You're welcome
My plan is to do both. I am currently investing 20% of my income into my Roth IRA in good mutual funds with Vanguard and plan to do that my entire career. Now that I am almost debt free, (cars and credit cards), I am interested in getting my first rental property for passive income also. I think having both will give me a good retirement. Thank you for all of your great videos! I am watching them and doing my best to learn from you! Great content!
I invest in the stock market and I'm currently working in construction with my father so when I do purchase my first investment property I can do so of the work myself
Short answer, Real Estate. Stock market is great too, but Real Estate is a tangible asset that no matter what the economic situation, people need a place to live
Too simple of thinking. Pros and cons of both. I was a landlord and lost a lot of money due to bad tenants and never ending fees / costs. I've made a lot more money in stocks.
@@anonymousperson9735 Not really. Single family homes are not as bad as people make them seem. If you have 4 to 6 single family homes, you basically have some mini apartments. They key is finding the right tenants. And there are ways to lower your risk greatly on that.
I've thought about real estate investing for a long time but worry about the potential problem tenants could cause. Now I'm trying to learn more about the stock market.
REIT's of course! All-in-one deal (stock market/real estate). My property managers are awesome! Plus, I get to touch the properties I own. They're everywhere! Lol! Why do I need control when there are managers with way more experience and connections than I do? Very low cost and less hassle compared to the traditional way. Thanks MMM! The lazy landlord.
@@ericworthington7299 Different REITs on different brokers/platforms. Just trying them all out to see which one I like the best then put more into it. Tradestation, TDAmeritrade, Robinhood, M1 Finance, Betterment, Vanguard, FundRise. Not yet on Wealthfront.
But REITs don't have any of the tax advantages... Even the dividends aren't taxed as qualified dividends they're taxed as ordinary income. I use REITs for my Roth and almost nothing else.
@@KhushbuMel REIT dividends are taxed as ordinary income...You'd be better off investing in a dividend paying stock if you're just going to invest in a REIT. Unless you're talking a private equity or non-publicly traded REIT...
You are not screening your tenants correctly if your getting screwed over THOUSANDS of dollars. By the way you have a lease contract that should minimize you losing money.
This dude sucks he didn't even talk about all the emotional volatility in the real estate markets, lack of control due to external factors and also the monthly expenses and any unexpected expenses like maintenance. But wanna say "income" like it's that simple 😹 some people barely making anything after the expenses they pay out
You should use most of your real estate income to buy stable stocks or put into online saving account. Compound interest for real estate will help you a lot. Major CONS for Real estate is: risk of YOU defaulting (mortgage is leverage) and HIGH closing cost. Chances are your risk of failing is higher than a company and your cost is also higher than a company. Btw, there is something in between but for some reason people don't know about it and no advisors will tell you, yet all the big guys are doing it. Hint: they don't buy a rental or 10x rentals. They do something then buy 100x rentals instead. You can then buy a piece.
Stock Market: 10% return Real estate: 6.2 return crypto trading: 18% return doesn't that ring a bell to you?? When the game is rigged, only fools play by the rules.. Trade crypto!
The price of real estate property is the main reason why I decided to trade cryptocurrencies. Unlike crypto, real estate demands maintenance which could cost more in the long-term perspective.
You get it. That's how I feel too. It's better to build up money you can see instead of having it tied up. On the flip side once you are well into the 6 figures I'm more comfortable taking some money off the table and investing into something physical/ tangible
Invest in property and rent out. The extra should be invested in Stock market. Once you have "too much money" in stock market take out some and get your next real estate and rent out. Now you have 2 real estate investment that pay monthly rent. Invest the monthly rent in the stock market.
you should do both. remember your portforlio should be diversified and investing in real estate should be part of that portforlio. so buying several houses is like investing 100% in property and if the property market crash, you lose money. so diversify and do both
@@stonebox2404 down compared to what? In theory its the best of both worlds and if purchased correctly a portfolio of properties should never go down........so im not sure how a reit would go down unless it was overpriced to begin with
I know its about to be summer but that sweater is dope, and of course the very easy to understand no BS approach to investing is already appreciated brotha.
I think the fact that it's so easy to start can also be a con as well. Because it can give too much confidence to new investors and make them go straight to emotion and FOMO. Stocks are something that really humbled me from all my errors in the skill and I've learned so much from it and have become way more budget oriented than I ever have as a result from it.
I agree with everything you said except the long term part. If you're young and have very little money, you can invest in stocks, but unless you invest in REIT, buying real estate require capital. As an investor, you'd need to put 20-25% down on any property, take a loan, and considering the 50% rule (Your net cash flow is only 50% of the rent not including the mortgage payment), it can take you 15-30 years before you see any passive income you can live on.
This is an interesting topic, although I have my own answer, I still watched the whole video. Unfortunately, the video fails to discuss the most important factor - the estimated annualized gains of both. BTW, it also fails to mention that after 1031 and 1031, eventually a property would be preferably passed on to the next generation and the cost basis would step up.
Being a full time student and part time worker I have neither the time not the capital for real estate. I'm also somewhat risk averse and conservative so the reliable growth of the stock market is much more appealing to me.
Real estate is more in line with a 'minority mindset' traditionally because its tangible and has good cashflow. Stocks are great too, but most working class and middle class people aren't as familiar with the market because it's not introduced to us in the home via our parents.
The biggest advantage of property investment is leveraging lenders money. If managed cautiously it can be a very good debt to carry. And thanks to the inflation, the longer you carry this debt, the better. Ideally, paying just the interest and never even trying to pay off the principal.
Real estate investing is a lot riskier. Markets are inefficient and you can get exploited. A next door neighbor decides to let their house become dilapidated and that brings your property value down. And there's nothing you can do because it's not your property. Not taking either side, just that there are more perspectives to take
I like both. By doing both, you are diversified in your wealth. The 2 points I wise you hit on regarding Real Estate is, cost to sell & possible market depreciation. Even though the housing market has gone up year over year the last 12 years, this is always true. Also, depending on the region of the county you live-in or neighborhood, your house value still might go down, even as the rest of the county goes up.
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As you know, it's a tough business and I don't know a single trader or analyst who is right all the time. We can only predict, which is quite fascinating with this business.
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@@CoreyHillesheim yes true it will remain same, but it atleast is an better alternative for fiat currencies that surely depreciate with time and lose purchasing power capacity. Gold is the real currency
@@haris1328 Gold can lose value just like any other asset. I doubt Jaspreet will talk about gold since his focus is on growing your purchasing power, not maintaining your current level.
Flipping realestate is cool, but I hate the idea of dealing with tenants. Depending on the state, it can be a nightmare to evict a tenant. Hate the idea of them trashing my property too. Not all states will allow you to garnish thier wages either. You might just get the deposit, which may not cover your losses.
Driving a car gives you more control than riding in a plane, yet you are far more likely to die in a car. Sometimes you should leave things to the experts to grow your money for you, and if they fail you report them and find a new expert.
Dra O great point, I think both are definitely great and have their pros and cons. My preference is real estate but I also have investments in the stock market as well
What about the middle ground of investing in small private businesses that aren't listed and liquid but produce cash flow and that you may have some control over?
1:33 how does that apply for Pg&e? I bought a total of 12 shares and I sold them on Tuesday because I read you could lose all your shares once a company filed for chapter 11 bankruptcy. I wanted to buy and hold for the long run but sold them due to fear of losing my shares. Could i have held my shares and still kept their value through the bankruptcy that they’re going through?
Forgot about a huge con on 1031’s, have the timeframe to roll the profits. With so many investors out there, good properties might be hard to find unless well networked with wholesalers, non corrupt foreclosure based realty firms, etc. Good portfolio has both in it.
I have a 5 years experience in investing, challenge any newbie can face is in real estate is your Mortgage eating up the dividend(rent) earned from the property. So I keep a ratio of 60:40(Real estate: equity or MF's), Infact right now my mortgage is greater than rent and I am optimistic that it would reach equilibrium by 2022.Please advice if I am going wrong somewhere or it(real estate) requires such patience to reach equilibrium.
Alot more liability and what mgmt company wants to deal with a 1 fam. You are the mgmt company lol lasltly alot more costs not talking about snow grass repairs..its not just collect rent make $
I like to hold R.E. (raw land near urban growth) for long term gain....for short term gains...the stock market i like best. The stock market is just a game of patience...you wait for stocks to crash down...get in and then take a little gains...not too much...never be greedy and wait too long.
I invest in both. I buy & sell high dividend stocks as income. And rent out a 6 bedroom home with a basement i purchased last year for more income. I rent each room for $500 a month.
Thank you for watching! If you enjoyed this video, you should watch - How Rich People Spend Their Money: th-cam.com/video/U7tJn4qv8Lk/w-d-xo.html
Both but more Real Estate!!!! 💲💪🙏
Can you make a video on Crowd funding ?
Your videos just keep getting better. Thanks
Could you make a video how you screen your tenants?
Tried real estate but biggest hassle is bad tenants (had them) and time overseeing property manager, also property was not local (2 hour drive away)
Who wins? The person that is actually investing in either one and not just sitting on cash
@@NomadBlack 😂
Sit on cash for when the stock market will crash. Get some discounts.
@@upbeatinstrumentalz3739 time in market > timing market
@@NomadBlack until the fed rate increases and your cash you sitting on can't outpace the price hike on that new Curved TV you've always wanted
@@jaydynamite8680 I'm down with this.
Real estate for upfront cash flow and stock for long term. So both
True. Could even invest in stock market to grow for real estate in the future 🤔
Very true. So they really can go hand in hand
Haris Inam true, but I don't really like reits
The Factory That's both truth and because companies pay you for holding their shares. You don't have to wait No 20 , 40 years to see returns I'm up 47℅ today . That a bias information that he put out .
@Olivia P it totally depends on what company you invest and some economic luck. 10% per year in Brazil with stocks as stock holder is not out of reality. Big investors invest on different types of stocks around the world, so can we.
I prefer investing in the stock market but plan on diversifying into real estate!
When you do are you going to make a second channel for that?
Show me how
@@prome57 perfect, double the ad revenue for even more money to re-invest!
Stocks don't call you at 2am to say the water heater exploded.
In investing in stock market you dont get loans but in real estate you get
Great video though I think you were more biased towards Real Estates! Personally, I think stocks are "better". Major con however is that it needs your time, which is easily countered by working with/through an expert. Made my first million earlier this year through one. Have dabbled into Real Estates more than a few times, won't say I've been so lucky.
Another advantage is that you need relatively lesser capital to go into stocks than real estate.
Lastly, can you do the job of a Landlord? Can stocks call you by 12am about a broken pipe?
This is quite funny but true. Went into real estates sometime last year. Wasn't quite as profitable as I had expected. You mentioned something about an expert. Who's he? Sounds quite amazing?
@@marguritetheodore2194 A "she" actually "Nancy Lynn Lewis", she was in the news when she revived Grumac sometime in 2018. You can check her out online for more.
@@chriswilliams2061 Wow I know this little lady. Once attended a seminar she was also in attendance here in Texas,, Great speaker. I still think Real Estates is a safer bet
@@thesportsguruu This right here is the second time I am coming across this name in a week. Came across her podcast and it was lit!
I hear the argument about "stocks calling you at 1AM" a lot by those who choose to not own property. While technically true, if you did due diligence and bought good property and do regular checkups, this is a RARE occurrence. So rare it's almost not worth putting into the equation.
Repair is a real thing, but I have been investing in real estate for 20 years and have owned more than 20 properties before...I can count the number of 1AM calls on one hand.
Regardless of which one is better all that matters is that you start NOW don’t waste too much time dwelling on the 2 and let your money start working for you. 🤔
True. Money has to make money or its a waste
Oscar Martinez - Stock Market Hustler
You still here commenting on everything lmfao
It’s easier said than done. Trading at a profitable level takes at least 1-5 years. If it was easy everyone would be rich
@@thegreat9481 I felt that too.
Oscar Martinez
*You shouldn’t jump into anything recklessly because of FOMO (fear of missing out).* There is no need to rush in. Don’t start just for the sake of starting or you will lose your shirt. *In Stock investing and trading, you will definitely lose all your money FOMO’ing. It’s just a matter of time.* It usually takes a year or few to even get good at trading.
*Educating yourself is the first priority, with either REI or Stocks, learn risk management, and invest for consistent profitability.* You want to be able to keep playing the game whether it’s REI or Stocks. This is marathon, not a sprint. Until then, people should keep their day jobs and save money.
I initially loved the idea of real estate investing (studied about the market for over a decade). But I never jumped in. However, the stock market has been great for me!
Are you a day trader?
@@malston01 no he’s asian
*2021 has alot opportunities for financial growth but I advices everyone to seek a financial expert to help to achieve financial growth.*
*Experience definitely beats hard work and profits come from proper trade execution. Consult with an individual broker who is experienced and licensed, That's the best way to succeed and minimize losses. I hired the professional guide of an expert, Margery Gledson.... I made over €300k in a net profit from a €70k portfolio in less than 6 months, she's highly recommended.*
*You can easily reach out to expert Margery Gledson on her whatsAp.* 👇
🏴 *4 4 ( 7 3 9)- 9 8 3 1 7 7 1.*
Rental income is quite fixed unless there is a general rise in the value of the land related to socio-economic traits. if you want to play safe stick with rental, now on the other hand stocks lol, Its quite easy to attain a million in this market simply because its not fixated like rental income, all you require is standard assessment and professional handling.
@@samowens9015 Lucy Maria Koss
Nice thread guys.. i'd pick both though!
Awesome stuff!
I just looked up this person out of curiosity, and surprisingly she seems really proficient. I thought this was just some overrated BS, I appreciate this.
The ten people who disliked the video "invest" in lottery tickets.
It's 130 now bro lolz
They are probably 11 years old mom and dad take care of them. never had to pay rent. Never had to handle their own money.
So they have no clue what's going on here.
are they just bunch of lazy losers peoples. i have many friends that they want stuff but nothing than just drinking beer.
Publishers Clearing House. Lol
Lea391 😂
If you own a lot of high paying dividend stocks, you'll also get cash flows. Thing is that you'll receive your cash dividends on a quarterly basis. Real estate is more headaches with lower returns, whereas the stock market is more heartaches with higher risk of losing your capital. Pros and cons to everything. Take your pick.
In a nutshell, yes
I think both are great!
Real Estate can bring you a lot of money. However, it's a really big investment all at once and if something goes wrong, it can go wrong very hard...
Buy right and eliminate most problems associated with real estate.
But the gains are faster in real estate
jay scott I disagree. If you know how to trade, asset classes can be much much faster than real estate. But definitely a lot riskier than real estate
And you can say the exact same for the stock market.
That is biggest advantage of RE...big capital needed. this was not emphasized here
I personally prefer investing in dividend stocks of good companies, the Warren Buffet approach. Investing in stocks helps grow the economy as it gives companies money to put towards improving productivity. Meanwhile Real Estate just exists and paying for a place to live is a huge strain on people's finances that they could be using that money to invest in something more productive, and encourage more efficiencies in the economy.
your not lying, im full time I swear ill save more money working part time if I can cut the rent!!!
@@aspreedacore I understand your point. May I suggest you read rich dad poor dad and The richest man in Babylon? Those two books gave me whole new perspective about financial management. Hopefully it will do you good too.
Good luck
Exactly!!! Companies can pay off your debts with their quarterly/monthly/yearly payouts and you don't pigeon hole yourself in one area of the country or world!
“What’s up everybody I am Jaspreet Singh” 🙌 hit me with that knowledge
🙌🙌🙌
I have a question Jaspreet if you do a deal on an property yourself with investors, and the payment mortgage is 1400 on that investment home, how much is the average rent to where you make a profit ?
I like both but I’m starting with the stock market because it’s cheaper doing short term investments and gradually work my way up to owning real estate
Can't go wrong!!!! Brilliant concept.
Same here.
You can litterly start doing real estate with little to no money as of today. This guy is mainly talking about rentals in real estate. Real estate is so much more than just rentals !
Your first 10-20k should be in real estate
I own real estate in the form of REITs... don't need to deal with tenants, property managers, etc... dividends, every month.
@Randy Baker reit is good but is the same as house... u need to invest atleast 200,000 to see the money
I like both. Dividends can also be considered cash flow and after all your cost in real estate the stock might be actually providing a person with more cash flow than a property.
I would invest my money into real estate and index funds. If you don't have the means to buy real estate (there are various financing options) ..the best way is to invest your money into a REIT
(Real Estate Investment Trust) - you will still see monthly income - and as it is seen as monthly income it taxed accordingly
I prefer real estate as well, but you need to always wait until you have enough amount of capital to buy.
So, I invest in stocs every now and then when i see good oppurtunity :)
Yeah a house is tangible. It can get flooded (I live in Houston :O), damaged by tenants, shit breaks.
Real estate is one of the best investment
Since there's a 4 pipelines of income.
1.)Cash Flow
2.)Debt Pay down (paid by the tenants)
3.)Property Appreciation
4.)Great Tax Advantages
DOING BRRRR (Buy, Rehab, Rent, Refinance and Repeat) is like buying a house for free as long as you buy properties in good location & numbers make sense when you buy!
I’m with you. Real estate is the way to go; if you have good tenants, that’s 98% of the battle! Bad tenants can make your life a nightmare
I like REITs that pay monthly. Thats like owning real estate without being directly involved and those stocks kick out monthly dividend payments.
I've watched a lot of videos on real estate investing and im sooo confused on how to start. I've wanted to but man it's confusing. But with the stock market there's soooo many apps that make it easy to understand and like you said it's easy to start investing in less than a week.
Apps like what?
@@jay_murs4508 Robinhood, M1 Finance, Acorns, Stash, just to name a few.
Diversify by doing both. Do you prefer residential or commercial investments? What about REITs?
I have money in stocks because it's more accessible but prefer property investing. Thanks for the video
How abou this: invest in the stock of a real estate company?
Aren't you doing both that way?
What is the pros and cons of that?
6:05 Cash flow, I have my tenants buy my stocks for me.... you can do both!
Purchase first property, invest rental income to the market, when market investment is enough to buy more real estate......buy more real estate.....repeat process, snowball effect is that more properties more income faster repetition of the process.
@@Steve_Takes That's great advice. I just gotta get the dough for my first property lol
@@CountryBlessingz That's the clincher. It costs to get in the game depending on your region especially.
TONS of Reits. Just like a house, it depends how much money you put in a reit. If you put in 150, you can get dividends up north of 1k a month.
@@antbanks415 who do u use for ur REITs
I make cashflow from the stockmarket. NOT including dividends. I get monthly, weekly, paychecks.
*Just the basic idea of people taking their financial life in consideration is great. That's why I like, and do both types of investing, just with different money that have different purposes. Depending on the duration of availability of your investment and some other indicators.*
Thanks for the great info.!! Do you offer mentorship program?
i do both. For the long term Real Estate by far is better if you know what you are doing.
I was always obsessed with real estate and have already started on building my portfolio. However, I do like the idea of investing in a bit of both and have recently started with stock investing. Wish me luck :)
Yup, definitely invest in both. Diversity is always great. Good luck!
Any advice on starting real estate?
@@CountryBlessingz I'm actually not in America (although I do hope to one day invest in real estate there). I'm in Jamaica where things like flipping houses are a lot more difficult (and expensive).
What I can say to you is before you look at purchasing any property for passive income, be sure to work out the yield (both gross and net), look at the possibility of leveraging (but ONLY if it makes sense after calculating the yield), shop around for mortgagors (don't just settle for one bank because you "like" them, you'd be surprised at how many people do this) and do as much research on the community you are interested in as possible as opposed to just buying in a neighbourhood because you "like" it. All the best on your journey :) .
NatNat83
Go get it!! for the culture 💪🏾
@@natnat8393 THANKS SO MUCH!!!! I will keep this advice in mind. May God Bless you with all of your investments 🙏💕🙌
It always annoys me when people say stocks have no value, is based on nothing, is like a casino. But they’d have no problem understanding the value in being a part owner or Joes Hardware store.
Invest in yourself ... start up a business in something you are good at ... other than that invest in assets you are using and can sell later!
Like Jordans?
It is important to do both. However, one big flaw when just getting started with real estate is if you do not have steady work history (steady income), you will not get a loan from a bank. You'd have to scramble to find private financing or to buy all cash.
Hoping to visit a house today that will be our 4th rental (assuming it all works out.) I agree that real estate is a great way to build income and wealth. Thumbs up!
Do you pay cash or take out a loan?
@@JohnDoe-gc1kt We finance them all.
@@kendavis8046 how does the mortgage process work for investments
@Jon Wayne The 4th one fell through (we looked at it, and it did not seem to add up to what was advertised, and we DO buy all of them wholesale then rehab them), but all of the other three and our share of a 78-door apartment (21 LLC members, various investment levels). In any event, I retired this week. I have other assets obviously, or I wouldn't have retired, but the good thing about real estate is that we generally have a one year lease (even on each apartment door), and here in Texas, since it is a state in which property taxes go up pretty much every year, we have a management company run comps. We have two coming up in, respectively, October and November, and the rent will increase $75/month on each. Again, that is based on area comps, and also it is a red hot rental market right now, at least here in Texas. The third single-family comes up in February, and we'll run comps on that as well, but we're already making a pretty good cash-flow on that one already. But renting/leasing is a business, not a subsidy to the folks who rent our property. That sounds cold-hearted, but you've got to stay arm's length from your customers. If something breaks, we get it fixed, and we are on the hook for either actual costs or at least insurance deductibles if it is external property damage (like a roof).
I only wish I had started real estate 20 years ago, instead of 2 1/2 years ago, because it would have outperformed my 401ks/IRAs/etc by a large margin. If you are 40 or under, look into it. And I am not trying to sell you anything, I'm just someone who is making what boils down to very-low-taxed supplemental income, compared to a paycheck or even withdrawals from a traditional 401k/IRA (fortunately I have a couple of Roth's in each of those categories, but I'm leaving those alone for now so that they can grow, hopefully, and I can take more out later tax free.
@Jon Wayne And to you as well.
If you're Indian, investing in farm (for investment) is best option. You get loan at lower intrest rate. You get tax benifit. Value of farm increases more rapidly as compared to plots or flats. So you get excellent returns.Thus you are generating passive income. Also by working on agriculture (in farm), you get extra income.
I personally prefer stocks but dividend paying stocks only. Thanks for the great video
Wealthbuilderz TV That’s some Mr. Wonderful type of investing 😜
I agree tho!
Which stocks for example?
LiquidFlowFX it’s a bunch out there I have a few videos about dividend stocks on my channel
RealLife Money yeah man you gotta follow what the millionaires are doing
Subscribed
It's much easier to start with stock market investing, but the logical next step would be to move into RE investing for some good diversification.
Can you do a Video explains why people fail at investing in real estate? Thank .
Great idea!
tuan nguyen ... Taking on too much debt without enough cash on reserve.
Maybe compare against a index fund. Pretty much cancels out those companies that tank and replaced them without you having to do anything.
Good advice for people once they stop spending money on buying cars to impress other people, and buying a single family house so they can put Italian marble walls to impress others.
(Heated) Italian marble floors are REALLY NICE on a cold morning.😎
@WRO: My respectful contention is that we all need a place to live. Wouldn't you say a single family home is a good start?
@@orangeblock3792 I think he/she is recommending buying a home you can live in and rent out or purchasing a multi-dwelling unit
You can invest in both stock market and real estate with monthly paying dividend REITS like ticker symbol O. Great stock to buy.
You should have touched on REITs in this video. A perfect way to invest in real estate without high upfront cost.
It's not Financial Market Vs Real Estate Market, it should be Financial Market & Real Estate Market. They are complementary not contradictory.
I prefer stocks (specifically index funds) because of the no work part. I can focus on my job and spend my free time doing what I want while my investments work for me by themselves. I may not get as much as through real estate but it's literally getting money with no work put in aside from picking which fund to invest in. And I do get dividends quarterly which can be passive cash income if you just have them go into your bank account instead of reinvesting them so you don't have to wait 40 years before seeing returns. But in the end it's a matter of preference, there is no best way, just different ways.
I have a pretty demanding career and I move around a lot so stocks always made more sense to me.
I do both stocks and real estate but prefer real estate because of the up side that stock is limited in. For example real estate has an edge on: tax favors (assuming buy and hold, 1031 exchange, or property tax exclusion up to 250k single or 500k married), ability to generate cash flow (stocks you have dividends but let's face it, you have to invest massive $ to get a return worth relying on), small leverage from the banks for huge gains.
What is your thought on the Samsung folding phone that cost 2000 bucks
If you save or invest atleast 15% of your income before the purchase and still have enough to go through the month then go right ahead. This is financial education 101. You're welcome
I like both. I invest in buy and hold real estate and buy stocks when they are discounted.
I personally prefer the stock market! 🔥🔥🔥
My plan is to do both. I am currently investing 20% of my income into my Roth IRA in good mutual funds with Vanguard and plan to do that my entire career. Now that I am almost debt free, (cars and credit cards), I am interested in getting my first rental property for passive income also. I think having both will give me a good retirement. Thank you for all of your great videos! I am watching them and doing my best to learn from you! Great content!
I invest in the stock market and I'm currently working in construction with my father so when I do purchase my first investment property I can do so of the work myself
That's pretty cool! Good luck
Thank you
So smart! Great idea
You will be very successful in life
@@snazzysnazzergryphon8550 thank you, I have the Hopes for you
I invest in both. I try to diversify. But yes I agree with you.... 80% of my investments are in real estate, 15 % in equity and 5% fixed income.
So glad you posted this and can't wait to read the ebook. I'm appreciative of the comments as well 🙏💪💱
There are also REITS too which is a mixture of both.
Short answer, Real Estate.
Stock market is great too, but Real Estate is a tangible asset that no matter what the economic situation, people need a place to live
Too simple of thinking. Pros and cons of both. I was a landlord and lost a lot of money due to bad tenants and never ending fees / costs. I've made a lot more money in stocks.
@@mementomori29231 you must have invested in single family homes. Big mistake. Multi-unit apartments are the way to go. 💯
lesson is don't hire bad tenants. They are easier to predict by their income and history. Stock markets are harder to control than real estate.
@@anonymousperson9735 Not really. Single family homes are not as bad as people make them seem. If you have 4 to 6 single family homes, you basically have some mini apartments. They key is finding the right tenants. And there are ways to lower your risk greatly on that.
I've thought about real estate investing for a long time but worry about the potential problem tenants could cause. Now I'm trying to learn more about the stock market.
REIT's of course! All-in-one deal (stock market/real estate). My property managers are awesome! Plus, I get to touch the properties I own. They're everywhere! Lol! Why do I need control when there are managers with way more experience and connections than I do? Very low cost and less hassle compared to the traditional way. Thanks MMM! The lazy landlord.
Who did u go thru for ur REITs?
@@ericworthington7299 Different REITs on different brokers/platforms. Just trying them all out to see which one I like the best then put more into it. Tradestation, TDAmeritrade, Robinhood, M1 Finance, Betterment, Vanguard, FundRise. Not yet on Wealthfront.
But REITs don't have any of the tax advantages... Even the dividends aren't taxed as qualified dividends they're taxed as ordinary income. I use REITs for my Roth and almost nothing else.
@@harrychufan I'm not doing any of the hard work so I can"t complain about that.
You can net 12% to 18% in dividends alone per year leveraging monthly-paying REITs.
I do both- loving the compound interest on s&p returns over time & loving the leverage taking outa 3.5% fixed 30 yr mortgage
Bad tenants can really screw you out of THOUSANDS of dollars. I much prefer REITS.
no tax breaks on REITs...
@@juju10683 Fair point, but not having to worry about bad tenants is worth more to others. :)
@@KhushbuMel REIT dividends are taxed as ordinary income...You'd be better off investing in a dividend paying stock if you're just going to invest in a REIT. Unless you're talking a private equity or non-publicly traded REIT...
You are not screening your tenants correctly if your getting screwed over THOUSANDS of dollars. By the way you have a lease contract that should minimize you losing money.
@@bricecay1765 idk...I've heard horror stories from pro-tenant states...
Stock market for sure. You forgot to mention stock option contracts for monthly income.
This dude sucks he didn't even talk about all the emotional volatility in the real estate markets, lack of control due to external factors and also the monthly expenses and any unexpected expenses like maintenance. But wanna say "income" like it's that simple 😹 some people barely making anything after the expenses they pay out
Real estate is great but you will need more money to start
@abobjenkins That's the case for everything lol
You should use most of your real estate income to buy stable stocks or put into online saving account. Compound interest for real estate will help you a lot.
Major CONS for Real estate is: risk of YOU defaulting (mortgage is leverage) and HIGH closing cost. Chances are your risk of failing is higher than a company and your cost is also higher than a company. Btw, there is something in between but for some reason people don't know about it and no advisors will tell you, yet all the big guys are doing it. Hint: they don't buy a rental or 10x rentals. They do something then buy 100x rentals instead. You can then buy a piece.
What about investing in real estate stocks
Stock Market: 10% return
Real estate: 6.2 return
crypto trading: 18% return
doesn't that ring a bell to you??
When the game is rigged, only fools play by the rules.. Trade crypto!
The price of real estate property is the main reason why I decided to trade cryptocurrencies. Unlike crypto, real estate demands maintenance which could cost more in the long-term perspective.
talking about crypto, I got a turn out of £6400 from an investment of £970. flipping both sides bitcoin.
You need both. Most wealth is still held in real estate, but stocks are needed too.
Stock market is for someone who just started to build wealth, later on real estate is the thing
You get it. That's how I feel too. It's better to build up money you can see instead of having it tied up. On the flip side once you are well into the 6 figures I'm more comfortable taking some money off the table and investing into something physical/ tangible
@@lavalefields8198 Yeap, so lets do this!!!
Invest in property and rent out. The extra should be invested in Stock market. Once you have "too much money" in stock market take out some and get your next real estate and rent out. Now you have 2 real estate investment that pay monthly rent. Invest the monthly rent in the stock market.
With a REIT real estate investment trust you can invest in real estate within a stock portfolio......best of both worlds
you should do both. remember your portforlio should be diversified and investing in real estate should be part of that portforlio. so buying several houses is like investing 100% in property and if the property market crash, you lose money. so diversify and do both
I do stock market because I still don't have enough for real state. Plus I do have 3 jobs so there's barely any time
woah dude youre hardcore
@@noobjitsu1743 2 of those jobs are freelance things so I get to do it from home :)
Stock market pros is that you can sell anytime doesn't have to be long term holding.
What is your opinion on REITs?
I'd like to know also...
Best of both worlds! Diversify tho
Arn’t reits down now?
@@stonebox2404 down compared to what? In theory its the best of both worlds and if purchased correctly a portfolio of properties should never go down........so im not sure how a reit would go down unless it was overpriced to begin with
In some aspects REITs are also the worst of both worlds.
I know its about to be summer but that sweater is dope, and of course the very easy to understand no BS approach to investing is already appreciated brotha.
I think the fact that it's so easy to start can also be a con as well. Because it can give too much confidence to new investors and make them go straight to emotion and FOMO. Stocks are something that really humbled me from all my errors in the skill and I've learned so much from it and have become way more budget oriented than I ever have as a result from it.
I totally agree
I agree with everything you said except the long term part. If you're young and have very little money, you can invest in stocks, but unless you invest in REIT, buying real estate require capital. As an investor, you'd need to put 20-25% down on any property, take a loan, and considering the 50% rule (Your net cash flow is only 50% of the rent not including the mortgage payment), it can take you 15-30 years before you see any passive income you can live on.
This is an interesting topic, although I have my own answer, I still watched the whole video. Unfortunately, the video fails to discuss the most important factor - the estimated annualized gains of both. BTW, it also fails to mention that after 1031 and 1031, eventually a property would be preferably passed on to the next generation and the cost basis would step up.
I believe stocks inherited get stepped up as well.
Being a full time student and part time worker I have neither the time not the capital for real estate.
I'm also somewhat risk averse and conservative so the reliable growth of the stock market is much more appealing to me.
Real estate is more in line with a 'minority mindset' traditionally because its tangible and has good cashflow. Stocks are great too, but most working class and middle class people aren't as familiar with the market because it's not introduced to us in the home via our parents.
The biggest advantage of property investment is leveraging lenders money. If managed cautiously it can be a very good debt to carry. And thanks to the inflation, the longer you carry this debt, the better. Ideally, paying just the interest and never even trying to pay off the principal.
Do you offer mentorship program?? Or calls
Real estate investing is a lot riskier. Markets are inefficient and you can get exploited. A next door neighbor decides to let their house become dilapidated and that brings your property value down. And there's nothing you can do because it's not your property. Not taking either side, just that there are more perspectives to take
Stock Market or Real Estate really depends on your knowledge. Don't invest in what you have no clues about.
I like both. By doing both, you are diversified in your wealth. The 2 points I wise you hit on regarding Real Estate is, cost to sell & possible market depreciation. Even though the housing market has gone up year over year the last 12 years, this is always true. Also, depending on the region of the county you live-in or neighborhood, your house value still might go down, even as the rest of the county goes up.
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How does it work faris? I need a good trading system guide that performs better.
Getting such account is hard to find but you sound well experienced and I want to know more
As you know, it's a tough business and I don't know a single trader or analyst who is right all the time. We can only predict, which is quite fascinating with this business.
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I will do that faris. Well appreciated for your recommendation
Property tax, hoa fees, repairs, interest charge over the property, harder to sell by the day, tenants laws.
what about Gold?
Gold is not an investment since there is no return. If you buy one ounce of gold and hold it for 30 years you still have one ounce of gold.
@@CoreyHillesheim yes true it will remain same, but it atleast is an better alternative for fiat currencies that surely depreciate with time and lose purchasing power capacity. Gold is the real currency
@@haris1328 Gold can lose value just like any other asset. I doubt Jaspreet will talk about gold since his focus is on growing your purchasing power, not maintaining your current level.
well that true gold does not increase purchasing power capacity
Flipping realestate is cool, but I hate the idea of dealing with tenants. Depending on the state, it can be a nightmare to evict a tenant. Hate the idea of them trashing my property too. Not all states will allow you to garnish thier wages either. You might just get the deposit, which may not cover your losses.
It’s all about that ROI - and in my opinion REI has always worked better for me because you have more control
Couldn't agree more
Driving a car gives you more control than riding in a plane, yet you are far more likely to die in a car. Sometimes you should leave things to the experts to grow your money for you, and if they fail you report them and find a new expert.
WiRE Coaching 💯💯💯
linuxman777 fair point which it’s why you should learn and study before doing either to see what’s a better fit for yourself
Dra O great point, I think both are definitely great and have their pros and cons. My preference is real estate but I also have investments in the stock market as well
What about the middle ground of investing in small private businesses that aren't listed and liquid but produce cash flow and that you may have some control over?
I love getting that rent check every month.
1:33 how does that apply for Pg&e? I bought a total of 12 shares and I sold them on Tuesday because I read you could lose all your shares once a company filed for chapter 11 bankruptcy. I wanted to buy and hold for the long run but sold them due to fear of losing my shares. Could i have held my shares and still kept their value through the bankruptcy that they’re going through?
Diversify and make profits on both. 🤑🤑
Forgot about a huge con on 1031’s, have the timeframe to roll the profits. With so many investors out there, good properties might be hard to find unless well networked with wholesalers, non corrupt foreclosure based realty firms, etc. Good portfolio has both in it.
Thank you Jaspreet
I have a 5 years experience in investing, challenge any newbie can face is in real estate is your Mortgage eating up the dividend(rent) earned from the property. So I keep a ratio of 60:40(Real estate: equity or MF's), Infact right now my mortgage is greater than rent and I am optimistic that it would reach equilibrium by 2022.Please advice if I am going wrong somewhere or it(real estate) requires such patience to reach equilibrium.
Real estate con: You forgot high transaction costs.
Yep, and being tied to one location
Alot more liability and what mgmt company wants to deal with a 1 fam. You are the mgmt company lol lasltly alot more costs not talking about snow grass repairs..its not just collect rent make $
He's clearly biased towards real estate investment lol.
I like to hold R.E. (raw land near urban growth) for long term gain....for short term gains...the stock market i like best. The stock market is just a game of patience...you wait for stocks to crash down...get in and then take a little gains...not too much...never be greedy and wait too long.
Stock market = liquid
Buy a boat
I see what you did there...lol
Estate is cool and I will get into it once I have more money but for now I’m only in the stock market in the future I plan to do both
I'm looking to invest in real estate also. O already have my 401k that i can't touch until 59 1/2. I want some passive income
I invest in both. I buy & sell high dividend stocks as income. And rent out a 6 bedroom home with a basement i purchased last year for more income. I rent each room for $500 a month.