Should I Invest in Real Estate Instead of the Stock Market?

[@garyg5347]

I own both (own 1 condo that i rent). Real Estate gives me steady cash flow. i though of selling it since it appreciated more than 100% since 2009 and i am only getting 3% return when i subtracted all my cost but i decided to keep since its a steady cash flow. i have a property manager and the condo is fully paid off. i won't "invest" on real estate if i am borrowing money just like i won't invest in stock with borrowed money. this represent around 5% of my total investments.

[@victortan4191]

Love your vlog. Make my decision making clearer for both options.

[@RootFP]

Thank you, Victor! Glad you like the content!

[@ScooterWisdom]

Great video! Excellent information. Thank you

[@giovanibarbossa4110]

Very clear presentation! Thank you!

[@RootFP]

You are very welcome!

[@TheTrickyBAM]

With stock you have a chance to 10X or more in a short time. I forwent home ownership and skipped that liability/asset and went all in TSLA in 2017. Real estate can be a 🪤 for wealth building.

[@BSGSV]

One of the hardest lessons to learn is how to not worry about the daily/monthly/yearly ups and downs of the market (stock or real estate) and be able to keep a long term vision. It is people's biggest failure point in managing their investments. If they could overcome instinct and avoid panic decisions, they would grow a lot more wealth whether they invested in stocks or real estate.

[@patrickschwartz7505]

Another great video James, thank you!

[@RootFP]

Thank you, Patrick! Glad you liked the video!

[@tyjameson7404]

Epic video and breakdown 🙌🏼👏👍🏼Thank you so much ❤️

[@RootFP]

You're welcome! Thanks for watching!

[@jhaed2001]

Thank you for the information. As always, very informative and helpful.

[@RootFP]

Thank you so much!

[@gwenhoang4018]

Thank you so much I’ll share this with my kids. We’re so blessed to have your kindness and generosity lessons in tough times like this. Everything cost so much. As a parent after we care for our kids there’s not much left for us. Yet we don’t want to be a burden to them so we must try our best.🙏🏼

[@RootFP]

Thank you so much for these kind words Gwen!

[@EJJ-EvArms]

I'm surprised you never once mentioned homeowner's insurance. In some areas it has become prohibitive (i.e Florida).

[@palluccab]

James--Thank you for this video and all of your excellent content. I am a stock guy, because I crave simplicity. I'm kind of bothered that I even have to own one home. . .mine. LOL! But, I wanted to ask a question about your calculation when you said $25k annual cash flow on your real estate example represents a 5% return. If you are counting your costs--interest, etc., wouldn't the cash flow be 25%, based on the $100k cash put down?

[@pensacola321]

It does not have to be all or nothing... Invest in both.... But I sold a rental 10 years ago. Did not want the hassle... I do like REITs though...

[@RootFP]

You’re exactly right. A combination can be right for many people.

[@johannamiller527]

Investing in rental properties - being a landlord - means funding your retirement directly off the backs of real, specific people who are usually going to be less well off than you are. It also means taking on the responsibility of making decisions that affect those people's lives. If one of your tenants falls on hard times, how much grace are you going to give them before you take them to court to evict them? Very few people, in my experience, have warm and fuzzy relationships with their landlords. It's not just "complexity" that you're bringing into your life, but also the potential for conflict, ill will, and hard feelings. Investing in the stock market is a lot less likely to affect you on such a personal and emotional level.

[@RootFP]

That's a great insight! Thank you, Johanna!

[@EJJ-EvArms]

The real estate is only worth something when one sells it. Two words: Closing Costs. Both when one buys, and when one sells.

[@seanwilson7825]

You can buy 3-5 homes with that $100k and make about $500. a month after fixed expenses per home. And do it in California.

[@leopoldosegui5571]

I have a question hopefully you can make a video on it next time,I’m 50 years old and just found out that my employer is offering 401 Roth IRA,I’m contributing to traditional IRA all along.If I max out to $26,500 with my catch up ,which is a better option?Im on the middle of 24% tax bracket.my friend is telling me that if I take advantage to deferred the tax on $26,500 and invest it,I will come ahead.planning to retired in 11 years. Thank you.