1. Real Estate has been proven to be a consistent producer of the wealthy.

  • How many people do you know personally that got wealthy investing in stocks? A few
  • How many people do you know got wealthy investing in mutual funds? Even less!
  • How many people do you know got wealthy in Real Estate? Enough said!

2. Real Estate is lower risk

  • Banks are considered the lowest risk investors in the financial industry. They are extremely conservative, have unmatched resources for risk assessment and mitigation.
  • Banks see mortgages and Lines of credit secured against Real Estate as low risk hence the lowest interest rate charged to the consumer who is borrowing those funds. The banks know that they have a hard asset to secure their investment therefore minimizing their risk and if anything were to happen they have something of higher value to go after to recoup their costs.
  • Credit cards have no security for the banks hence the highest interest rates that the banks have.
  • A stock is just a piece of paper and the investor has NO security hence deemed HIGH RISK by the banks. Try to ask the bank for a loan to invest in stocks and see what they say. Please note that when there is nothing for security but a piece of paper, the risk is substantially higher.
  • The banks deem Real Estate as LOWER risk as reflected by the lowest interest rates and regardless of if we know how the bank calculates this, wouldn’t it make sense for us as the investor to duplicate the bank and keep the massive profits for ourselves?
  • The ONLY industry that consistently outperforms the Real Estate Industry is the banking industry. Only problem is that you can’t own a bank for yourself.

3. Real Estate is transparent

  • All statistics and numbers can be verified 3rd party.
  • The dynamics of Real Estate are simple and can be easily explained in terms of risk analysis and profit projections.

4. Real Estate doesn’t have drastic drops in value but does have the potential to have drastic increases.

  • Real Estate values gradually drop but never drop like a bad stock.
  • “Forced equity” in Real Estate creates INSTANT profit because an investor can “Force” it. Examples include construction, land development, buying undervalued Real Estate and selling it at market price and renovations on a property. These are factors within an individual or corporations control. Do you think you can “Force” your mutual funds, stocks or precious metals to go up in value?