I get asked all the time about real estate: should I also be investing in income-producing
properties?
Well here’s the answer...
Hey there!
My name is Stephen Spicer and it’s my goal to help you invest smarter.
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Now, if you’ve watched my most popular video to date, I talk about diversifying into assets
beyond just stocks - specifically, I mention real estate.
If you’ve read my book, I talk about the valuable role physical real estate can play
in protecting your portfolio.
And if you’re familiar with my personal portfolio - a healthy mix of stocks, real
estate, and other financial vehicles - it becomes obvious that I’m a firm believer
in investing in not just stocks, but also in real estate.
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Now with that, you might expect me to spend the rest of my time in this video trying to
convince you of why you too should be investing in real estate, talking about the tax benifits,
the ability to easily leverage your money, having some else pay your mortgage, and so
on… but no, believe it or not, that’s not the point of this video.
There are several videos out there that can share with you many of the benefits of investing
in physical real estate - I’ll even link to some, including the one I just showed from
Graham, in the description below - but before you ever even consider real estate and start
to weigh all the pros and cons…
I believe there’s something even more fundamental you need to consider.
And I’d like to think - I’d hope - that most of the people encouraging you to invest
in real estate - like Graham, shown earlier, or MeetKevin - would agree with me on this
one.
You see, if you’re missing this one thing, I don’t think a comprehensive understanding
of all the benefits will do you any good.
I believe that if you’re missing this thing and you start to invest regardless, you’ll
likely fail.
The answer to the question of should you invest in physical real estate or should you start
your investment journey with rental properties or stocks… is a very personal one.
There is no universal answer.
It all comes down to you and what you want - what you’re passionate about - what you’re
truly interested in.
And this concept doesn’t just apply to real estate - it’s true for any type of investment
(and really, just anything that requires a commitment of your time in order for it to
work).
If you’re not really interested in the thing you’re trying to do, you won’t dedicate
enough time to truly learning the craft.
You won’t have to patience to listen to and learn from experts in the field.
When times get tough, as they surely will, you won’t have the resolve to stick it out.
If you’re not really interested in the thing you’re trying to do, you’ll likely fall
short - you'll fail.
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My portfolio works for me.
It wouldn’t work for everyone.
The more passionate you are about the things in which you’re investing - the more you’ll
just love and enjoy the process, the journey - and I think, in general, the more successful
you’ll be.
I LOVE studying companies and investing in stocks and I LOVE the math behind real estate
investing.
If you’re not actually interested in the process of really getting to know a company
- if you’re not interested in researching and analyzing everything it has going on - you
shouldn’t be actively investing in the stock market.
In the same way, if you’re not actually interested in doing the work to find, negotiate,
maintain - everything involved in successfully managing income-producing properties - you
shouldn’t be investing in real estate.
Both, when approached like that, can be dangerous.
And it all comes back to your interest, your passion.
Of course, that’s not ALL that’s involved with being successful, but that’s where
it starts.
If that’s absent - like, say, for example, you decide to invest in something because
you just feel like you should, or because other people seem to be having success with
it, or because you wanna get rich! - well, it most likely won’t work.
And honestly, that could be ruinous.
So, I may differ from other stock market “educators” here when I say: if you don’t have a sincere
interest in stocks, you shouldn’t be actively trading in the market.
It’s not the only way to make money.
It’s not even the only way to invest.
And I’d even go so far as to say that it’s not the best way to do either of those things.
Unless... you’re truly interested.
Then it may be the best way FOR YOU.
The same goes for real estate.
It’s a good option (even the best option for some) IF that love of the process is there.
Figure out which thing you’re most passionate about and start there.
Dive in.
Use your spare time to learn as much as you can about the subject.
And then get started, get some experience, make some mistakes.
Make it a point to document and learn from those mistakes.
And then, once you finally feel comfortable - you know what you’re doing, you can identify
specifically what your strategy is - then, with whatever spare time you have now… start
the process over again with your next interest (if there’s another - like there was for
me).
So that question, of whether you should invest in real estate, stocks, or both, it really
comes down to you as an individual.
What interests you?
What are you truly passionate about?
Actually, let me know in the comments, let me know which one interests you more.
I look forward to seeing you there and helping however I can.
Now, if the answer to that passion question is real estate and/or stocks, don’t forget
to subscribe and hit the bell, cause that’s exactly what I’m here for!
I’ll see you in the next one!
Take care!