I get asked many times why I have more money in stocks than I do in real estate and the answer is simple, I make more money with stocks that real estate.
What would you rather do? Would you rather trade stocks for a couple hours each day and make more than most people do in an entire week or would you rather flip and manage real estate and make just enough to get you by? I think the answer will be the same for most people, but just in case yours is a bit different lets evaluate both situations.
Why real estate makes sense.
If you have bought and sold a property for the sole purpose of making money then you probably did ok, unless it was in the past 3 years.
The thing I love about investing in real estate is that you can buy a property, place a renter in it, rent it out for 2 years, wait for the market to go up, wait for the properties value and the debt on the property to part and then sell it for a huge profit.
This is what I call a perfect situation where you will make a killing, but who wants to wait 2 years to see the money? Why stocks make sense.
Now stocks on the other hand are a bit different.
The money is made when you buy the stock.
If you plan to buy a stock that will grow steadily for 2 years then you can do that, but if you want to buy something and sell it within 1 day you can do that too.
The thing I love about stocks is that you have the option to buy and sell as many stocks as you want and do it all within a single day.
You can't do that with real estate.
That is why I choose the stock market over the real estate market in order to make money quickly.
Don't get me wrong, both are great markets and if you invest in them both the right way they will both pay off, it is just stocks seem to pay off quicker and have a better return on investment(ROI).
When it comes to building wealth it is all about doing everything you can to increase your ROI and that is why stocks are the best.
I know you might not know everything you need to about trading stocks and if that is the case you need to do some stock trading training.