227: Stock Market vs Real Estate Investing

Published: July 29, 2016, 4 p.m.

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Today on the Cardone Zone Grant Cardone compares and contrasts the stock market and real estate.

If you invested $1,000 in stocks (one share of the DOW) in 1985 today it would be worth $18,950. The average cost of home in 1985 was $24k and today it is $240K. You don\\u2019t make 216K from that, you have to put a new roof on it and paid property taxes for 30 years.

Houses on average went up 10X. There are better investments than this. My properties pay me 10-12% every year and my tenants pay down my debt. With income producing real estate over time debt will go down or value will go up with the property\\u2014or both likely. Pay more rent and less in housing. You need renters paying your debt down not you paying it down in a house. In the stock market for every Apple there are 50 that never went anywhere. Don\\u2019t make little moves.

Make big moves. Get at least $100K before you start investing. If you want to get rich get income producing properties only. You don\\u2019t need stock, houses, gold, or bitcoin. If you can\\u2019t repeat it, it\\u2019s no wealth because it can\\u2019t be duplicated.

Guessing the right stocks and flipping houses are like a casino, you can pick a winner but can you duplicate it over and over again?

Try and start with 16 units\\u2014so what if it\\u2019s a bigger payment, don\\u2019t think small. If you can figure out 4 you can figure out 16. You have to be committed and creative. If you lack creativity to get money, you aren\\u2019t committed. If you are ever going to get in the real estate game you must have income and know how to make money.

Get on Grant Cardone\\u2019s Playbook to start earning more cash so that you will have something to invest for in the future.

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