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qdnto15z
Posted: Fri 12:32, 06 Sep 2013
Post subject:
Wealth building is a matter of perspective and methodology.
Both stock market and real estate investors believe that they understand how to create profits. But generally speaking, they take quite a different approach regarding the "how to".
A real estate investor is focused on one thing...cash flow. Seeking out
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On the other hand, stock market investors buy a stock hoping it will go up in value, but do not receive monthly income unless the stock pays a dividend (and even if they do, dividend payments can be suspended at any time).
Unlike real estate investors, the stock market investor must become an expert in market timing (knowing when to get in and when to get out) in order to maximize any gain that may be realized.
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During the recent real estate bubble, record numbers of people jumped into to the real estate marketplace thinking that they were investing. Nothing
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They werent investing in cash flow properties, they were speculating and gambling. Some people were lucky and didn't lose their shirt...most did.
Real real estate investors never speculate or gamble. They run the numbers and detach themselves emotionally from the property itself. They are entirely focused on cash flow. If the property appreciatesits icing on the cake.
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Another very interesting tidbit of information is that most Wall Street cheerleaders like to point to the performance of the stock market vs the housing market by comparing stock market gains to owner-occupied housing appreciation. That's just patently ridiculous. Its smoke and mirrors...apples and oranges.
When the stock market is compared to investment property (not owner-occupied housing), the results are breathtaking as illustrated above.
So, the next time youre tempted to buy more stocks or mutual funds, remember...youre not investing. Youre speculating.
Robert Hubbard is CEO & Sr. Investment Advisor of Safeguard Financial, a full-service Advisory and Consulting Service for the set up, maintenance and investment of Self Directed IRA & 401(k) plans. Safeguards Managed Investment Program offers opportunities to own turnkey, income-producing real estate with tenants in place, or to participate in notes and loans secured by real estate. Targeted ROI is 9%
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