Despite high prices in the housing market, is now a good time to invest in real estate? Or would it be smarter to invest in stocks instead? That’s the first topic we’re diving into on this Q&A episode!
On this episode of Investing in Real Estate, I’m answering three great listener questions on stocks vs. real estate, deploying insurance funds after a fire, and how to leverage HELOCs. As always, I appreciate your thoughtful questions and I hope you find this information helpful on your personal wealth building journey. Click play to hear my answers to your investing questions!
On this episode you’ll learn:
- Why real estate investing is superior to stock investing.
- What to consider about rebuilding after a fire.
- How to deploy equity on multiple rental properties.
Why Real Estate Investing Is Superior to Stock Investing
Here’s the amazing thing about investing in real estate: there’s no other asset class in the world that allows you to use the banks’ money to build wealth. I’d choose investing in real estate over the stock market for many reasons, but the power of using other people’s money is certainly one of the top motivators.
While I do understand the hesitations about pricing in the housing market right now, there are also other numbers you’ll want to consider. Some of the top real estate investors in the world would tell you that if you can make a net profit, it’s worth it. Specifically, if the interest rate on your loan is lower than your rate of return, then you’re making a smart investment.
What to Consider About Rebuilding After a Fire
When it comes to making big financial decisions, there’s often not a simple answer. Here are a couple things to consider if you’re thinking about rebuilding your home after a fire:
- right now, it’s extremely hard to find good contractors
- it’s also expensive to build because of inflation
- the home you live in is not a performing asset
How to Deploy Equity on Multiple Rental Properties
Choosing how to utilize your equity is a personal decision. Luckily, there are a lot of great options, and you don’t have to choose one strategy. If I were in this position personally, I’d use half of the equity to grow my rental portfolio. With the remaining half, I’d set some aside for protection and then look into using the rest to pay down the principal balance on my mortgage. Be sure to check out my book, How to Pay Off Your Mortgage in 5 Years, for tips.
Ask Me a Question at morrisinvest.com/clayton
Episode Resources
Book a Call with Our Team
iTrust.Capital/Clayton
Flagstar Bank
Dan Kraus at Churchill Mortgage
How to Pay Off Your Mortgage in 5 Years
morrisinvest.com/Clayton
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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