Income investment properties the Steady Eddie version of cash flow and owned by the most sophisticated investors nationwide, usually outshines stocks over long periods of time.
Wild stock market swings caused by the world problems that erupt weekly can lead to a total wipe out of equity in sometimes days or weeks. The investor is helpless when these disasters occur and can’t get out fast enough due to the high volume of sales occurring at the same moment in time.
What About Income Investment Properties?
This is not the case in a SENSIBLE commercial real estate income investment that does not deteriorate overnight and can be predicted usually in advance, so protection of your investment can be put in place and is not a shock or total surprise if something negative occurs. Seeing how strong your tenant is and what location you are purchasing in for future occupancy can protect the real estate investor in advance of investing.
The tax advantages such as 1031 trades, depreciation, and write off of expenses like taxes and insurance simply add to the value of the real estate income investment transactions.
Don’t misunderstand, bad things can happen like the loss of a tenant but the temporary loss of income is nothing compared to the devastating loss in equity of stock value maybe taking years to recover if at all.
Credit tenants, track records of success of the business, super location for future tenancy is hard to compare to a total blow-out of equity with stock devastation for a world issue you cannot control.
When choosing a tenant like Walgreens, a great location that any tenant would love to have, getting along term loan non-recourse in place verses and overnight crash which do you really think is wise?
Why do the wealthiest families in the world invest in apartments, retail, office, warehouse and medical buildings in the USA by the way, if unwise? They maintain a certain percentage of wealth against the fluctuations of stock is the reason.
All investors should diversify meaning into numerous asset groups like stocks, bonds, gold and commercial real estate but the safest of them all with the greatest tax advantages is real estate income investment property when purchased wisely and guided by pros in the commercial real estate business.