Spicer Matthews

From my first post (Real Estate Vs. Da Stock Market – Part #1) many people contacted me and told me that they disagreed with me. The stock market and the Real Estate market were not the same. Many people expressed that they liked Real Estate, (and made it their “thing”), because they had far more control over the investment. You can pick your tenants, you can pick your lender, you can remodel, and so on. While in the stock market you have no control unless you have the capital to be a major share holder. All you have is the ability to cast your vote in a share holder meeting. While this is true, in fact you do not have much control over the direction of the company you own stock in, you have control over if you own the asset or not. In terms of personal wealth, this is way more powerful than than the direct control you have with Real Estate. Having the ability to liquidate your ownership in an asset within seconds is very powerful. When managing your assets their is two parts; growing your assets, and protecting your assets.

Wise investors can spot a downturn coming, such as the one in late 2007. No one really knows how bad a downturn is really going to be, but a wise investor should know when to shift from capital appreciation mode to capital protection mode. Below are the things you can do to protect your stock and real estate assets in a downturn.

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One of the things that drives me nuts, is when I hear people say “Real Estate is my thing”, or “Real Estate is what I am into”. It is not a drug it is an investment! You buy Real Estate, (as an investment), for it to go up in value and maybe collect rent. Hmmm, that sounds just like buying a stock, and the rent would be the dividend (or even a stock buy back). Real Estate, (from an investment standpoint), is not a way of life. It is not something you are into. It is not “your thing”. It is 100% an investment. So many people, particularly young people, don’t get that. With this post I am kicking off a series of blog postings talking about the importance of understanding all markets not just the one “you are into”.

First of all lets clear somethings up. When I say Real Estate investment I am not talking about your home, or a vacation home. Those have personal emotional aspects; you need a home to live in and you love staying at your ski condo on the weekends. I label these assets as personal property, there is a luxury element you may or may not be paying up for. I am talking about the rental property you purchase, to collect rent, or even flip.

Second thing I want to clear up, I am giving general statements and rough numbers in this blog series. With any investment there is always another side, another stat, another point of view. I get that. This is what makes markets if we all thought the same way no one would buy or sell anything. This is just one man’s view. I hope you can share you view points in the comments below. READ MORE….

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Everyone thinks being a landlord is all fun and games. You sit back each month and just let the money roll in. I have even talked to some landlords that complain about what a pain it is taking all their rent money to the bank each month. Don’t get me wrong, being a land lord can be a very rewarding job, part time or full time, but this week has been particularly hard for me as a landlord. Which reminds me there are times that this job is not very rewarding both emotionally and financially.

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