Codie SanchezFounder @ Contrarian Thinking

Real Estate vs Boring Businesses... Which is Better? #shorts

1 Aug 2023 · 1 min

Watch on YouTube

0:50

Codie Sanchez compares residential real estate to small business ownership. A $250,000 home generates about $462 monthly, while a $250,000 business nets roughly 30% annually. Most small businesses use seller financing, unlike real estate, which means lower upfront cash requirements and better asymmetric returns.

Questions this video answers

$250,000

About $462 per month

About $250,000 purchase price with a 30% net return

60%

August 1, 2023

Chapters

Real Estate versus Business Buy in which one's better Business buying Every time real estate on average you buy a house for $250,000 in the U.S. which is the average home price, you make about $462 a month. That's your profit. If you buy a small business for about $250,000, that small business nets you 30%. So we're talking about tens of thousands of dollars a year. Second reason real estate takes a bunch of cash upfront. You have to have a mortgage to buy a piece of real estate and you have to put money down. Small businesses you can buy with sell. In fact, 60% of all small businesses are bought with seller financing. If you buy a business and you add value to that business, the ceiling is limitless. It's why I choose business buying. Little bit more risk but the asymmetric return is huge. If you want to learn about business buying you can go to our link in bio. Learn all about it on a free newsletter.