Ep 163 - Red Ocean vs Blue Ocean

Flip and Danny from Freedom Real Estate Group compare stock market investing (red ocean, highly competitive) to real estate, particularly multifamily properties (blue ocean, less saturated). They argue real estate offers better returns and stability than volatile stocks for accredited investors.
Questions this video answers
Over 13 million.
Ep 163 - Red Ocean vs Blue Ocean.
"Invest Smart, Live Happy."
Hey, everybody. Flip and Danny here, founders in the Freedom Real Estate Group family of companies.
Whoa. That was different.
Trying to change things up here. And welcome to another episode of our.
Podcast, which is called Freedom Through Passive Income.
Welcome to another episode. Sorry for being silly. This is what happens every so often, and then he can't get us out of it. So let's hope we can get through this episode. But this episode is entitled the Red Ocean versus the Blue Ocean. And disclaimer very quickly, for those of you listening, this is not a political episode. Okay?
So if you're watching us, it's never a political episode.
Exactly. The farthest from. So red ocean. This is where all the people are. This is the. It's incredibly competitive. That's where all the competition is. It's incredibly cutthroat. It's saturated. Everyone is there. It's bloody. That's why it's the red ocean.
That's right. Think of sharks.
Yes.
Yeah. Yeah. That's what I think of whenever I think of red ocean. It's just a pool full of sharks. Why would we want to even jump in there? I would rather go in the blue ocean with no sharks.
No, it's the blue ocean.
It's so peaceful over here. We're just going to enjoy ourselves. There's very few people over here. We all have new ideas, small niches. We don't worry about competition because there's very few doing what we do. And we differentiate ourselves in so many different ways. Competition is just irrelevant over here in the very peaceful blue ocean.
So it's the proverbial road less traveled.
There you go. Hey, nice. Pull that one out.
Thank you very much.
Yeah.
Even I surprised myself.
Yeah. So the reason we're talking about this is because there's over 13 million accredited investors between 1 million and 10 million. At least. That's a stat that I read online. And everything's factual online.
Yeah, you saw it online. It's gotta be true.
It's gotta be. It's it. I'm sure. I'm sure it's close at least. And a lot of those large majority of those investors are investing in the stock market. Right. And not real estate. And so the stock market is that red ocean. It's where everybody's. That's where they're at. That's where things are liquid. They can move in and out. They can also get stupid, emotional about decisions and not just keep it in there like they really should. But the blue ocean is real estate, and it's where more and more people are starting to learn that they can invest their dollars in real estate, even their 401ks and their IRAs. And that's really where it's saturated. I wouldn't say that the people in the 1 million to 10 million box, you know, are. Are necessarily in the retirement account, you know, section, but it still is true. Although that's trillions of dollars that is invested in stock markets or different things and not in real estate. And so real estate really is the place where it's less risky. You have a hedge against inflation, you've got appreciation on top of it, You've got tax benefits. There's so many great things about real estate. It's why we are constantly kind of shouting from the rooftops, doing podcasts like this, throwing out education materials, just trying to say, hey, hey, hey, look over here. We're in the blue ocean doing something different. And it's actually more successful than what you're doing over there in the sharky red ocean where everything's bloody. And especially right now with the stock market, it's freaking going. How many of my friends have posted stock market posts going, enjoying the volatility of the stock market today. Why don't you invest in real estate? And I just laugh every single time, but that's really the difference. And why I thought that this topic was important because for anybody listening to our podcast, you are or have been introduced to real estate. Right. So we're introducing you to this blue ocean. And if you haven't invested yet, continue to research, because your money in real estate is where the ultra wealthy put their money as well. It's the largest percentage of their portfolios. And that's gonna be another episode we're actually, we're gonna be recording here, so watch wherever this one lies. I don't know where this one's gonna go, but if you haven't watched how the where the Ultra Wealthy Are Investing, I think is the title. Let me see. We have it right here. Where do the Mega wealthy Invest? So if you haven't listened to that one yet, be on the watch for it because we're going to talk about that. We're going to talk about where people are putting their money, and it's largely real estate. Spoiler alert. So we just want to encourage you to keep on looking in this blue ocean of where the competition isn't. And what's Warren Buffett's mind?
Oh, yeah. Invest when or get greedy when people are fearful, right?
Yep.
And then be fearful when people are greedy. Yeah. I don't think That I might have screwed up that quote a little bit.
You guys get the idea. You generalize it. That's exactly what he says. And right now, we're in a market where people are getting. There's some uncertainty. Right. And that's why there is more volatility. Volatility. Now then it's because of the uncertainty. When people get uncertain, they get scared and they pull their money out. That's why investing in the stock market, we've talked about it before, is not necessarily the best idea, because you can get emotional and you're going, oh. And you wake up and you go, oh, crap, how much money you lost? And then you take it out, which is not the right thing to do. You have to, like, go into these investments knowing what you're going to do and having that strategy. And I won't repeat that episode where you've already got like, we've already hit it.
And, you know, and you had said the volatility of the stock market. And so. Whoa. The 2008, the real estate market. Yeah. Well, how many times in the last four decades. You can count on one hand how many times the real estate market was volatile, you know, in the last 40 years. So you can count, I don't know how many times on one hand how many times the stock market has in the last four months. So it's not even apples to apples.
And in 2008, when real estate crashed, it was single family real estate. It wasn't multifamily. So there's. Multifamily was actually thriving in 2008. So now it's understanding real estate. And which. Where do you. So if you want to avoid the 2008. Well, get your butt over multifamily, like we're doing. So that's another little tidbit. We're going to go in on another future episode. I just thought I would sling it in there.
There you go. I think that wraps it up.
Yes, it does.
Awesome. Well, we hope that you enjoyed that episode. Make sure you're heading on over to our website, freedomcapitalinvestments.com to join our investor club to find out things that we're doing behind the scenes and whatnot. Yeah. But we're Also on Facebook, LinkedIn, all those other places, so make sure you hit the like button. And you're gonna hit the like button.
Because you like the blue ocean, not the red ocean.
Yes, blue ocean good, Red ocean bad. But we like to end all of our episodes with Invest Smart, Live Happy. Bye, everybody. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss.
More from Dani

Physicians and High Earners — What Real Estate Can and Can't Do for Your Taxes









