Flip and Danny compare stocks and real estate across five metrics: liquidity, diversity, growth, preservation, and cash flow. Stocks win on liquidity. Real estate takes preservation and cash flow, with growth leaning its way thanks to leverage and tax benefits.
Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to another episode of our.
Podcast, which is Freedom through Passive Income.
That's right. Now, today's episode is called Stocks Versus Real Estate. Dun, dun, dun.
I knew you were going to do the dun, dun, dun. I didn't even talk about it, and I saw it coming a mile away. All right, so when investors are focusing on something in the investing world, they're focused on. We listed five things, right? Do you want to throw them out there?
They're focused on liquidity, diversity, growth, preservation, and my favorite, cash flow.
Cash flow. So we're going to talk about those five things and what we think is going to be the win. So let's talk about liquidity first, since that was the very first thing that you said, liquidity. Even though I'm a real estate investor and I love real estate, so I'm always going to be biased, right? I'm always going to say real estate. But in this one, stocks win. And not always. If you're a private money lender, you do have more liquidity, but it's just not like stocks. Stocks definitely win this one, because stocks, you can just take it right back out anytime that you want. If you see it going, if you catch it in time, you go, whoop, take it out. You can't do that in the real estate world. So I'm sad to say the liquidity part of things, stocks is going to win that war. But let's go to diversity, at least on this one. I put that they both win. And people don't even realize that you can get diversified across real estate because they think about one property. I'm going to buy one rental property, and that's not diversified. All of your eggs are in one basket. But you can invest in debt funds, in syndications. There's multiple opportunities that you can just have a conversation with somebody that knows how to diversify and talk about your goals. And if that's going to be a win for you, but you can do it in real estate. So I'm just calling this one even. Obviously, stocks, you can do it. There's mutual funds. You can just buy stocks, blah, blah, blah, blah. But it's a win on both sides. No growth. Let's talk about growth. So I'm going to give. I think it's going to be a fight. I think I went back and forth on this one and I went back and forth on this one because stocks can tank. They can go all the way to zero. So how good is that? Yes, but they can also skyrocket. So it's not that. Not that they can't grow. They can. They absolutely can. So they deserve. Stocks deserves, you know, some points in ability to grow. But you have to understand the downside of it. Absolutely. 100% having the capability of going to zero. You're not going to see real estate go to zero, especially if you're investing like we are or you're investing for cash flow, whether it be funds, syndications, rental properties, private money lending. Those are cash flow instruments. And those. It doesn't matter if the market's up or down, you still have that cash flow. Because many times what we're doing is we're providing shelter for people and people need shelter whether the market's up or down. So I say growth wins because you also have leverage. So you're not spending as much money to get into. Into a deal. You've got the appreciation, you've got the rental coming, rental income and the depreciation. I'm saying tax benefits there. So I think that there's so many things and pieces that can be attributed to growth that I'm still going to call it a fight. But in my head I'm going, real estate wins, okay, Preservation, which is number four. So stocks depend on the market. So if we have an economic crisis, that could cut your money in half. So what does that mean? What does it look like, depending on where you're at in life? We go back to the growth piece when we're talking about real estate. Real estate is something that the IRS gives us so many tax benefits per the tax code, because we are providing affordable housing, because people need shelter. So for all the reasons that growth was great, from the leverage to the rental income, to the fact that people do need shelter, to the tax benefits with depreciation and just everything else that you get to write off, I'm going to give preservation to real estate just hands down, because you just don't know what's going to happen to the stock market. You don't know if you're going to maintain those funds or not. But I will say that very many times. We say, and we borrowed this from a friend of ours that we've been on his past podcast a bunch of times, Keith Weinhold. He says if you're putting your money into savings, you're losing money. If you're putting your money into stocks, you're maintaining your money. And if you're investing into real estate, you're building your wealth. So I believe for preservation of capital. Capital growth and preservation is a winner in the real estate game. Okay, the last one is cash flow. Cash flow is my favorite. So stocks is not or. No, stocks is an appreciation game. You're not getting cash flow. I think there are some stocks out there. I'm not like, you know, savvy about stocks because it's not where my passion lies, but there are some out there. But for the most part, you're looking to make some gains there. Whereas real estate is very much a cash thing. It's why we talk about freedom through passive income. We're talking about that monthly check you're getting, whether you're working or not. And you're developing this freedom number, whatever it is that is going to cover what you want in your buckets, whether it's just your bills or your bills, plus your vacation fund, plus your tithe fund, plus your everything else, whatever, charity funds, whatever that freedom number looks like the cash flow that you're getting through all of these real estate investments. Cash flow is a hands down. Real estate is going to win that game all day long for all the other reasons that we talked about as well. So we only listed five because we tried to talk about things that we. Are we related to us? What are we thinking about? We've been doing this full time since 2008. What's in our head based on all the knowledge and experience that we have. Let's relay that to you as to what. What are the top things that we're looking at and how we making decisions. That's how we convey it to you. So many of you who are, you know, more on the stock side of the game than the real estate side of the game. You can fight with me all you want. I'm still saying real estate's the winner. It's just. It's just what I love.
That's right.
Okay, I'm done.
And then we actually heard just talking about cash flow, how much we like cash flow. I'm one month old when I heard that you can get cash flow through crypto.
Oh, yes.
And so mind blown. Haven't even gotten into it. But I'm going to.
We're going to.
Yes, we are going to. Future episode.
Yes, future, definitely. Once we know a whole lot more.
Exactly.
Well, we hope that you enjoyed this episode. Make sure you join our Facebook group right up top here, facebook.com freedom. That's right. If you're not on Facebook, right down here, our website, freedomcapitalinvestments.com but make sure you love like comment right below here. Give us reviews, whatever questions, anything that anything. Go ahead, put it right down here. But again, we hope you enjoyed the this episode and we always like to.
End with invest smart, Live happy.
Bye everybody. Bye.
Nothing on the 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 the show are not guaranteed. All investment strategies have the potential for profit or loss.
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