Informal panel discussion where three participants (including guest Alyssa and a speaker named Flip) argue that real estate is preferable to stocks for most of their capital. Key points: real estate rarely goes to zero because land retains value, investors can exert more control (renovations, lender negotiations), and real estate allows high leverage. They contrast this with stocks and crypto, noting higher volatility and lack of direct control; speakers report nearly all personal wealth is in real estate and share brief anecdotes about trading small amounts of stocks/crypto for fun.
A piece of real estate never going to go to zero. There's always value in the land. A stock can go to zero, and you have no control over it going to zero. Real estate, you've got control. Sometimes you don't have control. The house burns down. You don't have control over it. Leverage. Oh, my goodness. I could buy $20 million worth of real estate with none of my own money, but I can't do that with stock.
We always research, like Hot Topics, and we love real estate, and you are in real estate. You're in our network. So we thought this would be a good topic for us to hit on. So we're gonna talk about one of the most popular questions that is Googled on. On Google.
She said that?
I did.
That's awesome. So between the three of us, I want us all to kind of talk about this. This answer the question is, is real estate investing better than stocks? And. And since Alyssa, you are our guest, we're going to let you start.
A piece of real estate's never going to go to zero. There's always value in the land. A stock can go to zero, and you have no control over it going to zero. Real estate, you've got control. Sometimes you don't have control. The house burns down. Whatever. You don't have control over it. Leverage. Oh, my goodness. I could buy $20 million worth of real estate with none of my own money, but I can't do that with stocks. I mean, I guess you can do leverage with stocks, but you can lose your butt on that, you know, so us, too.
Like, all. I would say 99% of our money is in real estate or real estate businesses. And then Flip likes to play a little bit of change in the stock and crypto market just because he thinks it's fun.
Yeah, but you make it use. That's 99, you said that's 1%. I have way less than 1%.
I was just given, like, guess.
No, it's like 99.999% is in real estate. And so I decided it would be fun. I got whatever the account is on my phone or whatever.
Robin Hood or something.
Robinhood.
Yeah.
And I bought. And no, we're not sponsored by Robin Hood.
United States.
But so I bought. I bought a couple, sold one of them, and bought something else. And I bought them because I like them. I have no idea. I don't know anything about anything. I buy the two stocks I bought are because I like them. I have no idea. I like the companies. That's it.
Yeah. So on that point, every now and then, we're at dinner and he shows me his phone, and. And for a long time, they are going up, up, up. Well, just the other day, literally the other day, he goes, look at what that. And it was going down, down, down. It was taking. And I was just like, you know, this is one of those important pieces of stocks versus real estate. Like, it's not like we can jump on the phone and call the company and say, hey, what the heck are you guys doing over there? Because you're losing my money. Whereas, you know, real estate, you do have some control over it. And if you're working with real estate investors, like, I'm sure you use private money lenders, right, Alyssa? And if you're working with somebody and we have something, money lender can go, hey, what's up? What's going on? Like, we've had deals that were, like, taking longer than expected, and we reach out proactively and just say, hey, this is taking longer than expected. We can pay you off on time if you really need that money back, but if you don't, we'd love for you to extend and keep that money working for you. We'll keep paying interest. And they, I would say nearly 100% of the time. I don't personally know of anybody who said, I'm going to cash out. They just want their money working for them. Right. And that's the difference between stocks and real estate is like, you actually had control. You could actually talk to somebody, whether you're an active investor or a passive investor. So that's my two cents. What's your two cents?
Yeah, everything both of you said. It's just, there's, there's. I don't know how I could add anything else to it, you know. So the stocks are going down, right? If we had a house that was going down in value, well, we go inside the house and re renovate it and we build it back up and put value back in the house. You can't do that with stocks other than look at your phone go, no. You know, so I don't know what else to. The only, only thing that was worse than stocks is, is crypto.
I mean, we made that mistake.
I threw. I threw money. I threw money in that. I went, wow, I own crypto. And it lost value. So, yeah, bitcoin wasn't. Whatever, whatever it was. Bitcoin is something else. Anyway.
Well, I love the real estate versus stock conversation. I've heard so many people have it, and it's just fun to go back and forth talking about it.
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