Mark Moss argues real estate's superior returns come from leverage, rental cash flow, and tax depreciation, not the property itself. Apply the same structure to stocks or Bitcoin and you get four to five times higher returns. The asset class barely matters; the financial engineering does.
If that's the structure, and that's what makes real estate so much better than stocks— again, we compare them apples to apples, the stocks perform better. Compare them apples to apples, Bitcoin did better. But if I can use the right structure with the real estate, it outperforms by a long shot, more than 4 times, about 5 times better. So the question is then, how do you use a similar structure for other assets? How would I use that for the S&P 500? How would I use it for my Bitcoin? And things like that. Well, as I said, it was never the asset, it was always the structure. Now, the thing with real estate is that real estate has it baked in. It's built in, right? Most people already know this, especially for the United States. Most people know this. You don't think about paying cash for the home. You're going to get a loan. Most people think the way to build wealth is with rental properties. You don't think you have to save all the money to buy the rental property cash. You're going to use a loan. And the baked-in part, the government abomination mortgage, but the tax depreciation incentives, right? The income that comes from the tenants, all those things, it's all baked in. If we want to apply it to other assets, we have to think about pushing it forward, have to build it on our own.
