Wealth Advisor: Don’t Invest In Real Estate

Josh Brown considers his personal home to be an emotional investment, not a financial one. And when it comes to investing in real estate to make money, Brown prefers to put his trust in professionals. To do this, he owns shares in Real Estate Investment Trusts or REITs. Check out this video to learn more about the kind of REITs Brown owns.

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Wealth Advisor: Don’t Invest In Real Estate

[Fitbyyah]

This guy is the same guy that owns the whole block but doesn’t want u to invest .

[glibseniuk]

Waiting for Graham Stephan to react to this

[gloriaiarango]

Financial advisor: "Don't buy a house to live in, better you pay rent to another person who bought the same house to rent it to you and make money doing so" "you know there are expenses related to owning a house" at the same time your landlord pay those expenses with your money and get a cash flow. These advisors are so smart!!! They don't realized the only money that is actually leaving your pocket when you buy a house are down payment and closing costs. The monthly payments you make as mortgage is your rent, they can talk about depreciation and inflation and all that but in the end when you pay rent all your life you own nothing. After paying down payment and closing costs thirty years later you own the house. After paying rent for thirty years you own nothing and trust me after thirty years if you sell the house you are getting nice a nice amount of money you can do anything with. Do you get any money after paying rent for thirty years??? He is talking about taxes and maintenance but when you pay rent the landlord uses that money to pay for those expenses in HIS HOUSE you are basically paying his house taxes, etc.

[jip]

I'm a Wealth Manager and I get people asking about real estate investment all the time. I tell them unless they want to deal with the three 'T's of being a landlord (toilets, trash and tenants) or hire a good property manager to manage it for them, they should not invest in real estate. Also private REITs are highly illiquid investments and hard to dispose of. I spend a lot of time trying to get people out of BAD REITS that some other advisor stuck them in and did not explain were highly illiquid

[andrechambers]

Overly generalized. I agree, "casual" investors should not jump in before educating themselves, but there are plenty of us that aren't BlackRock and happen to be successful in the space. You looked at the ROI only through appreciation for your comparison against the stock market. You missed other profit centers for investment property like cash flow, tax advantages, amortization, and inflation hedging when a mortgage is used. The video doesn't discern properly between owner occupant and investment property total returns.

[Hellspawn]

Theoretically, real estate should be easier to understand than stocks, since most of us have a basic understanding of the costs of real estate. Plus it's arguable that real estate can be more valuable since it's tangible and they aren't making any more land, which makes it quite valuable. There are always resources to help people navigate any type of investing. I'd say that many real estate investors like this guy don't want people to go down this route since it's more competition.

[chrispaul]

Most people venture into crypto to be a millionaire, meanwhile, I just want to be debt free

[trackourmoney]

Real estate in absolutely an investment strategy. It might not be as passive as index funds but there is money to be made if you want to put in the effort.

[ryanv.]

It’s funny when he says “ When you look at data, …”, he doesn’t realize that data suggests that real estate is the #1 way for the average people to become millionaires.

[daviddonze]

Whether to invest in real estate, stock market, or something else really comes down to the investor's level of comfort and understanding of the investments out there. Stock market is great for majority of folks, but not everyone. I'm an investment advisor as well, and also invest in real estate...and understand the massive financial benefits of real estate investing if it's done the right way...even for the many non-professionals.

[StampitisDP]

Most millionaires startoff with real estate though...

[adamemedia]

"Stock investor says to invest in stocks"..Thanks for this breaking piece of journalism CNBC....

[TheDanaYiShow]

"don't view your PRIMARY residence as an investment" is very different from "don't invest in real estate"...

[stan]

The title is exactly the opposite of what he's saying.He only says to buy real estate thru REIT's, not to don't invest in it. Misleading title...

[JonathanSorunke]

I think it’s important that everyone does their own research and comes to there own conclusion on this topic. Obviously a financial advisor that tells his clients to buy stocks all day everyday isn’t going to know a thing about investing in real estate. I think real estate is the fastest way to build your wealth besides starting a business.

[jesusalfaro]

“Dont invest in real estate” is something the greedy would write to have less competition in the market. I am investing in RE and I highly recommend it. Just educate yourself and you will be fine.

[Joeyouth]

“Don’t invest real estate because I can’t charge you commission if you do so”

[jonb]

As someone who has nearly all assets in cash flowing real estate invests, I hope many, many people follow this guy's advice. :)

[jeremymcneill]

If you plan on buying a property and holding it for years you are almost guaranteed to win. Stocks and real estate are the easiest way to build wealth for the “average joe”

[JStuartofficial]

“I dont invest in RE so its not a good idea. “ great advice from a stooge