Real Estate vs. Stocks: Which Makes MORE In a RECESSION?

Real estate vs. stocks. Cash flow vs. consistent dividends. Equity vs. price-to-earnings. If you’re reading this right now, chances are that you’re more of a real estate investor than a stock picker. But maybe you’re on the wrong side. Does the passivity of stock investing beat buying properties? Or do things like depreciation, tax write-offs, and the ability to use leverage while having tangible assets take the cake when it comes to the stock vs. real estate debate? And what about investing in 2023 as the economy continues to falter?

We brought on return guest, stock investing expert, and host of "We Study Billionaires," Trey Lockerbie, to put him head-to-head against some of the most famous names in real estate podcasting. Rob Abasolo emcees this battle of investment strategies as Dave Meyer and Henry Washington bring in the housing heat. And while no physical jabs are thrown, Trey and our real estate investing experts put these two popular asset classes head-to-head to see which is a better bet for today’s investors.

And if you’re trying to scoop up deals at a discount, we touch on whether stocks or real estate are better bets during a recession, which comes out on top, and the risks you MUST know about before investing in either asset class. So, if you’ve got some cash burning a hole in your pocket and don’t know what to do with it, we may have the exact answers you need!

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Expand Your Investing Knowledge With the BiggerPockets Books:
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Find an Investor-Friendly Agent in Your Area:
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Hear Dave and Henry On the “On the Market” Podcast:
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Real Estate Vs. Stocks: What 145 Years Of Returns Tells Us:
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Hear Our Past Interview with Trey:
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Tune into Trey’s Podcast, “We Study Billionaires”:
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Connect with Dave:
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Connect with Henry:
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Connect with Rob (Robuilt):
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Connect with Trey:

Episode #758

00:00 Intro
00:57 Quick Tip
03:35 What Do WE Invest In?
07:50 What Does the Data Say?
12:09 Risk vs. Reward
22:16 Investing in a Recession
30:48 Is It Time to Buy Bonds?
35:40 What to Know BEFORE You Invest
38:16 What to Buy in 2023
46:27 Connect with the Guests!

[randyrandall]

This is a silly conversation for every experienced real estate investor as well as estate planning attorney. I've been both for 27 years and I've personally known countless people (my clients) who've become multi-millionaires from real estate while ZERO people have done so with stocks. Sure there are the few who got stock options and made a lot but that is not comparing apples to apples. Those who rely on retirement plans, spend their entire working career to have a few million dollars (at best) in their golden years. Because of leverage, real estate investors (in my experience) commonly retire with an 8 or 9 figure net worth. That just doesn't happen in the stock market outside of the rare few. Yes I know they exist and so do lottery winners. I personally have four clients who've won the lottery. Just because it can happen though, doesn't mean it will happen to you. Bottom line: If you want to be wealthy, stick to real estate.

[ryanwilliams]

Despite the fact that I invest, I am saddened by my inability to evaluate each company's performance and determine whether or not this is the ideal time to purchase stocks. My monetary stockpile is being depleted by inflation. At this stage, I need accurate market trajectory data, but I'm not sure what to do.

[poonekar]

I have 2/3rd of my net worth in RE and 1/3 in stocks and half of my stock portfolio is buy and hold/ passive ETFs and other half is active investing of individual stocks using technical analysis. In good times and also over longer periods RE does better but it’s mostly because I use leverage for RE but not for stocks and tax benefits/ loopholes in RE. However in recessions/ corrections stocks do better and that’s mostly because I can hedge my stock holdings, use shorts etc but I cannot do that in RE.

[accrualworld]

I love these panel style episodes MUCH better! Great job leading Rob!!

[travis]

This is great debate but It would be interesting to see a professional stock trader that deploys multiple strategies as well as buy and hold to debate on the stock side.

[Lisa_LaCroix]

What market did Henry say he’s in that offers cash flow and appreciation?

[dominickosteris]

Great discussion! Real Estate all day long.

[estaterealms]

A great episode! Thank you for sharing this high-quality information with us investors.
I hope to make videos with this quality! 💪

[InvestingwithBishop]

Bitcoin, real estate and stocks. All equally imo.

[teleskp]

Thank you very much for great opportunity to listen and study so interesting content. Wish soon I will get my first real estate purchase and I will definitely will be prepared for. Appreciate also your guest, listening “we study billionaires “ for couple years already. Good luck everyone

[cameronvincent]

Options cause you can buy protective puts or you can do strangles or stradlles

[franklinvaldez]

Love your channel, I'm waiting on a multifamily housing. Thanks for what you do

[tammyrussell-rice]

Are we to assume Dave still has a briefcase full of money? 😂

[thegrantcole]

Guy quotes Buffett and then says he would put 25% in Bitcoin

[rosejones]

I wanted to more about corporate bonds, because my knowledgeable father in law made most of his money through that. The discussion of bonds reminded of my parents who had a few rentals - like a granny suite and little house in an inexpensive part of the city - but they also invested in government savings bonds. They never had a credit card - but they bought their refrigerator when they sold those bonds. :) And they also sold their garden tomatoes to the nursing home below us. Entrepreneurs as well as fiscally conservative. :) Stock curious - you guys make me laugh.

[lesengleseng]

Who came up with this thing of singing when talking? It’s so annoying, especially when adults are doing it. It derails most of the good content.

The guy in glasses, green earphones and mo-hawk…the more I type the more I realise he is possibly trying to be or act younger 🤔

Hence all he other adults speak like adults because they accepted they are. Weirdly they look much younger.

No shade. Distant observer