STOCKS REAL ESTATE

STOCKS VS.

REAL ESTATE

Why Real Estate is King

of Investment Mountain

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Search for the hottest Foreclosed and short sale properties on the Internet in real time on your smartphone. Download Dan McDevitt's Mobile home search app by texting TEAMMCD to 87778

Dan McDevitt- Certified Investor Agent Specialist Team McDevitt " We Are Baltimore Real Estate" Direct -410-499-5714 Dan@

STOCKS VS. REAL ESTATE

When it comes to investing your money, there are a variety of options and investment strategies from which to choose. Many investors typically think of the stock market as providing the biggest returns, but lately there's been a renewed interest in real estate as an investment, and for good reason--low home prices and low interest rates mean higher rates of return and cash flow. Stocks versus real estate has been the subject of much debate over the years, and a lot of ink has been devoted to comparing the two. But which one really does provide the best return on your investment? Which one is the best long term solution for you? Which one can lay claim to the title, "King of Investment Mountain"?

How Each Investment Works

When you buy shares of stock, you are buying shares of a company. Each share of stock you own entitles you to a cut of the company's profit. The company's Board of Directors decides how much profit will be reinvested and how much will be paid out as cash dividends if that company is profitable. Many stocks don't pay a dividend at all. Since you, as a typical stockholder, don't have control over how the company operates or the decisions that are made, you are unable to take steps to maximize your returns. You can't affect what you get. Additionally, over the years the stock market has proven to be a much more volatile market than real estate.

" Since you, as a typical stockholder, don't have control over how the company operates or the decisions that are made, you are unable to take steps to maximize your returns.

time. How? If the math behind a property presents a positive cash flow each month, you will make a profit. As a real estate investor, you are in the driver's seat; you make the decisions for your investment. You have control over your offer and sales prices. You can increase your property's value by making improvements. You can decide who will live in your property and what the rent will be. And a steady stream of cash flow builds wealth over time while you pay off the mortgage and build equity.

" As a real estate investor, you are in the driver's seat; you make the decisions for your investment.

Why Real Estate is King

But how do real estate's returns compare to the stock market's? Let's compare the two since 2000. In January of 2000 the stock market was at 1,394.46 points. After several peaks and valleys, it dropped to 1,362.16 in June of 2012, showing a DECREASE of 32.30 points or -2.32 percent. If you had invested $100,000 in the stock market in January 2000, your investment would only be worth $97,680 in June 2012. See the graph below.

S&P 500 Index: January 2000 - June 2012

" "

Real estate has its own risks, of course, but by running the numbers and investing for cash flow--rental income after mortgage and expenses are paid--you can take steps to ensure a good investment and improve that investment over

MSN Money

Disclaimer While the information on this page deals with legal and tax issues, it does not constitute legal or tax advice. Dan McDevitt is not an attorney or an accountant. If you have specific questions related to information on this advertisement, you are encouraged to consult an attorney or an accountant who can investigate the particular circumstances of your ?sit2u0a1ti2onA. ll Rights Reserved. The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.

Search for the hottest Foreclosed and short sale properties on the Internet in real time on your smartphone. Download Dan McDevitt's Mobile home search app by texting TEAMMCD to 87778

Dan McDevitt- Certified Investor Agent Specialist Team McDevitt " We Are Baltimore Real Estate" Direct -410-499-5714 Dan@

Now let's look at home prices over the same time period. According to the National Association of Realtors, the median sales price of an existing single-family home in January 2000 was $139,600. By June 2012, the median sales price had risen to $189,400, showing a 35.67 percent INCREASE--and this includes the worst housing crash in recorded history. So your $100,000 invested in real estate would have grown to $135,670.

Median Sales Price of Existing Homes Since 2000

$250,000 $200,000 $150,000 $100,000

$50,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 ? 2012 Charfen Institute. All Rights Reserved.

Start: January 2000 $139,600

End: June 2012 $189,400

35.67%

INCREASE

But this figure doesn't include cash flow, the most important element of a real estate investment. If you had invested $100,000 in a rental property in January 2000 and charged your tenant the average rent price (based on Census Bureau averages), the cash flow generated would total $93,954 by June 2012. Add this to the property's 35.67 percent appreciation--which should always be considered a bonus, not a guarantee--and your returns total $229,624! That's an incredible 129.62 percent jump, compared to the stock market's -2.32 percent drop.

Here are the two investments side by side

Return On Investment: Stock Market vs. Real Estate 2000-2012

$200,000 $150,000

Initial $100,000 Investment

$50,000 $0

Stock Market

Real Estate

This graph depicts the difference in return on investment between the S&P 500 and real estate from 2000-2012 (June)

Real Estate

$229,624

Positive 129.62%

Stock Market

$97,680

Negative 2.32%

? 2012 Charfen Institute. All Rights Reserved.

Of course, every investment property has expenses such as utilities, insurance, maintenance, and repairs, but these are all part of the equation to determine a good investment property from the outset. And unlike the stock market, real estate has excellent tax benefits that allow you to recapture some of those expenses.

Take Control of Your Money

Fortunately, it's never too late to begin investing in real estate. If you're interested in taking advantage of the incredible investment opportunities in real estate, I can help find you wealth-building properties. As a Certified Investor Agent Specialist (CIAS), I have specialized training in real estate as an investment and can show you why it's king of all investments.

" If you had invested $100,000 in a rental property in January 2000 and charged your tenant the average rent price, the cash flow generated would total $93,954 by June 2012.

"

I've built a team of incredible real estate professionals who can help you before, during, and after your acquisitions to help you minimize risk and maximize your returns.

Don't miss the hot deals out there! Take advantage of the super low home prices, record-low fixed-rate mortgages, and highly favorable market conditions--act today!

Visit my website for pre-analyzed investment deals, helpful articles, and videos that address some of the topics mentioned in this report.

I can help you invest for cash flow and unlock a world of real estate wealth!

Daniel McDevitt President MCaalrlymlaentdodDaiys!tressed Properties, LLC

Disclaimer While the information on this page deals with legal and tax issues, it does not constitute legal or tax advice. Dan McDevitt is not an attorney or an accountant. If you have specific questions related to information on this advertisement, you are encouraged to consult an attorney or an accountant who can investigate the particular circumstances of your ?sit2u0a1ti2onA. ll Rights Reserved. The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.

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