Why is Real Estate Investing So Popular?

Have you ever noticed how almost everyone talks about real estate investing like it’s the ultimate path to wealth? One study by the Urban Land Institute shows 73% of individual investors feel real estate is ‘more secure’ than the stock market — even though historically, stocks have higher average returns. On today’s podcast, we’re going to break down the real reasons behind the hype and some things you might not hear about very often.

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About Jerry Norton
Jerry Norton went from digging holes for minimum wage in his mid 20's to becoming a millionaire by the age of 30. Today he's the nation's leading expert on flipping houses and has taught thousands of people how to live their dream lifestyle through real estate. 
 
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Transcript

SPEAKER_01: 0:00

Have you ever noticed how almost everyone talks about real estate investing like it's the ultimate path to wealth? One study by the Urban Land Institute shows 73% of individual investors feel real estate is more secure than the stock market, even though historically stocks have had higher average returns. Now, in today's video, we're going to break down the real reasons behind the hype and some things you might not hear about very often. Coming up.

SPEAKER_00: 0:31

For a limited time, you can get a free copy of Jerry Norton's Quick Start Kit with everything you need to flip your first house in 30 days or less. Download it now at MyQuickStartKit.com.

SPEAKER_01: 0:42

The first reason real estate investing is so popular is because it just feels safer. Unlike stocks, real estate is something you can see and touch. You can walk through it. You can fix it and prove it and actually see where your money is going. For a lot of people, it's easier to trust something you can physically visit and manage yourself. Compare that to buying shares of a company you've never visited run by executives you've never met. Plus, real estate is just way cooler than stocks. I mean, think about it. You're more likely to brag to friends about a rental you own down the street than about owning 12 shares of some random tech company, right? It's no wonder people feel more connected to real estate. Now, the second reason real estate investing is so popular is because a lot of people simply don't trust Wall Street. Big banks, financial scandals, corporate bailouts, all of it leaves a bad taste. Stories like the 2008 crash, Enron, Bernie Madoff, they stick with people. You can lose your shirt overnight in stocks if a company fails and you feel powerless to stop it. Meanwhile, a house? Even if the economy tanks, people still need shelter. During the 2008 crash, home values fell dramatically, but people with strong rental properties and good locations often kept collecting rent and weathered the storm better than stock-only investors. Real estate just feels more controllable, even if technically it's not always less risky. Now, the third reason real estate investing is so popular is because of cash flow and protection against inflation. Rental properties can generate steady monthly income. That rental income can be used to pay down the mortgage, reinvest, or maybe even one day simply to live on. And here's where it gets even better. Real estate is often seen as an inflation hedge. When the cost of living goes up, rent prices usually follow. So not only does the value of your property appreciate over time, but the income it produces tends to rise too. For example, between 1985 and 2020, Average rent prices in the U.S. increased by about 3.5% per year, roughly keeping pace with inflation. In simple terms, while your property goes up in value over time, your tenants are helping you pay down your mortgage and beat inflation. One monthly rent check at a time. But let's be real. The fourth reason why real estate investing is so popular is because success stories sell. You hear about someone buying a fourplex, renting it out, and retiring at 35, and you start thinking, if they can do it, why can't I? Online communities and groups amplify this. There's an entire subculture built around house hacking, rental income, and reaching financial freedom. And while those stories are often true, they can create a sort of herd mentality. Everyone wants in, especially when markets are hot. But what you don't hear as often are the stories of bad tenants, surprise repairs, evictions, and financial losses. It's kind of like poker. You mostly hear about the big winners, not all of the people who lost their chips. And that's the part no one wants to talk about, but the reality is real estate isn't all sunshine and rainbows. Being a landlord comes with headaches. Lay payments, property damage, unexpected repairs, non-paying tenants, evictions, and so on. You could spend your Saturday night fixing a water heater instead of enjoying passive dividends from a stock. Plus, real estate isn't very liquid. If you suddenly need cash, selling a property can take weeks or even months depending on the market. Financing can be tricky too. Lenders often want 20% down and loans for investment properties usually have higher interest rates. It's critical to understand that while real estate offers control and potential, It demands a lot of work, patience, and capital. So what if you're like me and you love real estate, but you don't want to deal with clogged toilets at 2 a.m.? Luckily, there are other strategies out there. Let me share with you three of my favorites. First is wholesaling. Now, wholesaling is simply where you find great deals and you pass them off to other investors for a quick profit without actually buying the property yourself. You basically act as the middleman. You lock up the deal under contract, then you assign that contract to a buyer who steps in and closes on it. What's great about wholesaling is it's a low capital, high hustle business model. Wholesaling is how I got started in real estate 20 years ago in Metro Detroit, and it's a great strategy for any new real estate entrepreneur to get started in. In fact, I have a very popular quick start kit that I'll give to you for free that will show you how to get your first deal in the next 30 days. To get that free download link, just go to my quick start But wholesaling isn't just an entry-level real estate strategy. You can scale wholesaling into a booming business. Today, I personally wholesale houses at a high level doing millions of dollars a year in profits. And I also run a small community where I teach investors how to earn six and seven figures a year. It's called FastTrack and it's by application and interview only. To learn more, go to FastTrackWithJerry.com. Now, the second alternative to rentals is a flipping technique I call the takedown method. Now, this strategy is similar to wholesaling because you still get a great deal at a discount and you still aren't fixing up properties. That's called flipping and we'll discuss that in a minute. What's different about the takedown method compared to wholesaling is rather than assigning your contract to another investor before you own the property, With the takedown method, you actually buy the property using 100% funding or none of your own money. Then you immediately resell it on the open market for a profit. You're in the deal a little bit longer than wholesaling, but you can also make much bigger profits. Just like with wholesaling, I have a getting started guide that I'll give to you for free. Just go to freetakedownkit.com to get the free download. And the third alternative to rentals is flipping, or more specifically, fix and flip. Flipping has become popular thanks to TV shows on HDTV where you buy a distressed property, you fix it up, and then you resell it for a profit. The upside to flipping is a successful flip can produce$20,000,$50,000, even$100,000 in profit and pretty fast. I have a video where I show a house I recently flipped that made a net profit of$150,000 in about four months. I'll put the link to that video in the description and you can check it out. The downside to flipping, well, renovations almost always cost more and take longer than you expect. And if the market shifts while you're in a mid-flip, you could end up stuck with the property. Flipping rewards hustle and market knowledge, but it's a full-time job for a lot of people, not a passive investment. I've been flipping houses for many years, and I have the systems and I have the capital, and I need more deals. In fact, I have a program where I'll pay you$10,000 just to bring me good fixer-upper houses. If that sounds exciting, go to my10kcheck.com to register for a free training to get all the details. So what about you? Do you think real estate is overrated? Is real estate better than the stock market? Are you thinking about investing in rentals, wholesaling, takedowns, or flipping? I'd love to hear your thoughts. Drop a comment below, and I'll see you on the next video.