I had a career in real estate for more than 20 years as an investor, mortgage company owner, private equity fund runner, and funding coach.
I closed that business and semi-retired 6 years ago – mainly because it just wasn’t fun anymore.
Now I work with women to help them plan and invest for retirement.
Because of my back ground the questions always comes up….
Which is the better investment over time, real estate or stocks.
Most real estate investors are shocked to hear that, but here’s why that’s my answer.
Realty Income Corp (NYSE:O) is arguably the most well-known real estate investment trust.
Since late 1994, O has returned 4,630%. That’s capital gains and dividends.
If you would have invested $100,000 back then, you would have purchased 12,500 shares and they’d be worth $835,000 today.
Today those shares would produce $35,375 in dividend income every year – tax-free if it’s in a Roth IRA.
You would have received $562,887 in dividend income over the years representing 563% of your initial investment paid back in dividends.
That includes the Mortgage Meltdown of 2008 and a few significant stock market crashes.
And guess what?
You never had to replace a roof or take a single call from a tenant.
That’s what I call having your cake and eating it, too.