logo
episode-header-image
May 2024
57m 27s

955: BiggerNews: Real Estate vs. Stocks,...

BIGGERPOCKETS
About this episode

Which will make you richer: real estate vs. stocks? We brought the fine folks from The Motley Fool on the podcast to get into a serious debate over which asset makes you more money, which is easier to invest in, and which saves you the most in taxes. We’ll go head-to-head against The Motley Fool’s Jason Moser and Matt Argersinger to finally answer the age-old question: Should you invest in stocks, real estate, or both?


For this debate, we had to bring out the big guns. That’s why Dave Meyer and BiggerPockets CEO Scott Trench will be on team real estate for this debate, as Chris Hutchins from All the Hacks moderates to ensure things stay fair. Although we’d love to admit that we crushed this debate, there are some moments when the stock investors will surprise you, showing that real estate may not be for everyone and how stocks beat real estate in numerous ways. But that doesn’t answer the question, “Does real estate make you richer?” Don’t worry; we’ll get into all that in this debate. 


Stick around as we get into the topics you care about most: building wealth, barriers to entry, volatility and risk, diversification, REITs vs. rentals, leverage and liquidity, time commitments, tax advantages, and more. If you’re itching to park your cash in an investment, hear out the debate BEFORE you make a move!


Support today’s show sponsor, Rent App: the free and easy way to collect rent!


In This Episode We Cover

The ultimate real estate vs. stocks debate (and which will make you richer)

Barriers to entry and which asset class is the EASIEST for beginners

Volatility and risk, and the sizable advantage real estate has for stable pricing 

REITs (real estate investment trusts) vs. rentals and the more “passive” type of real estate investing 

How much time it actually takes to succeed at stock investing and landlording 

The MASSIVE tax advantages to real estate investing that stocks cannot beat 

Why BiggerPockets CEO Scott Trench invests more in stocks than in real estate (!?)

And So Much More!


(00:00) Intro

(02:20) Stocks vs. Real Estate Investing 

(04:08) Building Wealth 

(08:43) Barriers to Entry 

(14:50 )Volatility and Risk 

(20:41) Diversification

(23:42) REITs (Real Estate Investment Trusts) vs. Rentals 

(32:57) Time Commitments 

(35:53) Leverage and Liquidity 

(41:12) Tax Advantages 

(43:54) Closing Arguments 


Check out more resources from this show on BiggerPockets.com and  https://www.biggerpockets.com/blog/real-estate-955

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

Learn more about your ad choices. Visit megaphone.fm/adchoices

Up next
Yesterday
2025 Long-Distance Investing Blueprint (Listen Before Buying)
Can’t make the numbers work in your local market? No worries—long-distance real estate investing is the natural next step. We’ve done it before, many times, and made the beginner mistakes, so you don’t have to. Now, we’re gearing up to do it again. Dave and Henry are heading out ... Show More
41m 2s
Jul 7
Replacing His Income with Rentals (in 3 Years!) by “Recycling” Money
In just three years, this investor scaled up to making over $100,000 per year thanks to real estate. He did it all starting in 2022 when interest rates were beginning to rise, the market was turning, and many investors decided to sit on their hands. Thanks to a strategy that allo ... Show More
40m 2s
Jul 4
How to Buy Real Estate Without Banks (Private Money Lending)
Can’t (or don’t want to) get a bank loan? We have another option for funding your real estate investments: private money lending! If your DTI (debt-to-income) is too high, you’ve maxed out how many mortgages you can get, or you need quick cash to finance a renovation, house flip, ... Show More
40m 14s
Recommended Episodes
Oct 2023
455: REITs: How to Make Real Estate Money WITHOUT Owning Rentals
Want passive income? Well, DON’T invest in rental properties. Buy REITs (real estate investment trusts) instead. Yes, you read that right. Although rental properties are a phenomenal way to build wealth and cash flow and pay fewer taxes on your income, they aren’t the most “passi ... Show More
52m 6s
Feb 2023
385: How to Use Equity in Your Home to Reach Financial Freedom Faster
Your home equity could be the secret sauce to earlier retirement. With so many homeowners and rental property investors across the nation sitting on hundreds of thousands in home equity, one asks, “what if you used this trapped equity to build wealth?” And although most homeowner ... Show More
57m 15s
Mar 2021
Property vs. Stock Market Investing: What’s Right for You?
How about a "friendly discussion" over property vs stock market investing for your Tuesday morning? It's a debate that has existed long before we joined the trades and will continue long after we're gone. Join Sim and Sonya as they explore the ease, financial gain & attainability ... Show More
26m 6s
Oct 2023
1085 - Is Real Estate a Good Investment? by Jane Meggitt
When building wealth, there is no shortage of investment opportunities. Stocks, bonds, mutual funds, ETFs, precious metals, and more all play a role. However, many of the world’s great fortunes are based on real estate investing. Let’s examine why real estate is a good investment ... Show More
12m 40s
May 2023
407: 8 Rentals in 8 Years and Unlocking MASSIVE Tax Breaks with One Career Move
Think it might be too late for you to enjoy the spoils of real estate investing? Well, you’d be wrong! Regardless of age, background, or financial circumstances, it’s never too late to switch careers and become a real estate investor. Just ask today’s guest!In this edition of the ... Show More
58m 38s
Nov 2022
53: 5 Ways to Win During a Down Housing Market
Knowing how to invest during a recession is what separates the good from the great investors. Most veteran real estate investors know that during downtimes, the lucky landlords get swept away while the intelligent investors start to pad their pockets with deals others are too sca ... Show More
57m 30s
Jun 2024
540: Renting vs. Buying a Home in 2024 and Do You Have Enough in Your 401(k)?
Renting vs. buying a house: when it comes to FIRE, many people assume that you must own a home and preferably have it paid off to reach financial freedom. But is this really true? With renting so much cheaper than buying in 2024, would it be wiser to rent a place and send the sav ... Show More
50m 51s
Apr 2023
402: Tax Day Q&A: Live CPAs Help YOU Owe Less To the IRS
Tax season is a nerve-racking time for many, especially for those who don’t have simple tax returns. If you’re a real estate investor, you need top-notch tax advice if you hope to reap the best tax savings when filing—legally, of course. And that’s exactly what we’ve got for you ... Show More
42m 41s
Mar 2023
934: Is Commercial Real Estate Better Than Residential? - Episode 934
There are many ways to build wealth through real estate, and it's important that you find a strategy that works for you. One of the first questions you might ask as you explore the world of real estate investing is: should I invest in residential or commercial real estate? I have ... Show More
22m 14s
May 2024
413: Rookie Reply: How to Invest in Real Estate While Working 9-5
If real estate investing was easy, everyone would be doing it! The truth is that, despite the financial freedom and flexibility it offers, investing is hard work. And it’s even more difficult if you’re working a full-time job or raising a family. But with good time management and ... Show More
40m 38s