As I am sure you are already aware, there are a lot of ways to invest your hard earned money: real estate, stocks, bonds, fine art and even gold. The options are seemingly limitless; as these are just a few of the investment options you have at your disposal. That said, it is entirely too easy to become inundated with investment overload. The burden of placing your money in someone else’s hands is not something to take lightly. At what point does one investment option become more attractive than another? Perhaps even more importantly, how can you tell when to avoid a particular investment altogether?
While stocks, bonds, certificates of deposit, and other forms of investment each hold water in their own unique way, real estate offers something that others can’t: cash flow that is directly correlated to your own decisions. In other words, your actions are responsible for your net income. Other forms of investment often rely exclusively on decisions made by company officers. Real estate investors are in charge of their own assets, and there is a lot to be said for that. However, that isn’t the only difference. Here is a breakdown of real estate investing versus other forms of investment: