Compare Real Estate Investment with Investments You Don’t Control

Risk is defined as “leaving something up to chance” and, sadly, that’s what most people do with their investments.

Most of us have been taught that the wisest and safest thing to do is to put our money in investments that others control, like IRA’s or 401-K’s for example. But consider the nature of investments such as the stock market and you’ll understand why it is far riskier. When you invest in a stock you have no control over your investment. Can you decide how much the company charges for their services? Or tell them how to market their products? Of course not.

The company’s direction is completely out of your control and so is its stock price.When buying stock you are simply guessing as to whether you are buying low. You really don’t know if the company is headed for more profits or less profits or even loses and you are not alone.

Everyone is guessing about the same thing and then often allowing their emotions to rule which way the stock moves. Anyway you look at it; you have NO control over the direction a stock is headed because you have no control over the company it represents.

The price of real estate also changes, but, unlike stocks you can know you are buying real estate at a discount of 10%, 20%, even 30% or more… if you buy right. Try going to the stock market and asking to buy your favorite stock at a 30% discount. Think they will let you buy it at a discount? Lots of luck!

The bottom line is that the only way you make money in the stock market is by speculating—giving over your money to someone else to invest it for you—someone who has a lot less riding on a positive return than you do! This is “investing in hope”—hoping they will do a good job.

Such hope is the very definition of a risk.

Unlike stock that everyone has to buy at the same price at any given moment, real estate is totally negotiable. Every property is different, every seller is different and every opportunity is different. Because of this you can find discounted properties that give you a margin of profits right off the bat. Added to this, you can focus on changes and improvements that may cost very little but dramatically increase the value. This is not possible with investments that others control.

So the price of your property is not based on someone else’s performance or on emotions, like the stock market. Instead it is based on market data—how much actual properties similar to yours have sold for and, even more importantly, how much discount you are able to get when buying it. No emotions here.

Of course real estate can go down as we have seen in the last few years. But even given recent declines in housing prices, over time real estate increases in value. And best yet, real estate prices are once again are at bargain basement levels that we have not seen in years. This may very well be the best time to buy which is why you should consider taking action now especially if you buy at a discount with built-in profits. Buying at a discount is definitely possible… just check out:

www.ForeclosureHouseSale.com