With everything happening in the world right now, you’re probably wondering whether you should be investing in the stock market or in real estate. Well, this week, I’m going to give you a couple things to think about so you can make an informed decision.

With COVID-19 causing a global pandemic, a lot of people are wondering where they should be investing their money.  Should they be in the market for paper assets like stocks or should they deal with more tangible assets like real estate? I think most people know where I tend to lean on this topic, but I want to be as unbiased as possible so you can ultimately make your own decisions. I’ll also stay pretty general when I’m talking about stocks and real estate, just to make it easier.

When it comes to paper assets, most people think about how easy it is to get in and out of this industry. Typically, all it takes is going to your computer and registering for a trading account.  There are people who do that on a day-to-day basis. Some people use a broker and some people do it themselves. Being able to get in and out of something like paper assets is extremely important. It’s very liquid, which means if you want to put your money in today and take it out tomorrow, you can do that. Your money stays accessible, and that’s important to a lot of people.

On the other hand, some drawbacks include a transaction fee every time you’re buying and selling something. In the past, we’ve talked about these different transaction fees, like those associated with 401ks. Another issue is that you’re purchasing or buying stocks in a big company where you have little to no control over what happens on a daily basis, which also depends on whether it’s a common or preferred stock. This is especially true, as stocks rise and fall based on emotion, which is something we’re seeing now as a result of COVID-19.

Now, let’s think about real assets, like real estate. One of the positives is that the proof of concept is already there. Pretty much everyone can understand the importance of real estate because everyone needs a place to sleep. Real estate can also provide you with consistent cashflow, and it’s money you can actually touch. Plus, you can also use leverage in real estate.

However, one of the potential drawbacks of real estate is that it isn’t liquid. Once you get into real estate, you typically can’t put your money in one day and pull it out the next. Real estate investment can potentially take years depending on the particular venture. It’s also difficult to build the right team if you don’t know how to do it correctly. And even with the right team, you still have to put in a lot of work. Real estate is not something you can do at the press of a button.

Most of you know that I love real estate and that’s my preference, but it’s up to you to make the decision that’s right for you and your current situation.

For those who don’t know me, I’m Billy Keels with KeePon Cashflow. I like to share a number of different strategies and tips for how you can make more money, have control over your free time, and ultimately live with less stress.

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That’s my two cents for today. As always, hasta la próxima.

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