How I Turned $1,000 into a Million Dollars in Real Estate ...

> Also, if most people think real estate is a
> safer investment than the stock market, why
> are 10X more stock market books written each
> year than real estate books?

Can't comment on the number of books written... only the number of books published.

The publishers will continue to publish what sells the most.

As they are publishing more stock market books, it would appear stock market books outsell real estate books.

WHY?

Because of the media.

When was the last time you heard the mass media mention anything about any kind of instant wealth due to property?

People know property is a buy and hold thing. They want it to be faster and cost less.

Enter the "No Money Down" idea. Enter the "Subject-To" and "Lease Option." Enter "Wholesaling." Satisfies the instant gratification crowd.

Something a lot of the RE sellers mention is their dislike of fixing toilets. And so they hire a property manager.

This has always puzzled me. If your toilet is broken, call a plumber - that's what the property manager does.

Anyway. The difference is: stocks take far less cash, is quicker and easier to get into, involves zero negotiating, and doesn't require any bank red tape.

Property, on the other hand, requires money (if not yours than someone else's), time, bank red tape, title companies and/or settlement people, negotiating, time, money spent on advertising, credit checks, employer checks, did I mention time? Research, education and learning, time, and sometimes real estate agents.

Negotiating. Bank red tape. Real estate agents. SLOW turnaround. Long Time. Money. Everything people hate. That's what real estate investing means.

Go to the discussion boards devoted to each topic - real estate vs stocks. See the million real estate questions... here is a house and they sellers want $350k, it has zero equity, will rent for half the mortgage payment and is about to go into forclosure... how can I buy it? Or, is there a deal here? Or, I have bought it subject-to now what do I do?

Basic hand holding questions. Questions of people looking for an easy way. Questions from people who can't be bothered reading archives or spending a few bucks on a real estate book.

Don't see anyone asking such basic questions on stock market boards? Don't see people saying, "XYZ shares went up 1 cent today after falling $25 over the last two months, should I buy them now?" (At least not on the stock boards I go to.)

It's the same reason why in stock market investing, the main thrust... the main way people want to invest their money... is in quick turn stuff. They can see the success that long term Buffett-style stock market investing has... they even hear the stories of the traders who go $100k in the hole in one day... but the lure of the quick and easy overshadows all of that. Just like the lure of the quick and easy - subject-to, wholesaling, lease/option, no money down - oversadows the 25% down thus creating a positive cashflow, the book you mentioned talks about (I beleive that's its basic concept. Please correct me if I am wrong).

And the final reason... which would certainly apply to some people... is one of stigma. Being a landlord vs being a stock market investor.

Michael Ross


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