I do social media marketing. I currently gross 2-3 million a year. I don’t plan on doing this for long since it’s mentally taxing. I am investing into a something I would call a get rich business so it’s a huge gamble, but it only cost me 200k a year to develop. In the mean time I’d like to place the rest of my money into something more secure.
I’ve been considering buying land and houses. After doing the calculations I see I would make a profit after 10-15 years on houses I buy if they’re being rented out the entire time. I don’t mind the wait if it means immortalizing my income.
I’ve been also placing money into the sp500. Then I realized, if I’m only going to make a profit after 10-15 years on real estate I would be better off just putting it all into the s&p500. It would be a way less headache. There’s no upkeep, no annoying tenants, and the income compounds. After 10-15 I would probably be making more from the stocks.
Am I on the right track here?
Do I buy houses or buy stocks?
byu/Aweirdbeing inEntrepreneur
Posted by Aweirdbeing
21 Comments
Yes stocks are better then real estate as per current scenario the returns in real estate are hardly 6-7%
Idk it feels very bubbly right now… r/theeverythingbubble, I think physical assets like gold maybe better, or honestly a spread of things, some houses for airbnb, some stocks for long term security or a dividend plan, and then also some gold and things
most basic rule of investing is diversification
the more diversified you are the safer your money is because you are protected from a downturn in any specific asset class
plus if you are savvy you can ride big trends to buy low, sell high
for example, buy some real estate or stocks when there is a crash, or sell after a bull run gives you some sizable returns
not sure what your profit is (you only stated gross) but i would personally split it between SP500 and a couple real estate investments. real estate also gives you amazing ways to reduce your tax burden
Diversify, could you do both? What if we get a small recession and sp 500 stays flat or falls and gains over 5 years, and housing jumps again based off mortgage rates or however. Or the opposite happens. The point is big whales diversify their wealth even in stocks to protect from losing all. The saying don’t throw your eggs in one basket is a good saying.
This question absolutely depends on your skill set. You need appreciation for the s&p to make you money. You can make extremely high returns with real estate without appreciation if you learn how to structure deals. Much higher than 10%. I’m under contract in one now that should make around 80% over 2 years.
The three best vehicles to make money are a business, real estate and the stock market. Combining all three can make you very wealthy.
They all have their advantages and disadvantages.
Business
Pros:
– you’re in control
– small capital required (depending on your typel of business)
– quick results (depending on the business)
Cons:
– it takes a lot of effort
– requires most of your day
Stock market
Pros:
– No effort required
– Doesn’t require your time
Cons:
– No control
– No leverage (unless you risk a lot)
– Slow returns (unless you risk a lot)
Real estate
Pro:
– leverage (using other people’s money)
– Nice returns due to leverage
– Some control (location, type, renovation)
Cons:
– can be time consuming (unless you let someone manage the rentals, which nibbles at your profit)
– can take a while to get positive cash flow
Conclusion
Spending most of your time building a thriving business can be very rewarding. The proceeds can be invested in your real estate portfolio and in dividend paying stock each month. After selling your business you might get a nice lump sum of cash you can also divide between your stock and rentals portfolios.
Check out what the characteristics are of these both. Leverage is the main reason why so many people choose real estate. Stocks are popular because they require no work or effort.
Enjoy the ride and see you at the top!
I want to know how one can make 2-3 million a year from social media marketing
How do you make that amount of money? Would like to understand.
Ok maybe its time to quit my job and do social media marketing fml
gamestop or bitcoin
Do you have an agency?
A good rule of thumb is to -not- go into business unintentionally.
If you buy multiple homes with the expectation of renting them as a passive investment rather than running them as a business activity, you’d going into business as a landlord without meaning to.
You’d be buying yourself a new career that pays less.
Just buy stocks that pay dividends or something. Stocks -exist- so people can put their money to work without buying a new career.
Wrong sub
Keep in mind that Real Estate requires constant work while Stocks can be managed from your home without much effort. The less time you have to waste on other things, the more time you can commit to your business which already is successful.
I am still employee with 34 and it is incredible difficult to get out of it. Trying to build something on the side but most fail due to insane regulations where I live. Funnily crypto is taxfree while everything else is overbureaucratic and regulated to the ground.
House.
Look at this as a separate ‘business’. Are you an expert of investing? Are we experts in investing….maybe? How much do you have in Super? Where is this currently invested? What is the return on the super investment? Are you currently getting ripped off with where your super is? Is it possible to combine my super and the wealth I have and invest this mostly together into a diverse Self Managed Super Fund (SMSF) where I get a different tax rate, I use the equity in my current home, invest into the stock market and buy property at the same time, after I roll my super into the SMSF at no cost. At retirement, I sell a portion my properties and pay out the house I live in and reassess where the money is going. Maybe I might sell all properties and put the money into a diverse stock portfolio that pays me a ‘wage’ per year for the rest of my life, whilst still making money on the remaining money left in the SMSF Maybe I’ll keep some of the properties and live off the rent money…….mmmmm. This must be tickling your interest by now! Answer: You and none of us are licenced/qualified financial advisors/SMSF specialist. So source a SMSF specialist who is the expert and can advise and drive this system on your behalf, so you can concentrate on your business only. PS. I am not a financial or SFMF specialist/advisor. This is the system I use and outsource.
Hire me to work with you and eventually run it. 🙂
Don’t buy houses, it screws everyone else and isn’t good for the economy in general. Put some money in the into stocks and then enjoy investing into startups.
Not a question for r/Entrepreneur. Since it isn’t a question for the sub, but mentions unnecessarily items related to the sub, a smarter person would say mentioning those things is the reason for the post, and not the question itself. A smarter person would question 2-3 million as being a huge range. A smarter person would think those numbers would be difficult from simply posting pictures and videos online, something anyone can do without any education and so many try to do that the market has more supply than demand.
Whatever you are trying with this, I guess good luck.
You can smell the cap + GPT from far away
It sounds like you’re weighing your options wisely. Both real estate and the stock market offer opportunities for long-term growth, but they come with different risks and considerations. Real estate can provide steady income through rental properties, but it requires management and upkeep. On the other hand, investing in the S&P 500 can offer diversification and potential for growth without the hassle of property management. It’s essential to consider your risk tolerance, time horizon, and overall financial goals when making this decision. Consulting with a financial advisor can help you create a strategy that aligns with your objectives and maximizes your returns.