Episode 13: Real Estate vs. Buying a Business - The battle of the better investment

Episode 13: Real Estate vs. Buying a Business: The battle of the better investment

Welcome to Point of More Returns with your hosts: The Masked Investor and WEALTHfaire. In episode 13 the co-hosts delve into the timeless debate of real estate investment versus buying a business. They explore the advantages of real estate, such as passive income streams and potential appreciation, while also delving into the drawbacks, including the need for substantial capital and market fluctuations. Conversely, the episode highlights the appeal of purchasing a business, citing opportunities for active involvement and potential for larger returns.

Disclaimer: Always seek investment advice from a licensed investment professional that has done a thorough analysis of your situation, goals, risk tolerance, etc. before making investment decisions. The topics discussed are our opinions and should not be taken as investment advice. 

Intro – 00:28

The pros of buying Real Estate – 1:52

Obtaining Capital: Ease of traditional financing – 2:20

Real Estate is “Passive Adjacent” – 3:04

Selling the asset leads to a simple exit – 04:25

Real Estate is tangible and has a clear business model – 5:29

The cons of Real Estate – 6:31

Is there a true ease of lifestyle? 7:26

Endless opportunity to improve the business vs needing to find another property – 10:31

Returns from Real Estate are (generally) less than small business acquisition – 10:42

Additional pros about (SMB) Small, Mid-Sized Businesses 

Ability to Add value – 13:43    

Freedom to create a deal structure that works – 15:20

Creative control – 16:19

Cons of buying (SMB) Small, Mid-Sized Businesses 

The skill set required and level of risk involved – 17:00

Discussion about recourse vs. non-recourse loans – 18:06

This is NOT financial advice, speak with a licensed financial professional – 22:10

Closing – 22:57