Originally Posted: May 30th, 2010
I have been investing a portion of my portfolio in the stock market over the last 10 years, and I have not seen any appreciation in that time period. Granted, I am a buy and hold long term investor and believe that the mutual fund traders cannot beat the long term averages of the S&P. However, the S&P is now at 1,089, and exactly 10 years ago it was at 1,477. Between world events and corporate raiders, I have concluded that the stock market will not get me where I want to be at retirement.
If I had invested that money in real estate that was purchased correctly, leveraged correctly, held the correct tenants, and was managed correctly, I am certain that over a 10 year period, I would have seen strong appreciation. (In next month’s newsletter, I will focus on real estate appreciation and how responsible leveraging of real estate can provide excellent returns on your investment.)
With real estate, I feel much more in control than investing in the stock market. I can drive by my real estate whenever I want to check on it. I make it my business to know my partners, my tenants, my market and my investors. I can react when necessary and make changes to affect my outcome. With the stock market, the only control I have is to sell. And by then, it is usually too late.
Is real estate investing right for you? I am in the business of acquiring solid real estate for my investors. I have very seasoned real estate partners providing access to attractive insider real estate deals. And, yes, I invest alongside my investors in each deal.
Darren Nakos, CCIM
Resort Realty Capital
111 Main St
P.O. Box 630
Frisco, CO 80443-0630