Why Real Estate Outperforms Other Investments Transcript:
So the benefit of putting it in real estate is I can take that amount of money, and I can leverage a building that’s worth four to five times that much, and four to five times that much then appreciates, and so that full leverage of all of that is being maximized, and it appreciates over time, not just the amount of money that you might have put into a mutual fund, or your savings account, or something like that. You get to maximize the full amount of. I guess kind of a way to illustrate it that I’ve explained to people before, too, is if you got $40,000, you put that in a mutual fund, your mutual fund is worth $440,000. If you put $40,000 in real estate, that real estate is worth, let’s just say $400,000, and so you know that $400,000 asset is going to appreciate a lot faster than your $40,000 mutual fund.
