To make money, REAL ESTATE —No question about it! With little or no money and a lot of work, you can become a billionaire in property, owning as I did once upon a time, hundreds of prime rental properties yielding me “infinity” on zero investment. But it was stressful. The secret if you want to call it a secret, was taking control and running the show effectively.
You have no control over stocks unless you are a Warren Buffet and can tell those directors and employees running the company how to do it. With stocks and no control, the odds are you will eventually lose 100% of any investment you make. See my recent answer – WHY YOU WILL GO BROKE BY PASSIVELY INVESTING OR TRADING IN STOCKS OR BONDS?
With no money down deals in “distress property,” you have no financial risk as explained in my now classic book Think Like A Tycoon. And you can probably be a millionaire in assets at least, within a year. I am not saying it is easy. But if you look at 100 properties a week and make low offers on all of them, you should pick up around 3 a week. In a year, you would own over 100 good rental properties as I did.
You need some good low wage employees to collect rents and do maintenance. This is paid for by the rents. Then if you have picked an area with growing job opportunities and increasing wealth, your 100,000 average value of homes should go up in value by at least 10% … 10,000 times 100 will give you a net worth of $1,000,000. Not bad for a year of intensive grunt work. By trading up with 1031 tax-free exchanges you can double your net worth every year. If you started with any amount of money in the stock market, you would probably have lost most of it during that same first or second year.