After decades of investing, I have found the 4 reasons real estate is better than stocks for building wealth and I’ll show you why.

Investing in properties is a sure thing. Investing only in stocks gets you a piece of paper which is not guaranteed and here’s why:

Why REI dominates real estate vs. stocks


Because apartments provide dependable income, an investor can use $250,000 to buy $1,000,000 worth of cash positive real estate. Stock investors can’t and shouldn’t use leverage when buying stocks. Leverage is the ultimate way to create wealth and in the case of apartment debt, unlike homeowner or consumer (bad) debt, the tenants pay off the mortgage over time. 


It’s no secret that real estate offers the last refuge for tax write-offs. In one year of employing bonus depreciation laws, we can often write off 24% of the real property value against other investment income. This is a huge advantage over stocks for high earners and probably one of the main reasons why Donald Trump doesn’t want to show his income tax returns. 

3Dependable Cash Flow 

With banks paying people with savings accounts just over zero interest (.18%) and dividend yields of the once-classic dividend stocks being terminated or cut to almost nothing (GE, Disney, etc.) real estate offers consistent cash flow at 5-7% annualized which is about 50 times what banks are paying on a savings account right now. 


Technology is killing off companies. While the average company in America used to have a lifespan of 60 years, these days it’s not uncommon to see a big player disappear in a flash. Large apartment complexes can produce income for decades and are very difficult to replace. This is due to regulations and their cost to rebuild.  While the media pours attention on the high flyers, the reality is that the stock market has more losers than winners; GE was delisted from S&P, Lehman almost took the world down. Remember Blockbuster, Eastman Kodak, and Victoria’s Secret…? Then it seems the airlines file bankruptcy every ten years or so. Ford and GM are both operating at a fraction of their all time high. Meanwhile, apartments in cities across America continue to provide cash flow and appreciate in value through both good times and bad times. 

The negatives of apartments versus stocks 

You can’t just go buy an apartment deal. Schwab or Fidelity will let even an idiot buy a stock. But to find a property, get funding and manage it requires an experienced investor resume, liquidity, property management skills and more work. This reduces the buyer pool. Also the real estate investment is not as liquid. While one stock can trade a million shares in a minute, an apartment with long-term debt won’t trade for years. 

Maybe that’s why they last longer. 

4 Reasons Real Estate Is Better Than Stocks

Be Great.

Grant Cardone

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Star of Discovery Channel’s “Undercover Billionaire,” Grant Cardone owns and operates seven privately held companies and a private equity real estate firm, Cardone Capital, with a multifamily portfolio of assets under management valued at over $4 billion. He is the Top Crowdfunder in the world, raising over $900 million in equity via social media. Known internationally as the leading expert on sales, marketing, and scaling businesses, Cardone is a New York Times bestselling author of 11 business books, including “The 10X Rule,” which led to Cardone establishing the 10X Global Movement and the 10X Growth Conference, now the largest business and entrepreneur conference in the world. The online business and sales educational platform he created, Cardone University, serves over 411,000 individuals and Forbes 100 corporate clients throughout the world. Voted the top Marketing Influencer to watch by Forbes, Cardone uses his massive 15 million plus following to give back via his Grant Cardone Foundation, a non-profit organization dedicated to mentoring underserved, at-risk adolescents in financial literacy, especially those without father figures.