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Originally Posted by bizaro86
I disagree with that completely. There are 3 factors that control the return you make on an investment: how much you buy for, how much you sell for, and how much cash you take out/put in along the way.
In real estate you can individually control your buy price. If it's not a great deal don't buy it. You can probably only sell at the market price, but you can often change the market value with judicious changes to your property. Hard for me to call up the CEO of a big company and suggest some changes... If you do a good job along the way you can get better than average rents as well.
I've beaten the Calagry real estate market dramatically and consistently. Buy well located property that provides positive cash flow at below market prices. Do sensible renovations inexpensively. It isn't complicated, but it does take hard work and patience. Probably a similar level of difficulty to beating the stock market, imo. It definitely isn't just luck.
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Yes that's true. Some do better than others at both ventures for sure. The real difference is risk to the average investor. You can absolutely control risk in the stock market. An average investor with a thousand dollars to lose can limit losses to that amount. What you see now in the real estate market is average investors losing way more than they ever thought. You can't predict your loss in real estate and you can't mitigate it. You can also make money in a bear market when stocks go down but not with real estate.