How Much Should You Really Invest in Real Estate?

Thinking about investing in real estate but not sure if it’s the right move? In this episode, we unpack why so many people are drawn to real estate and how it can fit into your bigger financial picture. We also explore if real estate still makes sense in retirement, what to know about the tax side, and how property plays into estate planning. We'll take a practical, honest look at a controversial topic that often gets hyped up but rarely broken down!

Read the full transcript, show notes, and watch the video version at thewealthmindsetshow.com/s2e16

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Transcript

You are listening to the Wealth Mindset Show, where Hixon Zuercher Capital Management's team of finance professionals, portfolio managers, and a life coach come together to tackle complex topics in finance and retirement planning, so you don't have to. From investment strategies and wealth management to tax planning, retirement income, and aligning your money with your values and purpose, the Wealth Mindset Show offers the tools to thrive.

Austin Wilson:

All right. Hey, hey, hey. Welcome to the Wealth Mindset Show, where our Hixon Zuercher team dives into conversations about managing wealth, navigating retirement, and making smart decisions for a secure, meaningful future. I'm Austin Wilson, director of Investments at Hixon Zuercher Capital Management.

Josh Robb:

I'm Josh Robb, director of Wealth Management at Hixon Zuercher Capital Management. And today joining us is Chase Rose, associate wealth advisor at our firm.

Austin Wilson:

My favorite associate wealth advisor. The only.

Josh Robb:

Oh, careful.

Austin Wilson:

The only.

Josh Robb:

The only.

Austin Wilson:

I wasn't going to say that.

Josh Robb:

Yeah, but this is a timeless episode. I'm going to be listening later.

Austin Wilson:

That's true.

Josh Robb:

And so, hey, wait a minute.

Austin Wilson:

So, thanks for being here, Chase.

Chase Rose:

Thank you.

Austin Wilson:

You're a notable real... We're talking about real estate today. You live in a house.

Josh Robb:

I do.

Austin Wilson:

So real estate investor you are.

Chase Rose:

You live in a house.

Austin Wilson:

What's new in Chase's world? Nothing? Nothing at all?

Chase Rose:

Nothing too big.

Austin Wilson:

Oh, okay. Good.

Chase Rose:

Just normal stuff. Got married last weekend.

Austin Wilson:

What?

Josh Robb:

Hey ladies, Chase is off the market.

Chase Rose:

I talked about my bachelor party scare a couple of weeks ago.

Josh Robb:

I know.

Austin Wilson:

Oh, yeah?

Josh Robb:

Almost drowned.

Austin Wilson:

But luckily, we made it to wedding day. So...

Josh Robb:

No almost drowning incidents and no-

Chase Rose:

That's right.

Josh Robb:

Yeah, you were. You're by the lake.

Austin Wilson:

There's a lot of risk.

Chase Rose:

There was, yeah. But we got to the wedding day, so now my wife doesn't care if I die now because she's on the life insurance…

Austin Wilson:

That's right.

Josh Robb:

There you go. Everybody's getting it.

Chase Rose:

So...

Josh Robb:

Yeah, we're good.

Austin Wilson:

Well, your wife looked beautiful, and you cleaned up all right yourself.

Chase Rose:

Well, I appreciate that. Thank you very much.

Austin Wilson:

Josh, what's new with you?

Josh Robb:

Oh man, not a lot. Just spending a lot of time on baseball and softball fields. Kids are playing sports, and I have a pair of old tennis shoes because there's no getting that ongoing dirt and dust out of those.

Austin Wilson:

Stained white New Balances.

Josh Robb:

Yeah. They're mowing shoes. They're actually my mowing shoes is what I use. But now it's fun. It's a good time being out there coaching the kids. So yeah. What about you?

Austin Wilson:

Yeah, I've just got back a week or so ago from my annual motorcycle trip with the guys in my family. So, my uncle and my cousin come up from Florida and my dad and I go down from Ohio and meet somewhere in the middle. This year was Blairsville, Georgia.

Josh Robb:

That's not middle.

Austin Wilson:

It's the middle of between... It actually is.

Josh Robb:

Is it closer?

Austin Wilson:

You think it's not?

Josh Robb:

Florida's big.

Austin Wilson:

Florida's big. Georgia's huge. So it's like eight hours for them and eight hours from us.

Josh Robb:

Okay.

Austin Wilson:

So, it wasn't so bad, but we had a good four-day trip and it was the first year that we trailered the bikes down instead of riding them down and not riding on the highway all day is great.

Josh Robb:

Sitting in a nice airconditioned truck-

Austin Wilson:

Sitting in a nice, air-conditioned truck, listen to a podcast, maybe the Wealth Mindset Show.

Josh Robb:

That'd be a good one.

Austin Wilson:

That'd be a good one. So yeah, it was a good trip. Everything's good. And yeah, we're gearing up for summer with three little girls here. So as I mentioned earlier, real estate.

Josh Robb:

Real estate. Yeah.

Austin Wilson:

We're talking about something that's everywhere. I think it's on every social media ad in the world. Everyone's talking about it, real estate investing and everyone seems to know some person online who's made a fortune flipping houses or having rental properties. So the question is-

Josh Robb:

And we're talking about physically owning real estate.

Austin Wilson:

Physically.

Josh Robb:

Because there are other ways to own real estate. So there's investment vehicles you can have; stocks, ETFs, mutual funds that trade in real estate, but we're actually focused on physically owning you being the owner of the property. All right, sorry to interrupt.

Austin Wilson:

Yeah, so the question is should you invest in real estate? How much should you invest in real estate? Should they be part of your investment portfolio overall? And I think that there's a lot of nuance to this, right? It's not a black and white answer because the answer probably is.

Josh Robb:

It depends.

Austin Wilson:

Oh, shocks.

Josh Robb:

Good answer.

[3:42] - Why Are Real Estate Investments So Appealing?

Austin Wilson:

Josh would say it depends, but it's true. There's a lot of things that people need to consider when they're looking into this. So, let's just get our minds around why real estate can be appealing. So, what are some thoughts on why real estate can be appealing?

Chase Rose:

Well, there's the old adage where you have a comfort holding tangible assets. And we have a lot of people who express that when you're holding stocks, and especially nowadays, when you don't have the physical stock certificates-

Josh Robb:

All digital.

Chase Rose:

All you're seeing is screens, you're seeing the stock market fluctuations on a daily basis, that can bring a lot of people a lot of discomfort. And so just having a tangible asset, whether it's fluctuating in value or not, and you're not seeing it on a daily basis. So that can bring a lot of comfort for people. And also, I feel like this is an old school way of thinking and it's not a bad way of thinking, by all means. A lot of people have been successful real estate investors in their lifetime but just having something real that someone else is not holding on your behalf also brings some comfort as well. If you're a custodian or whatever were to go out of business, you might have some insurance on some holdings there, but there's no guarantee you're going to get all your investments back. So that's definitely one reason.

Austin Wilson:

So, it's like a bird in the hand is worth two in the bush.

Josh Robb:

You think real estate's an example. Gold, precious metals, those are the things somebody says, Hey, I could touch it. I could feel it. I see what it is that I have, like you're saying.

Chase Rose:

Absolutely.

Josh Robb:

Another one is the control factor on if I own the real estate and let's take a home for instance, I can make improvements to increase its value. So I am not reliant on a company hopefully doing the right thing to increase value, but I can impact the value by things I do for, which is always nice.

Austin Wilson:

I guess another way people like real estate is just because it's always gone up and into the right, stocks go up and down, but-

Josh Robb:

I mean if you forget 0809, yes, it always goes up.

Austin Wilson:

That's the joke, right? It doesn't always work out that way.

Josh Robb:

Yes, but it's thought of that way.

Austin Wilson:

In people's minds. It's like, oh, you can never lose money on real estate. It always appreciates and that's always case. Another thing is how you can finance it. You have a lot of financing flexibility with real estate because it's a asset backed product, so you can borrow against your other assets and continue to leverage yourself and not necessarily have to put as much like if you buy socks, yeah, you can... We're not going to talk about margin.

Josh Robb:

You could margin Borrow a little bit.

Austin Wilson:

But not near as much to the extent that you can with real estate. So I think there's a lot of financing power, but that also brings a lot of risk with it as well. You've got to pay the piper. So I guess something that is a myth is that real estate is passive income. And I guess in the most simple sense it kind of is if you never do anything,

Josh Robb:

It can be.

Austin Wilson:

It can be if you just sit on your house and collect a check, but the reality is that there are ongoing costs associated with it. There is a lot of management that goes on with these houses in terms of keeping tenants in them, fixing things, paying property taxes and insurance and all this stuff that makes it not so passive. So what are your guys' thoughts on that being true or not?

Chase Rose:

And yeah, that's a great point. If you truly want a passive investment in real estate, if that's what your goal is, you're going to have to pay for it right? In the form of hiring some property managers or something of that sort.

Austin Wilson:

Which really eats away at your margin.

Chase Rose:

Exactly right. Yeah, no, you took the words right out of my mouth. It really takes most of the profit out of it. And then if you're not paying someone to do all that for you, you're stuck answering the call at midnight like, "Hey, my toilet just broke." Or "Hey..."

Austin Wilson:

No one wants to do this.

Chase Rose:

..."the furnace went out." That's a terrible call to wake up too.

Josh Robb:

And along with that, we've had a handful of clients that have done real estate and I can think of two, one who didn't want to do a lot of work, so they hired a property manager and they didn't have a lot of passive income, but their long-term goal was appreciation and then selling and collecting the growth there. And then there was another one who was handy and was able to do it. And so they collected more passive income. So two different approaches, both using the same investment, which was real estate, but two different approaches and had two different outcomes.

Austin Wilson:

I think it's really like do you want to pay in terms of your time or do you want to pay in terms of someone else in terms of dollars paying someone else to do it. It is going to take a lot of your time and effort to manage these properties or it's going to take a lot of someone else's and you're going to pay them to do it. You're going to accomplish the same thing when you look at it. So I think it just depends on how much maybe you're retired, maybe you have the time or the desire to be doing those things and it may be not as bad, but if you're young and have a family and trying to manage five rentals, that can be...

Josh Robb:

It could be a lot of time.

Chase Rose:

Or maybe, I mean I know people out there who are strictly just rental property investors, so they buy a rental property, they don't have a full-time job outside of that-

Josh Robb:

That's their job.

Chase Rose:

So you have the time to answer the calls and manage all your properties and things of that nature, assuming you know how to fix all the issues that come up. But for most people, I mean there are a lot of nine-to-fivers out there, you don't have always have the time available to do that.

Josh Robb:

No one wants me rewiring their house. So if I was going to go that route, there would need to be some help there.

Austin Wilson:

I think it's another thing to think about is, so we're talking particularly about buying houses, buying properties physically, but if you go into the public market and buy a real estate investment trust, that's the way that publicly traded real estate is structured from a tax perspective, very favorably treated tax perspective. It's even risky. So while if your house, your price does not fluctuate every day or rental property house does not fluctuate every day, it's a lot smoother ride in terms of that, real estate publicly traded does. And that is something that is also really good to keep your eye on. It's not risk-free and it's not even completely passive in terms of there's a lot of risk there as well.

Chase Rose:

And another thing to keep in mind, we talk about the illiquidity of real estate. If you can put your money into a real estate property and you really can't get it back out unless one, you do an equity loan, which you're going to pay interest on or two, you sell that property and for you to sell the property, you have to have a buyer on the other side. So that can be an issue. If you're wanting to get a good price out of it, you have to wait. Exactly. But the same can be said for real estate investment trusts. We've had clients who have been in a REIT is what we refer to them as. And you can't get out of that REIT for years.

Austin Wilson:

A lot and some of them.

Chase Rose:

Yeah, exactly. And some of them have very narrow windows in which you can liquidate if there's a buyer on the other side. And so even if some people would say, I don't even want the money, I just want to be out of it or just give me pennies on the dollar for what it's worth. But still, that's not always the case. You can always just get out of it. So...

[10:22] - How Does Real Estate Fit into Your Financial Picture

Austin Wilson:

The real question is how does real estate fit or might it fit into your financial picture overall? And I think it's not about being able to buy it. I think most people have the ability to buy some if they want to. Especially, again, we talked, there's a lot of financing options when it comes to real estate, but it can be a portion of an overall financial picture. You can look at your stocks and your bonds and your cash and your own personal home and then some real estate investments on the side and it can add up. It can be a needle that can move your financial picture. But the question is how much maybe should I have real estate as a portion of my assets?

Josh Robb:

And I always think the first real estate most people buy is their own home, which most people don't look at that as a real estate investment. They think it as, I need a place to live and I'm going to own it instead of rent it. But that is a real estate property that you own and you could at some point sell it and either move or do something else. But that's usually everybody's first step into real estate investing is I need a place to live. Oh, I want to buy one. And so for a lot of people, they don't think about it as how does this fit in my financial picture? It's not seen as that investment piece. But then when they're moving outside of that, whether they own their own home or not, when they're thinking of it. And in terms of an investment, that's kind what we're talking about here.

Because different calculations when we're talking financial planning for affordability of your home when it comes to costs and expenses. Whereas in this case, most of the time when you're looking at real estate as an investment, you're expecting to collect income at least to help offset some costs versus I'm living there and I'll have ongoing costs. So think about that as we're talking through this. But the first thing is you got to be very careful about understanding how much and where that fits in your big picture. When we're talking about financial planning, when we're sitting down with people, it's that long-term plan on where are you're trying to go, what are you trying to do with your hard-earned assets, and how much of it should be put in this one style of investing? It's not an and/or, it's usually a both if you're doing it. And so we say just be very careful about not getting too focused on one thing because it's worked in the past. Same truth with any stock as well is don't say, oh, this is the only way because it's worked. Well, there's ebbs and flows in the market.

Austin Wilson:

Yeah, I would say that in a lot of instances, real estate and other asset classes can complement each other well. If you look at how things track each other, it's called correlation, right? When stocks are up and bonds are down, did you often get that negative correlation? Well, real estate often has much even less correlated than that. It can kind of move sideways and kind of do its own thing as opposed to the other traditional asset classes. And I think that that's where the appeal is to a lot of people is I can have, maybe if you look at all my financial picture, a little bit smoother ride because I have some real estate in there. I just think that it's one of those things where if you're going to invest in real estate, it's really hard to look at it as a single investment because if you put all your eggs in one real estate investment and that one goes has issues with tenants paying or big major repairs, you don't have the money to fix and all this stuff, that can really hurt you.

But if you're spread out across multiple, which again, you've got to have a lot of assets to have a lot of assets, that's where I think you may get some of the opportunity. But starting out, I think it's very hard to see how you can be properly diversified. So I think just overall, when you're thinking about, Hey, this could be good for me, think about capping your investment. There's no hard limit, but keeping it a reasonable, and I would say ultimately relatively small to start especially part of your overall plan.

Josh Robb:

Which is hard when you're young because buying a single property may be a big chunk of your overall net worth. But the goal is that you're growing and appreciating the other ones. Don't focus solely on the one, but overall, don't find one big property and sink everything you have into that because like you said, that could be a risk. It's the same as buying one company in your investments and hoping that that one works out. You're taking a lot of extra risk outside of just the normal stock market risk by focusing in on one. And I think real estate does that.

Austin Wilson:

I think liquidity is just another thing to keep in mind.

Josh Robb:

Sure.

Austin Wilson:

Real estate not super liquid. Again, it takes time to sell things.

Josh Robb:

You can't sell a corner of your house when you need it.

Austin Wilson:

And you can't sell kitchen to pay a bill if you need to go to the hospital. So that's one way that you could be viewed as, oh, I'm asset rich, I've got a million dollars of real estate, but I can't float the bill that I just got from the hospital from breaking my hand. So that's a really tough place that I think a lot of people could get stuck in.

Josh Robb:

And I've seen it, I've seen it with some clients and it's hard because then they're forced to maybe sell one of those properties, which then reduces that income. But it kind of gets this very tough place to be in.

Austin Wilson:

And you never want to be in a position where you have to sell something. When you have to sell something, you're probably going to take a less than ideal price and that's not good.

Josh Robb:

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[16:14] - Should You Invest In Real Estate in Retirement?

Austin Wilson:

So let's talk about how real estate fits into retirement. So that's a little bit different. We're moving down the road and now we're retired. Real estate may have made more sense when we're younger because yeah, we maybe had the ability to do more of the work or all this stuff, but what about once you're already in retirement? So what are your guys' thoughts, Chase, on that?

Chase Rose:

Yeah, so my thoughts initially, whenever we are working with a client who has a real estate, real estate portfolio, we oftentimes, as opposed to showing that as an asset, we'll show it more as a cash flow and as opportunities to either buy or sell or rise, we'll adjust as needed. But that's the nice thing about being diversified. You have your stock portfolio, you have your bond portfolio to kind of get that negative correlation that you need from a diversified standpoint. But it's nice to have real estate because you can enter that as a steady cash flow. You can inflate it if you expect to raise your rents over every few years or so. But what we've seen, and I'm sure Josh, because you've built a million retirement plans yourself, when you have a strong cash flow and a retirement plan, it makes a big difference.

Josh Robb:

Oh yes. Even if you don't ever plan on selling those. So don't count it as a large inflow at the back end. Yeah, just having cash flows nice

Chase Rose:

And you don't have that standard deviation, right? You're not selling it lows or selling it high, you just have that consistent cash flow. It's a lot like a stock that pays a great dividend. So definitely a good, it's a positive from a retirement planning standpoint, assuming that you'll always have someone there to pay that rent and assuming that you're not paying bills out to wazoo just on upkeep and things like that.

Josh Robb:

And that's just in general terms, what I've seen more often than not is that the older someone gets in retirement, the less passion they have of maintaining and managing. So when it talks about young versus old, that's all relative. It's more just it is time-consuming, it takes energy even if you're not the one doing it, managing it still takes time. And so I do think the farther people get into retirement that more likely they are to start liquidating or passing some of that off.

Chase Rose:

Totally. And another thing to keep in mind that, sorry for cutting you off. A lot of times, people talk about not making yourself house poor when you buy your own personal property to live in. But it's also really important you don't want to be cash poor on a rental property because oftentimes, I mean unless you have already saved up some assets to purchase outright this property, oftentimes people are financing, especially where rates are at today, you're not guaranteed to get someone to pay a rent that's higher than what your mortgage cost is going to be, right?

So you might find yourself in a situation where if you're going to get into rental property investing, you might have to be paying more in a mortgage than what you might get in return. That's not always the case. It's just a thought I have in my brain. But you don't want to make sure that's the right investment for you. Don't just go buy an asset and then figure it out later. That might not work out well. You want to make sure that you can cashflow whatever your mortgage payment is and plus and then some because you're going to have costs that come up and things like that.

Austin Wilson:

And this is where you could consider making a change to a different form of income stream in retirement. If that's stressful because yeah, the illiquidity stress, I've got tenant stress, I've got house repair stress. The last thing you want is all of those different levels of stress in retirement. So maybe you could start saying, well, maybe I could downsize my rental portfolio, sell off some properties, now we're going to get to taxes, taxes and stuff. See you soon. But that could offer give you the option to say, Hey, I can transition this lump sum of money I now have into something that is just generating cash.

Fixed income is a great option for this for retirees. You can even do income generating equities and there's all kinds of ways to do that. That may take some of the stress off. You may have a little bit more stress from a market perspective, but you may have less stress from actually managing it. So that's going to bring us to some common mistakes that a lot of people miss when they're thinking about rental properties. And I think this is something that it can bite you in the butt if you wait too late. So let's talk about the elephant in the room and that's taxes and there can be some major surprises. Guys talk a little bit about the tax implications there.

[20:24] - The Tax Implications of Real Estate Investing

Chase Rose:

First and foremost, you're going to pay property taxes.

Austin Wilson:

Oh yeah.

Chase Rose:

There's no property tax on holding Apple stock or Microsoft stock. That's definitely one negative side to real estate investing. But also, one of the tax loopholes that a lot of real estate investors talk about is the 10 31 exchange. I believe that's what it's referred to. You depreciate the asset, you save a lot on taxes, you roll that property, you sell it and roll it into the next one. So, you're-

Josh Robb:

It's got to be a like- 

Chase Rose:

For a investment. So, you're not paying the gains on that. But at some point, once you liquidate that investment down the road, you're going to have something that's known as depreciation recapture, and what a lot of people don't know, and what a lot of people miss is the tax rate that you're going to pay on that recapture of depreciation is oftentimes higher than the tax rate you most likely would've paid by just realizing the gain when you sold the property. I believe it's 25% is the recapture rate whenever you do finally sell the property. So that is something where if you spend years investing in real estate and you go from one property to the next, once you look to get out, that can really come and bite you in the butt.

Josh Robb:

And then along the way, you're collecting income, which is taxed, your rental income or whatever that's taxed along the way. And then you got insurance costs, all the other things you got to do. So again, you got to factor that in when you're looking at that breakeven and saying, oh, I'm buying this property for X and I can charge Y for all my renters. Make sure that covers all of what you need because in the end, the last thing you want is to be short and having to find cash somewhere else just to supplement this investment that you thought was going to be making you money.

[22:04] - Structuring Estate Planning with Real Estate

Austin Wilson:

So as it relates to estate planning, let's talk about how this can play out. So suppose that I have a portfolio of 20 rental properties and it's worth a million dollars and I have three kids, I die, what happens to my properties? How do my kids get their money? How's that work?

Josh Robb:

It depends on how you structure it. I mean, are these within some sort of corporation or LLC or entity as it's its own unit or are they each owned individually? Those things matter because you can give each one to a different kid and they would each have that one. Let's say they really want to live on this house or whatever, but in general, most of the time what you see is the kids may not be as passionate about investing in real estate as you were, and they just end up selling them all.

So then a question is, were they good at selling it? Did they time it right? All those things. So sometimes you're better off if you're late stages starting your own liquidation of your assets when it comes to real estate, their value, you're probably more in tune with it and then giving them the cash as an inheritance. They do get some step-ups and things like that, but in general, most investments do. So it's not like there's an advantage one way or another, but most of the time, you see liquidation of those assets by the next generation who really doesn't care.

Chase Rose:

They just want the cash. This is the financial advisor disclaimer in me speaking, but this is where it really pays to have a great attorney, not just an attorney that can draft documents, but someone who knows this industry or this investment realm and really knows what they're doing. I mean, you can save a lot of money in its taxes.

Austin Wilson:

Well, I think that this is an area where experts in general are important because another area is knowing someone who knows the real estate in your area can be a great asset if you want to invest in it because not every geography in America is the same. And there are certain geographies where you can get more rent than your mortgage is going to cost and your spread's going to be better so the economics work way better to be a rental owner, but there are others where it's the other way around where rents just are kind of low and it's not a great opportunity to be buying rentals because you'd actually probably be underwater on some of that unless you're completely banking on appreciation and that's not a good thing to bank on. So I think that that's something to keep in mind. Another is just not to be emotionally invested. Maybe you got handed some real estate, it was your grandparents' house or your parents' house or whatever. Just because it was theirs doesn't mean it was a great investment to begin with. Maybe it worked for them as a primary residence, but that doesn't mean that you holding onto it to rent out. The math's going to math, right?

Josh Robb:

Yeah, the sentimental value of that sometimes.

Austin Wilson:

Yeah, that doesn't mean it's a good investment. So I guess at the end of the day, treat it like a business. If you're looking at doing rentals, look at the numbers. If the numbers don't work out, don't do it. And that's okay.

Chase Rose:

And I'm sure there are a lot of great resources out there that you can find online.

Austin Wilson:

TikTok.

Chase Rose:

Yeah. TikTok is great resource.

Austin Wilson:

That's where I get all my financial.

Chase Rose:

A lot of reliable information on there. But I mean, there's no short real estate investing is a very hot topic right now. I'm sure there's calculators and estimators and all that kind of stuff that you can find online. Just use your resources. Find someone who knows what they're talking about. It definitely would go a long way.

[25:07] - The Simple Truth About Real Estate Investments

Austin Wilson:

Josh, what are some closing thoughts? Can you take it with us?

Josh Robb:

Yeah. The biggest one is real estate is just another way of investing. So it's not like this magic silver bullet that solves all these things and always works for everybody, but understand it before you get into it, have a plan and make sure it fits within your bigger financial plan. That's the first one.

And then the second one is make sure you understand the risks. Again, you're going to hear people talking and they're going to say, hey, look at how well it was for me. They may have been in a different situation than you. Or even the markets may have been in a different spot than they are now. So don't just rely on what somebody else did to be successful and think it'll automatically work for you.

Chase Rose:

Yeah, that's a point I want to make. I feel like a lot of the things we've mentioned in this episode are very cautious or beware of XYZ. Real estate investing is a great tool that you can use, as you mentioned, to invest for long-term return. But I feel like it's a really hot topic. There's a lot of people out there on social media and things like that saying, oh, you should be a real estate investor because of this and this. Not everyone is going to have the same result, right? Because each real estate investment is different. It's not as efficient of a market as the stock market is, right? The stock market is a very efficient market. It's always very efficiently priced. Real estate's a lot different, right? You can have opportunities somewhere or you could be paying way more than you should be for a property. It's a great tool, but we're focused more on why it's not always the best fit for everyone and how it can be a good fit for people.

Austin Wilson:

I would just say that I would view real estate as a compliment, not a supplement for traditional assets.

Josh Robb:

Assets, there you go.

Austin Wilson:

It can fit your picture. It can enhance your return profile over time and your cash flows over time if done properly. But it is not a replacement for stocks and bonds. That's the way I would see it.

All right. Well, thank you for listening this episode. If this conversation gave you some clarity on the whole real estate investment thing or sparked some more questions, don't forget to subscribe to the Wealth Mindset Show on your favorite podcast platform so you don't miss any episodes. There's also more at thewealthmindsetshow.com and you can always check out our website at hzcapital.com, follow us on social media. We're pretty active on there and we'd love to catch up with you there. And thanks for listening. We'll talk to you soon. Bye.

Thank you for joining us at the Wealth Mindset Show where we tackle the complexities of finance and life planning to help you align your wealth with your values. We hope today's conversation provided value and clarity as you navigate your financial journey.

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