real estate vs stocks

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A Simple Comparison

 

The Stock Market.  

Yes, we acknowledge that many people realize excellent returns from the stock and commodies markets.  We understand that most will invest in the stock market because they believe it to be a simpler and more flexible investment vehicle.  But may we first establish the fact that even if you know what you are doing or if you have a stock broker that is knowledgeable and trustworthy, the stock market is a roller coaster ride.  And are you truly in control of your money when investing in the stock market?  


ADVANTAGES of INVESTING in Rehab Projects vs the Stock Market

1) Steady & Predictable ROI

Whether acting in the capacity of bankrolling a rehab investment as we are offering at BackStreet Capital or investing in a longer term hold with rental property, one of the biggest advantages of investing in Real Estate is that your ROI is steady and predictatble. Through the Renovation &/or Adaptive Reuse projects, once agreeing on a specific interest rate and/or percentage of profit, your return is defined, predictalbe, and backed with the security of the property itself.   For the advantages of holding and renting Real Estate vs the stock market . . . click below.

Holding Real Estate vs Stock market

2) An Investment Secured with the Asset

The primary advantage that BackStreet Capital has over a stock purchase?  You are now aware of the contracted return on your investment dollars.  My guess is that your stock broker will not make that promise.  Prior to the investment, BackStreet will provide a written agreement stating the rate of return on the investment.  But the investment is also secured by a promisory note which places the Investor in position to control or own the property should something go awry in the process.  So, you have a predetermined rate of return and an investment secured by the asset/property itself.  

3) A consistantly High Rate of Return

Again, we acknowledge that there is opportunity for positve gains in the stock market.  But put honestly, what stocks will be assuring you a consistant 10% - 12% return on your money?  An investment in BackStreet Capital assures the consistant and agreed upon return.  (Typical hold times run 3 - 6 months.)    Our Adaptive Reuse projects will typicall provide annual returns of 50% or more.  (Typical hold times run 9 - 18 months)

options as a private investor in real estate

The Role as a Private Money Lender

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Private Money Lending is an excellent investment for those looking for an investment vehicle that will provide a consistent and pre-determined Retrun On Investment.  Private money lending in Real Estate also provides for a degree of security as the investment is secured by the purchased property itself.  This also assures that when the property is sold, the Private Money Lender is the first to get paid from the proceeds at closing . (Investment + Profit)  Providing Real Estate opportunities for this Private Money Lender is the primary function and goal of BackStreet Capital. 

Long Term Holds / Passive Investor

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 Many Private Investors will look for a longer term Real Estate "hold".  The typical purchase will be in a single family home, a condo, multi-family development, commercial space, or strip malls.  This investor is looking for assistance from an "investment oriented" Realtor to locate, analyze, acquire, lease, and manage the real estate investment for the Investor.  Providing opportunities for this Investor will be the primary function and goal of our sister company, Real Estate Investment Brokers, LLC. (REIB.US) for the acquistion and 7 Real Estate Management Services (7RealEstateMgt.com) for the management of the investment. 

Long Term Holds / Active Investor

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 This Investor has the time, money, experience, and patience to handle the search, acquistion, renovation, and management of a property him/herself.  This Investor typically has a lot of personal time on hand and looks at his investment ventures as a full time JOB.  The search, analysis, renovations, leasing, and management are handled internally.  This is a rare bread with a true love of Real Estate.

Portfolio Investor

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This Investor will be in search of an existing Portfolio of investment properties which is typically being sold in bulk by another Investor.  This investor steps into the shoes of the original Investor and assumes the properties with existing Tenants and/or vacancies.  In most cases, the Investor will be looking to a Management Company to handle the potential upgrades, renovations, and tenant management duties.  

(For Investor assistance in this scenerio, please contact our sister company, Real Estate Investment Brokers, LLC  (REIB.US))