Welcome to passive real estate investing, the show where busy people like you learn how to build substantial passive income while creating wealth for the long term.

And now here's your host Marco Santorelli's.

Hello, my friends and welcome to another episode of passive real estate investing.

You know, you'll often hear people say that they don't like real estate because if you look at the

long term, returns of the stock market seem to be a better

return overall.

Well, of course, when they say stuff like this, they are leaving out a few important things,

a few key things because they're looking at real estate

as being a very one-sided or one-dimensional asset, and that's not the case, as it is with most

other investments like the stock market.

First, when people say the stock market, what they really mean is something like the

S&P 500 or the Dow Jones industrial average.

These are not the stock market.

Rather, they are indices filled with some of the leading companies in the U.S.

You'll often hear that the stock market makes returns somewhere from 7 to 8 percent or 9 percent, 10 percent annually.

And this is really based on the index returns rather than the market itself.

Second, while a 7 to 10 percent return is good annually,

for the average person, it is not a good return or even a great return

for the professional investor.

And when you stack up the returns from real estate against the stock market,

they often only factor in that one profit center in real estate.

And that is appreciation or capital appreciation,

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