For many investors, having 100% of their money in the stock market can be scary, so exploring some alternative forms of investment, such as real estate, might be a smart idea. In this Fool Live video clip, recorded on July 14th, Fool.com contributors (and real estate investors) Matt Frankel, CFP, and Toby Bordelon, along with Brian Withers (who is 100% equity invested), discuss whether real estate could be a good investment choice for diversification seekers.

Brian Withers: I wanted to answer Dwight Shrute's question. It says: "Guys, does any of you invest in real estate and how did that go?" I'm like you Dwight, 100% invested in stocks. I have no bonds, am 100% in stocks, but only get real estate FOMO from time to time and am in my 30s. Matt, Toby, feel free.

Matt Frankel: Well, I'm the real estate guy. You can probably imagine how I would answer that question. I own a couple of rental properties. I have a couple of long term rentals in Columbia, South Carolina. We have just bought our first vacation home. I said i love them Airbnb (NASDAQ: ABNB) Model, people want flexibility, so we did that. Like Toby mentioned the commercial real estate and crowdfunding platforms, I invested in a deal through them during the pandemic. I think real estate is a great way to invest and the right way to go depends on how much stake you want to have in your investments. I'll shut up and let Toby answer, but I'm pretty sure the main drive for the crowdfunding platforms is very passive as opposed to rental property. You pay, someone else does the work for you. You don't have to be a landlord.

Tobias Bordelon: Yes. That is exactly right. My first foray into the real estate industry was a rental property in Georgia that I still have with a partner, even though we have a management company for it, but you still have to deal with it, you still get the call as always, it's obviously not every day but it's still an issue, it still creates some stress. Since then I have been more active in the commercial area. For this very reason that you invest your money, you get the reports that you want something much higher. All you have to do is think about where your next investment will be when it is realized. I would say what to look for in real estate, it's a lot less liquid so you have to be prepared for it. You can't just sell it whenever you want, even if you are a 100% owner of a rental property, it still takes time to sell. With the commercial property, you're locked up until the manager sells it. There's really not much you can do about that. But if you can really think long term, that is, I'm cool with freezing money for a couple of years, three to five years.

This article represents the opinion of the author who may disagree with the "official" referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.

source https://seapointrealtors.com/2021/07/30/should-you-buy-real-estate-as-an-investment/

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