and you are clearly intelligent, but the mindset of the financial experts is not the full story with real estate. And while I’m surprised, I’m happy that the stock crowd doesn’t see all the benefits of owning RE.

I believe the figures you are quoting are historical appreciation averages. That is meaningless for investment properties. Real estate is all about buying a property that makes sense today, and doesn’t rely on ANY apppreciation. And then it’s a game of attrition, ie who can handle the inevitable struggles of tenants and toilets. Properties that make sense from Day 1 are found all over the Midwest and many other parts of the country, and exist in Colorado and Utah, too, which are the last 2 states I’ve lived in.

Because real estate is a multidimensional asset, it reliably, yes reliably, does far better than the 6.1% quoted. Again, if you buy right and don’t rely on appreciation.

It IS better than other asset classes that average 6.1% in the example you used in a reply to grandpacoug below, bc of the multidimensional qualities.

This 6.1% number discounts for leverage. That’s how Wall Street and financially woke individuals view it. Why? Because they think it’s more risky, but it’s actually less risky (less money at risk, lender is a strong ‘partner’).

It also ignores:
-Tenant paying down mortgage
-Tax savings, both with very little income tax and the long term capital gains is usually less than investor’s income tax rate
-You fully control the asset, which you certainly don’t with stocks, etf, funds
-Cash flow - even dividend paying stocks usually don’t pay as much yield as a rental property that makes sense from Day 1.
-Goods. Houses are nice little packages of concrete, lumber, glass, gypsum, land, etc.

You use Blackstone as an example of how companies don’t use 20% as their projection. Right, because they make institutional decisions and treat it like a corporation. Real estate is segmented, 1000 different ways to make money. It’s difficult to scale predictably. There are 300+ RE markets in US, not just one national market. I acknowledge investors who prefer other asset classes have answers to all of my points. But there are reasons there are more self-made millionaires from real estate than any other investment.

Like you and grandpacoug said, agree to disagree.