Let's say I have $50k to invest. I can either buy a $50k mutual fund with $50k, or I can buy a $250k income producing property. If I choose option 2, my $50 is a 20% down payment, and my rental tenants pay for my monthly mortgage payments.

If both assets grow at 10% per year, at the end of year 1, my mutual fund investment is worth $55k. My equity in the real estate, however is $75k+. I have my original $50k I invested, plus $25k of appreciation, plus any reduction in the principal from my monthly payments.

With real estate, you can invest and get growth of 5x over a conventional investment due to the leveraged nature of the investment.