What would you say is a better investment? I have the opportunity to either get into a franchise or invest into real estate. There seems to be pros and cons to both, part of me is leaning towards real estate just because it seems like the safer investment in the long run. I wont make as much as I potentially can with the franchise but just like any business there is always that risk of it failing. Just wanted to get peoples perspectives. Which do you think is better? Thank you
Franchise is way more active than real estate. You are going to have to be very hands-on no matter what the franchise. With real estate, at least you have the opportunity to hire a property manager right off the bat.
Might consider buying NNN real estate and then opening a franchise in it later on.
Real estate. Just find renters their standards are shockingly low. A business is nothing but complaints
Returns are much better in the short run in a business but definitely harder work. Real estate is just sitting there 90-99% of the time depending on the project
Share the numbers I’ll run some quick math for you. Own many rentals.
A Franchise unless it is a McDonalds, Chik-Fil-A, or the like, is very risky, far more risky than real estate. On the other hand a successful franchise will absolutely annihilate real estate in terms of profit.
Each scenario has to be evaluated independently, there is no way to know which is better until you know what franchise you are comparing to which piece of real estate.
What is best fit?
How well do your personal traits align or match up with the characteristics of businesses you are considering?
Leasing commercial real estate is often considered passive income but it does have nuances to deal with.
Most franchises are contact sport. Moreover, you are required to operate according to franchise business model and not how you see fit.
If goal is to create wealth and protect it long term, private investors tend to buy commercial property. Most franchises do not own their premises.