2) In GENERAL, you get more money in return investing in what, franchise or real estate?
3) In GENERAL, what's less riskier, real estate or franchise?
4) Anything else you think that might be helpful would be good.
2006-12-26 20:18:52 · 6 answers · asked by Smile Everyday 1 in Business & Finance ➔ Personal Finance
While there are no guarantees in life and not knowing your skill set to manage tenants, the fact that you are asking leads me to think that a franchise will be a better option for you.
A franchise in general will provide you with training and guiadance and should have a proven track record for success.
In terms of risk, it would depend on what stage of maturity that particular franchise was in. When was the last time you saw a McDonald's go out of business?
Real estate doesn't have to be risky, but depending on how you buy things and manage them has some degree of risk.
On the other side, real estate will provide you with more freedom and overall less staff to manage. For 90% of your properties, it will be hassle free throughout the year. Those 10% however can keep you up late and have you pulling out your hair.
Real estate can provide a great return on investment. I actually have some folks like yourself who want the returns of real estate, but don't want to manage it. I provide them a guaranteed rate of return that is secured by a mortgage and manage the property myself.
In terms of liquidy, most times you can sell real estate faster than a franchise. And if you have to take back the asset, it will probably be in better shape, even if the place is trashed. Building up a business after it has been mismanaged takes alot of energy. Having new carpet and paint is relatively easy and takes far less time.
Hope that helps.
2006-12-26 21:06:59 · answer #1 · answered by ga_rei_guy 3 · 0⤊ 0⤋
Interesting, it so happens that I was reading about exactly this today. An amazing coincidence.
Any independent venture requires more commitement then a name that is already established but statistically franchises fail more often then independent ventures. With a franchise you also have very little control in what you do because the franchisee will tell you how the business should be run. You also don't have as many legal protections with a franchise. I would say real estate is better.
2006-12-26 21:05:32 · answer #2 · answered by vampire_kitti 6 · 0⤊ 0⤋
In common practice real estate would be easier to invest in as you have a more detailed view of market values within a particular area. Investing in franchises will require many FAQ's and research and will depend upon geographical areas, tried and tested models and franchise rates. A franchise rate of 45-50% of your annual turnover is not worth investing in and will not prove popular by any potential franchisees.
2006-12-26 21:27:04 · answer #3 · answered by Craig McLean 1 · 0⤊ 0⤋
im in the same boat.but i find it might be easier investing in real estate than in a franchise.real estate is less riskier but owning a franchise can generate more capital.
2006-12-26 21:19:47 · answer #4 · answered by black pharoahs of egypt 2 · 0⤊ 0⤋
Depends what your good at. 1) If you understand economics try stocks. Dont waste money paying someone to do it for you, their crooks. 2) Can you build? Are you a contracter? Many people buy brocken down houses that are cheap and fix it up real nice so they can profit over 100,000 from it. If you cant do hard work, forget it. 3) Franchises are too risky, Easy money can be gained as well as lost. 4) The best investment ever to make is in your future. Education is expensive these days but pays off in the long run and I doubt you would want your money back
2016-05-23 09:59:12 · answer #5 · answered by Nancy 4 · 0⤊ 0⤋
Buying real estate is the best investment that anyone can make!
2007-01-01 09:39:17 · answer #6 · answered by Brian H 4 · 0⤊ 0⤋