re: Stocks vs Real Estate to generate wealth and passive income

He’s saying he reinvests (or sets aside) his cash flow

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I wanted to get your opinions on what would be the best return possibility and why

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I think for your average Joe (i.e. not most of this board) the largest upside of real estate is the relative illiquidity of it. People tend to feel far more married to property they buy than stocks, thus forcing them to leave their investment in the market to weather the ups and downs rather than freaking out and pulling out every time there’s even a possibility of a dip. As people keep saying: time in the market is far better than timing the market.

For the more disciplined crowd it’s a more difficult decision, one that is highly dependent on your local RE markets’ maturities and opportunities. For the discerning connoisseur there are myriad development possibilities (commercial, residential, recreational, etc.) that with the right connections and luck can be the deal of a lifetime.

Several fortunes were made off of WRP when that program first came about. Developing lake lots has been a consistent market beater, as well. Farmland was a great ride a few years ago but is now in the throes of correction (a process only to be exasperated by these tariffs).

I personally like and prefer real estate because I have far more control over how my investment performs. If I buy stock in a company I’m merely along for the ride. Some people like that. They don’t want an investment that has to be managed constantly, and I respect that. I’m just too hands-on to not, though.

Why not both?

Like others have mentioned a couple of REITs would be my suggestion. If you're looking for more liquidity I'd check out Realty Income (O) or National Retail Properties (NNN). Both are monthly paying dividend stocks that seem to have relatively safe payout ratios.

My personal suggestions would be Digital Realty, which is a REIT focused on Data Base storage, American Tower, which is a REIT focused on cell towers, and my personal favorite Innovative Industrial Properties. They are a new company (IPO in 2016) that focuses on acquiring, and leasing, warehouses specifically geared toward the marijuana industry. I personally think the industry will boom but I'm not a risky individual when it comes to investing so I prefer to have some type of buffer. Insert IIPR. They pay a quarterly dividend and are (obviously) set up as a REIT so they are required to pay some of their funds from ops to shareholders. Not only this, the company has raised their dividend from 10c (at IPO) to 25c, and recently to 40c per share per quarter. The dividend growth rate is unsustainable but I wouldn't be surprised to see that number be around 60c per share in the next 3 years or so.