I have been very fortunate to have met many successful real estate investors in my lifetime and continue to do so on an ongoing basis. To them, it is their preferred choice to keeping their net worth. I have a strong secondary affinity to this asset class but must confess that the vehicle of wealth creation I have chosen is business ownership and specifically an internet business.  Running an internet business is not without challenges but I believe it is much easier for the average person to succeed on the web versus a portfolio of investment properties.  Here are some of my reasons why:

1)  Properly used leverage is a key to success. Having a $300,000 mortgage with $50,000 cash on an investment property sounds great but compared to the global reach that a website can provide is absolutely insignificant.

2)  The operating costs of an ongoing web based business are small. There is no reason why anyone cannot start one out of their own home with a few thousand dollars. Compare this with a down payment in the tens if not hundreds of thousands of dollars of a rental property.

3)  The internet is the most profound invention of our lifetime and is bigger than the printing press was 500 years ago. An apartment building or even a portfolio of them cannot compare to the impact technology has on our lives.

4)  The cash flow from a rental property is much smaller than a web based business can provide. It is much easier for someone to quit their jobs via an internet business versus purchasing rental properties. The idea of owning sufficient investment properties to quit one’s job sounds great but does not work out very often because there simply isn’t enough cash flow present.

5)  The possibility of a real estate portfolio going from $10,000 a month in cash flow to $10,000,000 in several weeks is absolutely impossible. However, this is in the realm of a website which goes viral and hence creates enormous wealth.

6)  There is more internet support than ever before. I believe this trend will only increase as technology takes over more of our lives. Finding talented IT staff is easier than a locating a good mortgage broker who understands investments.