Invest in Real Estate and Diversify Your Portfolio

CityVest invests in highly selective real estate private equity investment funds.

Get Started View Investments

Question IDs
Object Type Map


Visibility Map
Active Map
Validator Map
Children Map


Parent Map


Question Options Map


Question Options


Question Option Activate Map


First Name
Last Name
Phone Number
Email
 

Real Estate vs. Stocks

What are Stocks?

Stocks are shares of ownership in a company. Stocks are most commonly sold at the company level to acquire more capital and assist in a company's growth. Those who purchase stock do not own the company, they own shares of the company. The most common example of stocks being bought and sold occur through public companies on the stock market.

Stock prices are determined by traders. Traders closely examine companies at the performance level to determine whether or not to buy or sell shares of stock. Traders tend to bid up stock prices if a company’s performance shows growth. When this happens, bid prices go up because there are more buyers in the market for that stock, and as a result the company stock will increase in value. If a company’s performance is poor, traders will be more inclined to sell the stock. When this happens, the value of the stock will decrease as well as the value of the company.

There are two major ways in which stockholders can make a profit:

  • Buy low, sell high. This is where stockholders sell stock for a higher price than they originally purchased it for. The difference is the available profit after fees.
  • Collect dividends. Companies will divide up a portion of the company’s earnings to pay out shareholders. This payout usually occurs on a quarterly basis.

Real Estate vs. Stocks Comparison Chart

INVESTMENT ASSET CLASS
REAL ESTATE
STOCKS
INVESTMENT
Hard Asset
REAL ESTATE
Real Estate Hard Asset
STOCKS
Stocks Hard Asset
INVESTMENT
Inflation
REAL ESTATE
Real Estate Inflation
STOCKS
Stocks Inflation
INVESTMENT
High Cash Yield
REAL ESTATE
Real Estate Cash Yield
STOCKS
Stocks Cash Yield
INVESTMENT
Leverage
REAL ESTATE
Real Estate Leveraged
STOCKS
Stocks Leveraged
INVESTMENT
Tax Advantage
REAL ESTATE
Real Estate Tax Advantage
STOCKS
Stocks Tax Advantage
INVESTMENT
Equity Buildup
REAL ESTATE
Real Estate Equity Buildup
STOCKS
Stocks Equity Buildup

Real Estate vs. Stocks Comparison Details

Is a Stock a Hard Asset?

Shares of stock are not tangible or physical items of worth owned by an individual or a corporation. They are not considered hard assets.

Are Stocks affected by Inflation?

Inflation is the rise in price of goods and services, which reduces how far the dollar can go. Typically, you will see greater volatility in stock movements in high inflation economies. This can be perceived as both good and bad.

Do Stocks have a High Cash Yield?

Free cash flow yield is the ratio of free cash flow to the business' market capitalization but "Cash on Cash Yield" is slightly different. Stocks can provide high cash yields but are usually described as "Free cash flow yield" wheras "Cash on Cash Yield" is typically used to describe real estate or income-producing investment stocks.

Can Stocks be Leveraged?

Yes, stocks can be leveraged, but If an investor uses leverage to make an investment and the investment moves against the investor, his or her loss is much greater than it would’ve been if the investment had not been leveraged – leverage magnifies both gains and losses.

Are there Tax Advantages from owning Stocks?

If you were to purchase shares of stock and hold them for a year or more, you would be looking at a tax rate of 15% upon selling. Held under a year, you’d pay the regular income tax rate according to your tax bracket upon selling. High income tax payers, which are single people with an annual income of $400,000 and $450,000 for married couples, pay a 25% tax rate at the time of selling after a 1 year holding period. If receiving dividends, companies tend to issue dividends out of the earnings made after taxes, so for the investor a preferential tax rate of 15% is typically owed.

Do Stocks build Equity?

Stocks absolutely build equity, and as long as your invested directly in them, versus through an IRA or mutual fund, you can easily sell your stocks to receive cash equity for their value.

Risks of Investing in Stock

Stock market investors depend on a healthy financial market. Heightened market risk is apparent in crashes and recessions like that we saw most recently in 2000/2001. All investors are affected in a stock market crash. Depending on how much is invested at the time of the crash, some investors may be affected more than others. Independent of the overall market however, an individual stock portfolio may decrease in value, causing an investor to lose on their investment. This type of risk can often be mitigated, but is contingent upon stock market knowledge.

In Summary

Some consider real estate a safer investment class when compared to stock market investing. Stock market investing consists of buying shares of ownership interest in a public company that can be traded on financial markets. Real estate investing consists of purchasing tangible property. Stocks are more liquid than real estate in that they can be converted into cash quickly when an investor wants to sell. Either way, it is crucial you understand the housing market if you choose to invest in real estate, and the stock market, if you choose to invest in stocks.

Invest With Confidence

We Do the Work to Provide You the Best investment Opportunities

  • A completely new alternative to investing in stocks and bonds.

    Every CityVest investment undergoes a thorough due diligence process by our experienced underwriting team. Of the hundreds of projects reviewed each month, fewer than 1% are approved.

    CityVest can help you:

    • EARN PASSIVE RETURNS OF 10% TO 25%

      You benefit through professional investment structures, which target passive returns for our investors in a range from 10% to 25% - often with a preferred return.

    • ACCESS INSTITUTIONAL QUALITY FUNDS

      CityVest pre-screens investments for you through our underwriting and due diligence process. We partner with institutional investment funds and sponsors and we seek a preferred rate of return.

    • PORTFOLIO DIVERSIFICATION

      Since real estate investments typically generate cash flow income, while common stock does not, real estate valuations tend to be less volatile and less sensitive to market risk factors.

    • COMPLETE INVESTMENT MONITORING

      CityVest will handle all of the accounting and administration of your investment, while you can monitor the returns.

We simplify online real estate investing.

Get Started

Copyrights © 2018 All Rights Reserved by CityVest Capital Inc
Privacy / Terms of Service

Please read the important disclosures below.

CityVest.com is a website owned by CityVest Marketplace LLC, a subsidiary of CityVest Capital Inc. (together with its affiliates, “CityVest”). By accessing this website, you agree to be bound by its Privacy Policy and Terms of Service.

The information on this website does not constitute an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any investment or security described herein. Any such offer or solicitation shall be made only pursuant to the final confidential offering documents of any entity described on this website, which will contain information about each entity’s investment objectives and terms and conditions of an investment and may also describe certain risks and tax information related to an investment therein and which qualifies in its entirety the information set forth herein. The information contained herein does not constitute part of the offering documents of any entity. An investment in any investment included on this website, entails a high degree of risk (including the possible loss of a substantial part, or even the entire amount, of an investment) and no assurance can be given that any entity’s investment objectives will be achieved or that investors will receive a return of their capital. Past returns are not indicative of future performance.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. Any investment information contained herein has been secured from sources we believes are reliable, but we make no representations or warranties as to the completeness, adequacy or accuracy of any information provided. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity.

Prospective investors should read the confidential offering materials of any privately offered investment product, including all risk and conflict disclosures included therein, before investing. Please read detailed information about such calculations in the investment manager’s detailed financial and information material. The information contained herein should be treated in a confidential manner and may not be reproduced or used in whole or in part for any other purpose.

CityVest does not make investment recommendations, and no communication through this website or in any other medium should be construed as such. Private placements on CityVest.com are intended for accredited investors (for persons residing in the U.S.), and for persons residing abroad in jurisdictions where securities registration exemptions apply. Private placements of securities are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by CityVest, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

© 2018 CityVest Marketplace LLC. All rights reserved.