Molson Hart

The RE though is levered without the possibility of contagion. Hard to do similar with the equity right?

What does that mean, possibility of contagion?

If I do that re investment with leverage worst outcome is I lose that property. I assumed that if I did the same with stock that I’d have to guarantee that debt personally (financial contagion within my own assets). Maybe that’s wrong but there are no margin calls in RE.

Conflating a lot of concepts here, not really comparable as stated. Most stock equities already leveraged at corporate level. Margin call forces sale of securities that one has offered as collateral (to avoid add’l personal recourse) Can definitely use recourse on RE as well.

If stock equities are already leveraged at corporate level it doesn’t make sense to compare 20 PE to 5% cap rates because cap rates don’t include interest rate payment expensing like stock earnings do. Anyways, even if I was wrong about financial contagion, I still believe that