What is a better investment Real Estate or a small business(like a small

[leonardo v]

restaurant).? I came upon some money and I would like to open a small very very small restaurant in a kind of busy area with my own culture's food. But after getting advice I was told I should invest in real estate becuase now is a good time, basically was told that I should try to get a mortagage on a run down 2 family home near the city fix it and rent out each floor and that within 4-5 years the house would be paid and I'll just be collecting rent. I think it sounds too good to be true but can anyone else tell me their opinion, invest 40,000 in a small business, 2 family home to rent out or nothing just save it.

[row_01]

The answer to this depends on a lot of things, primarily what you think you'll be good at. If you buy/start a business, you will likely need to run it full-time are foregoing your current salary. If you invest in real estate, you can work on the investment part time and on the weekends and use your salary to fund the fix-ups. The longer you hold the house without selling, the more carrying costs (interest / mortgage expense) you will incur so it's in your best interest to get in and sell / lease up quickly. A small business is tougher to value than real estate which is fairly liquid and plenty of inventory exists. You will find that small businesses come in many shapes and sizes and due diligence to value them properly will become expensive. Good luck either way!