Good Non-Real Estate Investors
If you have a lot of money saved and you're financially savvy investing that money, you'll probably be better off continuing on that route. The stock markets have long-term averages of 8 percent plus returns, and few real estate investors can match that.
The Rich
This is a no-brainer. If you are already rich -- think tech millionaires and inheritors -- real estate might not be for you. Do you really want to deal with tenants who can really make your life a pain if you don't treat them with respect? Financial investments -- stocks, mutual funds, bonds, REITs -- can produce just as good returns as real estate with a lot less risk and hassle.
Conclusion
For those of us who can deal with having to work, don't mind keeping important holidays open for property issues, are good at working with others, don't trust or don't like the stock market, and want to build wealth, real estate could work for you. But, successful real estate investors learn hard and expensive lessons in their first few deals. Educate yourself as much as possible before you start investing. For some, real estate investing can be a much better long-term bet than the stock market.