Everybody knows about it. It's too expensive to be overlooked. It lacks creativity and there are too many restraints. All of these things come together to drastically limit your upside.Explain what you mean by "too efficient of a market". I understand, but it probably a new concept for a lot of people.
I own a service business. My employee costs $17 an hour. I sell his work for what equates to roughly $170 an hour. I will never buy a house and then immediately sell it for 10 times what it's worth. If you do then you have found the deal of a lifetime. I am not out here looking for the deal of a lifetime. I'm looking for a deal I can make every single day, and at a giant return.
When I say it is too efficient, I mean that the competition in the marketplace has ensured that there is little profit (in my opinion). For people who lack the ability to grow a business, or don't want to run a business, and are comfortable with only making a few million dollars, I would suggest real estate.
For those that want to build something that brings in exponentially larger returns, with arguably less work, in a more scalable way, I suggest a business. Even when it comes to passive investments. (passive investments won't return an exponentially larger return but an active business will)
For example, before I ever become a landlord, I will start a classic car leasing company. I can expect to receive a passive 15+% return backed by assets. All because I chose to be in a less efficient market and add some value instead of doing what hundreds of thousands of other people are doing (or trying to do) in real estate.
a little off topic but just my opinion. ^