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š°šļø Real Estate Money? Cheapest Ways to Get In
A few years back Bill Gates made big news when he became the largest individual landowner in the U.Sā¦
Much of it was overhyped but lost in much of the noise was why andā¦
š how you can do the same (which Iāll show you below ā¬ļø.)
As to why? Simple. The man likes money!!
And as the old saying goes, āBuy land. Theyāre not making it anymore.ā
Gates said his investment team made the decision because of its steady increase in value and low volatility.
His team wasnāt just buying real estate. They were buying farmland.
Since 1990 farmland has produced an average 11.5% return, with lower volatility than other asset classes. Steady, reliable, and unlike other so-called ārecession proofā assets like gold ā itās a lot more reliable in a downturn.
People have to eat.
I know what youāre thinking: Iām not a billionaire.
I get it. Real estate has never been easy for the average earner. But we all know investing in real estate is a key method to building wealth. Just look at the study from Coldwell Banker which showed the average millennial millionaire owns three properties.
Iām here to tell you thatās all changing. From farmland to entire development complexes - itās all attainable and at lower costs than ever before.
Crowdfunded or fractional real estate investing has really come a long way. As in, some fractional real estate sites will let you invest as little as $5 to get started. Wild.
Hereās my top choice, by category, that you may have never heard of:
How it works: AcreTrader obtains farmland at an excellent value, rents the land to local farmers, and works with them to improve soil sustainability and output. Investors participate in the funding of these farms (you can choose the project) which allows AcreTrader to grow their collection more rapidly, and it gives investors an opportunity to benefit from both the rents collected and the likely appreciation of the value of the land itself.
Benefit: Most investments offered suggest a total average annual return in the 7% to 10% range. Less historical volatility than stocks.
What you need: Be an accredited investor. To qualify you need an income of $200,000 (as an individual) or $300,000 (as a couple) for the last two years or have a net worth (excluding primary home) of $1 Million or more.
See it here ==> https://acretrader.com/
2. REITs - Invest in the āMutual Fundsā of Real Estate
Thereās a lot you can choose from but I prefer REITs that pay regular dividends. Some even pay monthly. Great way to start building passive income.
Iām steering clear of commercial real estate heavy REITs giving the debt crunch happening there. Not financial advice, just what Iām watching.
Hereās a few dividend REITs worth checking out, but thereās a lot more out there depending on what category of real estate interests you:
Apple Hospitality (APLE)
Specializes in upscale hotels. One of the largest hospitality-sector REITs, it owns and operates (through property management companies) 220 mostly Marriott and Hilton-branded hotels.
EPR Properties (EPR)
Small-cap growth REIT that focuses primarily on experiential real estate. Think entertainment, performance, and recreation venues such as theaters, theme parks, and casinos.
LTC Properties (LTC)
Manages a portfolio of senior housing and long-term care facilities, including skilled nursing, assisted living, independent living, and memory care facilities. It currently owns over 212 properties in 29 states.
I donāt have any links, just choose the broker or app youāre most comfortable with.
Personally, I love the fractional real estate asset class. The crowdfunding approach is genius. Most are cheap and easy to get into.
Fundrise has a minimum investment of $10 and charges between 0-3% in fees. They are also incredibly picky about which projects to take on - only about 5% of proposals are chosen.
The problem is, with all the challenges happening in residential real estate the last few years, the whole class has underperformed the main indexes, farmland and REITs.
Benefit: Cheap way to diversify your investments. Until the real estate market improves, itās not as much bang for your invested buck, but youāre learn the landscape and cost to invest is low.
What you need: Web browser, an account and a little money.
See it here ==> https://fundrise.com/
Bottom Line: Real estate is no longer just for the elite or those with endless time on their hands. With these innovative platforms you can start building your real estate portfolio, even in the midst of your busy life.
Ready to take the leap? Dive in and explore these options further. Your future self (and your kids!) will thank you.
To your success and prosperity,
Rob
P.S. Remember, every investment carries risks. Always do your due diligence and consult with a financial advisor before making any decisions.