Plenty of opportunities to consider
For most individuals, the most significant investment one will ever make is in their primary residence.
The ability to take on a highly leveraged position in real estate and grow equity as property values rise over time offers significant financial benefits. Instead of paying rent and having ‘nothing’ to show for it after 30 years, homeowners who make their monthly mortgage payments will accumulate substantial equity by retirement. This "forced savings" phenomenon is a key reason why most household net worth is so often tied up in real estate.
There are several options for those looking to expand their residential real estate portfolio beyond their primary residence, or invest in real estate while saving for a down payment on their own home.
For example, Homeshares allows accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property.
The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments. This approach provides an effective, hands-off way to invest in high-quality residential properties, along with the added advantage of diversification across various regional markets – all with a minimum investment of $25,000.
With risk-adjusted internal returns ranging from 12% to 18%, the U.S. Home Equity Fund offers accredited investors a low-maintenance alternative to traditional property ownership.
Don't overlook commercial options
After establishing a diversified residential real estate portfolio, you might seek additional investment opportunities for further growth. Commercial real estate has been one of the best-performing asset classes in recent decades, often offering higher appreciation and cash flows compared to residential real estate. Consequently, many investors turn to commercial real estate after purchasing their home.
For years, direct access to the $22.5 trillion commercial real estate sector has been limited to a select group of elite investors — until now.
First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions – including how much you would like to invest – to start browsing their full list of available properties.
Real estate ETFs and stocks
Investing in REITs or ETFs will give you access to the growth of the real estate market through the stock market. There are also a number of funds that offer diversified exposure to different types of real estate assets, so you can spread your risk and ensure balance in your portfolio. These assets can include residential, commercial, and industrial properties.
Even with a diversified investment in real estate funds, you’ll want to make sure you’ve got the right strategy and research behind you.
The team of former hedge fund analysts and experts at Moby spend hundreds of hours each week sifting through financial news and data to provide top-tier stock reports to keep you up-to-date on what’s moving the markets.
Moby’s superior research can help you reduce the guesswork when selecting stocks and ETFs. In four years, across almost 400 stock picks, Moby's picks have beaten the S&P 500’s returns by almost 12%, on average.
With their jargon-free formats, you can become a wiser investor in just five minutes, backed by a 30-day money back guarantee.
However, reliable advice isn’t the only thing you’ll need to become a real estate mogul.
Great money makers need great tools, and that’s where Public comes in.
Public not only offers commission-free trading but also provides a high-yield account where you can park your cash between investments. Public also has social features, enabling users to follow and learn from other investors, share ideas, and stay updated on market trends with real-time insights.
