Real estate investing has changed and a new investment strategy is emerging
Investing in real estate has traditionally required a large capital commitment and involved a long and tedious process of finding deals, arranging financing, and jumping through countless hoops just to get to the closing table.
Not to mention, the time and energy that goes into managing an investment property has caused many newbie real estate investors to unload their properties long before their investment matures.
New era of real estate investment
Although income-producing real estate has historically generated higher total returns than the overall stock market, the simplicity of buying stocks online or through a mobile app has helped the stock market remain one of the most popular investment for retail investors.
What if you could invest in real estate just as easily? Well, you can. Regulatory changes under the JOBS Act along with improvements in technology have finally made it possible for individual investors to buy shares of income-generating properties as easily as buying shares of a publicly traded company.
Buying shares of rental properties online: One of the companies leading the charge in this new era of real estate investing is Houses arrived. The company allows non-accredited investors to purchase shares of rental properties with a minimum investment of just $100.
The company acquires income-generating properties in some of the fastest growing markets in the country and assumes all management responsibilities. Investors can simply buy shares of the properties they like and earn passive income as they wait for the homes to go up in value over time.
Platforms like Arrived Homes are making real estate investing more appealing to the masses by simplifying the process and making real estate stocks an affordable asset to own.
As new platforms emerge and the number of available opportunities increases, it is likely that fractional investing will quickly become the dominant real estate investment strategy.
Photo: Courtesy of Arrived Homes
This article was originally published on February 22, 2022.
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