Hedge against inflation with real estate

Real estate has been a popular asset class as of late — perhaps because it’s a well-known hedge against inflation. It’s no surprise that high-net-worth individuals — regardless of their age — see opportunity in this asset.

But you don’t need to be a landlord to invest in this asset — you can get started on becoming a real estate mogul with a few different platforms.

First National Realty Partners allows individual investors to access institutional-quality commercial real estate investments. With FNRP, investors own a share of properties leased by national brands like Whole Foods, CVS, Kroger and Walmart, providing a stable, positive cash flow without the worry of tenant costs cutting into your bottom line.

You’ll get the insight and benefits of ownership, while FNRP handles the hard work, including vetting, management and due diligence necessary to create a successful real estate investment relationship.

Another option is a company called CrowdStreet, which lets accredited investors get in on commercial real estate properties nationwide without having to invest millions.

Investing with CrowdStreet is similar to buying stocks, in that you have the freedom to select the individual deals that make sense for you. But instead of funding a company, your investment goes toward owning a percentage of a physical real estate property through crowdfunding.

Diversify with fine art

The younger generation of investors increasingly believes that “a traditional portfolio of stock and bonds is not going to deliver above-average returns over time,” according to Jeff Busconi, chief operating officer at Bank of America Private Bank.

Well, fine art is the perfect alternative investment for savvy investors who are looking to diversify their portfolio. It’s notably consistent, as contemporary art has outperformed the S&P 500 by 131% for the past 26 years.

Previously, there was no way to invest unless you had millions to buy an entire painting. But Masterworks has completely changed that. They make investing easy for you — their top team of researchers handle the entire process from finding the artwork, to the purchase and storage of your pieces.

Get access to private equity

Private equity refers to investments in companies that are not publicly traded on a stock exchange.

A private equity fund takes money from the fund’s investors, invests the money into the companies — usually by taking controlling stakes — and works with the companies’ management teams to make their businesses more valuable. The goal is to sell their portfolio companies later — hopefully for a decent profit.

While private equity funds are generally not open to small investors, they’ve been gaining popularity among the wealthy with 2021’s private equity buyouts rising to $1.1 trillion according to Bain & Company.

Yieldstreet offers retail investors a variety of alternative investments that have traditionally been available only to the ultra-wealthy. Through the platform, you can invest in funds that include art, real estate, legal finance and more.

Uniquely, this platform offers a wide range of asset classes and a range of investment minimums, so you can find the opportunities that are right for you. Accreditation isn’t required for all Yieldstreet offers, but you have access to more options as an accredited investor.

Get in on cryptocurrency

Once considered a niche asset, cryptocurrency has now entered the mainstream. Of course, many investors learned about cryptocurrencies’ volatility the hard way through this year’s massive pullback. But some wealthy millennials still believe in the asset class.

It’s easy to get in on the action — there are plenty of platforms that allow you to invest in crypto. Just be aware of fees: many exchanges charge up to 4% in commission fees just to buy and sell crypto. But some investing apps charge 0%.

Robinhood has already made trading stocks free and easy, no matter how much you can afford to invest — making it wildly popular with millennials.

Robinhood can also be used to invest in crypto, even if you don’t have millions to work with. This platform lets you place an order to buy or sell crypto at fractional amounts instead of buying whole coins.

About the Author

MoneyWise

MoneyWise

MoneyWise Editorial Team

These articles were created by the MoneyWise editorial team.

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