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 tied up in real estate. Real estate is not easy to sell, and refinancing can be costly, so it compels investors to retain the equity they’ve built.
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.
One top option is Arrived, a platform that allows investors to buy stakes in rental homes and vacation rentals without the typical hassles of home ownership.
Unlike buying a second property directly and taking on substantial debt (with mortgage rates around 7% at the time of writing), investors can choose from a curated selection of homes in specific markets.
This approach offers a more diversified real estate portfolio, something Munger would likely approve of. Impressively, investors can start investing in rental properties with just $100.
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 hom.
One option for accredited investors is First National Realty Partners (FNRP) is a top platform for individual investors seeking access to commercial real estate deals typically reserved for institutional investors.
FNRP is rapidly growing and offers institutional-quality properties leased by blue-chip retailers who are integral to their communities.Investors benefit from a triple net (NNN) leasing structure, which can ensure stable cash flows even during economic turmoil. This structure protects investors from rising tenant costs, which is particularly advantageous during periods of high inflation.
FNRP’s team of experts manages every aspect of the investment life cycle, from due diligence and leasing to property management and value enhancement. This comprehensive management can result in increased cash flow and greater returns over time — a winning combination for investors.
Private real estate funds
With private equity real estate funds, you can get access to a wide range of different real estate investments, such as residential, commercial or real estate debt, meaning you aren't keeping all of your money tied to the fortunes of a single property.
With Fundrise , you can invest in several different real estate funds, each calibrated for consistent growth. Fundrise's real estate funds include a wide range of assets, including residential and commercial properties and real estate loans, ensuring diversification within your portfolio. Unlike most private real estate funds, which require institutional-level capital to get into, Fundrise has a minimum investment threshold of $10 .
You can start investing with Fundrise by signing up and answering a few questions about yourself and your investing preferences and risk tolerance. Then Fundrise will suggest a portfolio best suited to your goals
