Oct 21, 2024
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Earlier this year, Amazon founder Jeff Bezos dropped a cool $90 million on a mansionon the private man-made island dubbed the “Billionaire Bunker.”
He had already purchased two mansions on Florida’s Indian Creek Island — home to the likes of Tom Brady and Ivanka Trump — last summer for a whopping $147 million.
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According to the Tampa Bay Times, The Florida native cited personal reasons, such as wanting to be closer to his family and his Blue Origins space company, for the move back to his home state.
After moving to Florida, Bezos announced a pre-scheduled stock-selling plan to unload up to 50 million shares before Jan. 31, 2025, and according to a Bloomberg report from late February, he finished the plan in just nine trading days. His cash out total was $8.5 billion.
As a resident of the Sunshine State — which does not tax on capital gains — Bezos managed to save hundreds of millions of dollars in taxes he would have had to pay to Washington state —where he previously lived —for the same transaction.
With the Florida advantage, he probably saved around $600 million on capital gains taxes on the entire sale.
While it may seem tough to emulate this move if you’re not a billionaire, it’s not impossible.
Here are 3 smart ways you can invest in multiple properties even if the current housing market has made you hesitant to buy a home and move right now.
1. Crowdfunding platforms
Crowdfunding has become a popular investing method in recent years. It refers to the practice of funding a project by raising smaller amounts of money from many people.
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Many crowdfunding investing platforms allow you to own a percentage of physical real estate — from rental properties and commercial buildings to parcels of land.
For example, with Arrived is a real estate investing platform backed by Jeff Bezos himself. You can invest in shares of rental homes and vacation rentals without taking on the responsibilities of property management or having Bezos-level zeros in your bank account.
It’s easy to browse their vetted selection of homes, and when you find a property you like, you can choose the number of shares you want to buy. Once you’ve signed off on it, you’ll begin receiving quarterly deposits from the property’s income.
If you want to try your hand at owner-occupied real estate as opposed to rentals, Cityfunds is another crowdfunding platform that allows you to invest in residential properties in top U.S. cities — like Denver, Austin, Nashville and Miami — without having to pay for all the expenses that come with home ownership.
The company allows investors to invest in diversified portfolios of owner-occupied homes. In exchange for the cash, Cityfunds secures an interest in the home's future value. As the home value appreciates, so does the value of Cityfunds equity investment alongside the homeowner.
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So you can invest in the housing market of a city you love for as little as $500, without having to deal with high home prices or the hassles of being a landlord.
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2. Diversify with other private assets
If you want to follow his example, Bezos is no stranger to investing in a variety of assets. His vast portfolio contains significant stakes in publishing, real estate and many high-profile tech companies, including Uber and AirBnB.
When it comes to diversification, sometimes you have to look outside the stock market.
With Fundrise you have access to an expansive portfolio of alternative investment opportunities spanning real estate, private tech, private debt and venture capital. With over two million investors, Fundrise is an accessible way to diversify your portfolio with the potential of yielding dividends every quarter.
Depending on your personal goals and the type of private funds you invest in, you will gain exposure to one or of Fundrise’s high-end strategies designed to make the most of your investments. With over two million investors, Fundrise is an accessible investment platform that helps you build a portfolio using a wide range of private assets and offers a low minimum investment of $10.
To get started, all you have to do is answer a few questions about your investing preferences and Fundrise will recommend a portfolio that aligns with your goals.
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Em Norton is a Staff Writer for Moneywise. Em holds a B.A. in Professional Writing from York University and has been writing professionally since 2019. Em's work has previously been published by Room Magazine, IN Magazine, Our Canada and more.
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