Real estate is an area of investing where many people dive into because it’s a less risky form of investments. Many people want to invest in real estate, but because of the massive funds required, they never do.
Beginner’s Way to Get into Real Estate
Finding the right mortgage broker or partner is a difficult task, luckily several innovative companies are looking for your business. LendingTree, a leading mortgage provider, is one of the most popular choices out there, with incredible service and a wide array of loan options, they will not disappoint. BorrowWithSage is a smaller online mortgage company out of Georgia, but you may find good customer support there.
HiMorty and Better Mortgage are newer alternatives, hooking you up with incredible options, and boasting a customer friendly interface to make sure there are no hidden or lost communication.
What is there was a way you can avoid a mortgage all-together and just get your feet wet into the Real Estate Investment field? Now there is!
With the development of Real Estate Crowdfunding and introduction of Fundrise, a lot of people have been able to get into the Real Estate Investment Game without large deposits or down payments. No need to Flip or Flop or do any of that HGTV nonsense!
Fundrise is an electronic real estate investment trust that allows people of all calibers to invest in real estate. While private REITs can be limiting, Fundrise has opened its doors to all kinds of people. With just a small amount of money, you can be able to invest in real estate without any significant hurdles.
There are a lot of factors that make Fundrise and other Real Estate Crowdfunding apps the perfect investment to start with.
Why you should use Fundrise
- You do not need a lot of money to invest
- You get three investment options
- Low charges
- You do not need any accreditation
- Passive investment opportunity
- 90-day guarantee
- Opens you to a lot of opportunities
Our Experience Using Fundrise
Fundrise has become one of our favorite ways to invest. Not only is it super easy to get started, with just $500, but we’ve seen progress from the initial $1300 invested into it. After three months or so there is a dividend of $20+ which comes to an approximate 9% return of investment yearly.
Because the Real Estate Crowdfunding is somewhat new, you should know it’s probably less risky than traditional stocks and other investment choices. After all, this is real estate, but at an entry level.
Before you invest…
Taxation: the distributions that you get from your investment are taxed just as your income is taxed. This is as compared to the 15% taxation rate applied for qualified dividends.
The illiquidity of the investment: this is the factor that causes many people to forgo the chance to invest with Fundrise. The eREITs are never traded publicly as what is witnessed with some private REITs. Therefore, you will have to be committed to the investment to the end. Even so, there are opportunities for one to redeem their shares but there are limitations.
You will not make a lot of money: many people have witnessed that with Fundrise, one does not make a lot of money. It boasts of around 8.76% earnings of the money invested, but 3% of this will be lost in regular fees charged.
If you get a chance to invest with Fundrise, you should seize it. It is a real opportunity to make your real estate investment dream a reality.
This platform offers a wide array of properties to invest in for as little as $5,000. If you have small or a modest amount of money to spend, real estate investing offers many benefits with tangible property and high yield returns. According to RealtyShares themselves during October, $2,602,000 in principal was returned to investors, and since inception, $46,660,500 in total principal has been restored to investors.
In essence, you’ll be able to invest in real estate from across the country with no hidden fees to start. Investing in real estate has outperformed the Stock Market 2:1, and for those who are willing to get into the market but don’t have the capital to buy a house outright, RealtyShares all the sudden is an excellent solution for you! It’s free to sign up and get started, perhaps making this service the easiest way to invest in real estate ever!
Another intriguing option to get started in eREITs it the PeerStreet app. You’ll need to invest a bit more to get onto this one, but they offer FDIC insurance (amazing perk), plus estimated returns at around 6%-9% annually.
If you are ready to invest in a more stable source, Real Estate remains to be par for the course. Fundrise is our recommendation here, but there are other options coming!