Real estate hasn't been an easy asset class to invest in for most retail investors. The traditional strategy requires a significant capital commitment and involves a long process of sourcing deals, arranging financing and countless hoops to jump through just to get to the closing table.
That's just the start. The time and energy that goes into being a landlord has caused many first-time real estate investors to unload their properties long before their investment matured.
The New Era of Real Estate Investing
Income-producing real estate has historically generated higher total returns than the stock market, but the simplicity of buying stocks through a mobile app has helped the stock market remain one of the most popular investment options for retail investors.
What if investing in real estate was just as easy? Well, it actually can be.
Changes in securities regulations under the JOBS Act, along with advances in technology, have finally made buying shares of income-generating properties just as easy as buying shares of a publicly traded company.
Buy Shares of Rental Properties Online
One company leading the charge in this new real estate investing strategy is Arrived Homes. The company allows non-accredited investors to buy shares of rental properties with a minimum investment of only $100.
The company acquires income-producing properties in some of the fastest-growing markets across the country and handles all the management responsibilities. Investors can simply buy shares of the properties they like and collect passive income while waiting for the homes to increase in value.
Platforms like Arrived Homes are making real estate investing more appealing to the masses by making the process simple and significantly lowering the cost of entry.
As more platforms emerge and the number of opportunities increases, fractional investing is quickly becoming the dominant real estate investment strategy.
Image: Courtesy of Arrived Homes
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