First off lets look at REIT’s. REIT’s have been very strong this year some producing over 20% returns. REIT stands for Real Estate Investment Trust and the neat thing about REIT’s is they allow you to buy shares in commercial real estate portfolios that generate income. So you can literally be, technically, part owner of a pool of apartment buildings, shopping malls, hotels, self storage facilities, even farmland and others. So while most investors don’t have the money to buy a shopping mall, and maybe dont want the hassle of managing the property, you can buy shares within a portfolio of commercial properties in a REIT. The easiest way to buy them is through a broker, just like a stock, pool your money with other investors and share in the revenue generated by these buildings. Another advantage of a REIT is they typically hold a diverse number of properties which can spread the risk rather then being tied up in a single property. You can invest in Equity REITS, the most popular, and these entities buy, own and manage income producing properties and revenue is generated mostly through rents. There are also Mortgage REITS and Hybrids, we wont cover those here.
Homevestors. We did a video on this franchise last week. I’m sure you all have seen the “We Buy Ugly Houses” advertising everywhere as Homevestors spends around 50 million dollars a year. But what many people don’t know is that Homevestors is a franchise. They have over 1100 franchise owners in 144 markets across the USA. So investors can buy a franchise under the Homevestors umbrella, receive complete training on the processes, benefit from industry connections, access to capital and 100% financing of deals, and most importantly, benefit from the massive influx of leads their advertising generates. Owning a franchise allows you to flip properties, or fix them up and rent them out, depending on the owners preference. Now many people suggest they can get into real estate on their own, and you can, but Homevestors will ensure you know how to valuate, how to rehab, where to find houses, mistakes to avoid, selling the house and more. Most owners will tell you they typically lost more money making mistakes than the homevestors franchise fee. So Homevestors is a way to get into Real Estate, but with the support of a major national brand and their training system. Franchise fee for Homevestors is $30,000 plus you’ll need some working capital that amount will range depending on what city you are in. A smaller city your all-in investment will be as low as $60K, for big cities like LA or New York probably closer to $250k. https://youtu.be/WOYFxmNb0QU
Property Management Franchise https://youtu.be/eX2SyQyZ358
One way to reduce risk and still benefit from capital appreciation is investing in Fractional real estate. This is more of a fun, potentially lucrative way to invest in some really cool Real Estate. We have been involved with a number of fractional real estate projects over the years. So this concept actually started with business jets where several buyers would all go in on a jet and each would have certain days or months to use the jet on a rotational basis. With fractional real estate you are typically buying an equity position into a property that you would not be able to afford on your own, or just dont need 12 months a year access. So you could create this scenario with 12 friends where you all put down $120k and buy a mansion in Costa Rica, Each buyer would get 1 month access to the house which you could either rent out and keep the revenue, use it for an amazing vacation each year, or a combination of both, rent for 2 weeks and stay for 2 weeks. Because managing these properties can be a pain investors often rely on the expertise of a company that specializes in identifying and managing these types of properties. You can invest in fractionals all over the world from condo hotels, to mansions and resorts. Fractionals are different than timeshares in that you actually own the property and therefore benefit from any capital appreciation that happens. Not that there are not bad fractional deals, there are, you have to look for the good ones. A project we are currently involved with is the Wyndham Halcyon in a gorgeous region of France, guaranteed returns for 20 years. Fractional ownership starts as low as $16k euros, or just under $18k US dollars at current rates. Full ownership is available from around $180k euros. http://halcyon-retreat.com/the-seagus-corporation-halcyonretreat
Sorry YouTube caps us at 5k words! More in the video.