The real estate market is a robust asset class for investors of all backgrounds. The investment opportunity provided by home properties is one that can make you wealthy beyond your wildest dreams if you approach the project with an open mind and a hunger to learn. The world’s most successful investors all swear by the power of the real estate market, and there’s definitive proof in the pudding here, so to speak.
The real estate market offers buyers a number of unique ways to cash in on the collateral value of property ownership. For savvy borrowers, a real estate purchase can act as the stepping stone toward a new life of financial freedom and wealth generation that grows leaps and bounds above the investment opportunities granted in the stock market or with other asset classes. Whether you are looking to flip houses for sale in Islamabad or seek to get into the property management game through a mutual fund — like the Yieldstreet Prism Fund — that owns a position in apartment buildings in Lahore, New York City, or Toronto, real estate offers a fantastic window into high net worth living.
REITs and other real estate forward mutual fund options.
A great way to take advantage of this good investment idea is to buy into mutual funds that handle property management like a REIT or the Prism Fund offered through Yieldstreet. These options typically yield higher returns than other traditional stock vehicles and combine multiple properties and a mix of housing types in order to seek stability across the years. Whereas a retail stock trader might rebalance a portfolio with ten to fifteen different stocks on a quarterly basis, investment managers that act as stewards for these high yield vehicles rebalance with new property acquisitions, shifting rent structures, and the sale of certain commodities within the portfolio on a regular basis. All this goes into producing an annual yield that competes with the most profitable alternative investments that compete with the real estate market — or at least attempt to.
The higher returns that investors see with these types of funds often lead investors to ask “is Yieldstreet legit?” The truth is, real estate simply offers a uniquely lucrative opportunity, there is nothing untoward involved in the project, it’s just a sound business and investment opportunity that millions of investors all around the world take advantage of on a daily basis.
Seek direct investment in your local property market.
Many investors decide to move beyond mutual funds and the REIT marketplace and try their hand at physical asset collection in the real estate space instead. This option gives buyers the ability to manage the property all on their own, and reap 100% of the rewards as a result. The returns from a physical asset can absolutely soar if you’ve done your homework and pick the right property. Of course, there is always more risk involved in this path though.
Buying properties in order to rent or flip houses gives an investor a unique advantage over other asset offers. Through this opportunity, many buyers actually become borrowers and purchase the home with the financing of a bank or private lender. This way, you can leverage your credit score or current home in order to receive a favorable loan structure.
Buying a property with someone else’s capital can certainly be risky, but if you’ve found the right property you can expect to see the return on your investment hit your bank account within weeks or months of the initial purchase. For home flippers, this is a lump sum payout that can go toward paying off the mortgage or directly into the next property. Any profits you accrue here you get to pocket.
Real estate is a global phenomenon, people need shelter, and housing prices are on a meteoric uptrend that has lasted for decades. Take advantage of all the real estate market has to offer now.