It’s a goal many of us strive toward most of our lives. We dream of a time when money is no object. Imagine being able to easily meet all of your fiscal obligations—and still put something aside for a rainy day.
It sounds like bliss, doesn’t it?
Unfortunately, for many of us, it also sounds like pie in the sky. How do we earn enough, save enough, and invest enough to create financial freedom? For many, the answer lies in real estate.
The financial rewards of real estate investing are many. And, luckily, there are a number of ways to invest at ALL asset levels so that old adage, ‘it takes money to make money’, doesn’t apply.
Buying Investment Property
One of the most direct ways to add real estate to your portfolio is to purchase it outright. Whether you are buying a distressed property to fix and flip for a quick profit or a multi-family unit to buy and hold for long-term rental income, the end result is the same. You are generating wealth, little by little. Of course, this method of real estate investment is both labor and resource-intensive, requiring a significant upfront commitment of time and money. Buying property can be an expensive proposition but Navigator Private Capital’s flexible and innovative loan programs can help position you for success.
Real Estate Investment Trust (REIT)
A REIT is a type of company that lets investors pool their money to invest in a collection of properties or other real estate assets. There are two main types of REITS—equity (which buys properties and generates an income stream through leasing and eventual property appreciation) and mortgage (which invests in agency, non-agency and commercial mortgages). While a lot of REITS are publicly traded, some are not which limits the access of the average investor. These private REITS can be fairly illiquid, often stipulating a minimum holding period for investors. In general, REITs are also notorious for charging high management fees to the chagrin of many investors.
Private Equity Fund
A private equity fund may be set up to purchase a single property or many but is typically open only to accredited investors and qualified high net-worth clients. So, unfortunately, for most investors this option is out of reach. Accredited investors and qualified clients include institutional investors, such as insurance companies, university endowments and pension funds, and high income and net worth individuals.
There is another option when it comes to dipping your toes into the real estate investment waters. And it is one offered by local private lenders including Navigator Private Capital. Individual investors provide capital (as little as $25K) to support one or more specific, secured real estate projects in the area. These projects generate consistent, passive income at rates significantly higher than those of traditional financial instruments. Concerned about risk? Rest assured—here at NavCap, our well-vetted projects are held to high lending standards and secured by first mortgage/deeds of trust with participants in the first lien position. Looking for a new outlet for your retirement savings? You now have the option of directing your IRA funds to hold the promissory notes.
Interested in learning more about adding real estate to your portfolio to boost diversification or add new income streams? Reach out to the NavCap team to find out the details. Contact us at 443.603.0193 or firstname.lastname@example.org to discuss the funding opportunities available.