Residential real estate
In Johnny Depp’s case, his troubles came with residential real estate. For most readers, that’s going to be the biggest area of concern, given that the typical American household reportedly has 70% or more of its net worth tied up in its principal residence.
A recent report by ATTOM shows that roughly 1.3 million “zombie” residences are currently vacant, with pre-foreclosure properties rising more than 20% year-over-year. That said, residential real estate has historically proven to be a very solid long-term asset to hold. Data from 2023 shows that since 1970, the typical American home price has tripled.
Homeownership can also be viewed as a forced savings account, where paying one’s mortgage on a monthly basis builds equity over time, which can be utilized in retirement. Those renting won’t see those benefits over time.
But one way you can benefit from the rental market is through Arrived.
Backed by world-class investors like Jeff Bezos, Arrived allows investors to buy shares of rental homes and vacation rentals without taking on the similar responsibilities of direct homeownership and property management.
Start by browsing a curated selection of homes, vetted for their appreciation and income potential. Once you find a property you like, choose the number of shares you want to buy.
You can get invested with as little as $100 — a price tag that might look more appealing than the one associated with owning and managing a property yourself.
More alternatives to buying property
Commercial real estate
Perhaps the least popular asset class out there, but the one with some of the best longer-term returns, commercial real estate is starting to generate buzz among certain investors.
Why? Commercial real estate (particularly office and other light commercial assets) are down big. For value investors, that’s the kind of buying opportunity worth perking up over. There are certainly many options for investors looking for exposure to this asset class.
If you’re looking to make a larger investment, one option is First National Realty Partners (FNRP), an investment firm that provides accredited investors the ability to benefit from grocery-anchored, multifamily and industrial commercial real estate assets.
FNRP gives you access to necessity-based real estate. This means the properties are essential to the local community, often leased by national brands like Krogers, Walmart, or CVS, and are more likely to stand the test of time amid economic change.
Once a deal is closed, FNRP’s team of experts manages every aspect of the deal, so you can enjoy the potential quarterly distributions and focus on finding your next big real-estate opportunity.
Private real estate funds
Last, but certainly not least, there are various companies that put together funds made up of a basket of different real estate investments.
For example, with Fundrise , you can invest in several different real estate funds, each calibrated for consistent growth. Fundrise's real estate funds include a wide range of assets, including residential and commercial properties and real estate loans, ensuring diversification within your portfolio.
You can start investing with Fundrise by signing up and answering a few questions about yourself and your investing preferences and risk tolerance. Then Fundrise will suggest a portfolio best suited to your goals
