I love investing in real estate. In the past, I’ve flipped homes and owned rentals. In the most dramatic example of the former, I flipped a fancy lakefront home:
My current home is nothing to sneeze at either:
However, I haven’t been very successful at flipping or renting lately. We live in a white-hot housing market where bidding wars are the norm for single-family homes. And it’s even worse for multi-family units.
Last year, a four-plex came on the market for $800,000. It was bringing in about $6,000/month in rent. The units needed a lot of work and weren’t in the best part of town. It was overpriced, but that didn’t stop a bidding war from breaking out anyway. It sold for $960,000. No thanks.
Investing in Real Estate without the Hassle
I’ve found other ways to invest in real estate through private lending and crowdfunding:
Private lending: I have loaned $314,671 in the form of 4 loans. They bring in $2,525/month or $30,300/year. I love these numbers and I’m eager to loan more money this year.
Crowdfunding: I’ve been investing with Fundrise for almost 2 years and have earned a consistent 10% return. Other platforms that I’m deploying money to include RealtyMogul, PeerStreet and RealtyShares. These companies are young, so these investments are an experiment. However, I think they have a lot of potential and offer a nice alternative to a traditional REIT.
My article over at InvestmentZen explains private lending and these crowdfunding platforms.
And if you still can’t get enough of me, meet me over on Budgets Are Sexy to talk about kid finance and fidget spinners!
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