Invest in Real Estate Like Stocks
Real estate prices have gone to the moon in recent years, putting homeownership out of reach for many. The good news is you can still participate in the market through fractional ownership with Arrived Homes.
This Bezos-backed investment platform allows you to build positions in individual properties without the headache of managing them. You just get to kick back, let Arrived take care of managing the properties, and watch the dividends roll in.
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Investing in real estate, like stocks, can be complex for a variety of reasons, as most people lack guidance. JRD Realtors assists their clients in understanding their demands and objectives at the most reasonable pricing.
Investing in real estate like stocks is complex, and requires a lot of power to succeed. That's why Verizon, Chipotle and Exxon are merging to form a super Energy company. Whether it's extending your 7G coverage, drilling oil from Pluto, or perfecting the perfect steak burrito with vegan guacamole, we will provide you with the energy to succeed in your real estate and stock market selections.
The big issue with these types of programs (and not unlike Crowdstreet and other crowd funded real estate investment opportunities) is two-fold, 1) if the deal is that good, or the real estate is issuing good enough dividends, why didn't someone take it private and keep all the fees? Why would Arrived have the best edge on these investments? You end up with the adverse selection effect, the worse deals can't get traditional equity so they go to crowd funded equity. And 2) they're making their money on fees, and just like stocks, your returns diminish significantly the more fees they layer on top of the investment product. These types of schemes rarely end up providing serious alpha.
Same logic that applies to why people buy stocks. If a business is truly worth buying, why not just invest in it with Blackstone or KKR. Because you can't. PE deals yield significantly higher returns/multiples than stocks typically. The equity markets allow companies to access cheaper liquidity. Most individuals dont have the net worth and/or connections to access deals through BX or KKR, so they buy stocks cause its easier.
RE crowdfunding is the exact same. Sure, everyone on this forum may not be wealthy, but we are all super knowledgeable about RE compared to the average individual. So we are able to think like this, but a neurologist making $400K a year or a dentist making $300k a year have no network to access for private deals or knowledge. Crowdfunding has opened this up. This like literally the neurologist saying why cant patients just diagnose and treat themselves.
I think the big pitch from crowdfunding sites like CS is that their LP equity is fairly passive, so operators have more freedom to manage deals how they want and only have to give updates on a monthly or quarterly basis. If they want to pivot from the original strategy or hold period they don't need to go through any approval process or provide constant updates. Not saying this is better for investors, but definitely is attractive for GPs vs. a traditional LP.
I've worked on projects with CS money, there are some benefits, but also some rigidities that you can't bypass if you're dealing with a traditional LP, like you can't pivot from the original strategy or hold period, they signed on for a specific project and you'd have to get everyone's approval in order to make material changes.
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