The Benefits and Advantages of Investing in Real Estate

Whether you are looking to invest in commercial properties or residential buildings, there are many benefits to becoming a real estate investor. It’s also nice to know that you don’t need tons of money to get started. In fact, when you use services like HappyNest real estate, you can begin your investment journey with just $10. If you’re interested in real estate investing but you’re not sure about how it might help you or your commmunity, here’s a quick guide to some of the most basic benefits of real estate investing.

Real estate provides value for both individuals and communities alike

Real estate investment is one of the best ways to give back to your community. Residential real estate properties provide people with a place to live while they attend school or start a new career. Conversely, if you’re interested in commercial real estate properties through HappyNest real estate or any other investment service, then you are giving a business that provides valuable products and services to a community a place to set up shop. Investing in properties is an excellent option if you want to be sure that you are creating a positive effect as a result of your investment decisions.

Real estate investing is an excellent source of passive income for non accredited investors

For many people who are unfamiliar with commercial real estate investment companies such as HappyNest real estate, the concept of placing their hard-earned dollars into real estate investments can seem like a major risk. But in fact, real estate investing is one of the wisest forms of investment there is. Sure you could take the risk of playing the stock market, but returns on stocks are far more speculative and volatile than investments in physical properties. With real estate investments, you are building a reliable source of passive income. Just think about it, by investing in rental properties where tenants pay monthly rent, you are constantly gaining income just by investing a part of your income.

Tax Benefits

Many established and recent tax laws make real estate investment an excellent source of residual income for investors of all kinds. As a matter of fact, the tax benefits received an added boost from the new tax laws that went into effect this year. The law now allows for a 20% deduction of income received through pass-through entities such as LLCs. As an additional tax benefit, many real estate investments allow you to delay the paying of taxes on a property. Of course, you should always consult with an accountant before making any final decisions. Still, there is no denying that the tax advantages of investing in a commercial property or a residential property are both numerous and lucrative.
 

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How to Get Started in the World of Real Estate Investing

You’ve probably heard that real estate investing is a great way to earn extra income and fund your nest egg. There are many benefits to putting your money into vetted real estate properties. So you might be wondering how you can get started? Here are a few simple tips for taking your first steps into the profitable world of real estate investing.

Organize Your Finances

Before you get too excited and launch into your first investments, you should make sure you have your financial life in order. Far too many people make investments without clearly defining their goals or knowing how much money they even have available for real estate investing. Don’t make this mistake. Even if you crunch the numbers and discover that you don’t have as much income for investing as you may have thought, that’s far better than taking a blind leap into real estate. Those who set a budget and have clarity of their finances will ultimately be more successful than those who go in without a plan.

Learn the Real Estate Market

It’s safe to say that earning income through real estate investing is a trend that’s here to stay. You need only to look at the sheer size of the residential real estate market to see that’s it a great place to invest your money. While you don’t have to become an expert in all the details of the market itself, it does help to do some basic research on the state of the market, including learning about the fundamental concepts and any emerging trends. Doing so will make you a more informed, better-prepared investor, regardless of which approach you take.

As an asset class, residential real estate is a $29 trillion market. The commercial sector adds another $10 trillion. For experienced investors and new investors, investing in a residential or commercial property is an excellent way to build wealth. In fact, real estate investing is one of the most lucrative ways for independent parties to gain cash flow over time.

Use a Real Estate Investing App

The HappyNest app and similar real estate investing apps make the process of starting your investment portfolio easier than it would otherwise be. In the past, you would have to consult with a broker in person. Even then, you would face hefty commission fees that cut into your take-home profits. With the HappyNest app, you don’t have to worry about this. Your account will not diminish your profits, and you can get started with a small sum. Real estate investing apps are only getting more popular, and they are an excellent option for the beginning investor and the experienced investor alike.

With the HappyNest app, you don’t need a lot of money to get started in building your real estate portfolio. The HappyNest app lets you take your first step into the world of real estate investing with as little as $10. Even if this amount seems too small to make a difference, it adds up over time. If you’re interested in using the HappyNest app to start your journey, then do not hesitate to get in touch with a member of our team today. We would love to help you make money and start building your nest egg through real estate investing.
 

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How Real Estate Investing Can Help You Move Closer To Financial Freedom

Financial freedom is something that most people want, but few people achieve. Of course, there are many different reasons for this. Some people lack the information or financial resources. Others enjoy some good old procrastination. Whatever your barriers are, it’s important to know that you have the power to achieve financial freedom.

One of the best ways to do so in a steady, reliable way is to invest in real estate. While it may seem like a complicated and confusing subject at first, you’ll soon discover that by educating yourself and making use of the best real estate apps, you’ll be well on your way to achieving your financial independence through real estate investing.

Here are a few simple tips to get you started on your journey.

Define Your Goals

Before you get into the nitty-gritty of real estate investing, it’s wise to outline your personal goals and benchmarks. Sure, you can dig into the numbers and get exact about your goals, but it may also be helpful to determine what you hope to achieve along your journey toward financial freedom. It’s a good idea to get your mindset right before delving too deep into the specifics of real estate investing.

Learn, Grow, and Adjust By Using the Best Real Estate Apps

The best real estate apps offer clarity in both their design and their investment options. It’s crucial to choose a real estate investing app that allows you to adjust your pacing, strategy, and approach based on your own goals and limitations. While financial freedom is an attractive idea to almost everyone, the steps that each individual must take to achieve financial freedom are always changing. By using the best real estate apps you can stay on top of your path toward achieving wealth by learning about the market and making adjustments as you move forward.

Follow the Habits of Others Who Have Achieved Financial Freedom

You need only to take one quick look at some of the typical habits of those who are wealthy to see that real estate investing is a wise move for anyone who is looking to move themselves and their family closer to financial independence. A 2017 study by UBS and Campden Wealth revealed that the ultra-wealthy invest an average of 15% of their portfolio into real estate. While real estate investing can cover a range of strategies to provide residual income, some of the most popular choices include investing in a local commercial property for sale or using investment services to discover the right properties in any given area. Whatever the case, it is always helpful to consult with the best real estate apps for up-to-date information, investment strategies, and advice from professionals in the field. Whether you’re looking to invest in real estate with $10 or $500, knowing that this is a common strategy among the wealthy will give you the confidence you need to continue.

It doesn’t matter if you’re brand new to the world of real estate investing or if you’re an experienced mover and shaker, seeking your financial freedom is an excellent goal to set your sights on. However you approach it, you’re going to need to use the right tools to make the right choices in the investment world. This is where using the best real estate apps can offer you an incredible advantage. At HappyNest, we pride ourselves on offering one of the best real estate apps available in today’s market. Get in touch with a member of our team for more information. We would love to help you take the first steps toward securing your financial freedom through real estate investing!
 

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Playing Lotto Vs. Real Estate Investing

Have you ever wondered why there are no income restrictions on who can play the lottery, but until recently, only the wealthy could invest in commercial real estate?

We’re conditioned to believe it’s a worthy investment (and even fun) to throw cash away on something with odds of 1 in 302,575,350, yet we’re restricted from accessing most real estate investing platforms that have much better odds, because of their high minimum investments. The math doesn’t add up.

The Washington Post reported that the average amount spent by each American on lotto tickets annually has doubled since 1995. There was over $72.7 billion spent on lottery tickets in 2016 which amounts to approximately $600 a year for the average American lotto player. The truth is, the lottery is little more than a tax on middle to working class people seeking a better financial future.

Slogans like “you gotta be in it to win it” and “a dollar and a dream” are created to make you think the lotto can make you rich, when in reality they’re just masking the truth that it won’t.

It’s time for us to get smart and stop paying into the system!

If that same lotto player was to invest $600 a year (or $50 a month) into private market commercial real estate, in just 10 short years, they would have accumulated approximately over $10,000! (That sounds like a lot better deal than losing $6,000, which is what most lottery players will experience.)

Perhaps the real estate investors seeking high-quality commercial real estate investments have it all figured out. You don’t have to be a real estate industry expert to experience the same results.

Our message is simple. Skip the lotto, invest in high-quality commercial real estate, and grow a nest egg. You’ll make all your lotto-playing-friends rethink their strategy too.

Now who’s in it to win it?

 

Written by Jesse Prince

Jesse Prince is the CEO and Co-Founder of HappyNest and has more than ten years of experience as a real estate investor, advisor, and financial analyst. He is a licensed real estate broker in NY and has over $500 million in real estate transactional experience. Jesse has earned a B.S. from the United States Military Academy at West Point and a Masters in Real Estate Finance from New York University, graduating with “distinction.” Jesse is proud to be a combat veteran and loves watching Army West Point win football games. Go Army! Go HappyNest!

The Best Way to Build Your Nest Egg Through Real Estate Investments

Do you fear outliving your money? Many people do. But if you start now, you can build a nest egg that provides the lifestyle you want, even after you stop working. Once you decide to save, you still have to determine where you want to invest your hard-earned dollars. Many people default to stocks and bonds.  Instead, consider building your nest egg by investing in real estate.

Start With Your Retirement Plan

If you work for a company, your employer probably offers you a retirement plan, such as a 401(k) or 403(b). These plans enable you to invest with pre-tax dollars, so you don’t pay taxes until you take the money out during retirement. Some companies match your own investment up to a certain percentage. So, if you contribute 5 percent, they add 5 percent, too. That’s getting free money.

You can also save pre-tax dollars in a traditional IRA and post-tax dollars in a ROTH IRA after you reach the contribution limits of your company plan. Most retirement plans limit contributions based on your age and income. So make sure you research the guidelines before making investments.

While many financial institutions restrict the types of investments you can use in their IRAs, some offer Self-Directed IRAs (SDIRAs). SDIRAs enable you to invest in alternative investments, including direct investment in real estate projects. But keep in mind that you can’t transfer ownership of real estate you already own to a Self-Directed IRA. SDIRAs require arm’s length transactions, so you can’t purchase personal property, like a primary residence, second home or vacation home. You also can’t do real estate deals with immediate family members.

Invest in Real Estate

Most employer-sponsored retirement plans and traditional IRAs allow you to make your investment choices only inside the plan. Many investors opt for stocks, bonds or mutual funds, but you can also invest in real estate using Real Estate Investment Trusts (REITs).

A REIT or Real Estate Investment Trust is similar to a mutual fund, but you invest money in real estate projects instead of stocks and bonds. The REIT uses the invested funds to buy and operate commercial and residential real estate that generates income. It can also finance real estate deals. The REIT manages properties and collects rents from the building’s tenants. Then it pays a portion of the lease payments to Investors in the form of dividends. In fact, REITs have to pay out at least 90 percent of taxable income to shareholders as dividends.

A board of directors manages each REIT, which must have at least 100 shareholders. (No fewer than five shareholders can own 50 percent of the shares). The REIT also has to invest at least 75 percent of its assets in real estate, cash or U.S. Treasurys, and generate 75 percent of its income from real estate. Finally, 95 percent of income has to come from passive sources like rents.

Use Self-Employed and Self-Directed Retirement Plans

If you’re self-employed or own your own business, you can use an SDIRA,  Solo 401(k), SEP or SIMPLE IRA to sock away money for the future. Each of these retirement plans can hold physical real estate.

Similar to employer-sponsored plans, you can invest with pre-tax dollars. You use the money invested in the plans to buy and operate the real estate projects. Plus, if you reinvest the income produced from the properties, you don’t pay taxes until the plan distributes your savings during your retirement years. Again, regulations restrict the real estate deals to arm’s length transactions.

Supplementing Your Retirement Plans

In addition to retirement plans, you can build your retirement nest egg by direct investment in real estate. Some real estate investors like to flip properties, but this can be expensive, time-consuming and bank-account-draining if you get stuck with a house that doesn’t sell quickly.

A better strategy is to buy properties that generate cash flow. Cash flow means money is left over each month after you collect and pay the mortgage, upkeep and other expenses for the property.

After you retire, you can continue to take the income from rents, or sell it if the property has increased in value. Except in rare cases, real estate value generally increases the longer you hold onto it.

You can avoid the hassles of managing your own real estate by investing in crowdfunded real estate projects or real estate platforms like HappyNest. In fact, HappyNest lets you start investing in real estate with as little as $10.

Get Started Now

Now that you know how to build your nest egg, it’s time to get started. No matter which kind of real estate investment you choose, first  max out your pre-tax and post-tax retirement plans. Then you can put your additional dollars in the real estate investments that suit you the best.

Chris Brantley, the author, is a freelance writer, who has written about finance and investments since 1998. He has contributed to various financial and investment publications and web sites, including The Motley Fool.

References:

Are REITs Right for Your Retirement Portfolio?

Should Real Estate be Part of my Retirement Plan?

Comparing Self-Employed Retirement Plans: Solo 401(k) vs. SEP IRA vs. SIMPLE IRA
 

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A “101” Guide to Real Estate Investing for Beginners

Investing in real estate can provide numerous financial benefits, and is a great way to build a nest egg. Using research tools, such as books and blogs, and asking real estate professionals for advice, beginners can learn to invest and profit from real estate.

Why Invest in Real Estate?

Real estate investing provides personal control over wealth along with opportunities for appreciation, cash flow, leverage, depreciation and income. Another way to increase value on your investment is by earning sweat equity and fixing up the property yourself, an option unavailable with paper money investments.

How to Get into Real Estate

When you begin the process of real estate investment, first identify your goals. If you need assistance, professional partners can answer your questions. A financial planner or advisor can help you with the first step of determining your readiness as well as a financial plan. A real estate agent with experience in real estate investment properties can also be a big help. Look for someone with commercial experience, or contact a commercial brokerage. Commercial real estate brokers are trained to assist in analyzing commercial real estate investments.

Another way to get into real estate is by joining a real estate investment group. These groups make the decisions for you with your input, and invest your money into a pool with other people. Although note that real estate investment groups, also known as private equity groups, traditionally require investors to be accredited, but an easy option to get started with non accredited real estate investing could be to invest in HappyNest with as little as $10.

How to Choose the Right Real Estate Investment

Consider your goals when planning your real estate investment. Questions to ask yourself include these:

  • What is the term of the lease?
  • How much can you invest?
  • Is the real estate located in a high quality market?
Types of Real Estate Investments

Both residential and commercial real estate can be used for investment. On the residential side, owning as home can be considered an investment, especially if you buy in a rapidly growing market. The appreciation will pay off when you sell. Also, residential homes can be used for short term rentals, via agencies like Airbnb and Homeaway. Some homeowners have opted to purchase a home with a basement apartment or mother-in-law unit that can be rented out for short-term rentals or long-term leases.

Other commercial investments include both residential and commercial properties. Residential real estate means homes and condos and buildings zoned as residential, while commercial property can include apartment buildings, multiplexes, office buildings, industrial buildings, manufacturing space, and income producing properties such as parking lots or retail venues. Another way to invest is by putting money into an exchange traded fund, or ETF. This is a fund that invests in stocks issued by real estate trusts, or REITS.

Whatever you decide, owning the property and the entrepreneurial aspect of real estate investing can be lucrative, stimulating and even fun.

This article was written by Melanie Grimes. Melanie has been a writer, blogger, and real estate professional for over 20 years. She writes for various websites on real estate, travel, and health. Grimes attended Barnard College, Bastyr University, and Western Washington University with degrees in English and Communications.
 

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