Author: Jesse Prince

The Benefits and Advantages of Investing in Real Estate

By Jesse Prince

 

Whether investing 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 where to start, here’s a quick guide to some of the most basic benefits.

Real estate investing is an excellent alternative investment to the stock market

When we think of investing, we often think of the stock market. However, most professional investors agree that while the stock market is on a bull run, it seems to be disconnected from reality.

While no investment is entirely risk-free, real estate investment is an attractive alternative. A big part of that is that real estate has a long history of building wealth for some of the county’s wealthiest people.

Real estate is widely considered to be a viable hedge against inflation. Inflation is currently on an aggressive incline which clocked in at 6.2% for the 12 months ending in October 2021. (Source: Department of Labor).

When inflation is high, the Federal Reserve may raise interest rates, which historically causes sell offs in the stock market.

Real estate investing is an excellent source of passive income for beginner 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. You could risk playing the stock market, but returns on stocks are far more volatile than investments in physical properties. With real estate investments, you are building a reliable source of passive income. By investing in rental properties where tenants pay monthly rent, you are are. making the income you generated, generate income for you.

Tax Benefits

Tax laws make real estate investment an excellent source of residual income for investors of all kinds. 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.

How to Get Started in the Real Estate Investing World

By Jesse Prince

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 take an audit of your personal finances. Far too many people make investments without clearly defining their goals. another common mistake is that they don’t or know 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 financial situation will ultimately be more successful when they do get started in real estate investing than those who go in without a plan.

Additionally, taking a full audit of your financial situation – your income, your outgoing expenses, your overall assets vs. liabilities – will be a crucial step in upping your financial literacy as you get started in real estate investing.

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 research on the state of the market, including learning fundamental concepts and 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 getting more popular. 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 get started with real estate investing for 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, you can download it in the App Store. We would love to help you make money and start building your nest egg through real estate investing.

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

By Jesse Prince

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 knowledge 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. But you’ll soon discover that by educating yourself and engaging financial tools, you can start your journey toward financial independence.

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.

From there, you can reverse engineer the steps you’ll need to take to get there.

For example, if you set very aggressive goals, you’ll have to allocate more funds every month and be diligent about adhering to your targets. If you give yourself a long runway in terms of years to achieving financial independence, you might only need to tuck away a small amount of cash every month. But you’ll need to do so over a longer period of time.

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 required to achieve financial freedom vary. By using investment 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, research 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.

Whether you’re brand new to real estate investing or a seasoned veteran, financial freedom is a worthwhile goal. After all, studies have shown that despite popular belief, money does play a role in overall life happiness.

However you approach it, you’re going to need find the right tools to give you access to investing opportunities. 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!

financial freedom allows you to enjoy life more

Skip the lotto – put that money in a solid real estate investment

By Jesse Prince

Everyone wants to build wealth and have financial stability in their lives. Financial independence? Even better. Whoever said that ‘money can’t buy happiness,’ probably doesn’t fully understand how many life stressors can be resolved with money. In fact, for the majority of people, money is the number one stressor in their lives.

Real estate investing is one of the most consistent paths to building real wealth. Yet many people invest in zero-sum games where they will lose their investment with almost certainty.

Real estate investments are not a gamble

Real estate investments are a tried-and-true pathway to financial stability. In fact, nine out of 10 millionaires build wealth thanks to strategic real estate investments.

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 investment platforms that have much better odds, because of their high minimum investments. The math doesn’t add up.

According to the Washington Post, 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” make you think the lotto can make you rich. In reality, they’re just masking the truth. It won’t.

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

Up the odds: Real estate investing is a concrete way to build wealth

If that same lotto player was to invest $600 a year (or $50 a month) into private market commercial real estate, in 10 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. Prioritize high-quality commercial real estate investment 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?

We can’t leave our financial futures up to luck.

 

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 Investing in Real Estate

By Jesse Prince

Do you fear outliving your budget? 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. But saving up the funds isn’t quite enough. You’ll need to invest in order to not only put away cash (which is fighting against inflation), but invest it.

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 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.

Build Your Nest Egg Investing in Real Estate

Most employer-sponsored retirement plans and traditional IRAs allow you to make your investment choices only within 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. Treasuries, 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

If you’d like to learn more about investing in real estate, download our free ebook.

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