The Need to Know About Compound Interest and REITs

Many investors are flocking to real estate investment trusts (REITs) because they’re considered a relatively safe and high yield investment. Some dividends can be 10% or higher and offer the potential for capital appreciation. Approximately 84% of real estate investors indicate that they will make another investment soon, and compound interest can help them achieve their financial goals faster. Here’s what you need to know about compound interest and how it applies to REIT investing.
What is Compounding Interest?
Compounding interest is the concept that your money makes you more money over time when the interest compounds on your original investment and interest earned. Compounding interest creates a snowball effect that can accelerate the value of your investment. For example, if you invest $1,000 at an annual interest rate of 10%, you will have $1,100 at the end of year one. If you leave the interest earned ($100) and the original investment ($1,000) in your account and earn another 10% in year two, you will have $1,210 at the end of year two. Fast forward 30 years, while continuing to earn 10% annually and not making a withdrawal on your account, you will have $17,449.4. Conversely, if you decided to withdraw the $100 interest earned every year for 30 years, you would have only received $3,000 in interest (30 years x $100) and still have just $1,000 in your account. In this scenario, the effect of compounding interest generated more than four times the amount of money compared to making annual withdrawals.
How Can You Use Compounding Interest to Your Advantage?
Compounding interest takes patience but is not difficult to use to your advantage. Most REITs and brokerage platforms offer a dividend reinvestment plan (DRIP). By enrolling in a DRIP, you are reinvesting your dividends back into the REIT or stock that you own. Over time, you will own more shares of the REIT or stock, and the dividend payments will become greater (assuming consistent dividend payments over your investment period). When you redeem your shares in 5, 10, 15, or 30 years, you will see the fruitful effects of compounding interest.
Why Does It Matter?
If you don’t harness the power of compound interest, you may be cutting yourself short of your actual earning potential. Non-accredited and passive real estate investors are already generating a massive amount of wealth using the power of compounding interest by investing in REITs with DRIPs.
If you’re looking to maximize your investments’ value, compound interest can help accelerate your portfolio’s growth over time. To learn more about compound interest, speak with one of the professionals at a commercial real estate investment company online, or better yet, in person, with someone local. Ask them how you can reach your financial goals faster by harnessing the power of compound interest.


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Make Money From Anywhere By Investing In Real Estate

According to Forbes, a full quarter of Americans have zero savings in their retirement accounts. Saving up for retirement does not mean working three jobs and surviving on barebones. Passive income is the solution most U.S. households are looking for! Start earning passive income today by using commercial real estate investing applications. Here are a few things to expect from the best investor apps:

The Best Investor Apps Are Completely Portable

Whether you are at home or on-the-go, one of the benefits of investing in real estate through an app is that you can do it from anywhere. Once downloaded, you can access the applications as long as you have your smartphone or tablet on-hand. These apps afford you flexibility and options. The HappyNest app, for example, enables you to review your investment portfolio and adjust important account settings directly on the app.

Real Estate Investing Can Be A Background Activity

What is passive income? Investopedia defines passive income the following way: “Passive income is earnings derived from a rental property, limited partnership, or another enterprise in which a person is not actively involved.”

This income is–as you might expect–passive or something you can do with minimal effort. Given Americans’ always-busy lifestyle, a form of income that requires minimal attention is a promising prospect. While some employers and the media tout busyness as a status symbol, according to the Atlantic, all of us fall into the trap of rising to meet those expectations and having packed schedules with very little time to spare.

With the best investor apps, earning extra money and doing it while busy is possible. Simply decide how much you would like to invest and leave the rest to the professionals on the investment team. The properties pay dividends, which increase your profits and allow you to diversify your retirement portfolio income.

Support Through The Whole Process

One of the most challenging parts of investing in real estate for profit is not knowing where to get started. A full 89% of Americans are interested in adding real estate to their investment portfolio. Often, a person’s interest does not convert to action because they do not understand what to do next.

The best investor apps get rid of the guesswork. Many of these apps walk you through setting up an account, and their investment teams select the best properties for you. If you have any questions, many apps offer full in-app support.

The current facts on Americans’ finances may seem grim. In a nutshell:

CNN reports that 60% of U.S. households do not have enough emergency savings for an expense in the $500 to $1,000 range.

A surprising 78% of Americans live paycheck to paycheck, Forbes reveals.

According to USA Today, 42% of would-be parents do not feel financially prepared to have a child.

The good news is that these insights and circumstances are not set in stone. U.S. households can take action to reverse these trends–and they can do it with minimal effort by using real estate investing to earn and save passive income.

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What Should You Do to Prepare for Real Estate Investing?

The world of real estate investing is more popular than ever before. With greater awareness of the benefits of real estate investing and tools such as real estate investment apps, it’s no surprise that so many people are eager to get their piece of the pie. But it’s essential to be prepared before you jump in. If you’re looking to get started on your first real estate investment, then here are a few simple tips you should keep in mind to ensure that your launch is a success both for you and for everyone involved.

Get Your Finances in Order

Before you get too excited and hop into your first investment, it’s a good idea to do a complete assessment of your financial situation. Make sure you have adequate funds to achieve the types of goals you have in the investing world. Make concessions for the following year’s taxes, and any unexpected expenses that may arise. When you’re prepared financially, you are far less likely to make a costly mistake when it comes time to pull the trigger on your first real estate investment. Consulting with a certified financial planner or accountant may be necessary, depending on the complexity of your particular situation.

Learn About the Market Through Commercial Real Estate Investment Services

While you certainly do not need to become an expert on the commercial real estate market, it helps to dip your toes into the water before committing full stop. Did you know, for example, that since the year 2000, real estate has outperformed the stock market approximately 2-to-1? That’s quite an astonishing figure, one that creates even more of an incentive for you to learn about the real estate investing space as you start to get involved.

To learn more than you could alone, you should keep in mind that there are many commercial real estate investment services that can help you on your journey. You do not have to do it alone. When you work with a reputable local company, you will gain even more valuable insights that will build your confidence as you prepare to delve into the world of commercial real estate investing.

Consider Using a Real Estate Investment App

In a world that uses mobile technology for more and more applications, it’s no surprise that real estate investment apps are on the rise. With the right real estate investment app, you can accomplish a variety of tasks all from the comfort of your mobile device. That means you can check in on your investment portfolio, get up to date information, and make plans for your next move in the market, whatever that may be. A real estate investment app gives you more flexibility to pursue your investment goals than ever before.

At HappyNest, we provide one of the best real estate investment apps on the market. We offer a variety of services and insights that cannot be found, even among some of the top investing apps. When you add to that our experienced team of knowledgeable real estate professionals, then you have a winning combination that makes for an excellent experience both for those who are brand new to generating residual income with real estate and for those who are a bit more seasoned. Get in touch with a member of our team today for more information.

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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 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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