11 Reasons why Concreit is a Great Real Estate Investing Strategy for Earning Passive Income
October 6, 2022
Real estate investing isn't just for the rich anymore. Today any investor can take advantage of a real estate investing strategy using Concreit. The investing app is for any investor, including non-accredited investors, making real estate investing a reality for more people today.
What Is Concreit
Concreit is a digital investing app that makes real estate investing available for everyday investors. You don't need a lot of capital to invest, as you invest in a real estate investment trust. The trust pools the money from multiple investors to buy, manage and operate its real estate investments.
The lack of capital required for real estate investors allows more investors to take advantage of rental property and its income potential.
How to Invest in Real Estate With Concreit
Investing in real estate is easy with Concreit. Investors need as little as $1 to start, and Concreit pools the money together to purchase real estate investments. However, real estate investors don't get a say in which investment properties they invest in. Instead, the trust determines which properties it will purchase and manage, which makes this real estate investing strategy a passive income opportunity.
When you invest with Concreit, you buy shares of the company, similar to mutual funds. Most funds are liquid after one year despite the underlying assets (real estate) not being liquid. Usually, when you make a real estate investment, your money is tied up until you sell the property, but that's not the case with Concreit.
Concreit, like all REITs, must pay out at least 90% of its profits to shareholders. This helps you earn a positive cash flow from the real estate investments, which you can either reinvest or keep as cash flow.
Passive Real Estate Investing Vs. Active
You'll come across passive and active real estate investments as you explore the different types of real estate investing strategies.
A passive investment strategy is what Concreit offers. You invest your money in the fund, sit back, and enjoy the cash flow and capital gains. Investors only have to decide how much they will invest.
On the other hand, an active real estate investment requires you to buy and manage real estate. In short, you are a landlord managing rental properties. As an active investor, you are on call 24/7 and responsible for all maintenance, repairs, tenant screening, rent collection, and filling vacancies.
11 Reasons Concreit Is a Great Real Estate Investment Strategy for Earning Passive Income
If you're looking to start a passive investment strategy with real estate investing, here are 11 reasons to use Concreit.
- Inflation Hedge
Real estate is often a hedge against inflation. When inflation rates increase, real estate property values increase too. This is the opposite of most investments, especially those in the stock market.
There's no guarantee the physical real estate included in your real estate investment trust will appreciate, but historically, real estate properties perform well in periods of inflation.
- Income Potential
Income-producing properties provide you with cash flow, not just capital gains. Choosing rental properties can be a good option if you're considering investing money in physical real estate. When you invest with Concreit, a portion of your portfolio will likely be invested in income-producing properties. This means you can earn rental income, aka monthly cash flow.
Diversifying your investment portfolio is the key to avoiding a total loss. If your investing strategies revolve around one asset, you risk losing everything. For example, if you put all your money in one stock and the stock crashes, you lose everything.
If you included real estate strategies in your portfolio instead of putting everything in the stock market, you could offset the losses the stock market experiences or vice versa. Adding real estate investment trusts to your portfolio allows you to include real estate investment strategies without owning real estate yourself.
- High Returns on Average
No investment can guarantee its returns, but Concreit has a history of 5.5% - 6.5% returns. This may be lower the average annual stock market return, but it doesn't have the ups and downs the stock market experiences.
- Easy to Use
When you think about how to start real estate investing, it's easy to get overwhelmed. Buying properties, finding the right property management company, setting the rent, managing the tenants, and maintaining the property can be a lot.
Concreit, however, makes it easy to invest in real estate. Once you set up your account and link your bank account to fund it, your only job is to decide how much you want to invest in real estate. There aren't any big decisions to make or real estate to manage.
- Low Minimum Investment
Most people assume they need a lot of capital to have a real estate investing strategy. To buy properties outright, this is true. But with Concreit, you can invest in real estate with as little as $1. While the more money you put toward real estate investing, the more you'll earn, it's great to know that you can become a real estate investor with as little as $1.
- Long-Term Capital Preservation Asset
Not all types of investment strategies preserve your capital. Take stocks, for example. You can't assume they will appreciate giving you an excellent return on your investment when you're ready to liquidate them.
On the other hand, real estate typically increases in value each year. Of course, there's no guarantee this will happen, but historically, the values increase, giving you a decent return on your investment when the investment matures.
- Withdrawal Simplicity
Most real estate investing strategies don't include the opportunity to withdraw funds. However, Concreit provides access to your funds should you need them. It's best to wait until you own the investment for at least one year as you'll pay fewer fees, but if you have an emergency, the funds are often available. However, receiving your funds may take a little longer, so keep that in mind if you have an emergency.
- More Liquid Funds
We talked about this above, but it's worth repeating. Your funds are liquid should you have an unexpected emergency or realize you were too aggressive when investing in real estate. Of course, there are fees, so you won't see all your money, but knowing you can access your investment in an emergency is reassuring.
- Tax Advantages
Even though you aren't investing in physical real estate, there may be certain tax advantages when you use a real estate investing strategy with REITs. For example, you may be eligible for certain tax deductions, including depreciation, but always discuss this with your tax advisor first.
- Low Risk
No investing strategies are without risk, but Concreit invests in real estate, which historically appreciates. This doesn't mean you can't lose money because everyone can, but the risks are lower when you diversify your portfolio with real estate investment trusts.
Concreit Real Estate Investments: Risk Vs. Reward
All investment strategies have risk, but the more chance you take, the larger the reward you earn. As a beginner real estate investor, Concreit can help offset the risk of a significant loss by investing your funds with other real estate investors to invest in commercial real estate with the potential of monthly rental income and capital gains.
Concreit Pricing & Fees
Concreit makes real estate investing affordable. You don't need to come up with the capital to buy a property yourself or even a down payment for a mortgage. Instead, you pool your funds with other investors to take advantage of real estate's returns.
To invest in Concreit, you'll pay fees based on your investment. For example, if you invest $5,000 or less, you'll pay $5 a month; if you have over $5,000 invested, you'll pay 1% of your assets under management annually.
How to Start Investing in Real Estate With Concreit FAQ
Is Real Estate a Good Investment?
Real estate investing can be an excellent way to diversify your portfolio. Of course, no investment is risk-free, but real estate historically appreciates, so it can be a good way to provide more cash flow and reduce the risk of a total loss. Using Concreit for real estate investing can help you enjoy the returns of a real estate investing strategy without the risk of owning it yourself.
What Is the Best Investment Strategy for Those Looking to Make a Lot of Money Quickly?
There isn't a get-rich-quick investment strategy. Real estate investing, for example, is a buy-and-hold strategy. To make the returns you desire, you should hold onto the investments long-term if possible to increase your chance of capital gains and monthly rental income.
What Is Residual Income?
Residual income in real estate investing is the money left after covering the cost of running a real estate investment property. The net income is calculated after taking care of all expenses involved in maintaining the investment.
Can You Get Rich From Passive Investing?
You can get rich from many types of investing strategies, but no strategy will 100% get you rich. It's best to create a diversified portfolio that includes real estate investments, such as rental properties, to help you reach your goals of earning passive income and becoming rich.
Why Should I Add Real Estate to My Portfolio?
There are many reasons to add real estate to your portfolio. Real estate is a tangible asset that can appreciate in value over time, providing you with the potential for long-term capital gains. Additionally, rental income from investment properties can provide you with a source of regular passive income.
Real estate is also a relatively safe investment, especially when compared to stocks and other types of investments. The risks associated with real estate are typically much lower than those associated with other types of investments, making it an ideal choice for risk-averse investors.
What Is Direct vs. Indirect Real Estate Investing?
Direct real estate investing involves purchasing property outright, either for personal use or to generate income through renting or selling. Indirect real estate investing, on the other hand, entails investing in real estate-related securities, such as REITs (real estate investment trusts) or real estate crowdfunding platforms.
The main difference between direct and indirect real estate investing is the amount of time and money required to get started. With direct real estate investing, you’ll need to have a significant amount of capital on hand to purchase a property.
Is a Real Estate Investment Group Considered an REIT?
REITs are required to have diversification in their investment portfolio, so they may not invest solely in real estate. However, many real estate investment groups (REIGs) focus their investments on real estate projects.
Some REIGs are considered to be REITs, while others are not. To qualify as a REIT, a company must meet certain requirements set forth by the IRS. These requirements relate to the company's organizational structure, asset diversification, and income distribution. Many REIGs do not meet all of the requirements to be considered a REIT.
Concreit Real Estate Investing Strategy: The Bottom Line
Using Concreit for your real estate investing strategy can help you reach your financial goals. Diversifying your portfolio with real estate investment strategies can help you earn passive income, take advantage of capital gains, and become a real estate investor without owning real estate assets yourself. Learn more by signing up and visiting our blog.
This information is educational, and is not an offer to sell or a solicitation of an offer to buy any security which can only be made through official documents such as a private placement memorandum or a prospectus. This information is not a recommendation to buy, hold, or sell an investment or financial product, or take any action. This information is neither individualized nor a research report, and must not serve as the basis for any investment decision. All investments involve risk, including the possible loss of capital. Past performance does not guarantee future results or returns. Neither Concreit nor any of its affiliates provides tax advice or investment recommendations and do not represent in any manner that the outcomes described herein or on the Site will result in any particular investment or tax consequence.Before making decisions with legal, tax, or accounting effects, you should consult appropriate professionals. Information is from sources deemed reliable on the date of publication, but Concreit does not guarantee its accuracy.