Updated: Jan 24
You may have already heard the term “fractional investing” floating around already, but what exactly is it?
What Is It? / What should you know about FRE?
Fractional ownership is an arrangement in which groups of investors pool funds to purchase a high-value asset. In the case of fractional real estate, the asset in question would be property. Rather than having the financial burden of ownership and maintenance falling on a single investor, this arrangement seeks to disburse the cost and create a more sustainable alternative for the majority of investors in the market.
Why is it becoming popular?
Investing in real estate is a potent means for building wealth that evades many due to its formidable barriers to entry, ranging from purchasing costs to a lack of financial knowledge. Fractional ownership of real estate challenges the traditional means of securing real estate by democratizing the market through accessibility and affordability.
The Advantages of Fractional Investing
Fractional real estate opens up the door to investing without huge down payments, with platforms offering ultra-low minimums and a whole new entry point for real estate crowdfunding. Pocket Properties offers these at less than $10.
Fractional investing is also ideal for dollar-cost averaging when buying in parts is your preferred approach, versus investing in whole shares.
Fractional investing offers better control over your portfolio than a REIT. Your target geographies, preferred styles, quality desire, and ideal property types for diversifying your portfolio are within reach at a moment’s notice.
Crowdfunded real estate skips the hassle of managing tenants and property maintenance on a day-to-day basis, resulting in a truly passive source of income.
Crowdfunded real estate often deals in relatively short investment periods, typically producing dividends within the first year.
One of the major benefits of crowdfunding in real estate is the average return on investment.
Because of the indirectness between stocks and real estate, RE crowdfunding makes for a safe means of diversifying your portfolio.
How you can invest
Real estate has already done the heavy lifting in creating 90% of the world’s millionaires. If investing in real estate is calling to you, Pocket Properties offers a new approach for throwing your hat in the ring.
We partner and work with the best management companies to ensure that we provide the highest quality housing for people. Our systems incentivize our partners to provide the best rental properties on the market, ensuring that properties are occupied and the property value is maintained. Our priorities are keeping tenants happy, ensuring that the property’s conditions are up to date, and securing dividends for each of our investors.
While the management and maintenance of a property are left to us, you can enjoy the experience of a property owner without all the hassle that comes with maintaining and renting out a property on your own. With this innovation to the real estate industry, we make investing accessible and affordable for everyone, now everyone can receive monthly dividends on shares of real estate.
If you would like to start securing your generational wealth today, you can sign up for Pocket Properties App directly on our website, or take the opportunity to accelerate the democratization of real estate markets by investing in Pocket Properties App through our Wefunder account.
Want to know more? Check out more reasons to invest in fractional real estate today.