By Rodman Schley
CEO – EvolveX Capital
As the stock market continues to be as stable as a three-year old in a bouncy house, many investors are looking for safer places to put their money. They want solid fundamentals, supported by reams of data, and most importantly, they want significant returns.
Fundamentally, they should all be steering their portfolios towards real estate. But not just any real estate, the best way to mitigate risk in the current economic marketplace is real estate diversification.
Here are five reasons you should invest in real estate.
- Lower Risk Vs. The Stock Market
The stock market is highly speculative. Real estate is a much safer investment.
As investors, we’ve all been on the stock market roller coaster over the last few years. It’s been quite the ride ascending up the tracks towards the summit; it’s been quite a bit less enjoyable as the markets plunged to new depths and your investor dashboard flashes red.
That stock market risk is considerably mitigated by investing in real estate. Companies file for bankruptcy every day, sometimes without any warning. Your investment can disappear between breakfast and lunch. Companies, along with your holdings, go to zero.
Even in down markets, real estate never goes to zero. The world would pretty much have to explode for real estate to lose all its value. Having property as an investment all but guarantees returns. Sure, that property could burn down tomorrow, but if it does, it would still not have zero value, you’d still have the underlying value of the land the property sat on.
The best way to limit your portfolio’s exposure to unpredictable swings is to increase and diversify your real estate holdings.
- It’s Tangible
Real estate is tangible. It’s physical. It’s something you can touch. You can walk into a property, and physically see its potential. You can pull up local comparisons to other properties and utilize market analytics to calculate the potential cash flow for your investment.
With real estate investing, most assets will naturally appreciate. There are historical projections and modern metrics that allow you to see what kinds of returns you can get off your property both short and long term.
You can significantly increase your yield by directing your investments to short-term vacation rentals. Not only will you recognize those annual equity gains, but you also generate revenue from vacation rentals. This dual stream makes this a strong investment vehicle.
- The Current Economy is Actually Advantageous for Investors
Ignore the doomsday headlines. Being in the midst of an inflation-heavy economy with higher interest rates is an opportunity for the savvy investor. The rise in rates has led to fewer bidding wars, property price reductions and more leverage in negotiations.
We’re in the beginning of a downward trend that should continue for at least the next 12 months. As a real estate investor, I’m salivating. The next year is shaping up as the best time to buy since the 2008-2009 financial crisis.
What wouldn’t you give to hop in a time machine and transport yourself back to 2008, 2009 and invest in real estate? You’d allocate a tremendous amount of your resources into that market, knowing what’s coming.
Well that’s where we’re at now – or will be very soon.
You don’t want regrets in 2030 about what you should have done in late 2022.
Too many real estate investment funds actually increase your risk with their single property approach. They are crowdfunding to purchase one apartment building, one duplex, one vacation rental one…well, one of anything. What happens if that building can’t find tenants? Or if outside forces make it quickly a less desirable area to live or visit?
Sure, being part of a real estate fund still delivers tax benefits* and allows you to better project your annual returns, but in and of itself, that type of real estate investing doesn’t really reduce risk.
No, to truly diversify, your fund has to diversify. That’s why EvolveX Equity Fund doesn’t offer investors an option to get in on just one property. You’re investing in the fund’s entire portfolio of properties.
And by being precise and targeted in the areas we select, based on our proprietary valuation formula, our investors get into hot markets before they explode.
- All of the benefits of a vacation property…with none of the stress
A pipe is going to burst. A window is going to break. A drain will back up. That’s just the reality of home ownership. But you won’t have to deal with any of it.
The beauty of investing in a short-term vacation rental real-estate fund is you get all of the advantages and none of the hassles. You get ownership in a bigger and better vacation rental property than you can likely afford on your own, and better still, you get more than one.
Our VIP Investor program allows any member of our investor community access to our entire portfolio of vacation rental properties at significant discounts. Want to go ziplining in Costa Rica? How about skiing in Vail? Or maybe you want to feast on lobsters in Maine? Instead of being limited to one property, you get to visit all of those places – and dozens more.
And you don’t have to worry about maintenance and upkeep.
EvolveX Equity Fund is a Reg A+ fund, offering both accredited and non-accredited investors the opportunity to diversify their portfolios and increase their returns through short-term rental property ownership. Schedule a call with our COO Chris Torina https://calendly.com/chris-evolvex to learn more about investment opportunities with EvolveX Capital.
*Consult with a tax specialist prior to making any investment.
All prospective investors must certify that they have received and read all investment materials. Direct and indirect purchase of real property involves significant risks, including without limitation market risks, risk related to sale of land and risk specific to a given property. The securities offerings posted on the website are speculative. Investments posted on this website are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by Evolve X Capital, (or any of its affiliates) and MAY lose value.