{"id":3890,"date":"2022-09-30T23:01:48","date_gmt":"2022-09-30T23:01:48","guid":{"rendered":"https:\/\/imsfund.com\/?p=3890"},"modified":"2022-09-30T23:01:48","modified_gmt":"2022-09-30T23:01:48","slug":"want-to-know-the-easiest-way-to-buy-a-million-dollar-property-fractional-investing","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2022\/09\/30\/want-to-know-the-easiest-way-to-buy-a-million-dollar-property-fractional-investing\/","title":{"rendered":"Want to Know the Easiest Way to Buy a Million-Dollar Property? Fractional Investing"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\"><button class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<h2 class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">In this article<\/h2>\n<p><\/button><\/p>\n<\/section>\n<p><em>This article is presented by <a href=\"https:\/\/arrivedhomes.go2cloud.org\/aff_c?offer_id=1&amp;aff_id=1101\" target=\"_blank\" rel=\"noreferrer noopener\">Arrived<\/a>. Read our\u00a0<a href=\"https:\/\/www.biggerpockets.com\/editorial-guidelines\" target=\"_blank\" rel=\"noreferrer noopener\">editorial guidelines<\/a>\u00a0for more information.<\/em><\/p>\n<p><span data-preserver-spaces=\"true\">While real estate ownership has been one of the most consistent ways to build wealth in America, it has been notoriously difficult to access because of three main barriers: expertise, time, and money.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">First, investors will need the expertise to know what markets to invest in and which properties to buy at what price. Once an investor has the expertise, they need time to manage properties, tenants, and taxes. Last, investors need money to make a down payment, which can cost thousands, if not hundreds of thousands of dollars.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Thankfully, fractional real estate investing has considerably lowered the barrier of entry by removing the above factors. In this article, we\u2019ll cover what fractional real estate investing is and why you should consider adding it to your portfolio.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">What is Fractional Real Estate Investing?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Fractional real estate is an investment structure that allows you to buy a portion of a home or commercial property instead of the entire property. Think of it as a crowdfunding model: a group of real estate investors purchase shares of an apartment building, industrial complex, or a vacation rental, and split the costs and profits.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Fractional ownership is not a new investment strategy. You can now buy fractional pieces of many different asset classes, including stocks, classic cars, or million-dollar paintings. This fractional ownership model not only reduces the barriers for anybody to own these asset classes but also allows people to start small, diversify quickly, and see returns sooner. The same is true for fractional real estate investing.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Until recently, buying commercial real estate, luxury vacation homes, or single-family dwellings in sought-after neighborhoods was only available to those with deep pockets. But companies like Arrived have created fractional ownership platforms, allowing individuals to reap the benefits of these long-term investments without the need to have the time, expertise, and money that have traditionally been required.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Top 5 Benefits of Fractional Real Estate Investing<\/span><\/h2>\n<h3><span data-preserver-spaces=\"true\">Low barriers to entry<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">With fractional ownership, you don\u2019t need large down payments or loans to enter the real estate market. You can purchase a share of the property for a small amount and add more as your available funds increase or diversify into multiple properties.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Further, with a management company handling the property\u2019s purchase and financing, you can confidently rely on their expertise and get started without the need for extensive research and learning.\u00a0<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">No operational headaches<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">Real estate investing isn\u2019t always passive, especially when scouting for the right property or renting out single-family homes that require upkeep and repair. The rental income from a fractional real estate investment is genuinely <a href=\"https:\/\/www.biggerpockets.com\/blog\/passive-real-estate-investing\" target=\"_blank\" rel=\"noreferrer noopener\">passive<\/a> because it requires no time or energy from you. It provides a reliable source of monthly passive income and capital appreciation without the need for you to manage and maintain the properties you own.\u00a0<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">Saves time<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">One of the best things about fractional real estate investing is that it allows you to earn rental income and potential appreciation with no significant time investment.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">That\u2019s right! No more landlord responsibilities and headaches. The management company takes care of all the administrative tasks from selecting, purchasing, and renovating the home, to the day-to-day responsibilities like finding tenants, dealing with repairs, and managing expenses.\u00a0<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">Diversification<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">With fractional real estate investing, you don\u2019t have to be a professional investor to gain exposure to the asset class. If you only have a set amount of capital to devote to real estate, you can break up those funds across multiple properties and geographies instead of having to sink it all into a single property. Furthermore, it allows you to invest across geographic locations and property types, amongst other factors, enabling a level of experimentation and risk management that is not possible with single-owner investments.<\/span><\/p>\n<h3><span data-preserver-spaces=\"true\">Distance is no longer a limiting factor<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">In the past, investors were mostly limited to properties in the markets close to where they lived. Otherwise, managing a property and dealing with its operational issues from a <a href=\"https:\/\/www.biggerpockets.com\/blog\/biggerpockets-podcast-515\" target=\"_blank\" rel=\"noreferrer noopener\">long distance<\/a> would be a huge pain.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Platforms like Arrived take on all responsibility for the operational tasks and have a local team available. This means that the investor can now pick investment properties in the market that yield the most favorable returns.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Just think, you could own a piece of a single-family home in a desirable suburb with the best schools while also owning a piece of a vacation rental in one of the most popular tourist destinations!<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Drawbacks of Fractional Real Estate Investing<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">While there are numerous advantages to the fractional investing model, we must also consider the drawbacks. First and foremost, since you are one of many investors in a property, you do not have control over the decision-making process. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Whether it\u2019s something small like choosing the paint color for the walls or something big like selling the home. Second, you forfeit the ability to make tax-advantaged moves like a <a href=\"https:\/\/www.biggerpockets.com\/blog\/1031-exchange\" target=\"_blank\" rel=\"noreferrer noopener\">1031 exchange<\/a>. Third, while platforms provide access to fractional ownership across the nation, they must be compensated accordingly through fees.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Is the Fractional Ownership Model Right For You?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">The fractional ownership model provides access to new investors seeking exposure to the real estate market, as well as seasoned veterans looking to diversify their holdings across the nation. The decision as to whether or not the fractional ownership model is suitable for you depends on your particular situation, and you should not feel a sense of urgency since the asset class is known for its steady growth over the long term.<\/span><\/p>\n<div class=\"wp-container-2 wp-block-group border border-gray-200 p-6 rounded-md has-slate-50-background-color has-background\">\n<div class=\"wp-block-group__inner-container\">\n<div class=\"wp-block-group__inner-container\">\n<h3 class=\"has-text-align-left mt-0\"><strong>This article is presented by Arrived<\/strong><\/h3>\n<figure class=\"wp-block-image size-full is-resized\"><picture class=\"wp-image-145002 sp-no-webp\" title=\"Want to Know the Easiest Way to Buy a Million-Dollar Property? Fractional Investing 2\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/09\/arrived_logo_lockup_teal_k_rgb-600.webp 600w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/09\/arrived_logo_lockup_teal_k_rgb-600-300x65.webp 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/09\/arrived_logo_lockup_teal_k_rgb-600.png 600w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/09\/arrived_logo_lockup_teal_k_rgb-600-300x65.png 300w\" sizes=\"(max-width: 300px) 100vw, 300px\" type=\"image\/png\"><img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/09\/arrived_logo_lockup_teal_k_rgb-600.png\" loading=\"lazy\" class=\"wp-image-145002 sp-no-webp\" title=\"Want to Know the Easiest Way to Buy a Million-Dollar Property? Fractional Investing 2\" alt=\"arrived homes\" height=\"65\" width=\"300\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/09\/arrived_logo_lockup_teal_k_rgb-600.png 600w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/09\/arrived_logo_lockup_teal_k_rgb-600-300x65.png 300w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\"\/><\/source><\/source><\/picture><\/figure>\n<p>Fractional real estate investing platforms allow anyone to invest in real estate easily, whether they are investing $100 or $100,000. Here at Arrived, we are proud to be a pioneer in this category, enabling anyone to buy shares of income-producing properties, including long-term and vacation rentals. Arrived will take care of all operations: finding tenants, dealing with maintenance requests, and everything in between so that investors can sit back and collect net rental income and their share of the home\u2019s appreciation.<\/p>\n<p>We have specifically designed our investment platform not only to make investing super simple but also focused on delivering maximum benefits to our investors. If you\u2019re interested in learning more about our platform, check us out at ArrivedHomes.com<\/p>\n<\/div>\n<\/div>\n<p class=\"italic\"><b>Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n<\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.biggerpockets.com\/blog\/buy-real-estate-with-fractional-investing\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article This article is presented by Arrived. Read our\u00a0editorial guidelines\u00a0for more information. While real estate ownership has been one of the most consistent ways to build wealth in America, it has been notoriously difficult to access because of three main barriers: expertise, time, and money.\u00a0 First, investors will need the expertise to know [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":3891,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/09\/Fractional-investing-1-1024x517.jpg","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-3890","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/3890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=3890"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/3890\/revisions"}],"predecessor-version":[{"id":3892,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/3890\/revisions\/3892"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/3891"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=3890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=3890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=3890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}