Before you make any vital alterations to your investment portfolio, make sure you are considering your long-term financial goals, especially during a period of volatile market changes.
Investing out of fear and sudden ups and downs can lead to strange changes to your financial future that could have been served better with patience and strategy.
Tenant Credit Reports
Instantly issue tenant credit report checks instead of being stuck wasting time manually pulling credit data on potential tenants that you are going to be entrusting your rental property to live in.
Credit reporting services permit you to efficiently and quickly screen potential tenants with real-time credit data and top-notch support to avoid tenant defaults.
Ensure that your tenants meet your qualifying requirements and minimize your exposure to potential legal action by streamlining your tenant qualifying process.
You can orchestrate soft-pull credit reports from Equifax, match potential tenants’ credit data to your requirements, and invite them to make a formal application request. Criminal and eviction reports are easy to generate, with easy integration to your platform.
Fractional Short-Term Rental Investing
Fractional ownership is a method that allows you to purchase a percentage of shares in a high-dollar asset such as a jet, yacht, or real estate.
Just as the name implies, the asset is divided into several fractions to make the cost of entry more accessible and lessen the burden among several like-minded people.
It wasn’t long until fractional ownership ventured over into the stock market. Some brokers offer fractional-share trading of high-priced stocks like Amazon and Tesla, making these pricier stocks more accessible.
Typically you decide how much money you want to invest, and then they’ll tell you how much of the share you can own. This method can be very appealing to new investors who are looking to start small.
Even if you have the necessary funds to purchase an entire share, it’s a great way to diversify your portfolio and try your hand at more than one. Some brokers allow you to buy fractional shares in $1 or $5 increments, but some are even as small as one cent.
Fractional ownership in real estate offers a way to invest in property without having to take on the entire cost by yourself.
In most cases, a special purpose vehicle is created. A group of people pool their resources to share ownership in a home or vacation property, eliminating the need for a large sum of cash or hefty loans.
All of the investors are deeded as equitable title owners and share in both the perks of the amenities as well as the cost of upkeep. This makes it an affordable option for luxury resort vacation homes that might otherwise be out of reach.
Fractional owners also share in the gains and losses that come along with property ownership. If the home’s value grows over five years, everyone’s share in the home grows as well.
If the co-owners receive income from the property, everyone gets their proportioned share of the income brought in. Each co-owner is also responsible for their share of the property taxes, which may go up as the property’s value goes up.
With fractional properties, the property is usually maintained by a third-party management company in which the buyers would split that cost proportionally as well.
Invest in vacation rentals like stocks
Earn a passive income from the highest-yielding asset class in real estate with vacation rentals. Get started with as little as $100.
What are some of the many benefits that are associated with fractional short-term real estate investing with a company like Here for vacation rentals?
Get in on properties that are situated in stable, high cash-flowing vacation markets that put it in a position to garner long-term returns on investment.
You can get your hands on totally passive income investment opportunities that come with full-service property management that allows you to not be bogged down with time-consuming tasks in order to keep the properties earning for you.
Fractional ownership makes it possible for you to actually own shares of the vacation rentals property that you decide to get involved with and yield the results with a much lower barrier to entry and investment cost than you would be looking at if you decided to be the sole owner of the house.
You will receive economic rights in the underlying property that include potential net rental income, tax benefits, and appreciation that you are entitled to.
You will be in partnership with the company Here with a vacation rental and receive fractional ownership, which means that Here has a direct ownership interest in each property, so all the responsibility doesn’t fall on your shoulders.
This is a Limited Liability Company (LLC) investment situation, so each
property is held in an LLC and protected with property insurance that prevents you from being stuck with personal legal liability.
Be Careful of Investing too Much in an Individual Stock
Lessen the risks of investing by diversifying your investments.
You’ll be financially vulnerable and open to significant investment risk if you pour too much money into your employer’s stock or any individual stock because if it does poorly, or even worse, the company tanks and goes bankrupt, that is all money you will lose right along with.
Investing with the Robinhood App
Using the digital investment app called Robinhood allows you to have access to thousands of fractional shares.
Robinhood is appealing for newer investors who may not have a whole lot of liquid cash to put into the stock market for stocks, options, crypto, and ETFs.
There are no trading or commission fees, account minimums, or account maintenance fees.
Robinhood allows you to invest in thousands of stocks with as little as $1 for any amount that you want; you will get your dollars converted to portions of company shares and funds to help reduce risk and build a balanced portfolio.
You get to enjoy stock trading in real-time, with trades that are implemented during market hours getting executed at that time to allow you to be aware of the actual share price.