Long Term Investing with Fractional Real Estate

Explore the benefits of fractional real estate investing for long-term wealth building with Realbricks. Learn how this accessible model can diversify your portfolio and provide passive income through our innovative platform.

What is Long-Term Investing?

Long-term investing involves committing capital to assets with the goal of holding them for an extended period—typically five years or more—allowing time for growth and compounding to take effect. This approach requires patience, discipline, and a focus on stable, growth-oriented investments. Rather than aiming for quick profits, long-term investors seek to build wealth gradually by riding out market fluctuations and capitalizing on the steady appreciation of their investments. This strategy is particularly valuable for assets like real estate, which often appreciate over time and can offer both income and growth potential.

Long-Term Investing in Real Estate

Investing in real estate has consistently been a reliable method for building wealth, especially from a long-term perspective. Unlike other investment types, the tangible and intrinsic value of real estate creates an unwavering importance to this asset class. However, traditional entry barriers such as a large down payment on a property, have often kept many potential investors at bay. This is where fractional real estate Investing comes in, offering a modern solution to build long term wealth in this strong market, by making many small good decisions over time.

Long Term Rental Property Investing

Tax Benefits of Long-Term Investing

Long-term real estate investments offer several potential tax advantages. For example, investors may benefit from capital gains treatment, which taxes profits at a lower rate if the property is held for over a year. Additionally, investors can often claim depreciation on rental properties, reducing taxable income by accounting for property wear over time. This helps offset rental income, potentially lowering the overall tax burden. Real estate investors may also leverage tax-deferred strategies, such as 1031 exchanges, to defer taxes on gains by reinvesting in similar properties.

Traditional Real Estate Investing vs. Fractional Ownership

Traditionally, real estate investments have required substantial capital upfront, coupled with ongoing management responsibilities and limited liquidity. In contrast, our fractional ownership on Realbricks allows you to purchase shares of a property, with only $100. This model also introduces enhanced liquidity through our upcoming secondary market, which will allow investors to buy and sell shares more freely. Also, all the property management is handled by Realbricks, eliminating the burden from our investors to focus solely on their investment portfolios and the benefits of the real estate market.

The Realbricks Advantage in Long-term Rental Properties

  • Lower Entry Barriers: Unlike traditional rental property investments that require substantial capital, Realbricks allows investors to start with $100, lowering the barrier of entry into the real estate market.
  • Fractional Ownership: Realbricks offers fractional ownership, enabling investors to buy shares in rental properties. When a property is sent to our secondary market (30 days after being fully funded), investors can then choose to sell their shares back to other interested investors.
  • Diversification: Realbricks allows investors to spread their investments across multiple properties rather than concentrating a large sum in one location. This diversification strategy can help mitigate risk and create more stable returns over time.
  • Interest Rate Protection: All properties on the Realbricks platform are fully paid in cash, with no loans or mortgages, offering investors an additional layer of security against rising interest rates. This ensures consistent returns without exposure to the fluctuations of interest rate increases.
  • Professional Property Management: Realbricks handles all aspects of property management, including leasing, maintenance, and tenant relations, allowing investors to enjoy passive income without the hassle of direct management.
  • Transparent Operations: Realbricks provides detailed information about each investment opportunity, ensuring transparency and informed decision-making.
  • Vetted Properties: All properties on the Realbricks platform are handpicked by a team with over 100 combined years of experience in the real estate industry.

Long Term Rental Property Benefits

Topic Details
Steady Cash Flow Rental properties typically offer long-term leases, resulting in stable and predictable rental income.
Appreciation Potential Rental properties tend to appreciate over time, providing potential for capital gains.
Diversification Investing in rental properties can diversify portfolios and reduce overall risk.
Inflation Hedge Real estate often acts as a hedge against inflation, as property values and rental income tend to rise with inflation.

Long Term Investing

Utilizing Realbricks for Long Term Growth

Realbricks empowers investors to build wealth through fractional real estate with ease and flexibility. Our platform enhances the experience with a user-friendly mobile app on iOS and Android, making it simple to explore properties, view analytics, and manage your portfolio. Realbricks also provides a secondary marketplace, allowing investors to sell shares to other interested buyers—adding a unique liquidity option to fractional real estate. This flexibility and ease of access make Realbricks a practical choice for steady, long-term wealth building in real estate.

How to Start Building Your Long Term Portfolio

Beginning your investment journey with fractional real estate is simple

  1. Sign Up: Create your account.
  2. Explore Options: Browse the list of our initial offerings.
  3. Buy Shares: Select the number of shares you wish to purchase and finalize your transaction.
  4. Watch Your Investments Grow: Estimated dividend yields for all our long-term properties are 6%. You also can gain from property appreciation.
  5. Cash Out: When a property is on our secondary market, sell orders can be placed, providing liquidity options to our users.

Building Generational Wealth

A small good decision today, to wisely invest in secure assets, can greatly benefit your future generations. Rome was not built in a day, but through the continuous efforts and organization of a populous over time. The same is true with building wealth. Real estate has historically been one of the most stable and profitable asset classes in the entire world, and many family's today are benefiting from generational wealth made possible by their ancestors' ability to identify this truth. Fractional real estate investing is about more than just immediate returns; it's about laying down a foundation for future financial security—generational wealth that can sustain future generations.

Brick-by-brick

We use the term "Brick-by-Brick" to represent the idea of many small good decisions made over time. The Realbricks platform offers you an easy entry to begin to participate in a previously difficult to enter asset class, real estate. This platform simplifies the process and introduces liquidity that is often missing from real estate investments. Whether you’re a novice seeking to start building wealth or an experienced investor looking to diversify your portfolio, fractional real estate investing could be the strategic move you need for long-term success.

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What is long-term investing?

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Long-term investing involves holding assets for extended periods to benefit from market growth and compounding returns.

Why is real estate ideal for long-term investing?

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Real estate appreciates over time, offering both capital gains and rental income, making it well-suited for long-term growth.

How does fractional real estate fit into long-term strategies?

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Fractional ownership lowers the barrier to entry, allowing smaller, steady investments in high-value properties over time.

What are the tax advantages of long-term real estate investments?

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Long-term investments often qualify for capital gains tax treatment and may allow for certain depreciation benefits, depending on jurisdiction.

What are common risks associated with long-term investing?

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Risks include market fluctuations, vacancy rates, and potential shifts in property values, though these can be mitigated with diversification and professional management.

Disclaimer: Real estate investing involves risks. This article is for informational purposes only and should not be considered investment advice. We encourage all prospective investors to conduct thorough research and consult with financial advisors to make informed decisions.