Educational content. Any numbers in this article are hypothetical illustrations, not projections for any Starting Point Capital offering. Tax treatment depends on your situation. Review any tax strategy with your CPA.
I answer this question a lot - “Jeremy, is now a good time to invest passively in real estate?”
Most people who as me that question have an underlying fear of inflation, the stock market, and are worried that we may be going into a deep recession. But don’t be dismayed.
The short answer to their question of timing is YES!
In fact, now could be the best time in history to get into passive real estate investing.
- The U.S. continues to face a historic housing shortage. In turn, this has been pushing rents up to historic highs.
- Real estate is a hedge against inflation. Inflation is actually pushing up rents and property values, creating millions of additional profits for investors.
- My investors are pulling money out of the stock market and looking to invest into cash flowing hard assets. Assets that are risk adjusted, tax advantaged, and produce excellent returns when compared against the public equity markets.
Their is no better investing option during uncertain times than in real estate.
For example, $100,000 invested in the S&P 500 index in 2002 would be worth about $246,000 today.
$100,000 invested into a cash flowing multifamily real estate offering in 2002 would have grown to over $1.4mm today.
Said differently…
One $100,000 investment would have made you about $1.1mm more than your “safe” index fund. Thanks to inflation, a turbulent stock market, and a housing shortage…
Cash flowing real estate will create a record number of millionaires in the next few years. Are you going to be one of them?