New Cash Flow Idea
Dear Reader, Hanging at the top of a room dedicated to my children’s homeschool lessons is a list of some financial life codes that I want to pass on to them.It’s something for them to see daily, be reminded of, and hopefully apply in their own lives one day. In that list of financial wisdom is one piece that is specifically about how the rich invest their money, something the middle class has chosen to ignore.It’s the advice of only buying assets that cash-flow.
For the most part, investors are conditioned to become full-time speculators.
There’s this idea that 401(k)s need to go up, and homes are looked at as assets. Even though they are liabilities, most investors are solely focused on the potential for appreciation.
Here at FutureMoneyTrends.com, we recommend a 90/10 split, with 90% of your efforts focused on compounding your income and 10% allocated to partnering with speculative start-ups for rapid growth.
Now, I am the first to admit that the 10% in speculation is way more fun and offers the chance to radically change your life quickly, with gobs of profits.
However, a great life discipline is to have a heavy focus on demanding that every single dollar you generate goes on to bring in additional income streams.
Today’s idea provides some of the safest and most reliable income in the United States. It’s commercial real estate investing, something that was really only accessible to larger institutions or very high net worth investors prior to the FinTech boom.
Technically, investors today can buy publicly-traded REITS, but these are highly correlated to the stock market.
With liquidity always comes increased volatility, and with the public REITS, it also means less yield.
Our suggestion: consider investing in the Fundrise Supplemental Income Fund, a passive commercial real estate eREIT.
This is similar to our other recommendations: Lending Club, PeerStreet, YieldStreet, and Rich Uncles.By pooling funds together with other investors, Fundrise is able to purchase a diversified mix of commercial properties, like hotels, apartments, shopping centers, and office buildings. This is historically some of the safest income we receive, and it also has a much better track record than their publicly-traded counterparts. Now, even though eREITs are registered investments that have SEC requirements, they are not correlated with stock market fluctuations.The downside, of course, is that Fundrise investments aren’t as liquid as stocks.
They do offer investors quarterly periods to cash out of deals, but for the most part, this is a non-liquid investment where you have to commit for 3 to 7 years.
For the past 3 years, Fundrise has been able to deliver 9 to 12% yields, which doesn’t include any of the appreciation of the properties upon investors cashing out.
The entire team at Fundrise is made up of financial experts, Fortune 500 executives, and prior commercial real estate fund managers.
Starting with 175 individual investors, they now have 80,000 members and have made over $3 billion in real estate investments.
The early, strategic investors were made up of a diversified group ranging from fund managers to other institutional investors.
This is a very turnkey way to get access to some of the best income on the planet.
It’s also easy to start. You don’t need to be an accredited investor – all it takes is $500 and about 5 minutes of your time to set up an account.
Fundrise offers diversification all throughout the U.S., with a supplemental income fund, income growth fund, and growth fund.
We only recommend the supplemental income fund because we solely want our focus to be on income for this investment.
To set up an account today, go their website, at Fundrise.com.
I’ve personally become an investor in Fundrise and will be looking forward to cashing the income distributions they will provide through the ownership of commercial real estate.
President, FutureMoneyTrends.comOriginal Article