What is Real Estate

Real estate is the land along with any permanent improvements attached to the land, whether natural or man-made—including water, trees, minerals, buildings, homes, fences, and bridges. Real estate is a form of real property. It differs from personal property, which are things not permanently attached to the land, such as vehicles, boats, jewelry, furniture, and farm equipment.

* Real estate is a class of “real property” that includes land and anything permanently attached to it, whether natural or man-made.
* There are five main categories of real estate: residential, commercial, industrial, raw land, and special use.
* You can invest in real estate directly by purchasing a home, rental property or other property, or indirectly through a real estate investment trust.

Why should We Start Investing in Real Estate?

According to data from Forbes, more billionaires made their wealth through real estate investments than any other category by far. The combination of a consistent cash stream, capital appreciation, and tax breaks have helped lay the foundation of great fortunes and stable retirements. But billionaires aren’t the only people who know how to invest in real estate, You can do it too.

Is Real Estate a Good Investment?

The short answer is ‘yes’. Investing in real estate is absolutely essential for anyone looking to secure their financial future. Real estate should be one of the core pillars of your investment portfolio for two crucial reasons: 1. According to a recent research paper from the San Francisco Federal Reserve, real estate has historically generated rates of return comparable to stocks and equities with much lower volatility. 2. Real estate investment returns are largely not correlated with stocks or bonds. (Hat tip to Ben Carlson over at A Wealth of Common Sense for his work on this topic). These two points may sound a bit academic. What it means for you is high rates of return without the roller coaster ride of investing in stocks. Real estate investments also have a hidden benefit that we don’t normally think about: illiquidity. Some investment advisors tell you that investing in illiquid assets is bad because you might need that money quickly. Trying to unwind a real estate investment can take a lot of time and incur large financial penalties and taxes. The hidden benefit of illiquidity is that it prevents us from becoming our own worst enemies. Great investing requires staying invested long-term without being swayed by the ups and downs of the stock or real estate markets. By putting up financial barriers that keep you from making decisions based on fear or greed, real estate investing lets you reap the benefits of the most powerful wealth-building tool ever imagined: compounded annual returns.

What is Real Estate Crowd Funding?

Crowdfunding refers to a group of people who pool their money together in order to achieve a common goal. Some crowdfunding activities are charitable in nature — for example, if a person is facing medical bills they can’t afford, they may attempt to crowdfund the expenses. Crowdfunding can also apply to investment situations, and real estate is one of the latest applications that has gained popularity. Real estate crowdfunding involves a group of investors who each contribute money to a specific real estate deal. For example, if an experienced real estate investor identifies a lucrative opportunity to renovate an apartment building and then sell it at a profit but doesn’t have the necessary capital, they might turn the investment into a crowdfunding opportunity and attempt to raise the rest of the necessary funding from investors like you.

How does Crowd Funded Real Estate Work?

The general idea behind real estate crowdfunding is that when a developer or experienced real estate professional identifies an investment opportunity, they don’t always have the ability (or desire) to completely fund the investment on their own. So, they’ll allow individual investors to contribute some of the project’s capital in order to raise enough money to execute their plan. There are three key players in any crowdfunded real estate investment opportunity. First, the sponsor is the individual or company that identifies, plans, and oversees the investment itself. The deal’s sponsor will facilitate the purchase of the asset, arrange for any contractors or other needed work, arrange financing, and take responsibility for the eventual sale of the property. Deal sponsors generally contribute some of the project’s funding themselves and are also entitled to a certain share of any profits they earn for the deal’s investors. Second, the crowdfunding platform is where the sponsor finds investors to raise the necessary capital for a project. Think of the platform as the middleman between investors and sponsors. The platform will ensure a deal meets certain standards, advertise deals to potential investors, guarantee that investors meet the requirements for investment, and deal with regulatory issues. The platform will also collect investors’ funds on behalf of the sponsor. Finally, the investor (that’s where you come in) contributes some of the deal’s required capital in exchange for a share of any profits the deal produces. An investor may get some sort of income distributions and/or be entitled to a proportional payout from an eventual profitable sale. Here’s a simplified example of how this might work: Let’s say that an experienced real estate developer — the sponsor — identifies an office building that is outdated and lacking modern amenities — and is only 50% occupied — for sale at a price of $5 million. After a thorough analysis, the sponsor determines that they can invest $3 million in renovations and improvements, lease up the vacant space, and triple the property’s rental income. Not only that, but once occupancy is stabilized in three or four years, the building will also have a market value of $12 million, at which time the sponsor will sell the property.

2600sqft Home

Location: arcadia los angeles, usa
Price: $724,900

Features:
3 bedroom, beautifully landscaped backyard, expansive kitchen.

Description: A custom built masterpiece where quality and attention to detail is evident in every inch of this 2600sqft home. The warm feeling of simple elegance will accommodate the taste of traditional living. The main level is amaster planned design, offering excellent open concept functionality throughout. The centrepiece of this home is the expansive kitchen area. Beautiful cuts of granite spancombined with large sun filled windows! The dining room is a great complement to this space with views of the beautifully landscaped backyard. The upper level consists ofan incredible master suite with large soaker tub, full stand up shower, and oversized walk-in closet. This is complemented by 3 more bedrooms on this level + a spaciousbonus room with vaulted ceilings. To complete this home is a fully finished basement where you will find a 5th bedroom, full bath + entertaining space for friends and family.

Beverly Hills Mansion

Location: 1731 Summitridge Drive, Beverly Hills, CA⁠ 6 Beds, 9 Baths, 10,000 Sq Ft.⁠ Beverly Hills, USA
Price: $25,000,000

Features:
10,000-square-feet fitted kitchen

Description: Imagine waking up to your very own wellness retreat in this Beverly Hills Mansion listed by @Mayflamgroup ⁠ Here, Delos Wellness Solutions prioritizes renewal and wellness by integrating proprietary, innovative technology into this all new construction mid-century inspired modern compound.⁠ ⁠ At more than 10,000-square-feet, this gated magnificent home is situated on a promontory with a 300-foot private driveway overlooking sweeping city, canyon and ocean views to Santa Monica Bay.⁠ ⁠ 1731 Summitridge Drive, Beverly Hills, CA⁠ 6 Beds, 9 Baths, 10,000 Sq Ft.⁠ Listed at $25,000,000 by @kingflamegroup

Home in Calabasa, California

Location: Located in the coveted Oaks of Calabasas california , USA
Price: $15,949,000

Features:
6 Beds, 8 Baths⁠ fitted kitchen

Description: Located in the coveted Oaks of Calabasas, this property sits behind the second set of gates in this guard-gated community. ⁠ ⁠ The home boasts all the expected amenities of an estate of this caliber complete with a 10-seat movie theater, 1,000 bottle wine cellar, game room with bar, gym and massage room, a wood-paneled office, and an elevator. Topping off this one-of-a-kind home, there is an 8-car garage perfect for showcasing a unique collection.⁠ ⁠ 25315 Prado De Los Suenos, Calabasas, CA⁠ 6 Beds, 8 Baths⁠ Listed at $15,949,000 by @kingflamegroup

Houston Home

Location: 1722 River Oaks Boulevard, Houston, TX⁠ 5 Beds, 5 full and 3 half Baths, 12,209 Sq Ft.⁠ houston , USA
Price: $27,500,000

Features:
5bed 5 full and 3 half Baths, 12,209 Sq Ft., fitted kitchen.

Description: Located in Houston’s prestigious River Oaks, this five-bedroom, five-and-a-half-bathroom modern Tudor residence is nothing short of a masterpiece.⁠ ⁠ Spanning 12,209 square-feet, the home offers a gym, wine cellar with a tasting room and storage for hundreds of bottles, theater, library, family room with outdoor views and adjoining wet bar, guest suite with a private entry, game room, temperature-controlled attic spaces, six-car garage with car lifts, and more.

Modern Estate on Guard-gated Palm Island

Location: 1682 Jefferson Ave, Miami Beach, FL⁠ miami beach , USA
Price: $43,000,000

Features:
6beds 8 full and 1 half bath 13,144 sqft

Description: The home features soaring ceilings, rich hardwood floors & expansive living, dining & family areas all with stunning water and city views.⁠ ⁠ The 2nd-floor principal suite is spacious with views of the pool, dual walk-in closets, and a beautiful Carrara marble bathroom.⁠ ⁠ Outdoor features include a large pool w/Jacuzzi, a covered seating area with a summer kitchen, an IPE wood dock & direct access to Biscayne Bay & the Ocean.⁠

South Surrey Estate

Location: 13415 Vine Maple Dr, South Surrey-White Rock South Surrey, canada
Price: $6,800,000

Features:
6 Beds, 10 Baths, 8,095 Sq Ft.⁠

Description: Custom built using the finest quality materials, this magnificent 8,933 sq ft. gated acre estate boasts 6 bedrooms & 10 bathrooms.⁠ ⁠ The lower level is an entertainer’s delight with a gym, theatre room, wine cellar, bar, and games room.⁠

Beverly Hills Mansion

Location: 9814 Curwood Pl⁠ Beverly Hills, USA
Price: $13,969,000

Features:
6beds, 9bath, 9500sqft.

Description: Through a glass doorway, you are immediately greeted by a clean-cut, wooden entry foyer illuminated by a custom chandelier and museum lighting. Opulent by nature, sunlight trickles through organic Angeleno forestry and through a disappearing glass wall to paint your sumptuous living room, Miele kitchen, and fireplace. ⁠ ⁠ Between the 300+ bottle temperature-controlled wine room, gym, office, and home theater with cutting edge technology, there isn’t a reason to leave.⁠

Connectica Home

Location: 555 Lake Avenue, Greenwich, CT⁠ greenwich, USA
Price: $39,000,000

Features:
Beds, 13 Baths 18,955 Sq Ft.⁠

Description: Overlooking 8+ park-like acres, this majestic brick Georgian Mansion was transformed to blend top of the line appointments with a rich array of custom detailing. ⁠ ⁠ Crowned by a 3-story chandelier, the impressive reception hall with Wenge walnut parquetry floor opens to a formal Dining Room with fireplace and an elegant living room with fireplace and custom bar.