Real estate is still considered an ‘alternative investment’, which bizarrely puts it in the same category as cryptocurrencies, or collectibles such as stamps, coins and baseball cards. Yet there is nothing truly ‘alternative’ about real estate. Housing is the world’s largest asset class, for a start. And what’s so alternative about housing, anyway? Everyone needs somewhere to live, and with a population that is both growing and living longer, the need for housing is only increasing.
Beyond the need for shelter, there is another type of security at play: financial. For most people, property ownership is the primary means of creating generational wealth, since the equity in their home continues to rise as they pay down the principal of the loan, and oftentimes the market value of their home increases at the same time. But that basic principle does not just apply to the home you buy to live in, it also applies when investing in other properties.
Financial Freedom Through Real Estate
As more and more people look for creative ways to achieve financial freedom for themselves and their loved ones by generating passive income streams, residential real estate can be a golden ticket to financial prosperity.
Despite its ‘alternative’ label, residential real estate has long been considered a stable and reliable investment, even in the face of economic uncertainties. Unlike the unpredictable nature of stocks and bonds, real estate tends to appreciate over time. The housing market may experience fluctuations, but historically, it has shown resilience, rebounding from downturns and continuing to provide a secure investment avenue. This stability is crucial for building a financial foundation that can withstand the test of time.
Short-Term Wins With Upright
Traditionally, real estate is a long-term investment: The value of a property increases over time and may only be realized after many years. The Upright model offers investors the opportunity to access the residential real estate asset class and see more short-term returns.
This is because Upright investors are actually investing in housing developments or redevelopment projects designed to deliver a return over two years or less. The developers and rehabbers who borrow through us are professionals–the data shows us how proficient they are at using these loans to fund successful projects - and therefore generate profits. The typical return over the past two years has been 10.4. Investing in these loans through the Upright platform offers loan customers the capital they need to fund these projects, and offers investors access to earnings on the interest rates of the short-term loans.
