Wayne and I have been working on a major project for you this month:
We’re showing you how to stay sane during all this market volatility…
While still positioning yourself for big returns!
We’re calling this project The Private Portfolio Makeover.
Last week, we showed you how a “makeover” using private startups and private bonds could boost your investment returns by nearly 1,000%.
And today, we’ll reveal another private investment you need to know about…
As you’ll learn, not only can you get started with it for as little as $10…
But you could use it to earn monthly cash yields up to 17%.
Historical Returns That Are 50% Higher than Stocks
To kick things off, let me tell you about the historical returns of an asset class you’re probably familiar with already:
Over the last 25 years, the real estate market has gained an average of 9.42% annually. That’s the return of the FTSE NAREIT, which is the standard real estate index.
9.42% is a solid return. In fact, it’s about 50% higher than the average gain of the stock market during the same time period.
But how can you get access to those returns?
The Traditional Ways to Invest in Real Estate
Traditionally, there’ve been two ways to invest in real estate.
The first is to buy physical properties.
This is a straightforward option, but buying real estate has drawbacks. For example:
- Down payments are expensive.
- Being a landlord is a pain.
- And unless you can afford many properties, you can’t diversify.
The second way is to invest in REITs, which stands for Real Estate Investment Trust.
REITs are companies that own and operate a portfolio of income-producing real estate.
They require just a small upfront investment, and since many of them trade publicly like stocks, they’re available to all investors.
But REIT stocks have a big downside:
If the market crashes, so does the value of your REIT portfolio!
Thankfully, a better way to invest in real estate has recently emerged…
Private Real Estate Deals
It’s a way to invest in private real estate deals.
With this type of investing, you can pool your capital with other investors (minimums are as low as $10) and you can get access to high-potential projects all across the U.S.
On websites like RealtyMogul, Fundrise, and DiversyFund, investors like you can get access to private REITs…
As well as deals for single-family fixer-uppers, multi-family complexes, even e-commerce warehouses.
Yields can reach well into the double-digits.
In fact, some deals currently offer target returns of 17% or even more.
How do 17% yields compare to what you can earn from REIT stocks?
Well, as of last week, the average yield for publicly-traded REITs was just 4.38%.
So, by replacing a portion of your real estate portfolio with these private deals, you could turbo-charge your returns.
If you’ve been reading about our Private Portfolio Makeover this month, perhaps this won’t be a surprise to you…
After all, for the last 2 weeks, we’ve been publishing this chart that shows Private Market returns (in red) versus Public Market returns (in blue):
Today you learned about private real estate…
And as you can see on the right of our chart, private real estate could help you earn returns that are 400% higher than what you’d earn with the average REIT stock!
Perhaps this explains why the private real estate industry has exploded over the last few years…
According to Ernst & Young, as of about a year ago, investors had poured about $8 billion into this emerging sector.
How You Can Get Started
This month, you’ve been learning about our Private Portfolio Makeover.
More specifically, you’ve learned how to boost your returns (and stay sane!) by adding private startups, private bonds, and private real estate to your portfolio.
But maybe you’re not sure how to take the first step…
That’s why, tomorrow, Wayne will show you exactly how to put it all together.
So stay tuned!