Traditional real estate investments have high financial barriers that forcefully exclude everyday investors. Whether it’s the financial inability to purchase a property or not having the resources to manage a property, new investment options provide a way around these barriers and allow individuals the chance to invest in high-demand markets.
The investment platform Nada has created the first-ever index-like fund for a single city’s residential real estate market. Cityfunds offer investors the opportunity to own equity in the top real estate markets such as Austin, Dallas, Miami and Tampa with a minimum investment of only $250.
With fractional investments, investors can own real estate and receive passive income without the hassle of property management and playing the role of landlord. Fractional real estate continues to become a more attractive asset class for investors looking to diversify their portfolios.
Nada invests solely in single-family residential real estate. The platform is currently offering fractional real estate investment in Austin, Dallas, Miami, and Tampa with Houston, Nashville, Denver, Los Angeles, Las Vegas and Phoenix expected to be available soon.
Nada says, “We focus on acquiring properties we believe have possibilities for long-term capital appreciation, such as those located in neighborhoods with what we see as high growth potential and those available from sellers who are distressed or otherwise need to sell quickly.”
Due to the viability of the markets in which these homes are purchased and being purchased at a fair price point, Nada projects investments to generate an IRR between 12%-16% over seven years.
The platform is also in the process of implementing a secondary market for its Cityfunds in a partnership with North Capital. This secondary market will allow investors to trade ownership shares on the platform, similar to stocks.
Nada is an investor-inclusive platform, making quality real estate assets available without the high cost of entry and accreditation requirements of typical private equity investments.
Check out Cityfunds to access real estate equity in the top markets and own a piece of your favorite city for as little as $250.
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