Looking For Inflation-Fighting Assets? This Platform Allows You To Invest Directly In Real Estate Without Buying A House

Two years after the U.S. Federal Reserve claimed that inflation was transitory, price levels continue to rise.

According to the latest report from the Labor Department, U.S. consumer price index increased 4.9% in April 2023 compared to the same month a year ago.

Some attribute the rising prices in America to the Fed’s easy monetary policy in response to the COVID-19 pandemic, while others point to the Biden administration’s fiscal policy, particularly the issuance of stimulus checks.

No matter the underlying cause, inflation is happening and is chipping away at the value of your hard-earned money.

To safeguard their purchasing power, many people are turning to inflation-resistant investments, with real estate being a prominent example.

A Proven Inflation Hedge

The inherent characteristics of real estate make it a reliable hedge against rising price levels. When inflation occurs, the price of raw materials and labor goes up, so constructing new properties becomes more expensive. And that, in turn, contributes to the appreciation of existing property values.

At the same time, real estate has the ability to generate rental income. And rental rates usually adjust with inflation, meaning that property owners can increase rents over time to reflect the rising cost of living.

The latest CPI report showed that in April, rent for primary residences in the U.S. increased by 8.8% year over year.

Furthermore, even though the Fed has been raising interest rates aggressively to tame inflation, home prices remain elevated in many parts of the country. Steep home prices and high mortgage rates mean owning a home is less feasible. And when people can’t afford to buy a home, renting becomes the only option. This creates a stable rental income stream for landlords.

Collect Rental Income Without Becoming A Landlord

To be sure, while it’s nice to collect monthly rental income from an investment property, being a landlord does come with its hassles.

For instance, you would need to carefully screen potential tenants, prepare lease agreements, and ensure that rent is paid on time. Chasing lease payments and dealing with delinquent tenants is never a fun experience.

At the same time, landlords are responsible for the maintenance and upkeep of their properties, which can require frequent repairs and updates.

Don’t forget, landlords are also responsible for securing proper insurance coverage for their properties and pay property taxes, which can require ongoing attention.

All of this can make the supposedly passive income a lot less passive — and that’s if you can put together a hefty down payment, get a mortgage and buy a house in the first place.

The good news? You don’t have to become a landlord to invest in this inflation-proof asset. Platforms like CrowdStreet make it easy for investors to earn rental income from real estate without the burdens of running a rental property.

Because each individual has their own investment goals and risk tolerance, CrowdStreet lets investors choose from a wide range of real estate offerings.

Investors are free to buy into managed funds, individual buildings or even build a bespoke investment portfolio with a diverse range of property types, ranging from multifamily to office, industrial, self-storage and others.

Since 2014, CrowdStreet investors have successfully funded 752 deals, 157 of which have realized (sold). Having raised $4.0 billion of capital, the platform boasts a realized internal rate of return (IRR) of 19.2%. The average hold period — the time between when the investment is made and when the property sells — is around three years.

To get onboard, all you need to do is visit CrowdStreet’s website, browse through the deals and funds on its marketplace, and find one that matches your investment objectives.

The platform allows you to own direct equity in commercial real estate property while staying truly hands-off. So you can now enjoy being a passive investor while your portfolio outsmarts inflation.