Real estate investing can be a great way to generate passive income and build wealth over time. However, many investors are hesitant to enter the market due to the perceived risk associated with buying property. One strategy that can help to mitigate this risk is non-leveraged real estate investing.
Non-leveraged real estate investing refers to investing in property without the use of debt. This means that the property is purchased outright, rather than being financed through a mortgage or other loan. By eliminating the need for debt, non-leveraged real estate investing greatly reduces the risk of the investment. And non-leveraged real estate investing is part of the BRiX methodology for fractional real estate.
Here are some benefits of non-leveraged real estate investing:
Lower risk: Because the investment is not leveraged, there is no risk of default or foreclosure if the property is not able to generate enough income to cover the mortgage payments.
Diversification: Investing in non-leveraged real estate allows for the diversification of a portfolio, which can help to reduce overall risk.
Lower investment amount: Non-leveraged real estate investment allows for investment in properties that would otherwise be out of reach due to the high cost of a full property.
Professional management: Many non-leveraged real estate investment opportunities are managed by professionals, which can save the investor time and effort in managing the property.
Potential for cash flow: Some non-leveraged real estate investment opportunities offer the potential for cash flow, which can provide a source of passive income.
Non-leveraged real estate investing is a great way to enter the real estate market while minimizing risk. By eliminating the need for debt, investors can enjoy the potential for cash flow and appreciation in value without the added stress of debt. It’s a great way to diversify your portfolio and generate passive income.
BRiX is currently developing a platform and a marketplace that is going to remove the guesswork out of real estate investing. By democratizing non-leveraged real estate BRiX is putting the returns of real estate investing back in the hands of investors.
It’s always important to consult a real estate professional and a financial advisor before making any investment decision. Additionally, it’s a good idea to conduct thorough research on the property and the terms of the investment before making a decision.