Can Investing in Real Estate Like Stocks Get You 10%+ Annual Returns?

As Seen on

The steady appreciation and reliability of real estate have appealed to investors for ages. Andrew Carnegie famously said: “The wise young man or wage-earner of today invests his money in real estate” - a statement that proved to be very true as the price per square foot in NYC more than quadrupled in absolute terms since his time.

However, while diversifying your portfolio with real estate seems fairly easy if you have a couple of million dollars lying around, investing your money as a non-accredited investor can be exceedingly complicated and confusing for an average retail investor.

Discover the Easiest Way To Invest In Real Estate

It comes as no surprise that alternative ways of making investments easier for regular Americans have sprung up, allowing non-accredited investors to protect their savings by investing in the ever-growing real estate market.

One of the most recent such financial products to hit the market is Cityfunds, a solution that allows minimal investments in real estate of only $250. In a nutshell, it combines the benefits of ETFs with the largest asset class in the world. Their expected annual return rate? 12%-16%. An IRR that can provide capital recovery in as little as five years begs the question: are these projections realistic? Here, we’ll examine exactly that:

Let’s start with Cityfund’s simple investment strategy:

Nada, the company behind Cityfunds, invests in single-family residential real estate within America’s fastest-growing urban centers, allowing investors to benefit from the growth in these markets.

As of right now, Cityfunds operates in four cities – Austin, Dallas, Tampa, and Miami – where real estate prices have at least doubled in the last ten years. A trend that doesn’t seem to be slowing down, given that these markets have some of the highest population growth rates in the country each year.

The novelty comes from the way users invest in real estate. Cityfunds’s users have a unique opportunity to obtain a share of all residential equity purchased by Nada in one city. For new investors looking to hedge their bets without spending copious amounts of time, this sounds very tempting.

Start Investing in Real Estate With Cityfunds

Four thousand users have already joined the platform, a number that seems too low to Nada, which is working to increase its user base fivefold by the end of 2023. Earlier this year, they gained the trust of eight venture capital firms and closed an $8.1 million seed round to make that happen.

The next goal is to roll out trading on the platform; a move that will eliminate another colossal drawback of smaller real estate investments - liquidity. Trading will allow the user to sell gains at any given moment and take money out in case of a market crash.

In conclusion, one thing’s for sure: Cityfunds democratizes investments in real estate by allowing anyone to own shares of a city. Will it be the “next big thing”? Possibly.

© 2023 Benzinga does not provide investment advice. All rights reserved.

Be the first to know about new Cityfunds

Sign Up for Updates

By subscribing you agree with our Privacy Policy and provide consent to receiving updates from our company.

© 2023 Nada Holdings, Inc. and/or its affiliates. All rights reserved. Nada is a registered service mark of Nada Holdings, Inc.

Note: These graphics are purely hypothetical and for illustrative purposes only and are not intended to reflect future returns or portfolio performance in any way. The value of our properties and investments may increase or decrease.

Nada Holdings, Inc. ("Nada"), as a manager of Cityfunds I, LLC (“Cityfunds”) operates the website (the "site") and the mobile-based app (the "App") and is not a broker-dealer or investment advisor. All securities ("shares") related activity is conducted through Dalmore Group LLC, a registered broker-dealer and member of FINRA/SIPC, located at 525 Green Place, Woodmere, NY 11598. You can review the brokercheck for Dalmore.

You should speak with your financial advisor, accountant and/or attorney when evaluating any offering. Neither Nada, Cityfunds, nor Dalmore makes any recommendations or provides advice about investments, and no communication, through this website or in any other medium, should be construed as a recommendation for any security offered on or off this investment platform. The Site may make forward-looking statements. You should not rely on these statements but should carefully evaluate the offering materials in assessing any investment opportunity, including the complete set of risk factors that are provided as part of the offering circular for your consideration.