In the age of cryptocurrency, non-fungible tokens (NFTs) and a multitude of stock market equity opportunities, many investors are increasingly shifting their investing strategy to include tangible assets like real estate. That shift has been a boon to the residential real estate investment platform, Fund That Flip, which not only continues to grow its revenue but is consistently listed as one of the nation’s fastest-growing private companies, landing on the Inc. 5000 for the 3rd year in a row.
Fund That Flip has given its investors a low-cost entry opportunity into the passive real estate investment market. And while the housing market has had its ups and downs, the demand for real property is constant and a preferred tangible asset class for investors.
The U.S. investment tradition has tended historically to put a heavy emphasis on the benefits of investing in the stock market. Still, an underreported fact is that real estate has been the most favored long-term investment for Americans for the past 8 years, according to a Gallup poll. Fund That Flip has grown in part due to the concentration of money invested today in real estate.
That growth shows no signs of slowing down. In July, the company reported 154 origination loans and $62.9 million in origination volume in its most recent financial report. It attributed the continued growth to being selective in the loans it chooses to fund with sustained demand from its borrowers.
Fund That Flip and its customers have found that while the stock market offers several investment advantages (including the ease of access and their liquidity), diversification of an investment portfolio with real estate offers benefits not found on Wall Street. These benefits include historically lower volatility than stock market investments and less correlation to the frequent fluctuations of market performance.
As the U.S. market is currently experiencing, increased oil prices have had a negative correlative effect on groceries and other commodities, adversely affecting many stock options, which share common risks. On the flip side, despite this fluctuation of commodities, people are still building homes even though a rise in construction costs. While many analysts believe the current hot real estate market has been exacerbated by the pandemic, the housing supply was, in fact, already low before COVID. At the end of the day, the real estate market will always be undergirded by the simple fact that people will always need housing.
Naysayers like to point to the 2008 global financial crisis (the first in 80 years) as a reason to avoid investing in real estate, particularly in a market like today’s. One important factor leading to that crisis is the housing market’s heavy reliance on credit. In the last major financial crisis, minimal value was set on access to liquidity, but the current climate is very different.
Home prices nationwide, including distressed sales, grew by 17.2% in June 2021 compared to June 2020, representing a record high, with more than half of homes for sale getting offers over their respective asking prices. Add that to the increased hunger for tangible passive investment opportunities in real estate, and you’ll understand why Fund That Flip has reported over 163% in revenue growth, defying the downturn other companies have experienced during the pandemic.
For more resources on the housing market, or to start investing with online platform Fund That Flip, go to www.fundthatflip.com.
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