Real Estate Investors Tap Into Lucrative Alternative Strategies for Wealth Building
Staff Editor Real Estate Investors Explore Alternative Strategies for Wealth Building
As the real estate market continues to evolve, savvy investors are turning to innovative strategies beyond traditional property ownership to build wealth. Financial educator Tess Waresmith, founder of Wealth with Tess, highlights three emerging trends: private money lending, build-to-rent, and real estate syndication.
Private money lending has gained traction among investors seeking passive income without the hassles of property management. This approach involves providing capital to other investors for projects such as house rehabilitations. Carl and Mindy Jensen, a financially independent couple, have embraced this strategy, reporting returns between 10% and 12% from their lending activities.
The build-to-rent model is another alternative gaining popularity. Brannon Potts, an experienced investor, finds constructing rental properties more lucrative than purchasing existing ones. “It’s a creative process that allows me to design layouts and work closely with builders,” Potts explains. With 10 rental units completed, he generates approximately $40,000 annually and aims to achieve financial independence through 20 units.
Real estate syndication offers investors the opportunity to pool resources for larger property acquisitions. Managed by a syndicator, this method provides a hands-off investment experience. Tess Waresmith, who began investing in syndications in 2023, notes, “It’s an excellent way to access larger investment opportunities without daily management responsibilities.”
While the Jensens appreciate the passive nature of syndications, they caution about potential unpredictability in returns. However, many investors report that syndications have often outperformed initial expectations.
As the real estate investment landscape diversifies, these alternative strategies are proving attractive to those seeking to build wealth through property markets without traditional ownership burdens.
