The Motley Fool, a 25-year old multimedia financial services company that offers its member investors financial advice via research and analysis of various stocks, equities and personal finance services, just announced that it is getting into the real estate investment business. The Motley Fool calls its first-ever real estate investment service Millionacres.
According to the Motley Fool, Millionacres is “a brand new way to invest” that allows investors to directly invest in some of the premier properties across the country and to build a portfolio of properties much the same way that investors own stocks, individually.
For example, an innovative destination hotel that is projecting 26.3% annualized returns, a Class-A office space in one of the country’s fastest growing markets projecting 17.3% returns, and a real estate project that could reach 250% returns in 5 years by pinpointing one of the largest trends in real estate are just some of the properties Millionacres is offering its member investors to consider for a fee of $3,999/year.
The Motley Fool cited research done by the National Bureau of Economic Research that indicated real estate’s much lower volatility rate when compared with stocks. It also cited real estate’s outperformance when compared with stocks and bonds. Whereas returns on investments in bonds increase +6.8% over 20 years and ROI on investments in stocks increase +10% over 20 years, real estate investment returns run “three times as much comparatively” in 20 years with “less than half the volatility of stocks.”
The Motley Fool’s Millionacres offers its member investors a portfolio of individual properties that are diversified across cities and deal lengths for them to consider. The Millionacres property rating platform, Mogul, provides investors with a detailed allocation guide that includes scores for real estate ETFs, REITS, real estate equities, single-family properties, multi-family properties, single and multi-family rental properties, Opportunity Zone properties, crowd funding properties, real estate platforms, “after fees” ROI, etc.
The Motley Fool suggests that member investors have a minimum of $10,000 (plus the $3,999 one year fee to join Millionacres) to invest in real estate properties selected by the Mogul platform.
What propelled the Motley Fool to launch Millionacres now? The 2017 Jobs Act legislation, new tax laws and that real estate is increasingly driven by trends such as moving back to urban areas, the growth of 35-44 year olds moving into the housing market, the increasing numbers of Boomers wanting and needing assisted living facilities, and the movement away from the coasts towards smaller, more affordable cities and towns made possible by technology.
You as real estate professionals know these propelling trends and reasons to invest in real estate better than anyone. You have access to the research and the data to benefit your own wealth goals as well as those of your clients. Isn’t it time for you to utilize what you already have right in front of you and build your business and revenue streams via real estate investment? Certainly if it’s time for the Motley Fool to get into real estate investment, it’s time for you to do the same.