This startup is making it easy for anyone to invest in income-producing property.
One of the best things about the internet revolution is the democratization of investment opportunities. Today, even a small investor can put a little money in stocks using Robinhood, get that advantages of tax loss harvesting with Wealthfront, and maybe even buy a little gold on Gilded. Twenty years ago, these things were only available to high net worth investors with a good broker/advisor. Today, creating a well-diversified portfolio of investments is available to all.
Case in point: A new startup in London, Fracinvest, is making it easy for anyone, for a little as $500, to invest in income-producing serviced accommodations.
What are “serviced accommodations”? An example would be an apartment building where the units are rented out for short stays. The success of Airbnb and VRBO has created a whole new billion dollar market of consumers who prefer serviced accommodations over hotel rooms. Many people today love having a full kitchen, separate bedrooms, nice living space, and the other benefits of serviced accommodations. And this makes the asset class a very attractive investment.
With the Fracinvest platform, any investor, even a small one, can browse different properties and choose one to invest in. That investor gets all the benefits of the investment, plus liquidity because they can use the same platform to sell their fractional ownership anytime.
Until recently, the entry-level investment in a serviced accommodation property might have been a million dollars. Now it can be as little as $500. That’s a pretty big deal.
All over the world, we’re seeing new digital platforms that are democratizing access to investment opportunities, and Fracinvest is a great example of this trend.
