For years in the world of real estate investing, traditional Real Estate Investment Trusts (REITs) have been a popular choice for investors looking to diversify their portfolios and tap into the lucrative real estate market. But as the investment landscape evolves, so do better real estate investing opportunities.
Enter the Flywheel Portfolio — a modern alternative that promises consistent yields, reduced risks, and an automated investment process.
The Flywheel Portfolio is a cutting-edge investment solution designed to address some of the most common pitfalls associated with traditional REITs and give investors more cash in their pockets.
Unlike REITs, which often deliver inconsistent yields and lock up capital unpredictably, the Flywheel Portfolio focuses on short-term real estate loans that offer more stability and flexibility.
Consistent Yields with Reduced Risk
One of the primary frustrations with traditional REITs is the inconsistency in yields. Market fluctuations, tenant issues, and property management challenges all contribute to an unpredictable return on investment.
The Flywheel Portfolio addresses these concerns by diversifying investments across a wide array of short-term real estate loans, spreading risk and stabilizing income. Investors are drawn to the Flywheel Portfolio because it provides a sense of security. Knowing their investments span across 200 – 400 loans means that a single underperforming asset won’t significantly impact overall returns.
When loans repay, those disbursements are automatically reinvested back into the portfolio for compounding returns. This creates a self-perpetuating cycle of growth and ensures that returns remain consistent over time, making the Flywheel Portfolio a game-changing fractional real estate investment platform for beginner and savvy investors alike.
What’s more, the portfolio operates within a closed structure, ensuring profits are distributed efficiently, further contributing to its stability and predictability.
Flexible Capital Access with Monthly Disbursements
Investors in traditional REITs often find themselves frustrated by the lack of liquidity. Time-consuming redemption requests frequently leave investors waiting for their capital to be returned — and requests can even be denied.
Fortunately, the Flywheel Portfolio alleviates this problem by structuring investments in a way that disburses principal and interest monthly, as loans mature and pay off. Rather than having funds locked away, investors can access a portion of their capital regularly, making it easier to manage cash flow and reinvest in other opportunities.
The historical repayment curve of the Flywheel Portfolio's loans shows that the vast majority of investments pay off within 24 months (based on historical performance), providing both liquidity and peace of mind. Should any loans remain after 36 months, Groundfloor plans to pay out to investors in the portfolio at the estimated market value of the loan.
Higher Liquidity & Better Accessibility
When it comes to liquidity, the Flywheel Portfolio stands out. Traditional REITs often have lengthy redemption processes that can tie up capital for extended periods.
The Flywheel Portfolio, however, returns principal and interest monthly as loans pay off, eliminating the need for redemption requests and allowing investors to access their funds more readily.
Generating a passive income stream is also more accessible with the Flywheel Portfolio. Whereas the minimum initial investments for REITs can be in the thousands, the Flywheel Portfolio’s minimum initial investment is just $100.
Effortless Investment Automation
Direct real estate investment comes with significant time and effort commitments. From property search and acquisition to management and maintenance, the demands on an investor's time can be overwhelming. The Flywheel Portfolio offers a refreshing alternative to traditional REITs by automating the investment process entirely.
Investors can enjoy a hands-off experience that still delivers strong returns. By utilizing cutting-edge technology, the Flywheel Portfolio system identifies and invests in promising short-term real estate loans, allowing investors to benefit from the expertise and data-driven decision-making capabilities of the platform.
Higher Returns with Lower Fees
Equity-based REIT products have historically struggled to deliver competitive returns due to high fees and management costs. Many investors are disillusioned by the minimal yields they receive after these fees are deducted. The Flywheel Portfolio, however, offers a much more attractive fee structure.
Investors in the Flywheel Portfolio are projected to enjoy steady returns estimated, but not guaranteed, between 9% – 10.5% that includes an annual 1% management fee charged quarterly (so, 0.25% per quarter). This makes the Flywheel Portfolio significantly more cost-effective than traditional REITs.
The Flywheel Portfolio’s consistent returns, flexible capital access, hassle-free management, and more give it a distinct edge over the often unpredictable and high-cost nature of traditional real estate investments.
Investors can take the next step by exploring the Flywheel Portfolio and considering how it can fit into their overall investment strategy. With the right approach and the right tools, the potential for success in real estate investing is greater than ever.