Fractional real estate investing offers a middle ground for new investors hesitant to take on the full risk of purchasing properties or buying into a syndication without prior experience. In this episode of Zen and the Art of Real Estate Investing, Jonathan welcomes Brian Davis, co-founder of Spark Rental, an investing club centered on fractional real estate investments. Drawing from his investing experiences, Brian devised this concept to provide a more accessible entry point for newcomers to the real estate market.
Jonathan and Brian begin their conversation by exploring how Brian transitioned to a career in real estate investing after working with a hard money lender. They share the 50% rule Brian uses to help investors understand their expenses, the hard lessons he learned through experience, and the most challenging aspects of real estate investing for beginners. They also discuss why Brian disliked landlording, which led to the co-founding of Spark Rental. The conversation underscores the two major challenges new, non-accredited investors face, the importance of timeline diversification, and the benefits of a fractional investing model like Spark Rental.
Jonathan and Brian dive deeper into:
- Fractional investing allows investors to buy into an investment with smaller amounts of cash.
- Non-accredited investors are welcome to invest, whereas syndications often require accreditation.
- There are hidden costs to operating and landlording your own properties.
- Mobile home parks offer some distinct advantages to investors.
Fractional investing is a concept that offers several advantages to someone just starting as a real estate investor, and Spark Rental makes it easy and affordable.
If you want to learn more about Zen and the Art of Real Estate Investing Podcast, check out https://zenandtheartofrealestateinvesting.com/podcast/159/.