Vacation rental investing is quickly gaining popularity – but it’s extremely difficult to do. Companies like Fundhomes are using Fractional investing to change that. Fundhomes announces early access to its investing platform where investors have the ability to purchases shares of vacation rental properties for only $50 and managed on their behalf by Fundhomes.
SEATTLE, Oct. 10, 2022 /PRNewswire-PRWeb/ — Investing in Vacation Rentals hosted on platforms like Airbnb and VRBO has exploded over the last decade, with over 2.9 million hosts worldwide and 14,000 new hosts joining Airbnb alone each month as of 2022. High returns, a new way to monetize property, and historically low mortgage rates have fueled the growth that is currently a $75+ Billion industry. The economic developments in 2022 that have resulted in a high inflationary environment and subsequent raising of interest rates have put pressure on those looking to invest in Vacation Rentals to improve the return on their investments while simultaneously making it more difficult to finance and purchase vacation rental properties.
Fractional investing in the Vacation Rental industry is a fairly new concept, Seattle-based Fundhomes recently announced the opportunity for everyday people to purchase shares in these Vacation Rental properties instead of investing in their own. Fundhomes works by sourcing high quality properties based on decades of industry experience and machine learning models, securitizes them by creating an LLC that owns the property, allows investors to purchase shares in that LLC through its online platform, and uses blockchain as a ledger to make ownership more transparent and accessible. These “Fractional Investors” receive all the benefits of purchasing a property themselves including cash dividends, appreciation, and tax benefits. By removing the high investment barriers and reducing it to only $50, Fundhomes and the Fractional Investing industry have opened the lucrative Vacation Rental market to those who aspire to be investors and to build long term wealth. Fundhomes CEO and Founder Ming Zhu has been operating his own Vacation Rental management business for over 5 years, and had this to say about the industry: “Vacation Rental properties are some of the best investments I’ve made personally, but it took a very long time and lot’s of mistakes to discover the optimal way to manage these properties. We’re excited to help people get access to these investments, but reduce the learning curve to minutes instead of years to get started.” Investors will not need hundreds of thousands of dollars and dozens of hours a week of work to get started in this industry. According to Fundomes they will need less than 5 minutes to sign up and pick their favorite properties, and then Fundhomes will manage them in return for an industry-low property management fee.
With mortgage rates becoming the highest they’ve been in a decade, and inflation reducing the return of other asset classes, people are looking for new ways to make their money work for them. Fractional Investing is growing out of a need by many to have access to these opportunities without the substantial risk and high cost that they have traditionally required. Fundhomes and others are pushing the future of the Vacation Rental industry toward a decentralized and fractional model that encourages access and inclusion for more people than ever. The future of this industry and the greater Real Estate industry may for the first time be collective ownership that improves the financial wellbeing of millions more people thanks to the fractional investing model.
Jack Donnell, Fundhomes, 1 9493001810, [email protected]