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Looking for the perfect gift for a young person who has everything? Check out our list of 35 cool gifts for kids who have everything! These creative gifts include unique toys and non-toy ideas.From toys to clothing, there's something for everyone on this list.

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Okay, you are reading this because you are overwhelmed with the fact that your kids have everything (or the kids you want to buy gifts for).

That is a tough situation to be in.

In today’s society, kids are quick to get anything and everything they want. There are a million different reasons for that. But, that is the reality our society lives in. In fact, research proves overindulged kids may experience lifelong consequences.

So, what do you get for kids who have everything?

You have to really search and put some thought into finding an awesome gift – even better a gift that is not a toy.

Maybe it is the year to consider a no gift Christmas?

Kids who have everything may seem like they have it all, but there are still gifts that will surprise and delight them.

Let’s dig into these cool gifts for kids who have everything.

Looking for the perfect gift for a young person who has everything? Check out our list of 35 cool gifts for kids who have everything! These creative gifts include unique toys and non-toy ideas.From toys to clothing, there's something for everyone on this list.

What do you get a kid who has everything?

You need an off-the-wall gift that is out of this world.

In order to hit a grand slam, you must really know the kid you are purchasing a gift for.

And honestly, most of the best gifts are gifts of time – specifically experience gift ideas.

What to get a kid that’s not a toy?

If you are looking for non-toy gift ideas for kids, there are many options to choose from. You need to turn your mind off the traditional gift giving and think outside the box.

Great ideas include anything personalized, educational classes, sports gear, or experiences like ziplining.

Whatever you choose, the important thing is that it is something the child will enjoy and cherish.

Lifesaver Ideas to Turn To – The 4 Gift Rule

The 4 Gift Rule is a guideline to help you find the perfect gift for someone. It suggests that you should give something that the person needs, wants, or may not have already. Since we have determined that “something they want” is already taken care of, here are the other 3 gift rules to consider.

  • Something they need: Think about school, sports, and activities – what is it that they need? Do they play baseball and outgrown their catcher’s gear? Interested in robotics, but don’t have the computer subscriptions to keep learning? There are many unique options available as this is personalized to them.
  • Something to wear: Even if your child has a closet full of clothes, there are always new fashion trends and styles that come out each season. They may also need new shoes or accessories to go with their outfits.
  • Something to read: Books make great gifts for kids of all ages. If your child is into sports, you can get them a biography of their favorite player. If they’re into history, look for a book about a topic they’re interested in. Right now, graphic novels are the big hit!

Whether you’re looking for a unique gift for a loved one, or need some helpful ideas for yourself, check out some of these amazing options.

Need Creative Gifts?

Here are the best places to find creative gifts.

  • If you’re looking for creative gifts, turn to Etsy! It offers a wide selection of handmade and vintage items that will surely provide hours of fun.
  • Need something quick, check out these Amazon gift guides.

Unique Gift Ideas for Kids and teens – Specifically Gifts for Kids who Have Everything

Picture of teenagers for unique gift ideas for kids and teens.

Everyone loves gifts, and kids are no exception.

However, when you are on the hunt for cool presents to buy your child that they won’t get tired of playing with or using over and over again, you may find yourself coming up short.

This is where we come in!

We have compiled a list of 35 cool gifts for kids who already have everything or are just too young to know what they want.

These gifts are sure to make your shopping experience a breeze and will keep you from having to hear the dreaded question, “What do I get them?”

Subscription

One option for a kid who seems to have everything is to get a subscription to their favorite magazine or TV show. This will keep them entertained and give them something new to look forward to each month or week.

Great options include Amazon kids or Kindle Unlimited.

Subscription Boxes

There are so many reasons why subscription boxes are so much fun. They are a way to try out new things without committing to anything. Plus, they come with a lot of great discounts.

You can also find boxes that are perfect for specific interests.

Kitchen Science Kit

The Kitchen Science Kit is a great gift for kids who love to know how things work and want to learn more. It comes with plenty of pieces that your child needs to start testing their experiments. This kit will help your child learn life skills like patience, organization, and creativity.

Coding Games

There are many great coding games that make excellent gifts for kids who have everything.

  • One option is the Bitsbox coding subscription box, which is designed for kids ages 6-12 and provides them with a variety of STEM education activities.
  • Another option is the Booleen Box, which is a computer building game that is perfect for kids who are interested in technology and engineering.

Both of these games are great ways to get kids interested in coding and help them develop important skills for the future.

Time Capsule

Time Capsules are a great way to preserve your memories and experiences. You can store anything in a time capsule, such as photos, articles, and notes.

The recipient can open the capsule in the future and experience the memories stored inside. Get your time capsule container!

Spa Day Kit

If you are looking for a unique and thoughtful gift for a child in your life, look no further than the Spa Day Kit. This kit includes everything a child needs for fun and relaxing spa day, including a bath bomb, nail polish, and hair treatment. The easy-to-use instructions make it perfect for kids of all ages, and the kit makes a great gift for moms on any occasion.

Scientific Explorer – My First Mind Blowing Science Kit

The Scientific Explorer My First Mind Blowing Science Kit is perfect for kids who are just starting to learn about the scientific method. This kit comes with a lot of different materials that help kids learn about science. It’s a great way for kids to learn about science and see how it works.

Customized Journal

Customized journals are a great way to show your personality and interests. You can choose the cover, the paper, and the layout of your journal. You can also add your own photos and drawings.

This will be something special that the child can use to document their thoughts and experiences. Pick your design on the customized journal here.

Customized Planner

There are a lot of different things that you can get a kid that doesn’t want toys. One idea is to give them a customized planner.

This will help them stay organized and be able to keep track of their school work, extracurricular activities, and social events. Design your customized planner here.

Lego Chain Reactions Kit

This is a great gift for kids who like to build and experiment. The portable craft studio is easy to carry and organized by item type and color group.

If your kids seem like they have outgrown Legos, check out Gravitrax! Hours of wonder and fun for preteens and teens!

ABC Mouse

The ABC Mouse is a great gift for kids of all ages.

It features age-appropriate games and activities, as well as family-friendly shows that kids can watch. You’ll have peace of mind knowing that your kids are engaged with awesome content when you give them the ABC Mouse.

Customized Jewelry

One option for a unique gift for a kid who has everything is customized jewelry. You can find stores that will let you personalize items like necklaces, bracelets, and earrings with the child’s name or initials. This makes the gift special and something they can treasure for years to come.

Amazon Glow

Amazon Glow is an interactive entertainment and video-calling system designed for children. A great way to keep in touch with grandparents.

It has a huge 19″ touchscreen that let’s kids be kids, and an interactive video call on a tablet or smartphone. Amazon Glow is designed for children to learn and play with each other, making it the perfect gift for your tech-savvy kid.

The service requires an Amazon Kids+ subscription, which automatically renews every month. For just $4.99 per month, you can give your child access to a wide variety of toys that they are sure to love.

Craft Supplies

When you give someone a craft supplies as a gift, you are giving them the opportunity to create something special. This could be anything from a new piece of jewelry to a painting.

Craft supplies are also a great way to show your appreciation for someone.

Gift Basket

Kids love to get gifts, but it can be hard to come up with something unique and special. If you’re looking for a gift that your child will love, you should consider building a gift basket.

This is a great way to combine different types of gifts, and it’s a fun way to spend some time together.

For example, my daughter got a princess-themed gift basket when she was little.

Non-toy gift idea for kids: Experiences

Picture of a group of teens for non toy gift ideas for kids - experiences.

Experiences make great gifts for kids because they can be educational, fun, and memorable.

Some great ideas for experiences to give as gifts include museum visits, sporting events, Broadway shows, dinner at a fancy restaurant, science exhibits, art exhibits, theme parks, comedy clubs, acting classes, and dance classes.

Master Classes

Master Classes are a great way for kids to learn from the masters.

They provide a unique experience that can help kids learn about anything (almost). Master Classes can be a great gift for kids because they can help them learn new things and improve their skills.

I remember and treasure all of the master classes I took growing up.

Spa Experience for Kids

One way to give the gift of a spa day to kids is to buy some bath bombs, nail polish, and hair treatments. Another way is to set up a little home spa kit.

Finally, you can spend some quality time together and have fun!

Grab all of your spa experience supplies here.

Tickets to a favorite play or concert

One option is to get tickets to the child’s favorite play or concert.

This will give them an experience they will enjoy and remember for a long time.

Every time Imagine Dragons come to our city, I always hear the kids practicing their lyrics.

Tickets to Sporting Events

There are a lot of great sporting events happening throughout the year that your kid would love to attend.

Whether it’s a professional game or a college game, sporting events make for great memories. And tickets aren’t as expensive as you might think!

Head to the Theatre for a Broadway Show

Do you have a family member or friend who loves to go to the theatre?

Perhaps they’ve seen a show before and are always looking for something new to see. Head to the theatre for a Broadway show!

Broadway shows are often full of excitement and suspense. Your loved one will have a memorable time and you’ll get to go out with them!

A day of sleeping in

One idea is to give the child a day of sleeping in especially popular with middle schoolers and high schoolers.

This can be a great gift for kids who seem to have everything and are always on the go. It can also be a chance for parents to spend some time alone or with other siblings.

A day at a zoo

One idea is to give the child a day at the zoo. This can be an all-day experience or simply a visit to see the animals.

It can be fun and educational, and it’s something different that the child may not have done before.

Game Night

Kids love the game night! It’s a great way to bond with friends, have some fun, and learn new things. There is a lot of fun non-toy gifts you can give your kids for a game night that will make it even more enjoyable. Here are a few ideas to get you started:

  1. Set up a board game or card game in your home and let the kids play with you.
  2. If your child is a competitive type, give him or her an incentive to win by offering a small prize for the winner of each game. This will make the game night more exciting.
  3. If you are playing a card game, make sure to have plenty of snacks and drinks on hand in case anyone gets thirsty or hungry while playing the game.

Check out the latest games on the market!

A day of cooking with a celebrity chef

One unique gift you could give to a kid who has everything is a day of cooking with a celebrity chef. The child will get to learn how to cook their favorite dishes from the best in the business, and they will get to eat their creations afterward.

Great for the aspiring chef!

Theme Park Excursion

If you’re looking for a unique gift for a kid who has everything, why not take them on a day trip to a theme park?

A day at a theme park could be a great non-toy gift idea for kids. Kids would love the chance to go on rides, explore the park, and enjoy the company of their friends. .

They’ll get to experience all the fun and excitement of a theme park while spending time with you (and their friends).

Splash at a water park

A day at the water park can be a great gift for kids who have everything. They will enjoy hours of fun in the sun and get to cool off in the water.

Plus, they will be able to play with their friends and make some new ones. Maybe even consider a season pass?

Flight Lessons

If you’re looking for a unique and cool gift for a kid who has everything, how about flying lessons?

There are many different programs that offer this experience, and it is sure to be something the child will never forget. They will get to fly in the cockpit of a private jet or airliner, and may even have the opportunity to take the controls!

They may even make a career choice out of this gift.

A day with a celebrity

Could you imagine if this kid got a chance to hang out with Dude Perfect or Ninja Kidz all day?!?!

They would be on cloud nine.

That would be one unique and cool gift for kids who have everything.

Course at a local college

One idea is to give the child a day of learning by taking him or her to a local college for a course of their choice.

This will allow the child to explore new interests and learn something new in a fun and stimulating environment.

There are plenty of classes to choose from.

Kid’s Choice Dinner

One great gift idea for kids is to give them a Visa Gift card. This way, they can “pay for dinner” and have a fun experience doing it.

Also, you could also give them a gift card to a grocery store so they can cook their own dinner. This would be especially beneficial if you teach them how to cook their own dinner as well.

A day of doing nothing

When it comes to finding a unique and interesting gift for a kid who has everything, sometimes the best option is to give them nothing at all.

A day of doing nothing can be just what they need to relax and enjoy their birthday or special occasion.

Can adults have this one too, please?!

Dinner at a Fancy Restaurant

A dinner at a fancy restaurant can be a great gift for kids.

Kids will love the experience of trying a different cuisine and sitting at a high-end table. Plus, spending a special night out with friends can be a memorable experience.

A day of service at a local charity

One option for a kid who has everything is to give them a day of service at a local charity.

This will allow the child to spend time giving back and helping those in need, which can be just as rewarding as any material gift.

In fact, this is why mission trips are so popular!

Some other fun experience gifts for kids include go-karting, theme parks, and escape rooms. These experiences are exciting and new, and they’re something that the kids can enjoy together.

The Ultimate Gift Idea for Kids: Cold Hard Cash

Picture of cash for the ultimate gift idea for kids.

Giving cash as a gift is a good idea because it is a tangible gift that can be used immediately.

It is also a great way to avoid any possible clash of interests with the child who might receive the gift. Cash is a low-key way to show your appreciation for the child, and it is also a way to avoid feeling obligated to give a gift.

Also, it helps kids to realize the value of money and how to manage it. Those life lessons might be well worth it!

Giftcards.com

Or a Gift Card

When you don’t know what to get a kid who seemingly has everything, a gift card is always a safe option.

With so many different stores and places to spend them, gift cards let the child choose what they really want. This way, you know they’ll be happy with their present.

Unique Fun Toys or Eyes to See the World?

Picture of gift bags for unique fun toys.

Now, you have a decision to make…

Will you go with: unique fun toys or experiences? The choice is yours.

Just remember… one will leave a longer impact on the recipient than the other. That is why many families are opting for Christmas experiences over traditional gifts.

Which Creative Gifts Will You Get?

Picture of a kid figuring out creative gifts for kids who everything.

If you have a child that seems to have everything, it can be hard to know what to get them for gifts. However, there are still some great options out there.

It is proven that experiences bring more happiness than traditional gifts, so why not lean to towards those ideas.

There’s no need to spend a fortune on a gift for a kid who has everything. With a little bit of creativity, you can find a gift that will be sure to put a smile on everyone’s face.

Review our list and see what takes your fancy!

If you’re looking for a gift for a young person who has everything, our list of 35 cool gifts is sure to have something for everyone. From non-toys to clothing ideas, there’s something for everyone on this list.

So, what are you waiting for? Get shopping!

You probably need inexpensive gifts for the woman who has everything, right?

Need More Christmas Gift ideas?

Know someone else that needs this, too? Then, please share!!

Source: moneybliss.org

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This woman retired early at the age of 28 with $2.25 million and still lives an incredibly luxurious life. Here's how she reached early retirement.

This woman retired early at the age of 28 with $2.25 million and still lives an incredibly luxurious life. Here's how she reached early retirement.

I’ve recently decided to start a new series where I interview people who are doing extraordinary things with their lives. First up, I have JP Livingston, who retired at age 28 with a net worth of $2.25 million. And, her net worth is still increasing!

Of that total, 60% of her net worth came from saving, while 40% came from growing her money through investing. This is why investing your money is so important, and it’s how you really allow your money to grow for you!

JP grew up listening to stories about financial insecurity during her parents’ upbringing. The freedom that early retirement brought really appealed to her, and who doesn’t want to retire early anyways?

She is now retired at the young age of 28 and says that she still lives “an incredibly luxurious life.” And, she managed to retire early while living in one of the most expensive places in the world – New York City.

Related articles:

I asked you, my readers, what questions I should ask JP. And, make sure you’re following me on Facebook so you have the opportunity to submit your own questions for the next interview.

So, below are your questions, along with some of mine.

Here is how JP Livingston retired at the age of 28 with over $2,000,000. You can follow her on her blog The Money Habit as well.

1. Tell me your story. How did you manage to retire at 28?

I have wanted to retire since I was about 12 years old. My parents grew up poor. I am talking eight people living in a one room apartment poor. My father’s father passed away when he was 18, and his mother who had previously been a homemaker was only able to find a job at a cookie factory. Her dream for my father was that he would be a busboy and eventually work his way up to be a cook in a restaurant.

My mother’s father passed away when she was in middle school; her mother found work as a seamstress at a large garment factory to support a family of six children.

I grew up on stories of their financial insecurity.

When I started thinking about the future, my parents’ refrain to me was that I could be anything I wanted to be, as long as I had a way to financially support myself.

In middle school, we took a survey on our interests and read about different jobs. I loved to write and wanted to be a writer. When I found out how unsteady the income was for a writer, though, I was demoralized. I decided that if I couldn’t support myself financially by being a writer, I would find a way to retire instead, Then I’d have the freedom work on whatever I wanted, including all the writing I could handle. So I started reading personal finance books.

I learned that you don’t have to be a genius or have special skills to retire early. A habit of making small and regular improvements trumps even the most gifted people who only apply themselves sporadically.

The tactics I’ve employed include optimizing for pay raises and promotions, living a very minimalist and frugal life, focusing on investing skills, and building analytical skills such as understanding how to build and use spreadsheets to support my investment ideas. I found there was an 80-20 rule to different improvements I could make in my money life: 20% of the improvements accounted for 80% of the results. I’ve been trying to outline those major needle movers on my blog so people don’t waste their time as I did on the things that don’t really matter.

All those incremental improvements stacked up into a humming, healthy machine. When I retired at 28, I had a net worth of $2.25 million and it’s still climbing.

2. How did you reach $2,250,000 in savings by the time you were 28? When did you begin saving?

60% of my net worth came from saving and 40% came from growing my money through investing.

My saving habits started in childhood, which isn’t surprising given my parents’ experiences. But what really upped my game was branching out from a few good habits and awareness to trying to find unorthodox ways to save.

One savings move that went against the grain was graduating college in three years. I earned scholarships to attend a state school for free but I chose a private college which I felt would offer broader opportunities. That private college was incredibly expensive though. So in compromise, I graduated a year early.

The savings from that move was not just the tuition costs, but also a full year of missed earning opportunity. My first job was in finance and paid $60,000, with a promise that that if you stuck it out through the entire year you got a bonus that was almost equal to your base. So that one decision to graduate early caused a nearly $150,000 net worth swing.

That kind of savings so early in life, growing at market rates for 20 years would yield $800,000 by the time a person were 42. That’s enough for some people to retire through one decision alone!

Related: How I Paid Off $40,000 in Student Loans in 7 Months

3. What made you want to retire early?

The freedom is really what appealed to me.

I had a very potent reminder of how important freedom was and how little time I had to enjoy it the year before I retired. There were several deaths and major health scares amongst my loved ones. That made me realize that given my family’s history, I had about 15 to 20 really good years of health that I could count on. Did I want to spend even one more of those years stressed out while working?

4. What sacrifices did you have to make in order to reach this milestone?

I’ve rarely thought of my financial decisions as sacrifices. Rather, they were decisions to purchase one thing over another. If I took my bonus into the store and were deciding between a cool new phone or a camera, I wouldn’t leave feeling like I had “sacrificed” the one I didn’t purchase.

I wanted to buy back my time and my freedom more than I wanted to buy anything else in the store. In short, I’ve looked at this is as an opportunity, not a sacrifice. That does wonders for your motivation and mental health.

There is an excellent book that I think provides one of the best frameworks to thinking this way. It’s called Your Money or Your Life, written by Vicki Robin and Joe Dominguez. The general concept is this: take the amount of money you make in a year. Subtract out all your work-related expenses. Now take that balance and divide it by the number of hours you work. That gives you the amount of money you are exchanging per hour of your life. With that metric, you could estimate how many hours of your life a purchase would cost rather than dollars.

Once you start looking at your purchases this way, you will want to buy much less. And investing will start to look amazing to you! It’s a magical way to get more of your life back, because those dollars can go to work in your place, earning you money while you sleep.

5. Would you say that you live comfortably?

I think we live an incredibly luxurious life. There’s still a ton of fat we could cut.

6. What career did you have before you retired? Did that career help you to retire earlier?

I was a professional investor at a finance firm and it definitely helped me to retire earlier. I got really lucky that it ended up being so lucrative; I initially planned on it being a two year stint at most. But the work kept getting more interesting and the pay got better. The frameworks we used for investments also helped me think about my own investment decisions for my personal portfolio.

7. What do you have to say to those who may think that they can never earn as much as you can – can they still retire early too?

They can absolutely retire early!

To me this is the whole point of why the personal finance blogosphere exists. None of us have identical circumstances and identical outcomes. Your childhood may have been more or less advantaged than mine. Your lucky breaks might be better or worse than the ones I experienced. But the absolute truth is this: the you that is making consistent, small improvements over time to your money plan is going to easily accumulate 5x the wealth of the you that isn’t.

It’s not hard to retire early in this country because the bar is so low. The average age of retirement in the US is age 63. After 41 years in the workforce the average 63-year-old couple has a total net worth of $174,000 to show for it. That works out to just over $4,000 of savings per year; less if you assume any investment growth.

8. What do you do now that you’re retired?

The best thing I can do is show you. Here was my actual calendar from a recent week:

This woman retired early at the age of 28 with $2.25 million and still lives an incredibly luxurious life. Here's how she reached early retirement.

This woman retired early at the age of 28 with $2.25 million and still lives an incredibly luxurious life. Here's how she reached early retirement.

Broadly speaking, I have one major project – a personal finance site I write to help others retire early – which I work on for about 10 hours a week, then the rest of the time is filled with hobbies, reading, and being out in the city.

It is amazing how enjoyable the mundane things are when you are not too stressed out to notice them.

9. Many people will have this question in the comments of this interview, I just know it! – Can you explain how you will make $2,250,000 last your whole life, even though you are only 28?

That’s a great question.

My plan is based on data gathered by the Trinity Study. This study calculated that if deployed in a portfolio of stocks and bonds, an inflation-adjusted 4% yearly withdrawal rate from savings was optimal to safely retire and not work for a given 30-year window in the history of the United States.

Thus, if your annual expenses is equal to that 4% yearly withdrawal rate, the idea is that it is very unlikely you will run out of money in a 30-year period.

However, I have some concerns about the riskiness of that 4% figure. For one thing, my retirement is expected to be much longer than 30 years. In addition, if you look at stock market performance in the last 20 years, the compound annual growth rate was 8.2%, almost 2 points lower than the CAGR shown in the period the Trinity Study originally measured. For these two reasons, I plan to live off a stock and bond portfolio withdrawing an inflation-adjusted 3%.

3% of my $2,250,000 would give me $67,500 a year. My husband and I currently spend $65,000 a year living in one of the most expensive cities in the world. That means we could support our current lifestyle almost indefinitely.

But one of the hard parts about retiring so early is that you have to plan for chapters of life that could look drastically different than today. Having children, for example. So before I pulled the trigger, I built a projected budget for a family of 4 to calculate how much I would need to support a family. I did this with empirical data, researching what actual families of four paid for the service in the city I was considering.

This woman retired early at the age of 28 with $2.25 million and still lives an incredibly luxurious life. Here's how she reached early retirement.

This woman retired early at the age of 28 with $2.25 million and still lives an incredibly luxurious life. Here's how she reached early retirement.

The nest egg required to support this budget is $2.23 million, which is within our means.

With early retirement specifically, I think it’s also comforting to walk through your other margins of safety that don’t show up in the budgeting process. Here are a few in our case:

  • Conservative Withdrawal Rate: We are using a withdrawal rate some would argue is half to one percentage point more conservative than needed. That would equate to overstating my nest egg needs by over $400,000.
  • Extra Buffer: We have an extra one hundred thousand dollar buffer that will grow over time and which will absorb costs we haven’t foreseen (i.e. higher healthcare premiums, poor market performance for a year, etc.).
  • Full-Time Work: Either of us could go back to work full time.
  • Income-Earning Hobbies: One or both of us might end up doing a hobby that generates money
  • Tighten Discretionary Purchases: $9,700 or 19% of our annual budget is discretionary and we could tighten our belts in a particularly rough year just as every other family does.
  • ACA Healthcare Savings: We have not factored in any ACA subsidies even though our income in this budget would qualify us.
  • Market Outperformance: Markets could do better than we’ve projected. We require a blended 5-6% return (3% withdrawal, 2-3% inflation). We could easily see market CAGR of 8%+ as evidenced by historical data.
  • Home Equity Loans/Reverse Mortgage: We can draw cash out through a home equity loan if we have a temporary cash crunch or use a reverse mortgage in our old age.
  • Profit-Share Grants: My profit-share grants from my previous employer may be worth greater than the $0 we’ve estimated.

10. Do you still earn an income?

Not currently.

I am not ruling out a traditional job one day, but it would be about finding interesting work and less about the money. My goal right now is to create a place that helps other folks get smarter about money and retire faster, so I might do some freelance writing outside of the blog. But I don’t want to have left one job just to jump into another!

As for other forms of income: I do have some deferred compensation from my old employer. And although my husband could retire as well, he likes what he is doing and continues to work.

11. How did you decide on how much you needed to retire on?

I was a professional investor and the way we used to make our investment decisions was to build out various scenarios, observe the outcomes, and attach a probability to each. I did a similar exercise for determining how much I needed to retire. I used three scenarios to triangulate on a target number. There’s a walk through on the three scenarios which anyone can use to determine their own target retirement number over here.

12. If you were starting back at ground zero, what would you do differently from the beginning?

Two things:

  1. Put Momentum First: I would focus on building momentum more than trying to muscle my way through things with sheer discipline. Most people’s initial reaction to starting a new project is to throw themselves all in. I get emails asking me what book I’d recommend people buy to turn their financial lives around. But think about how you got into your other hobbies. Did you run out and buy a book about proper free-throw technique to get into basketball? Were you consulting a textbook to get into yoga? If the key to millions of dollars is showing up every day and making small improvements, then the key to your success is figuring out how to build momentum in those early days that will get you showing up regularly. That means less of a focus on running out and buying dry, boring textbooks and more effort on joining blogs or forums with bite-sized, regular content where you can start to get your bearings and get interested.
  2. Tackle The Right Steps In The Right Order: There are four steps to early retirement, and tackling them in the right order really accelerates your progress. I wish I had thought deliberately about how the levers in front of me were changing and better prepared myself for the different stages. I’ve missed a lot of great opportunities because I was so focused on the things that had been working for me in the past that I didn’t look up and think about the new opportunities open to me as my wealth accumulated. For example, I wish I had understood the math behind investing in high-appreciation real estate markets year ago. If I had, I would have bought a house in NYC years ago and be $500k richer.

13. Is retiring everything you thought it would be or not as you planned? Do you ever miss work? 

It is a hundred times better than I thought it would be. I will admit there was a learning curve at first. But these days, I often tell my family that I am living a version of my dream life. If you had known me before I retired, you would have found that statement astonishing.

If there is one thing I miss about work, it’s regular interaction with smart and thoughtful people. Since I started the blog, though, I’ve gotten quite a bit of that back. So overall I’m quite happy!

14. Lastly, what is your very best tip (or two) that you have for someone who wants to reach the same success as you?

Ask questions. Be the active commenter on a blog or the vocal one at the cocktail party. Be courageous enough to cold-email the people you know have the answers you need. You can learn so quickly if you’re willing to put yourself out there. People are generous with their experience if you show you’ve done your homework and ask them specific things that make it easy for them to help you.

“Why?” is your most powerful tool. If someone tells you investing in X is the way to go, ask why, and pepper them with all the potential concerns you can think of. Then go find another smart person and ask them why X is a good or a bad idea. Go back to the first and pose the second person’s counterargument and ask them to respond. Introduce another expert. Repeat until you feel you understand the issue backwards and forwards. This is hands down the best way I’ve found to master a concept.

Focus on habits and systems, not results. You can make yourself feel really good by muscling through a one week sprint with discipline and admiring what you accomplish. But really impressive results take weeks and years of focused effort. I have seen a lot of amazing people in college and at my old employer, and the thing that separates the average from the incredibly successful is really just who has figured out how to put out consistent effort.  No one has discipline to last in a marathon like this without building the right systems and habits.  Show up every day and do one small thing to improve the thing you’re measuring. If you do this, you will be among the top 5% of achievers. Over time you will build a system that will trump any specific lucky breaks or windfalls, and it will get you to financial success you deserve.

Are you interested in retiring early? Why or why not?

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Source: makingsenseofcents.com

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Real estate doom and gloom articles are going to ramp up big time in coming months, if they haven’t already.

You’re going to hear that the second biggest housing crash since the Great Depression is upon us.

It’ll all be super scary and negative and panic-inducing. You’ll be led to believe that it’s 2008 all over again.

Except, it’s not. Nor will it be. Interestingly, this latest housing downturn, or “correction,” was manufactured by the Fed.

The same Fed that basically orchestrated the housing frenzy that preceded it. The good news is it’ll likely be short-lived and really nothing like the Great Recession.

Why Are Home Prices Falling?

First, let’s talk about why home prices are beginning to stall, and gasp, even go down.

Long story short, home price appreciation was absolutely out of control over the past couple years since the pandemic got underway. We’re talking a 50% increase in prices.

A combination of limited supply, cheap money (i.e. record low mortgage rates), and the sheer desire to own property propelled home prices to new heights.

Not only did home prices hit all-time highs, but monthly and annual gains hit records as well.

We were seeing consistent double-digit gains in property values, which we all know simply can’t be sustainable over time.

The Fed saw this happening and basically decided to pump the brakes. They discovered that recent home price gains were driven by excess demand, not just short supply.

As such, they knew that raising their own interest rate (fed funds rate) and stopping their Quantitative Easing (QE) program would eventually increase mortgage rates.

Maybe they didn’t foresee just how much they’d rise in such a short period, but mission accomplished either way.

It’s pretty much a foregone conclusion that home prices have peaked, and now after months of slowing appreciation, we’re facing actual declines in nominal prices.

In other words, a lower price than the month before, and eventually the year before.

How Much Will Home Prices Go Down?

The next logical question is how much will home prices go down. It’s important to differentiate between nominal prices and real prices, the latter of which are adjusted for inflation.

This is especially pertinent with inflation running super-hot at the moment, at 8%+.

Now high mortgage rates alone don’t necessarily lower home prices, but once you throw in a significant increase in unemployment, they do.

Per Wharton’s Susan Wachter, home prices have never fallen without “a substantial rise in unemployment,” other than during the Great Recession.

This is not the Great Recession – the mortgages underwritten at that time were utter garbage.

We’re talking 100% financing, no doc, stated income, outright fraud, and dangerous adjustable-rate mortgages like the option ARM.

Today, it’s plain vanilla, boring old 30-year fixed mortgages. And the majority of homeowners with them have absurdly low interest rates. We’re talking 2-4%. Locked in until the year 2050.

These folks don’t really care if “home prices go down” because they’ll keep paying their super-low monthly mortgage payments and let time get their home price back to new heights.

Even if they do lose their jobs, they can sell for a profit or rent out their properties and cash flow positive.

Meanwhile, a combination of a recession, increased unemployment, and much higher mortgage rates will likely push nominal home prices lower.

But how much lower? While this is really always a regional question, not so much a national one, chances are home prices will only fall 5-10%, at least if you believe Wells Fargo economists.

And when you look at how much they went up since just the year 2020, it’s a drop in the bucket.

For example, the median existing home price was $300,000 in 2020, $357,000 in 2021, and expected to be $385,000 this year.

It is then forecast to fall to $364,000 in 2023, a 5.5% decline. Because nominal home prices don’t often fall, headlines will be grim.

It’ll technically be the second worst drop in home prices since the Great Depression way back in the 1920s/1930s. And the media will love to point that out.

Sure sounds awful, doesn’t it? In reality, it will be theoretically even worse with inflation eroding the dollar and real prices falling even more.

Real home prices could fall as much as 25%, which sounds pretty bad, but again would basically put us back to the year 2020.

Home Prices Could Bounce Back as Soon as 2024

I’ve long circled the year 2024 as the date of the next housing market crash. Or at least the peak. It appears to be coming a tad earlier than expected.

But still not too far off, especially when you consider the many years of excess seen the past few years.

It would have been easy to call a housing market top a few years ago, or even earlier than that. But yet it kept rising.

Anyway, all the major pundits are now basically in agreement that nominal home prices will drop. And due to inflation, real home prices will fall even more.

But when will they recover? Or stop falling? Well, Bill McBride over at Calculated Risk sees real home prices falling +/-25% over the next five to seven years, with much of that due to inflation.

In other words, limited nominal price declines, though as noted still potentially 5-10%. But as mentioned, 5-10% isn’t much when home prices effectively doubled in preceding years.

Anyway, McBride sees a longer timeline to recovery than Wells Fargo, though not that long. And nothing like the “cascading price declines” seen during the Great Recession.

At that time, he notes that “nominal prices fell 62% in Las Vegas, 56% in Phoenix, and 51% in Miami.”

He doesn’t see that this time around largely because supply is low, underwriting is sound, and distressed sales likely won’t be a big factor.

Turning back to Wells Fargo, they expect an even faster recovery thanks to future Fed rate cuts.

Once those happen, mortgage rates should follow suit, allowing for “a modest improvement in sales activity.”

This could “reignite home price appreciation heading into 2024,” with the median existing sales price rising back to $376,000.

Source: thetruthaboutmortgage.com

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PEWAUKEE — Although she’s thousands of miles away from home, Ammu Cherian has found a clever way to connect people with heritage back in India.

“​The appreciation l have of Indian l textiles has been ingrained in me,” said Ammu.

After moving from Bangalore, India where she worked as a business analyst for years, Ammu chose to fulfill her childhood dream of owning her own fashion brand when she came to Milwaukee with her husband in 2016.

“I decided land of America, land of opportunities. I’m going to start my own creative business.”

And thus her businessHouse of Amuwas born. Originally focusing on clothing, Ammu realized her true passion was creating home decor. With the help of a local seamstress and artisans in India, she makes breathtaking designs for throw pillows, table runners, and more.

“​I come from the South of India where we love textures and hand embroidery,” said Ammu. “The pieces that I design are not just for Indian homes it’s for everyone. It makes your home full of character and personality it’s so unique.”

In every stitch of her designs, a story of India’s history is told.

“​If you look through my website, you will see that I have mentioned the stories behind each fabric, which region of India it belongs to, and how those fabrics came to life,” said Ammu. “The state that I’m from is Kerala in India and we have the kasavu saree which is white and gold which was worn by royalty.”

Now, she’s preparing for one of her biggest debuts yet, partnering with Nordstrom to have a three-day pop-up event inside the store at the Mayfair Mall this weekend starting on Friday, May 21.

“​I am absolutely thrilled.”

And she wants aspiring designers who have dreams just like hers to know this:

“You’re going to constantly evolve, that’s okay,” said Ammu. “The beauty is enjoying the journey of it and being okay with the journey taking time.”

And it’s a journey that keeps sewing new opportunities for Ammu.

To visit Ammu’s website, click here. You can also check out herFacebook, Instagram and Pinterest.

It’s about time to watch on your time. Stream local news and weather 24/7 by searching for “TMJ4” on your device.

Available for download on Roku, Apple TV, Amazon Fire TV, and more.

Report a typo or error // Submit a news tip

Source: tmj4.com

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It’s nearly 2023, which means it’s time for a fresh batch of mortgage and real estate predictions for the new year.

My assumption is everyone wants 2022 to come to an end as quickly as possible, as it hasn’t been kind to anyone.

Much higher mortgage rates have completely derailed the housing market, leading to lots of layoffs and closures across the industry.

And there remains a lot of uncertainty about what next year will bring, though I’m somewhat optimistic.

Read on to see what I think 2023 has in store for the housing market and the mortgage industry.

1. Mortgage rates will move lower in 2023

Let’s start with the elephant in the room; mortgage rates.

They’ve been the story of 2022, without question. Sadly, because they increased at an unprecedented clip and derailed the hot housing market’s decade-long bull run.

Of course, this was by design as the Fed believed the U.S. housing market was in bubble territory and unsustainable.

However, I believe interest rates overshot the mark and are due to see some relief in 2023.

The 30-year fixed has already fallen from its 2022-highs, and could continue to drop back in the 5% range and even the high-4% range.

So that’s something to look forward to. See my 2023 mortgage rate predictions for more details on that.

2. The housing market won’t crash in 2023

Related to lower mortgage rates is the health of the housing market. Ultimately, the housing market only really stalled because of much higher mortgage rates.

It’s not struggling due to questionable mortgage underwriting, dubious loan programs, or massive unemployment.

Ultimately, the Fed saw that demand for housing was too strong and took measures to address it.

If you remove the mortgage rate piece from the equation, we don’t have a big drop in home prices.

So if mortgage rates continue to improve, or even stay flat, home prices don’t plummet and there isn’t a housing crash in 2023.

At the same time, areas of the country that saw massive home price increases may be more susceptible to price declines.

The good news is home prices increased so much in the past couple years that even a 20% decline is just a paper loss for most homeowners.

In other words, your home is still worth way more than you bought it for, but perhaps not as much as it once was.

3. But we’ll see more consolidation in the mortgage market

Sadly, there have been tons of mortgage layoffs and lender closures in 2022, pretty much all thanks to the sharp rise in mortgage rates.

It was the perfect storm of record low mortgage rates meeting the highest mortgage rates in decades, all within half a year.

Simply put, lenders hired and hired to deal with unprecedented refinance demand, but once that ran dry, had to let a lot of staff go to cut costs.

Demand is down so much that many lenders have had to close down permanently, especially those focused solely on mortgage refinances versus purchases.

While more companies exit the mortgage space, we’ll see consolidation at the top as the big players get bigger and gobble up market share.

This means fewer lenders to choose from and a more commoditized product.

4. Home prices will be mostly flat in 2023

While there’s been a lot of doom and gloom lately, there have been bright spots, like a positive CPI report and an easing in inflation.

Perhaps home price declines will also slow as we enter the new year. If the damage already done is enough to re-balance the housing market, we could see falling home prices steady.

After all, we’ve already experienced a big drop in prices from spring until now, so the ice-cold housing market could warm if rates drop and prospective buyers renew their interest.

While I’m not convinced of the NAR (Realtor) prediction of a 5.4% increase in home prices next year, I do believe flat or nearly positive prices is a possibility.

Zillow’s prediction of home values posting 0.8% growth by the end of October 2023 sounds right. The MBA also puts YOY home prices up 0.7%.

Of course, price movements will be local, as they always are, with some markets faring better (or worse) than others.

Get to know your local market to determine the temperature if you’re in the market to buy or sell.

5. The spring home buying market will actually be decent

Despite a lot of recent headwinds, the 2023 spring home buying season will be alright.

No, it’s not going to be riddled with bidding wars and offers above asking. Nor will total home sales be as high as they were in 2022, and certainly not 2021.

But I do think a combination of lower asking prices and improved interest rates will bolster the market.

Remember, there are a ton of prospective, coming-of-age home buyers out there who want and need a house.

If mortgage rates were 7% in 2022, and fall to the high-5% range, that, coupled with a 20% haircut on price could re-energize the stalled housing market.

So much so that home prices could steady in 2023 after seeing some pretty big markdowns in the second half of 2022.

6. Buy downs and ARMs will become more common

As mortgage rates remain elevated, mortgage buydowns and adjustable-rate mortgages will gain in popularity.

The ARM share is already around 9%, but there’s a lot of room for it to grow if lenders continue to offer products like the 5/1 ARM or 7/1 ARM.

That’s the rub though – if lenders don’t offer ARMs, or don’t extend a significant discount on the ARM, most borrowers will be forced to go with more expensive fixed-rate mortgages.

To offset some of the pain related to higher-rate 30-year fixed mortgages, buydowns will become more and more commonplace.

A lot of home builders are already offering buydowns, and even big lenders like Rocket Mortgage have their so-called Inflation Buster.

These buydowns provide payment relief for the first year or two before reverting to the higher note rate.

The question remains whether that’ll be enough time to bridge the gap to lower interest rates.

7. The underwater share of mortgage holders will rise

Because home prices have been under intense pressure lately, there will inevitably be more underwater homeowners soon.

Black Knight recently noted that 8% of those who purchased a home in 2022 “are now at least marginally underwater.”

And nearly 40% of these home buyers have less than 10% equity in their home, which if property values fall a bit more would plunge these folks into negative equity positions.

It’s most pronounced with FHA and VA borrowers, with more than 20% of 2022 of home buyers in negative equity positions, and nearly two-thirds having less than 10% equity.

This illustrates one of the problems with ARMs, buydowns, and other ostensibly temporary financing solutions. They work until they don’t.

If these homeowners are underwater, it’ll be difficult to refinance aside from leaning on streamline refinance programs that allow high loan-to-value (LTV) ratios.

8. Foreclosures and other distressed sales will continue to be rare

mortgage delinquency

Those looking to snap up a bargain will need to be patient. Despite decelerating appreciation and markdowns on existing inventory, prices remain historically high.

At the same time, mortgage defaults and foreclosure starts remain very low, despite recent increases.

Per Black Knight, the national delinquency rate rose to 2.91% in October, well below the 4.54% average seen between 2000-2005.

And the 19,600 foreclosure starts in October were a full 55% below “pre-pandemic norms.”

It’s not to say homes won’t be lost, especially if home prices plummet and unemployment worsens, but it’s not 2008 all over again.

In short, today’s homeowner has a lot more equity to work with and there are better loss mitigation options that were born out of the prior mortgage crisis.

They may also have the option to rent out their property and cash flow positive.

9. Home equity lending and the home improvement trend will stay hot

One bright spot in the mortgage financing space might be home equity lending, including home equity loans and lines of credit (HELOCs).

This plays into the trend of keeping the property instead of selling it, since selling isn’t nearly as sweet as it once was.

There’s also the issue of where to go next if you sell. And because first mortgage rates are so high relative to levels a year ago, most will opt to finance improvements with a second mortgage.

While not a 2-3% interest rate, home equity rates will still be better than most other options, and allow homeowners to freshen things up while enjoying their ultra-low first mortgage rate.

This should be a boon to banks, mortgage companies, and fintechs that are able to sell a compelling product.

It may also benefit the likes of Home Depot and Lowe’s as more folks stick with what they’ve got and make improvements.

Of course, it’ll mean fewer home sales, which is a clear negative for real estate agents.

10. iBuyers will offer you lowball prices for your home

In case you’re not aware, your home isn’t worth quite as much as it was.

Of course, you may have never noticed if you didn’t attempt to sell earlier this year. Or obsess over your Zestimate or Redfin Estimate.

What you might see in 2023 is more bargain hunters, especially iBuyers trying to make up for perhaps paying too much in 2022 and earlier.

These companies will give you a cash offer on the spot (basically) for your home without having to jump through hoops or use an agent.

The tradeoff is that the price will likely be a lot lower than what you might fetch on the open market.

This is probably how these types of businesses should operate in theory, but we didn’t see that in a rising home price environment.

You might see more realistic offers from iBuyers and other companies/agents that approach you to buy your home in 2023.

It’s ultimately a reinforcement of the new reality in the housing market. There’s more of an equilibrium where neither buyer or seller have much of an upper hand.

But those who must sell in 2023 might get a raw deal with uncertainty in terms of which way the housing market is headed.

Source: thetruthaboutmortgage.com

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A dollar ain’t worth what it used to be; just take a look at the newly released 2023 conforming loan limits.

Yes, they will exceed $1 million in high-cost areas beginning next year, which is a testament to just how much property values have risen lately.

Of course, the year-over-year change actually pales in comparison to the jump seen a year earlier.

This is due to a slowdown in home prices, which was somewhat captured by the Federal Housing Finance Agency’s (FHFA) third quarter report.

For one-unit properties, the national baseline will rise to $726,200, an increase of $79,000 from $647,200 in 2022.​

2023 Baseline Conforming Loan Limit Rises to $726,200

• One-unit property: $726,200
• Two-unit property: $929,850
• Three-unit property: $1,123,900
• Four-unit property: $1,396,800

The FHFA determines the conforming loan limit each year, basing it on the average U.S. home value over the past four quarters.

They utilize their own Federal Housing Finance Agency House Price Index (FHFA HPI®) to determine how much home prices have risen in the preceding 12 months.

This captures home price movement from the third quarter of 2021 to the third quarter of 2022.

Their latest HPI found that property values had risen 12.21% over the past four quarters, which allowed them to raise the conforming loan limit by the same amount.

As such, home buyers and those looking to refinance will be able to get a mortgage backed by Fannie Mae or Freddie Mac (conforming loan) as large as $726,200 for a one-unit property.

Typically, conforming loans are easier to qualify for than jumbo loans, those which exceed the conforming loan limits.

Additionally, mortgage rates are often lower on conforming loans, though lately it’s been a bit mixed due to adverse conditions in the secondary market.

We’re actually lucky the conforming loan limit for 2023 rose as much as it did, as home prices have decelerated immensely.

Despite experiencing positive annual appreciation each quarter since the start of 2012, home values were up just 0.1% in the third quarter from a quarter earlier.

That meant the 12.21% increase was significantly lower than the 18% increase in loan limits seen a year prior.

And the way things are going, we could see a negative number in the fourth quarter from the third.

2023 High-Cost Loan Limits Exceed $1 Million

• One-unit property: $1,089,300
• Two-unit property: $1,394,775
• Three-unit property: $1,685,850
• Four-unit property: $2,095,200

As noted, the high-cost loan limits are, well, even higher, exceeding $1 million for the first time ever.

This means existing homeowners and prospective home buyers in places like Los Angeles, the Bay Area, New York City, and even Park City will be able to obtain Fannie/Freddie-backed mortgages for seven figures.

Specifically, the new ceiling loan limit for one-unit properties in these areas will be $1,089,300, which is 150 percent of the 2023 baseline limit of $726,200.

And if we’re talking about a four-unit investment property, loan amounts can exceed $2 million, which is bonkers.

Additionally, in Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the baseline loan limit matches the high-cost loan limit of $1,089,300 for one-unit properties.

The FHFA noted that because of rising home values, the loan limits will be higher next year in all but two U.S. counties or county equivalents.​

Prior to this announcement, several mortgage lenders increased their conforming loan limit in anticipation of the higher loan limits.

For example, the nation’s top mortgage lender, Rocket Mortgage, began accepting loan amounts as high as $715,000 back in September via their wholesale division Rocket Pro TPO.

And the nation’s new top mortgage lender (as of the third quarter of 2022), United Wholesale Mortgage, did the same shortly thereafter.

It appears they played it safe, knowing home price appreciation would be sufficient to keep their speculative loan limits below the official ones.

2023 FHA Loan Limits

• One-unit property: $472,030
• Two-unit property: $604,400
• Three-unit property: $730,525
• Four-unit property: $907,900

Loan limits on FHA loans are also dictated by the conforming loan limits, with 65% of the CLL used for the floor and 150% used for the ceiling.

This means the 2023 FHA loan limits will be $472,030 in low-cost areas and as large as $1,089,300 in high-cost areas.

The 2023 FHA loan limit rises $51,350 from $420,680 in 2022. All in all, good news for prospective home buyers and those looking to refinance.

For properties in Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the FHA loan limits are even higher than the conforming ones.

• One-unit property: $1,633,950
• Two-unit property: $2,092,150
• Three-unit property: $2,528,775
• Four-unit property: $3,142,800

Yes, you read that right, $3 million+ FHA loan limits for certain multi-unit properties. Wow.

Simply put, most borrowers shouldn’t need a jumbo loan in 2023.

Source: thetruthaboutmortgage.com

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Real estate is a popular investment for several reasons, including the ability to generate online cash flow through rental income and the possibility for appreciation to increase the value of the investment over the long run.

When you think about investing in real estate, you probably think about owning rental properties and becoming a landlord.

Unfortunately, managing rental properties can require a lot of work and headaches, so many people choose not to go down this path.

Start Investing in Real Estate

Thankfully there are other ways to invest in real estate and get the perks without requiring you to become a landlord.

These hands-off real estate investments can be perfect for adding some diversification to your portfolio, or for serving as an introduction to the world of real estate investing.

If you’re interested in real estate as an investment but you don’t have the time or desire to manage properties and deal with tenants, here are 4 options that you can consider.

1. REITs

Through a real estate investment trust (REIT), investors can buy shares in real estate portfolios. REITs may own office buildings, retail properties, apartment complexes, hotels, and any other type of property. Most REITs specialize in a particular type of property, so there is a great deal of variety that is available to investors.

The REIT collects rent from tenants and then distributes the income to shareholders in the form of dividends.

REITs can be:

  • Publicly traded – listed on a national securities exchange where shares can be bought or sold, and regulated by the SEC.
  • Public but non-traded – not traded on a national securities exchange, but registered with the SEC.
  • Private – not traded on a national securities exchange and not registered with the SEC.

There are some significant differences between these types of REITs. One of the most important issues to consider is liquidity. Publicly traded REITs can be bought or sold easily, so liquidity is not an issue. However, non-traded REITs lack liquidity and you may need to hold the investment for at least few years. The specifics will vary from one REIT to another, but liquidity is something that should be considered when you are researching your options.

Although non-traded REITs may lack liquidity, they can make up for the lack of flexibility with higher returns. Of course, the performance will vary from one REIT to another, but the main reason to consider a non-traded REIT over a publicly traded REIT would be for the possibility of higher returns.

If you decide that a REIT may be the right type of investment for you, you’ll have plenty of options. See this list of the best REITs for 2019.

2. Real Estate Crowdfunding

Real estate crowdfunding was made possible by the passing of the JOBS Act in 2012. Like investing in a REIT, investing through a crowdfunding platform allows you to get many of the perks of real estate investing without the responsibilities of owning or managing property.

There are many different types and varieties of crowdfunding platforms, but they all allow investors to have an ownership interest with much smaller investments as compared to buying properties on your own.

Many crowdfunding platforms are open only to accredited investors, but there are several that are open to all investors.

To qualify as an accredited investor, you will need an annual income of at least $200,000 ($300,000 for joint filers) or a net worth of at least $1 million, excluding your primary residence.

It’s important to know if you qualify as an accredited investor because it will determine which crowdfunding platforms are available to you. But don’t worry if you’re not an accredited investor, there are still several good options, and we’ll look at them in just a minute.

Like REITs, crowdfunding platforms also tend to specialize, and there are platforms for all different types of real estate.

Some crowdfunding platforms allow you to invest in individual properties, where you can choose the specific investments, and others involve investing in a portfolio of properties.

Here are some of the leading real estate crowdfunding platforms.

Fundrise

Fundrise

Fundrise is one of the most popular crowdfunding platforms and it is open to all investors, regardless of whether you are accredited or non-accredited.

There is a minimum investment of $500, and it’s very quick and easy to get started. With the $500 investment, you can invest in their Starter Portfolio, which includes investment in apartment complexes, single-family rental homes, and commercial properties. Some of their projects are renovations and others are new construction.

Aside from the Starter Portfolio, Fundrise also offers 3 different Core Plans: Supplemental Income, Balanced Investing, and Long-Term Growth.

Fundrise lists historical annual returns of 8.7% – 12.4%.

Learn more in our Fundrise review.

Groundfloor

Groundfloor

Groundfloor is a very unique platform. It is one of the only options for non-accredited investors to invest in individual projects, as opposed to the portfolio approach used by others, like Fundrise.

Groundfloor allows house flippers to get loans in a peer-to-peer lending style. As an investor, you can choose the exact projects that you want to invest in.

The investments through Groundfloor are short-term, typically 6-12 months, and they claim to produce 10% returns on average.

The minimum investment is just $10, which makes it accessible to anyone. All you need to do is pick the projects that you want to invest in, and get started.

You can view the details of each project, like the grade, interest rate, projected term, and loan to value.

To learn more, see our Groundfloor review.

DiversyFund

DiversyFund Real Estate Investing for passive income

DiversyFund provides investors with the opportunity to diversify their holdings into a sector that has traditionally done very well, commercial real estate.

The minimum investment is only $500, and the fact that non-accredited investors can invest with them is a definite bonus.

DiversyFund is different from most other real estate crowdfunding platforms in that their REIT actually owns the multi-family apartment properties held in the trust. They buy, manage – and when necessary – sell properties in the trust.

You can expect a 7% preferred return before DiversyFund receives any profit split. Then investors earn 65% of the cash flow profits above the 7%. Once investors have made 12% per year, any remaining profits are split 50/50 between investors and DiversyFund.

To learn more, read our full DiversyFund review here.

RealtyMogul

Realty Mogul

RealtyMogul offers a few different types of investments, including individual properties and public non-traded REITs.

You’ll need to be an accredited investor in order to invest in the individual properties. These investments typically range from 3-7 years and require minimum investments from $15,000 – $50,000.

However, the REITs are open to all investors, but they do require a minimum investment of $5,000.

To learn more, see our RealtyMogul review.

Rich Uncles

Rich Uncles

Rich Uncles may be a great option for getting started with real estate because it is open to all investors, and because they have an incredibly-low minimum investment of just $5.

Like Fundrise, Rich Uncles takes a portfolio approach. You can invest in Rich Uncles through one of their REITs. They currently have two different REITs available, the BRIX REIT (student and multi-family housing, restaurants, convenience stores, and fitness centers) and the NNN REIT (single-tenant office, industrial and retail properties).

The BRIX REIT has an estimated annualized dividend of 6% and the NNN REIT has an estimated annualized dividend of 7%.

PeerStreet

PeerStreet

Unlike the other platforms we’ve covered so far, PeerStreet is available only to accredited investors.

PeerStreet allows you to invest in private real estate loans with historical returns at 6-9%, with 6-36 month terms.

You’ll be able to pick the specific loans that you want to invest in, and you can invest a minimum of $1,000 per note.

To learn more, see our PeerStreet Review.

EquityMultiple

EquityMultiple

Like PeerStreet, EquityMultiple is an option only for accredited investors. Through EquityMultiple, you will be able to invest in commercial properties, and you’ll choose the specific projects that you want to invest in.

The investments will be in commercial real estate, with a minimum investment of $5,000. You can invest in syndicated debt, preferred equity, or equity.

Read our full review of EquityMultiple.

FarmTogether

FarmTogether real estate crowdfunding investing in farmland

FarmTogether is also only for accredited investors. It’s a bit different from the others in that it allows you to invest specifically in farmland properties.

Based in San Francisco, California, the company is relatively new but already has over $1 billion invested in farmland through their platform.

Farmland is a true alternative investment, one that is an actual physical commodity and that is an uncorrelated asset. It often maintains it’s value while stocks, bonds and real estate show sharp drops. Since 1972 it has outperformed every other major asset class!

FarmTogether aims to have annual returns of between 8%-15%, including yearly cash payouts of between 3%-9%.

The investments in farmland have a minimum investment of anywhere from $10,000-$25,000.

Read our full FarmTogether review here.

For a more in-depth look at the subject of real estate crowdfunding, please read Kevin’s Ultimate Guide to Real Estate Crowdfunding.

Crowdfunding Site Fees Account Minimum Accredited Investor Review
* Groundfloor None $10 No Review
* DiversyFund None $500 No Review
* Fundrise 1%/year $500 No Review
* RealtyMogul 0.30% – 0.50%/year $5,000 No Review
* stREITwise 3% up front fee, 2% annual management fee. $1,000 No Review
* FarmTogether Intake fee of between 0.5% and 1.0%. 1% annual management fee. $10,000 Yes Review
CrowdStreet None $10,000 Yes Review
Yieldstreet 1-4%/year $2500 No
Equity Multiple 0.5% service charge + 10% of all profits $5,000 Yes Review
PeerStreet 0.25% – 1.0% setup fee $1,000 Yes Review
Sharestates 0-2% setup fee $1,000 Yes
Patch of Land 0-3% of loan total $1,000 Yes
Modiv None $1000 Yes Review
RealCrowd None $5,000 Yes
Cadre Intake fee of between 1-3%. 1.5-2% annual management fee. $25,000 Yes Review

3. Mutual Funds And ETFs

While REITs invest in real estate, there are mutual funds and ETFs that invest in REITs, which essentially allows you to spread your investment across several different REITs.

Likewise, there are also ETFs that invest in REITs.

Because mutual funds and ETFs are quick and easy to buy and sell, this presents a very easy option for getting started quickly. If you already have account somewhere like Vanguard or Fidelity, you can easily find a number of options.

This article covers a number of the best real estate mutual funds, and this article covers the best real estate ETFs.

4. Invest In The Industry

The last option that we’ll look at is to invest in the industry. This may be considered an indirect way to invest in real estate, but it could be a good option, depending on your situation.

You can buy stock of business in construction and other real estate types of industries. It’s a different approach than investing in rental properties or commercial properties, but your investment will be influenced by the real estate market as a whole.

There Are Lots Of Real Estate Investing Opportunities

Real estate presents plenty of different investment opportunities.

If you’ve never really considered investing in real estate because you don’t want to own rental properties or be a landlord, you may want to look at these options discussed in this article.

The options listed can provide an excellent introduction to real estate without putting any extra burden or commitments on yourself.

4 Easy Ways To Get Started With Real Estate Investing

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Source: biblemoneymatters.com