Stock Market

When choosing where to build an investment portfolio for a down payment on a future home, the stock market offers potential returns significant enough to outpace inflation and housing prices. However, its volatility can be daunting. In a short-term goal mindset, safer and slower-growing stocks are generally preferable. These often lack the gains future homebuyers would want. Potential profits from riskier options may be the answer, but are better suited for long-term portfolios. Time becomes a buffer to cushion the impact of expected losses along the way. 

Riskier stocks mixed with stable options to offset them may be the balanced answer. Still, the uncertainty of the stock market may not suit everyone aiming for a home purchase.

Precious Metals

Precious metals are another option to consider, especially in recent years. The seismic rises in value may catch the eye of those in down payment building mode. With gold up nearly 70% YTD and silver nearly doubling, the appeal is tangible. A worthy addition to any portfolio. 

The question to consider – where is the top? The same meteoric rise in pricing that makes these assets appealing is the same reason to proceed with caution. Nothing goes up forever. The profit-taking pressure is just, if not more likely to bring prices down, as substantial gains for long-term holders are secured. These are historically affected by monetary policy shifts as well.

Digital Assets

Digital assets and cryptocurrencies are another option to consider. For those interested in the cutting edge of securing value of any kind in digital representation, there are quite a few projects and assets to consider. On any cutting edge, risk is inherent. This industry goes far beyond Bitcoin, which has a formidable pricing history that outpaces every major asset class for over a decade.

Blockchain technology is an emergent and highly technical asset, which comes with a learning curve too steep and daunting for many. Historic price volatility is another risk factor worthy of consideration. As a technology that deploys straight to market and directly to consumers, while offering peer-to-peer trading, fewer safeguards exist as a general rule of thumb. The transaction security itself is second to none. Due diligence and a grasp of the team and technology behind a project, as well as understanding the opportunity in their use case is recommended. 

Another arena within digital assets is memecoins and digital NFT artwork. A unique cultural phenomenon, these assets largely focus on community, hype, and the potential for astronomical gains. Collectibility adds an additional layer of interest for NFT artwork, with verifiable uniqueness and rarity. There is no simple solution to winning in this asset class. Many would say it’s not for the faint of heart.

Fractional Real Estate

Enter fractional real estate ownership—an up-and-coming alternative asset with massive upside potential. Backed by the largest asset class in existence – global real estate is valued at nearly 400 trillion – while lowering the price threshold through dividing ownership rights into affordable fractions, the potential is self-evident. With direct involvement in real estate itself, the appeal to future homebuyers is clear.

As an industry, fractional real estate remains relatively small at a 9 billion market cap and growing, but has been establishing itself for over a decade. Many iterations have hit the market, including residential and commercial projects. Fractional real estate companies have been listed on the NASDAQ and received financial backing from Jeff Bezos. Success has varied, largely due to ease (or lack of) in entry and exit, lockup periods similar to REITS/REIGS, liquidity limitations, transparency, quality of properties, and varying fee structures that either allow solid cashflow and appreciation or cripple them. Much like digital assets, this is an emerging industry still seeking to substantiate its market fit and a standard of excellence. The opportunity for breakout projects to capitalize on the inherent potential is ripe. 

When it provides a viable framework to solve many of the hurdles in today’s traditional real estate industry and beyond, fractional real estate is poised to become the investment vehicle of the future for income-generating property ownership. Far more than an option to simply lower cost of entry, but simplify and speed up transactions, provide instant liquidity, and reduce overall risk, this model brings many unique advantages to real estate ownership.

Revolve’s Equity Advantage

The emerging fractional real estate industry is in the process of clarifying and defining its potential. The goal is to solve the largest issues in current real estate ownership, while providing a unique value case. 

Revolve sees the opportunity for instant peer-to-peer transactions secured by blockchain, available 24/7/365, providing previously unmatched liquidity and options. By creating fractional assets for each individual property we sell, avoiding property pools, future advantages in equity options become part of the roadmap. 

One of the fundamental appeals in traditional real estate ownership is the opportunity to leverage equity with favorable rates and lending terms. This quarter, Revolve focused on defining a game plan to bring these same equity advantages to fractional ownership. 

The traditional real estate market is stable, but the crisis for first-time homebuyers is unmistakable. We’re seeing the lowest levels ever recorded. At Revolve, we’re bringing needed solutions. Our approach focuses on building collateral to secure financing options, enabling fractional owners to access benefits like cash flow and appreciation, with a smaller upfront investment. 

Here’s how it works. Utilizing a $20,000 down payment unlocks a $100,000 real estate portfolio, with full ownership benefits in cashflow, helping to offset monthly loan repayment. 

By offering a clear repayment timeline for a down payment that makes real estate accessible through on-chain lending, Revolve aims to make fractional ownership a stepping stone to whole homeownership. This innovative model expands access to real estate’s wealth-building potential, making it a viable path for tomorrow’s homebuyers. 

The future of real estate ownership with Revolve is bright.