In 2010, 388 ultra-rich individuals held as much wealth as the world’s poorest half. Six years later and while the ultra-rich got even richer, the poorer half of the world population lost $1 trillion of its wealth. By early 2016, the number of ultra-rich people needed to equate the wealth of the poorer half reduced to 62, and these sixty-two people were as wealthy as 3.6 billion of the world’s population.
Every year, the story remains the same, and the wealth gap grows wider. The rich use their wealth to generate even more wealth while the rest of the world loses the little money that they hold. The question now is: how are the wealthy 1% able to generate more money than the 99%?
The Ultra-rich Invest Differently
The ultra-rich have more money because they save more, and they can save more because they leverage multiple streams of income. These streams of income are tied to investments, and this is where the rich separate themselves from the rest of the world; in their investments.
Consider this: the not-so-rich that make up the 99% invest most of their funds in stocks (70%) and bonds (30%). Given how unreliable the stock market has been over the past couple of years, is it still expedient to invest most of your assets in the sector? The 1% have more diversified portfolios, with a part of their portfolio being allocated to private market real estate.
Real Estate Holds the Key
Yes, the ultra-rich invest in stocks and bonds too, but their significant investments are in commercial real estate. Two hundred twenty-three of the recently announced Forbes’ 2019 World’s billionaires made their fortune from real estate; with the sector creating more billionaires than technology, manufacturing, energy, and food & beverage.
Now, you are thinking: I should also get involved in this real estate business. If the rich are getting richer off this sector, why can’t I do the same?
Why Investment in Real Estate is Reserved for the Ultra-Rich
The answer is simple; real estate has a high barrier to entry, restricting investment in the sector to high net worth individuals. If you do not control six-figure bank accounts or have access to capital running into millions of dollars, you cannot delve into real estate investments. At least this was the case in the past.
Multifamily Real Estate Investment for the 99%
Via a real estate investment trust (REIT), you don’t need millions of dollars to take advantage of the unique opportunity provided by real estate. You can invest in a real estate portfolio starting at $2,500.
For many years, the ultra-rich have leveraged real estate to create real wealth while the 99% struggle to break even through other investment options. With DiversyFund, you can now invest like the ultra-rich, even without access to the vast sums of money that they do.
About DiversyFund:DiversyFund was founded to help everyday investors build wealth like the 1%. The company opens up real estate investing to the average person by breaking down traditional barriers to entry such as high minimum investments and unnecessary broker fees. Through their online platform, they are helping investors diversify their asset portfolio beyond stocks and bonds.