Traditional employment is taking a backseat in America, no longer the top career aspiration for many. A popular new pursuit is a career of autonomy and flexibility when it comes to location, scheduling, and responsibility.
However, a remote or flexible career is not part of the traditional formula for achieving the white-picket fence American dream. The milestone of securing employment is often pursued in tandem with the milestone of purchasing a home to live and raise a family in, as having a traditional job is often associated with a better chance of getting approved for a mortgage.
The Reinvention Of The American Dream
A significant percentage of American workers perform non-traditional work, including freelancing. And it is possible that this will lead to the growth of an existing population of digital nomads, workers who can operate from almost any location or timezone so long as they are equipped with computing electronics and a stable internet connection. For the digitally nomadic or location-independent, permanent residency may not be an aspirational milestone at all.
While their goals may not be to own a home to personally settle down in, real estate maintains its appeal across nearly every demographic of Americans. It’s a popular investment for several reasons. Owning residential real estate can be a passive source of income if set up as a rental investment property. Real estate is widely favored as a hedge against inflation, protecting investors’ money from the effects of rising prices. It’s an asset class that is constantly in demand and virtually always appreciating in value.
Non-Traditional Real Estate Investing
What options do non-traditional workers have when it comes to real estate investing?
A No Income / No Asset (NINA) mortgage does not require the borrower to disclose their income or assets. A no income, no job, and no assets (NINJA) loan is approved solely based on one’s credit score. These loans may be an option for gig or self-employed workers, however, approvals have become far less common since 2008.
An alternative to traditional real estate investing is fractional real estate investing. Tokenized Real Estate is seen as more accessible to investors, without the hurdles of mortgage approval or capital.
It can be difficult or impossible for those with irregular sources of income to be approved for a mortgage, or to fulfill regular payments. But investing in real estate is no longer limited to conventional ownership. Fractional ownership is the option for investors to buy and sell fractions of a single unit, rather than the whole of it in its entirety.
For those who work alongside frequent travel, blockchain real estate investing allows for investors to purchase non-local properties on a transparent and immutable ledger. Transactions can be executed in a matter of minutes or hours without in-person processing.
Purchasing fractions of a property is like purchasing shares of a property. Investing in fractions of properties each located in different geographies can increase the diversification of a real estate portfolio, managing the risks of otherwise investing in properties solely situated in one particular city.