Insight Into my Career Path: An Introductory Blog Post

I want to be an accountant since I decided it is my primary interest to study. So, when I applied for Baruch College, I chose the Accounting major. First, I realize I am good at math problem solving and strong ability at data analysis. Also, I am interested in finance because it is also a very detail-oriented area. During my senior year in high school, my guidance counselor helped me to analyze each major. I realized I have a great ability and interest in accounting. Accountants gain the type of knowledge which I can currently use in my future life anywhere. Accounting curriculum includes courses in areas such as micro and macroeconomics, business and tax law, corporate finance, spreadsheet analysis, banking and finance, management, and supervisory skills. I not only want to learn the knowledge I can apply to work or job requirements, but I also think that accounting can help in our life. I know other majors also are very helpful or useful. Still, I believe studying in an accounting major can be most useful during my college life, such as self-finance management, future personal plans, and economic analysis. I am gaining a better understanding of taxation and law. As many people said, if you want to live in the U.S, you have to know the tax and legislation. The accounting major provides the best opportunities for business students who are aspiring to enhance the quality of products and services that businesses offer for customers. I like studying accounting, which can give me a great chance to help me know more about America and help me manage myself, either personal finance or future company, to serve.

My Research Findings on Investing in Real Estate

Why we invest in real estate?

Jeffrey (2019) states that only 35 percent of Americans have decided to invest their money in real estate in the United States. I believe that this is a small number and that more people can benefit from investing in real estate. I am interested in contributing toward efforts, through this blog post, to raise awareness about how Real Estate Investment Trusts (REITs), multi-family real estate investing, and such crowdfunding platforms as Fundrise can serve as essential components of an investor’s portfolio.

The housing bubble and the financial crisis will not happen in the future

Many people might argue that investing in real estate will cause the housing bubble to happen in the future since the 2008 housing bubble caused a financial crisis. However, this is a misleading point. Panos (2019) proved the housing bubble, which had been inflating for over a decade before it collapsed, had been driven by significant risks. Such as speculation, house-flipping, and highly questionable mortgages such as no-documentation loans and adjustable-rate loans, which turned disastrous for many borrowers. That is why he assigns a low probability of a housing crash in 2020, and he illustrates that the real estate housing bubble will not cause a financial crisis because the United States has comprehensive law and regulation support. The other researchers agree that investing in real estate is an excellent investing project, and they also keep a positive point of view.

Investing in REITs can create benefits and advantages of investing in real estate.

The REITs can be defined as the company that gives its shareholders a chance to own shares of several real estate properties without necessarily having to develop or purchase the property. According to the United States Securities and Exchange Commission (2011) (figure 1), REIT has to pay about 90% of all its revenues to investors, with the remainder being channeled to taxes and company administrative costs. And REITs registered under the Commission, thus subject to regulation and other minimum disclosures. This regulation secures Investors’ investment. Joshua (2019) states, REITs are beneficial for investors investing in the market, which through real estate investment trust, successfully gets additional income for a portfolio. And, real estate investing is a solid investment choice. Professor Albert and Professor Yildiray (2020) acknowledge that real estate investing is beneficial. They keep a positive viewpoint that everyone can invest in real estate. Besides, they recommend the following: as investors should have more knowledge about real estate, then they can decide what they want to invest in the real estate market. Chen (2020) suggests to potential investors that there are seven different kinds of REITs that help people get financial profits. Investors investing in REITs, they need to take care of what sort of REITs fit your plan.

(Figure 1) Investor Bulletin: REITs

Investors should invest in Real Estate Investment Trusts (REITs), especially ones focused on multi-family investing.

Multi-family REITs, indirectly without buying the actual properties, are beneficial to investors’ portfolios. Lindahl (2011) illustrates that investing in a multi-family portfolio is one of the most rapid methods in existence to explode investors’ wealth. Richardson (2020) explains that multi-family investing is one of the excellent investment projects in real estate. As people increase demand for multi-family, the investors who are investing in multi-family can get more benefits and advantages of profits. Albert (2020) informs that one-third of American households live in multi-family housing. This type of real estate helps increase affordability and reduce homelessness This means multi-family investing creates more profits and is helpful to the U.S economy growing. Matthew (2019) also agrees that multi-family is worth investing, and he also surprises the real estate can bring more return and create more profits. “According to NAREIT, the 21 publicly traded residential-focused REITs delivered a 35.5% total return through mid-December, due in part to falling interest rates, which has outpaced the equally red-hot S&P 500’s roughly 30% total return.” ” Real estate returns exceed stocks with significantly less volatility.” It demonstrates multi-family is a good investment project

Crowdfunding platforms as Fundraise can serve as essential components of an investor’s portfolio for retirement or other goals.

Fundrise is an example of a new valuable approach to real estate investing. Allison (2020) states, “A growing trend in real estate is crowdfunding. The hands-off benefits of crowdfunding are similar to that of REIT but offer a little bit more control over the investment.” Crowdfunding allows investors to direct money toward properties and see returns without needing to manage the property actively. That means fundrise is similar to REITs, and the more significant difference is fundrise have to buy actual property. Alana (2020) informed, she agrees with the fundrise has advantages. “Real estate crowdfunding platforms often give investors access to private market real estate investments that may offer higher returns than publicly-traded REITs.” The crowdfunding could make sense if investors are looking to diversify and a chance at some healthy returns.

Investors who want to be successful in investing in real estate need work and time.

Many people also might argue that investing in real estate is time-consuming and requires much effort. As we know about real estate investing, it can create additional income. However, any investment needs to learn some knowledge to decide which investing project can create the most profits and benefits. According to Scott (2019), Real estate investing does require investors to be able to predict cash flow reasonably and manage their money, manage property sensibly and the tenant relationships that come with it, and to be a responsible, informed adult.” If investors want to be successful in investing in real estate, they require work and time. Even investing in REITs through a brokerage account requires research to be able to identify a comprehensive investment strategy.