We will tackle a lot of significant details in this Millionacres review. Buckle up as this will be an honest assessment of what the Motley Fool subsidiary offers.
Real estate seems like a fool-proof investment if we are to believe the publisher in its marketing pitch.
It says that its mission is to "make you smarter, happier, and richer through real estate investing."
Millionacres even claims that this investment space has already launched millionaires and billionaires.
According to the firm, a San Francisco Federal Reserve study reveals that real estate has the best returns and least volatility.
Compared to stocks and bonds, the implication here is that you would earn more if you invested in this asset class.
The company also trumpets what they state is a “‘have your cake and eat it too’ opportunity.”
REITs, it says, can give you not only growth but steady income as well. Investing in them will give you returns twice or thrice compared to the S&P 500.
Today, the majority of Americans pick the asset as their top investment pick. This is according to an Investopedia article on real estate.
In fact, it is ranked as number one from 2013 to 2020.
With 35% choosing real estate, it is way ahead of others. Only 21% chose stocks and mutual funds, 17% said they prefer savings accounts, while 16% chose gold. A total of 8% favored bonds.
So it does look like many people already see the potential in real estate. This is why even Motley Fool saw it fit to devote a whole subsidiary in this space.
Hiding Inherent Risks?
But is Millionacres telling you the whole story about the perks of real estate investing?
What about the risks involved in this area? Does it also caution subscribers about the safety of such investments?
One risk in real estate is that it is unpredictable. Although the common notion is that property rates only go up, properties could also depreciate.
Among the common factors why this is the case includes the economy. Demographics and interest rates also contribute to the situation.
In addition, politics and government policies have a considerable effect on real estate.
Whether investing in a physical property or stocks, location is a critical factor. One cannot just easily relocate a house or a rental property to a better neighborhood. Indeed, location is king.
Another issue in real estate is cash. When money going out is more than money coming in, you will have negative cash flow.
According to Investopedia, the top reasons for money loss are financing costs, vacancy, and maintenance costs.
If you are not strategic enough with your property or not charging enough rent, these can also trigger negative cash flow.
High vacancy rates are a problem, too.
Remember, you still have to pay insurance, property taxes, mortgage, and other fees even if no one is renting. If such a situation prolongs, you may run out of cash.
So this is a real risk you need to consider.
Now, even if the slots are full and vacancy rates are not a problem, there can still be headaches.
Some tenants can have problematic issues. there are those who do not take care of your property, while some do not pay on time.
These add up and can cause unnecessary stress.
Another cost center in real estate is repairs and maintenance. If a property owner is not too familiar with these, its high prices can come as a shock.
Lastly, liquidity can also be a pain point for those who own physical properties. If the market is down and you need cash, circumstances may force you to pay at a losing price.
This is not a good position.
Maybe some of you are asking, do these apply to real estate stocks that Millionacres is offering? As subscribers, we will not own physical properties, right?
Well, this is true. The service recommends mainly stocks.
But you must also realize that the advisory’s recommendations are based on actual properties.
The issues that plague the real estate your stocks are based on will affect your fiscal position. For this reason, we believe you should be aware of these risks.
But what exactly is the value proposition of Motley Fool and Millionacres? How do they intend to make you "smarter, happier, and richer?"
Let’s continue to discuss these and more.
- Name: Millionacres
- Publisher: Motley Fool
- Website: www.millionacres.com
- Service: Investment research advisory focused on real estate
- Real Estate Winners - $249 per year
- Mogul - $2,999 per year
Millionacres is an investment research advisory under the Motley Fool brand. As a subsidiary, its goal is to provide real estate recommendations.
The company currently has two paid services: Mogul and Real Estate Winners.
If you are just starting with your real estate portfolio, you may begin with the latter. This specific advisory is also advisable for those who do not have much money to invest.
Also, since Real Estate Winners is an entry-level service, it is available for only $249 per year.
When you subscribe, it will provide you with real estate stock recommendations. It even promises to give you returns of up to “13.4%, 14.1%, and 16.7% per year."
Meanwhile, Mogul offers "hands-on guidance" to its subscribers. For this reason, the firm charges $2,999 for a one-year membership.
In a press release, Motley Fool describes the two services as keys to “demystifying” real estate as an asset class.
This is why it allows readers to have access to a number of free educational resources on its website.
What is Millionacres?
Millionacres has lofty goals for the company. It wants to bring in “a new era of personal real estate investing” through its services.
Key events in 2019 led Motley Fool to go full blast with the idea. These were the Jobs Act legislation, new tax laws, and the market growth of real estate.
The firm says that it wants to make the investing space more accessible. That is why it offers tons of free informative materials on its website.
In addition, readers may subscribe to two paid services: Mogul and Real Estate Winners.
Through these, readers will be able to take advantage of what Millionacres calls “the best investment asset class in modern history”.
Though this looks like an outrageous claim, there is some merit to this based on research.
In fact, Americans seem to agree with this assessement. More people invest in real estate compared with other assets. They seem to buy the notion that this space can indeed provide high returns while remaining stable.
If you are still on the fence, you may try it out first and start with as little as $1,000. This is a small amount, but it can give you an idea of how lucrative real estate stocks can be.
Our initial impression of the advisory's rationale is positive, on the whole. It makes sense for Motley Fool to take advantage of this. Indeed, there is a market for the service.
Yes, there seem to be a lot of people who are already in real estate. But there still are a lot more who are not. So the move to come up with a specialized advisory is welcome.
If there are more choices available, it will be better for consumers. They can pick and choose which ones they think will benefit them.
Also, we commend the fact that among Millionacres' central offers is education. It has a repository of articles, videos, and webinars related to the field.
As a review site, we welcome all efforts to educate the public. Now regarding the quality of the free resources, this is a different topic altogether.
Of course, we also care a great deal if the information they release is accurate and useful. But we will discuss this in the following sections.
To help readers know their philosophy better, the website also puts front and center its five core beliefs.
The first one has to do with access to information. Millionacres believes that “you shouldn't have to pay thousands of dollars for real estate investing education.”
According to the firm, it is for this very reason for their tons of research and video materials.
The company wants everyday investors to have as much information as they can. The more knowledge they have, the better equipped they will be in making wise decisions.
“You should learn from people who have been in your shoes.” This is the second principle of the company.
It believes that you shouldn’t believe just anybody. Since you are talking about your financial future, you must trust only the experts.
In fact, the firm claims that it only employs leading practitioners in real estate. Do stick around as we will talk more about its team in the next sections.
In addition, Millionacres says this: “We believe no one is impressed with jargon.”
Its third principle again emphasizes the need to democratize knowledge transfer. If people will not understand what you are saying, what’s the point of communicating?
Its goal is not to speak to an elite and exclusive club. This is why all of its materials are in plain language. It wants the average Joe can understand them.
The aim is to inform people, not impress them.
“We rate and review tools, products, services, and books that we believe are important to real estate investors.” This is the fourth core belief of the firm.
It wants to emphasize that no advertiser influences its decisions and recommendations. When you hear something from Millionacres, it comes from an objective process.
We think this is a crucial disclaimer. It is a clear signal that the publisher wants to earn the trust of potential subscribers. As a relatively new outfit, we agree with the effort to be transparent.
In fact, the website even prominently displays an advertiser disclosure. You may find this on the upper third portion of each webpage.
The note states that though there are advertisers on the site, these do not affect editorial decisions.
Our commitment to you is complete honesty: we will never allow affiliate partner relationships to influence our opinion of offers that appear on this site.
Finally, the last core belief is on the importance of industry practitioners. Millionacres believes “that individual real estate investors are a vital part of communities.”
This is about giving respect and honor to those who practice the profession, as per the firm. To elevate their profile, many posts on the site will be about everyday real estate investors.
Who are the People behind Millionacres?
The leading industry experts that comprise the group are as follows:
Greg Martz, Director of Operations
Martz is a graduate of Earth Science from Penn State University. His profile does not indicate why he is now in the field, but it's an interesting shift.
He has been with the company since 1999 and has taken on various roles ever since. This is his edge as the leader of the subsidiary.
Austin Smith, Managing Director
Since joining Motley Fool in 2011, Smith has worked on various assignments. He was previously an Analyst and Managing Editor of Fool.com.
Eventually, he served as Director of New Member Marketing and Partner of New Ventures.
His profile also states that he has been investing in real estate since 2002. Smith has properties in Massachusetts, Colorado, New Hampshire, Vermont, and Virginia.
Matthew Argersinger, Lead Investor
Argesinger's roles in Motley Fool were mainly in analyzing and managing investing portfolios. As a writer, his works have been published by major outfits in the country.
He has real estate investments in Washington, DC.
Angel Hembry, Customer Success Manager
Meanwhile, Hembry is in charge of dealing with the company's customers. According to her profile, she has over a decade of experience in client relations.
Deidre Woollard, Editor
Woollard used to be a part of AOL's team of bloggers. She was also Realtor.com as part of its communications team. As a marketing professional, she helps Millionacres bring its core message to more people.
Her profile also says that real estate, for her, is a "family tradition."
Matt Frankel, Senior Analyst
A Certified Financial Planner, Frankel has been with Motley Fool since 2012.
His first foray into real estate was when he bought a duplex. He lived in one part of it, and he opened the other one for tenants. This was his light-bulb moment in the potential of real estate.
Since then, he says that he has invested heavily in the asset class.
Matt Bray, Director
As Director, Bray is in charge of the online strategic branding and messaging of Millionacres. He is comfortable with the company because he manages several properties.
Emily Strassman, Marketing Project Manager
The group has enlisted the help of Strassman in its efforts to reach more people. Although new to the field, she says her expertise will bring something new to the table.
Kayla Schorr, Content Manager
Schorr, meanwhile, makes sure that the new brand will gain traction online. Her job is for people to understand what real estate investing is and how the firm can help them.
Mike Kaplan, SEO Engineer
Kaplan is Millionacres go-to guy for the technical workings of reaching more investors. He studies specific ways by which Millionacres can reach potential subscribers.
What do you think about the group? Are you confident that they can bring you valuable information on real estate investing?
Before we saw the composition of the Millionacres team, we had high expectations. The company projected the image that these were industry experts.
But when we saw their credentials, they were somewhat underwhelming. We expected real estate sharks who have solid on-the-ground experience.
Since the asset class is specialized, we wanted to see an actual industry track record from them. But we are not too convinced about their credentials when we read their profiles.
At best, their real estate "experiences" seem inadequate, to be charitable about it. Forgive us for saying so, but the company set us up for high expectations.
Yes, one may have a few properties. But this does not make you an "expert" who is equipped to dish out real estate stock recommendations.
It would have been better if Millionacres presented the team as a group of real estate researchers or enthusiasts. At least we won't be expecting much from their credentials.
Be that as it may, the proof of the pudding is still in the eating. Even without the track record we expected, maybe they can deliver? After all, this is what matters most.
We have already reviewed lots of services on this site from prominent thought-leaders. But their stature did not necessarily translate to quality services.
So does the Millionacres team deliver? Continue reading to find out.
What is Motley Fool?
Motley Fool's goal seems to be simple. The company wants to make the world smarter, happier, and richer. To accomplish this, it aims to provide expert investment guidance.
It is among the more prominent companies in the advisory business. In fact, Green Bull Research has covered some of its services in the past.
If you want to know details about the entry-level service of its subsidiary, read Millionacres’ Real Estate Winners – Is This The Real Deal?.
Another helpful piece for you would be our Motley Fool’s Share Advisor (Australia) review.
If the company's goal is to give credible financial research services, what's with the name?
Well, according to founders Tom and David Gardner, they were inspired by Shakespeare. His comedy, As You Like It, has an interesting character.
In the kingdom, only the court jester could speak the unvarnished truth. He did not have to screen or self-edit. His humor was enough to save him from severe consequences.
In a way, the company sees itself as a court jester. Since it wants to proclaim the unfiltered truth about investments, Motley Fool uses humor to get its message across.
This is what the owners mean in their famous line. They take investment advice seriously without taking themselves too seriously.
In fact, the company started as a prank. But now, it is among the most well-known in the world.
Aside from the U.S., Motley Fool also has offices in Australia, Canada, the United Kingdom, and Germany.
Some of its brands are:
- Motley Fool Asset Management
- 1623 Capital
- Motley Fool Wealth Management
- Lakehouse Capital
- Motley Fool Ventures
- Motley Fool Asset Management
In all of these subgroups, it offers the same kinds of services.
- Premium membership services that provide stock recommendations, detailed analysis of companies, model portfolios, live streaming video during market hours, and more
- Free market news and commentary with hundreds of new articles published each week
- Member-only tools and programming for building your ideal portfolio, tracking your performance, and monitoring companies of interest
Millionacres is among its newest ventures, having been launched in 2019.
There are three primary services of the company. One is free, and the other two have subscription fees.
If you are just looking for an online library of materials concerning real estate, this would be helpful. Millionacres takes pride in its free resources.
You may browse through its user-friendly website. What you will find are articles, videos, podcasts, and webinars. All of these, as we have mentioned, are free.
By the time we publish this article, there are 21 articles available. They cover a multitude of topics as well.
Want to know if REITs are really better than stocks? There is a write-up for you. If you want to know property taxes by state, that information's available as well.
Click on the glossary of real estate terms if you are new in this investing sphere.
If reading is not your thing, Millionacres has you covered as well. It has hundreds of multimedia materials that you can watch and listen to.
This service puts smiles on our faces here at Green Bull Research. Though there is nothing ground-breaking about the materials they offer, it's worth commending.
At least this is a one-stop-shop for those who want to learn.
There are even interviews of real estate leaders that are helpful for those interested in the topic. They also have transcripts for easier navigation.
In addition, the company offers Real Estate Winners for those who want to start investing.
Its stock recommendations, according to the firm, can give you double-digit gains. Through REITs, you will also have a reliable, steady income.
In fact, investing in the space can give you twice or thrice the yield of the S&P 500.
With a $249 subscription fee per year, you will get:
- New stock recommendations each month
- Regular updates on recommended stocks following earnings and other events
- Top 10 Investment Alerts delivered each quarter
- Tons of great educational content and resources to make you a smarter real estate investor
As you can observe, these are pretty basic. If you want to level up in real estate investing, you may opt for the premium service, Mogul.
With the $2,999 per year service, Millionacres says you will get more than 20% of annual returns.
It is possible because of its "proprietary 100-point scoring criteria." This ensures that you will be among the first to know about the best crowdfunding real estate deals.
When you subscribe, you are entitled to these:
- Periodic recommendations for both publicly traded real estate equities and real estate investment trusts
- Investor alerts to notify you when our next private real estate recommendation goes live
- Educational resources, tools, and content designed to assist you in becoming a better real estate investor
Our beef here is the lack of details on how exactly their processes will give you such high returns. Promises are not methods, and we would have appreciated more of the latter.
Although the services and information are limited, we appreciate how streamlined and straightforward the offers are.
Do you just want to learn? There is a free library that you can browse without divulging your email address. We know that the catch to free newsletters is always a barrage of spam mails.
If you want to try it out first with minimal commitment, they have an entry-level advisory.
Do you have more money to spare? You may subscribe to the high-priced service.
So yes, there is variety. But is there quality to these services? The following sections will shed light on this.
What are Some of the Information Available on its Website?
Study: Do Landlords Actually Know What Renters Want?
One article on the website talks about rental properties. Millionacres says it asked 1,500 renters and 156 landlords to know more about the landlord-tenant relationships.
The study has some insightful findings.
One of these is that renters were actually willing to pay more than what landlords expected. This is true so long as these three are present:
First, there must be convenient payment options. Second, renters would appreciate parking options for their guests. Third, if the lease terms are flexible, they do not mind shelling out more cash.
Another result is this: Renters were unwilling to pay as much as landlords thought for pet-friendliness and proximity to schools.
In addition, about 50% of renters who participated said they prefer special features over affordability. Only 18% of owners think the same way. Clearly, this disconnect is an opportunity for both.
These are actually helpful information. Whether you are a renter or a landlord, applying this will benefit you.
Trends in Real Estate Investing Scams and Fraud
The article starts with a concerning statistic from the Federal Trade Commission. Apparently, there were 3.2 million fraud and scam reports in 2019. This translated to $1.9 billion in losses.
Among the reported frauds were the following:
- Mortgage fraud
- Investment fraud
- Credit bureau fraud
- Home repair fraud
- Foreclosure relief fraud
- Tax preparer fraud
- Rental listing fraud
Most frauds have apparently dipped in recent years. It was only credit bureau fraud that increased in number.
Aside from statistics, the write-up also lists specific types of activities people need to know about. This kind of information, again, is helpful for readers.
The Millionacres Hour: Real Estate Technology and Platforms
The website also has interviews with practitioners covering different topics. This particular video is about technology's role in the future of real estate.
Woollard, Millionacres' Editor, talked to Austin Smith and Tim Byers regarding proptech (property technology).
One of the things they discussed is the kind of data that new technology can bring to real estate. These can help real estate practitioners in doing their jobs better.
With the industry becoming more advanced, it can help in the following areas:
- Revenue potential
- Cost and time savings
We are impressed by the scope of topics the website offers. There are enough in-depth details as well for those who want more information.
Overall, this feature is a win for Millionacres.
Track Record and Reviews
Unfortunately, since the subsidiary is relatively new, there aren't too many genuine subscriber reviews on the Internet. A lot of the "reviews" are merely promotional materials.
When you visit the Mogul review on Stock Gumshoe, you will see that it has a rating of 4.3 out of 5 stars. Unfortunately, this grade is from less than ten subscribers.
This is not enough to have a solid assessment of the service. No one has even commented on the page as of this writing.
There are comments and reviews about Motley Fool on various websites, but these may not necessarily reflect on Millionacres' performance. Besides, the feedback has been mixed.
What about you, do you have any experience with the services of Millionacres? Have you tried subscribing to Mogul or Real Estate Winners? Were you able to read the articles or watch their videos?
We would love to hear your thoughts so our other readers can learn from you. Do leave a comment below.
Pros v Cons
- Streamlined services, no unnecessary duplications
- A wealth of resources for research
- Has a service that's suitable for any budget
- The team are not as immersed in real estate as advertised
- Limited options
- Not enough details about how Mogul and Real Estate Winners work
Conclusion - Can Millionacres Produce Millionaires?
What have your thoughts been so far?
We have discussed how there is still a massive potential for real estate investing. Even if many Americans are already aware of this, a lot of people are still apprehensive about it.
Although Millionacres tends to downplay the risks in this asset class, you need to be aware of the issues.
As an affiliate of Motley Fool, the firm advertises that it can remove the mystery surrounding real estate. Proof of its perseverance to educate people is the number of educational materials on its site.
Aside from this, it offers Real Estate Winners for beginners and those with a limited budget. If you are interested in scaling up your investments in the space, Mogul is available for you.
As of this writing, there isn't much feedback yet from our trusted third-party websites.
In the end, though, the best assessment could only come from you. This is why we presented as much information and evaluation as we could. Based on this Millionacres Review, are you inclined to avail of its services?