While the options for non-accredited investors to invest in real estate crowdfunding have been limited in the past, a few crowdfunding platforms are opening up real estate investing to virtually anyone. Keep reading to find out which options are available and what the best platforms are for real estate crowdfunding for non-accredited investors.
What is Real Estate Crowdfunding
Real estate crowdfunding is a method real estate investors and developers use to raise capital to acquire or develop a property. Multiple investors who want to earn passive income will pool their money for a real estate project. The investors will either share a portion of the equity or provide the money as a loan and earn interest on their investments.
Investing through crowdfunding has become so simple that you can easily invest in real estate online by signing up with the platform that’s right for you, funding your account, and choosing which offerings you want to invest in.
Since crowdfunding regulations allow real estate companies to raise capital without registering with the SEC, there are rules in place to protect investors. These rules limit who can invest in crowdfunded deals based on what regulation the offering falls under.
Best Real Estate Crowdfunding Options for Non-Accredited Investors
If you’re looking for real estate investment options as a non-accredited investor, below is a list of our top picks for the best real estate crowdfunding platforms for non-accredited investors.
Arrived Homes is a real estate investing platform that allows investors to purchase shares of individual rental properties. The company makes it possible to invest in rental properties for as little as $100. Arrived Homes also handles all property management responsibilities, making investments completely passive.
Investors who don’t want to fork over the cash for a down payment on their own rental property can easily get started with real estate investing and grow their portfolios over time with small $100 investments.
Fundrise provides a wide range of real estate investment options for non-accredited investors, with minimum investments starting at just $10. The platform automatically allocates your investment across multiple projects to maximize returns and provide a hedge against risks.
Groundfloor allows non-accredited investors to invest in crowdfunding through short-term loans made to real estate investors and home builders. They also offer the lowest minimum investment crowdfunding option available, allowing investors to get started with as little as $10.
Groundfloor offers short-term loans on residential properties, then sells portions of those loans to its investors through a limited recourse obligation (LRO). Investors can browse available loans and invest in whichever ones they want in $10 increments. Most loans on the platform pay an interest rate between 7% to 12% with terms of 6 to 12 months.
Investors can schedule recurring deposits into their Groundfloor account and even set up automatic investing based on criteria they set.
Streitwise offers a non-traded REIT for both accredited and non-accredited investors with a minimum investment of around $5,000. The company focuses on investing in low-risk commercial real estate aimed at providing clients with consistent high-yield returns.
The team invests in markets that are steadily growing and offer low-risk potential outcomes. While they’re still young and growing, the founders have built their business based on solid experience coupled with a vision for the future of investing. If you’re looking to diversify your current investment portfolio but feared real estate was too lofty a goal, Streitwise is worth exploring.
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