Arrived Homes and Fundrise are two real estate crowdfunding platforms that are ideal for non-accredited investors. These platforms offer lower minimum investments, diversified portfolios, and user-friendly interfaces.
In the past, non-accredited investors had limited options when it came to real estate crowdfunding. However, there are now a few platforms that are opening up real estate investing to virtually anyone. Let’s take a closer look at the best platforms for non-accredited investors in real estate crowdfunding.
1. Best Overall: Arrived Homes
Arrived Homes is a real estate investing platform that allows investors to purchase shares of individual rental properties. With as little as $100, investors can get started with real estate investing and grow their portfolios over time. Arrived Homes also takes care of property management responsibilities, making it a completely passive investment option. It offers multiple ways to earn dividends, making it a great way to diversify your portfolio. However, it does have long hold periods and no secondary market to liquidate shares.
2. Best for Low Minimum Investment: Fundrise
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. It can also be used for IRA contributions and has a low, easy-to-understand investor fee schedule. However, it does have extended hold periods and a limited secondary market.
3. Best for Investing in Debt: Groundfloor
Groundfloor allows non-accredited investors to invest in crowdfunding through short-term loans made to real estate investors and home builders. With a minimum investment of $10, investors can get started in real estate crowdfunding. Groundfloor offers the lowest minimum investment option available and allows investors to schedule recurring deposits and set up automatic investing. However, it does not offer bankruptcy protection and has a high rate of uncured default.
4. Best for Ease of Use: Streitwise
Streitwise offers a private real estate investment trust (REIT) for both accredited and non-accredited investors. With an investment minimum of around $5,000, Streitwise focuses on investing in low-risk rental commercial real estate. It offers consistent quarterly dividends, low transparent fees, and is convenient and easy to use. However, it has limited offerings.
Real estate crowdfunding is a method that allows multiple investors to pool their money for real estate projects. It provides an opportunity for investors to earn passive income by sharing a portion of the equity or providing loans to real estate projects.
Accredited investors have fewer limitations when it comes to investing in crowdfunding deals. They can participate in all types of crowdfunding offerings. On the other hand, non-accredited investors have certain limitations and are protected by rules put in place by the SEC.
While there are fewer options available for non-accredited investors in real estate crowdfunding, there are increasing opportunities for them to get involved. Regulation A+ offerings and Regulation Crowdfunding (CF) are two types of crowdfunding that allow non-accredited investors to invest in real estate.
Investing in real estate crowdfunding as a non-accredited investor requires thorough research and due diligence. It’s important to choose a platform that caters to non-accredited investors and to diversify your investments to minimize risks.
In summary, Arrived Homes, Fundrise, Groundfloor, and Streitwise are some of the best real estate crowdfunding platforms for non-accredited investors. These platforms offer lower minimum investments, diversified portfolios, and user-friendly interfaces, making it easier for non-accredited investors to get involved in real estate investing.
