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Real estate is one of the best ways to boost your wealth, but for decades, it was only affordable for rich folk. Fortunately, fintech apps and crowdfunding platforms make real estate investing accessible to everyday investors like myself.
In fact, 48% of Minority Mindset readers invest in real estate—and 72% say they love it!
Through crowdfunding apps, it’s possible for investors to pool their money together for greater buying power. This gives you the ability to invest your money in opportunities that would normally be way too expensive.
Depending on the real estate investing platform you choose, you can start investing in real estate for less than the cost of a Chipotle burrito meal.
Of course, your financial status does affect what types of investments you can access. As a non-accredited investor, your options are more limited, but there are plenty of real estate platforms that welcome non-accredited investors.
Top 8 real estate investing platforms for non-accredited investors:
- Arrived Homes
Let’s dig into the nuts and bolts of what it means to be a non-accredited investor, as well as the top 8 real estate investing platforms for non-accredited investors.
What Is A Non-Accredited Real Estate Investor?
If you don’t have a huge net worth, there’s a good chance you’re what the SEC calls a “non-accredited investor.”
To be considered an accredited investor:
- You need to be worth $1 million
- You need to have an annual income of $200,000 solo or $300,000 as a married couple
There are other rules, too, but these are the most basic. I don’t know about you, but I’m certainly not worth a million bucks. If you don’t meet the requirements to be an accredited investor, you’re considered a non-accredited investor.
Why does this matter?
FINRA and the SEC created accreditation rules to protect investors who have a lower net worth. The rule is designed to protect everyday folks from blowing their entire life’s savings on riskier investments.
If a company wants to solicit money from non-accredited investors, they have to jump through extra hoops and meet additional requirements—that’s why some companies say, “Forget it,” and choose to only work with accredited investors.
In the past, real estate used to be open only to accredited investors. Fortunately for you and me, that isn’t the case anymore. Several platforms welcome non-accredited investors, which opens up your investment opportunities considerably.
Top Real Estate Investing Platforms For Non-Accredited Investors
More often than not, non-accredited investors are stuck with investing in funds or REITs, but some platforms do give you more options. It’s all about picking the right platform so you get the most bang for your buck.
If you’re a non-accredited investor, check out these 8 real estate investing platforms to grow your wealth over time.
Fundrise is one of the most common real estate investing platforms for non-accredited investors. Actually, 86% of Minority Mindset readers who invest in real estate do it through Fundrise!
With a $10 minimum on its Starter Plan, Fundrise makes it affordable for just about anyone to invest in real estate. Its higher-level plans require larger minimums, but it’s okay to start small and upgrade down the line if you want more bells and whistles on your account. Regardless, the Starter plan comes with a lot of firepower, including automatic dividend reinvestment.
I really like Fundrise’s fee structure, too. There’s a 1% asset management fee for all of its portfolios because the platform chooses investments for you. Compared to the other platforms on this list, that’s a good deal.
Investors report returns in the 8% to 12% range, which is phenomenal. While Fundrise doesn’t promise dividends, it hasn’t had a negative turn to date. You definitely can’t say the same about the stock market.
One of the challenges of using Fundrise, though, is that it isn’t necessarily a liquid investment. It’s not like the stock market where you can wake up, sell a stock, and get your money that same day. Fundrise does allow you to liquidate your shares once a quarter (which is better than other investment platforms), but there are restrictions.
- Low $10 minimum
- Low fees
- Automatic dividend reinvestment
- Potential for high yields
- Limited liquidity
CrowdStreeet used to only allow accredited investors, but today, it does have two funds for non-accredited investors. CrowdStreet does all of the work building the portfolio for you, which allows you to diversify your investments in one place.
Through CrowdStreet, you can invest in two REITs:
- Impact Housing REIT: This fund has a $1,000 minimum and a 1.75% annual asset management fee
- Medalist Diversified REIT: This fund has a $5,000 minimum and a 1.5% annual asset management fee
Like most real estate deals, CrowdStreet is considered a long-term investment that you shouldn’t touch for 5-7 years. But with an average return of 7% to date, it’s a strong contender.
- Potential for high yields
- High minimums
- Limitations for non-accredited investors
Since 2013, RealtyMogul has given investors access to commercial real estate deals. This platform is open to both accredited and non-accredited investors, but you’ll only be able to invest in their REITs (sorry!).
RealtyMogul’s $5,000 minimum can be a bit steep for beginner investors, but if you can afford to get in, it’s a pretty nice platform. RealtyMogul is famously picky about which projects it invests in, so they do a ton of legwork on your behalf. If you want to invest in properties with a proven history of cash flow, RealtyMogul is the way to go.
Their Mogul REITs are managed funds, which means that you can’t put your money into a single property. But even then, there’s a lot to love about its two REITs:
- Mogul Income: If you want more dividends in your pocket, Mogul Income is designed to generate regular income for investors. So far, it’s returned 6% on average, making it a popular option for shorter-term investors who want cash flow
- Mogul Growth: This fund is for multifamily housing, like apartments. With the goal of long-term asset appreciation, this fund is better for investors who want to take advantage of increasing property prices over many years
- Properties with cash flow history
- Property vetting
- Funds with different goals
- Expensive minimum
- Less control
Streitwise specializes in buying and renting out commercial properties, like office buildings. It tries to find high-occupancy buildings for businesses because they tend to have more stable rent agreements—and that’s good for investors.
In this case, Streitwise owns the buildings and you just invest in them—you don’t really “own” anything. Streitwise offers investments via funds that you buy shares in.
On average, investors have earned 8% dividends on their investments, which is pretty darn good (but not guaranteed, of course). You can either take your dividends as payment or reinvest them for more shares in the fund.
With Streitwise, you’ll need to meet their $5,000 minimum to start investing. They also have a one-year requirement for investments: this means your money is in “investment jail” for at least a year. I strongly discourage you from taking your money out before the end of the term because Streitwise will penalize you for it.
It often has only one fund available at a time, so this could be bad if you’re trying to diversify your portfolio.
Streitwise also charges a host of fees that can add up to 6% of your investment balance. That might not sound terrible, but compared to other real estate investing platforms, it’s expensive.
There’s a silver lining, though: Streitwise accepts crypto as payment! If you like paying in crypto, this is the platform for you.
- Potential for high dividend yields
- Cryptocurrency payments
- Dividend reinvestments
- High minimums
- High fees
- Limited choices
Like Streitwise, Diversyfund also buys and owns properties. Diversyfund’s focus, though, is on growing money mostly through asset appreciation. This does mean that it’s a longer-term type of investment, although they also can produce cash flow in the form of rent from apartment buildings.
Diversyfund has just a $500 minimum to invest, so it’s a lot more affordable. I know that’s still a lot of money, but $500 is a steal compared to traditional real estate investments.
When you invest through Diversyfund as a non-accredited investor, you can put your money into two REITs:
- DiversyFund Growth REIT
- DiversyFund Growth REIT II
Both funds invest in multifamily housing (apartments) with over 100 units across the US. DiversyFund says these investments can take five years to see a return on your money.
The biggest downside to investing with DiversyFund is its sky-high fees. There are platform fees that could add up to 12% of the equity you invest in the platform, as well as real estate fees that can equal as much as 6%. Compared to platforms like Fundrise that have a 1% fee, this is crazy-expensive.
- $500 minimum
- REIT organization
- Long time horizon
- High fees
Groundfloor is one of the more unique choices on this list. With Groundfloor, you provide financing in the form of short-term loans for house flippers.
This is a form of peer to peer lending, so it does come with more risks than investing in, say, a REIT. Groundfloor is a debt investment, which means you make your money from the interest payments that the flipper makes to you.
But if you like the idea of putting your money into house flipping, this is a great way to get started. The flipper does all of the actual work while you help with the money end of the equation.
The good news is that Groundfloor vets each opportunity for you. The terms for each investment vary, but they typically last for up to 12 months.
Groundfloor lets you start investing for just $10, which is a steal. And with a 10.5% average yield to date, it’s a pretty compelling option for real estate investments.
- No hands-on management
- High yields to date
- Low $10 minimum
- Higher risk
- Debt investment
Unlike platforms like RealtyMogul, Roofstock lets you invest in individual properties like single-family homes and duplexes. So, instead of investing in a diversified portfolio like a REIT, you’re putting your money into a single property.
This does mean you’ll need to work extra hard to diversify your investments elsewhere. But Roofstock does give you access to multiple housing markets across the US—you just have to do the research to find the best deals for your situation.
To invest with Roofstock, you find a property, put in an offer, and start earning rent. Roofstock will handle maintenance and tenants for you, so you don’t have to become a landlord.
But here’s the rub: Roofstock requires a 20% down payment when you buy a single property. Depending on where you’re buying, that requires a fat chunk of change. It also has a 0.5% annual fee for all purchases, too.
To sweeten the deal, Roofstock offers a 30-day money-back guarantee, which is pretty much unheard of in real estate. So, if you realize a property isn’t up to snuff after you buy it, you can change your mind within the first month after purchase.
- Control over investment
- Roofstock handles tenant management and maintenance
- 30-day money-back guarantee
- Less diversified
- Expensive 20% down payment
The last real estate investing platform for non-accredited investors is Arrived Homes. This is a REIT specifically for single-family homes. Arrived Homes buys properties that have the potential to produce income through rent and lets investors buy shares in that property.
Unlike Roofstock, you don’t own the properties on Arrived Homes. But that’s not such a bad thing! With a small $100 minimum investment, Arrived Homes is a completely passive way to invest in real estate.
Arrived Homes manages the properties for its investors, handling everything from repairs to communicating with tenants. You’ll earn dividend payments quarterly, but Arrived Homes can’t guarantee that you can get returns if you try to liquidate your shares early.
- Tenant and maintenance management
- Low minimums
- Limited liquidity
Final Words On Real Estate Investing For Non-Accredited Investors
There are so many ways for non-accredited investors to invest in real estate. With platforms like the options above, you can earn money on loan interest, asset appreciation, or rental income. And you don’t have to become a landlord with any of these options, which is a huge relief.
Thanks to the expanding fintech environment, more opportunities are opening up to non-accredited investors. These 8 platforms are the beginning, but we’ll likely see even more options coming down the pipeline.
But if you need help making sense of real estate investing, we’ve got you. Join Market Insiders to learn the ins and outs of real estate, crypto, stocks, and more.