Real estate crowdfunding sites let you invest in various types of real estate, some with minimums as low as $10. With this model, you gain ownership of real property without the headaches of taking care of tenants or coming up with funds for a large down payment.
Below are three of the top beginner-friendly real estate crowdfunding platforms open to non-accredited investors. These platforms offer quality educational resources and have affordable minimums.
Fundrise
Fundrise is one of the more popular real estate crowdfunding platforms that offers options for both accredited and non-accredited investors. It also offers low minimums as the starter package only requires a $10 investment. You can also reduce your tax liability and have tax-deferred growth by having these investments in an IRA.
Fundrise also has a robust education center that includes Investing 101, Point of View and Advanced Investing. Investing 101 focuses on the basics of real estate investing, and Point of View shares high-level market trends along with personal finance tips. Advanced Investing takes things up a notch and provides in-depth analysis from its in-house real estate professionals.
DiversyFund
DiversyFund is a nontraded real estate investment trust (REIT) that is simple for novices. Like the other options on this list, it has a low minimum — just $500. It also has a comprehensive blog with articles on a variety of topics from the basics of personal finance to more detailed posts on real estate. This section also has updates on real estate markets throughout the states and DiversyFund itself.
Unlike other crowdfunding sites, it only has a few main options: the Growth REIT I and II, which specialize in multifamily apartments. They target apartment communities that have more than 100 units each and hone in on options that can provide a 10% to 20% or more internal rate of return (IRR). Like other real estate investments, DiversyFund stresses long-term investing with the minimum holding period being five years.
DiversyFund is relatively simple to use because it has an easy onboarding process. All you need to do is provide basic documentation (Social Security number and U.S. residence address) and a link your bank account. It also has an app on the Apple store that lets you manage your account and receive important tax documents like 1099s.
Arrived Homes
Arrived Homes is another real estate crowdfunding platform that has a low minimum of just $100 and specializes in single-family homes. Arrived Homes purchases a home and gives ownership of that home to an individual limited liability company (LLC). This LLC sells shares to investors, and you can gain more equity in property with a higher investment.
Like the other crowdfunding platforms, it has a comprehensive blog on real estate topics. While this content is helpful, it’s relatively high level and focuses on basic concepts. Conversely, Fundrise has more detailed sections on real estate trends and personal finance.
One nice touch that this platform adds is a 15-minute Zoom call for new users with an Arrived Homes professional. This call walks them through the basics of the platform and what to expect as investors. However, this call is optional, and users can start using the platform on their own.
Final Note
With real estate crowdfunding, you can invest in various real estate projects directly. You’d own a percent of the property based on the amount you invest. All without needing to finance a mortgage, save six figures for a downpayment or deal with repairs.
There are many real estate crowdfunding platforms, but Fundrise, DiversyFund, and Arrived Homes stand out as some of the best options for non-accredited, novice real estate investors.
