by Sean B.
Today, the real estate business has come to stay. There are lots of agencies that are making it big in the real estate sector. The real estate agencies are those that focus on developing commercial, industrial, and residential building projects . As impressive as the real estate is, it is challenging for non-accredited investors to finance. Hence, crowdfunding becomes essential. With crowdfunding, many people can contribute money to fund and promote real estate projects . While it may be challenging to find a reputable and trusted crowdfunding source, it is also important to get the right real estate agency that can make good use of the dollars contributed.
Contents
A non-accredited investor is a person that is yet to meet up the required financial laws to fund real estate. For instance, you need to have an annual income of $200,000. This must be maintained for at least two years. Also, you should have over $1,000,000 valued assets . In case you don't meet up with these criteria, you become a non-accredited investor.
The table below summarizes the features of the real estate crowdfunding options you can choose as a non-accredited investor.
| Real Estate Crowdfunding Options | Features |
| Fundrise |
|
| Crowdstreet |
|
| RealtyMogul |
|
| stREITwise |
|
| GroundFloor |
|
| Rich Uncles |
|
As a non-accredited real estate investor, there are lots of crowdfunding options that are available for you to choose from. With that said, today, I will be telling you the best real estate crowdfunding options that are perfect for non-accredited investors.
1. Fundrise
Fundrise is a reputable crowdfunding option for non-accredited real estate investors . The crowdfunding site is perfect for new and old real estate Non-accredited investors. It deals with renovations and commercial buildings . On Fundrise, you are presented with two investment plans. These plans are the Starter and Core plan . In the Starter plan , you can invest at $500 . When you pay the $500, Fundrise will diversify it into projects with impressive potentials. For the Core plan , you will be required to start at $1000 . The Core plan is of three types. These types are supplementals income, balanced investment, and long-term growth . With Fundrise, you can make more profit if your investment lasts for five years or more . However, the crowdfunding site will allow you to access liquidity , depending on the kind of investment you do. For instance, you can access liquidity quarterly if you invest in eREIT. Also, if your money is invested in eFUND, you can access liquidity monthly after 60 days of investing. Furthermore, Fundrise deducts a 0.15% management fee and 1% from your annual assets .
Before now, Crowdstreet offers an investment option to accredited investors. However, the trusted and reputable crowdfunding option has introduced a crowdfunding option for non accredited real estate investors. On the initial minimum investment option on Crowdstreet, you are presented with two investment choices to choose from. These are the medalist diversified REIT and impact housing REIT. To join the impact housing REIT option , you will be required to pay a sum of $1000 while you will be required to pay $5000 for the medalist diversified REIT option . Since Crowdstreet offers investment services, you should understand that your investment can only perform better if the fund is allowed to run on a long-term basis. Because of this, Crowdstreet retains your money for five years on the impact housing REIT option . Also, your fund spends at least seven years i f you choose the medalist diversified REIT option. With the two investment options on Crowdstreet, you can make up to 7% return on investment (ROI) within the period you bond your money on the crowdfunding site. As a member of Crowdstreet, you are charged a 1.75% annual fee .
Established in 2013, RealtyMogul is an excellent platform for non-accredited real estate investors to spend their dollars. The crowdfunding option is designed for both non-accredited and accredited investors. Hence, RealtyMogul has got you cover irrespective of the category of investors you belong to. The crowdfunding option focuses on investing in properties, land, and construction projects . As a non-accredited investor, RealtyMogul presents you with the opportunity of investing in the MOGULREIT I and II plans . In these investment plans, your fund is diversified into real estate projects. On both plans, you are required to invest a sum of $5000 . While investing in RealtyMogul, you are not mandated to choose the length of time you want your fund to work for you. However, if you opt to leave it on a long-term basis, you can expect a substantial return on investment (ROI). For the MOGULREIT I plan , you can expect between 7.5% to 8% return on investment annually , while the MOGULREIT II rewards you with a return on investment of 4.5% . As a member of the RealtyMogul platform, a management fee of 0.5% to 0.6% is deducted from your money. The deduction depends on your investment plan. Also, a 1% annual asset fee is deducted from your money.
stREITwise is another tested and trusted crowdfunding option for non-accredited real estate investors that desire to invest their money in the real estate sector. The platform is perfect for new non-accredited investors to invest and have a considerable return on investment. stREITwise invest in commercial properties . On stREITwise, you can only invest your money at a time. stREITwise will also limit the number of diversifications you can do on the fund invested. With this strategy, stREITwise assists its non-accredited investors to make a sizeable percentage of funds on a long-term basis. On the crowdfunding platform, you can invest $ 1000 regardless of the funding they do at any time point. The money you invest can last for some years. As a non-accredited investor, you can have an ROI between 9.5% to 10% on your investment. Apart from the ROI benefits on stREITwise, you are also rewarded dividends and profits quarterly . The real estate crowdfunding platform for non-accredited investors deducts a 3% offering and organization fees and a 2% annual management fee from your invested fund.
If you are a non-accredited real estate investor that desires to choose a crowdfunding option to invest your small amount of money, GroundFloor is the best platform for you. At inception, GroundFloor restricted its crowdfunding services to a few states in the United States. Today, the old crowdfunding platform has increased its operation to all parts of the United States. With GroundFloor, you can invest in real estate projects with just $10 . However, if you desire to earn more return on investment, you will need to invest more dollars. On the crowdfunding platform, you can invest on a short-term basis - mostly between 6 to 12 months. When you invest on GroundFloor, you can get between 5% to 25.5% RO1 depending on the period your fund spend and also the kind of project you fund on the crowdfunding platform. Before you put your money into any real estate project, the project is advertised on its website to generate interest from non-accredited investors.
If you are a new non-accredited investor in the real estate sector, Rich Uncle is one of the best crowdfunding platforms you can choose. On the Rich Uncle crowdfunding platform, you are allowed to choose between two investment plans. These investment plans are the student housing REIT and national REIT . One interesting thing about Rich Uncle is that it presents non-accredited investors with the opportunity to invest as low as $5. The $5 investment fee is designed for people that desire to invest in the student housing REIT . If you desire to invest in the national REIT option, you will have to invest $500 or more . Note that the more you invest, the more ROI you get on your investment. When you invest in either of the plans, you can get up to 6.5% ROI . Rich Uncle deducts 3% administration fee from your fund.
Real estate is a promising sector that is thriving in the business world. Today, I have discussed the best real estate crowdfunding options you can use as a non-accredited investor. I believe the platforms discussed here will be of great help to you. Please read through and start investing in through your desired crowdfunding option.
About Sean B.
Sean Bradley is a highly regarded marketing expert with extensive experience and expertise in the field. With a passion for helping businesses thrive and grow, Sean has established himself as a leading figure in the marketing industry. Sean's expertise spans various marketing channels, including digital marketing, social media marketing, search engine optimization (SEO), content marketing, and branding. He is well-versed in utilizing data-driven insights to craft targeted marketing strategies that resonate with audiences and generate measurable ROI.
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