Real Estate Crowdfunding Offerings With Investment Minimums Of $500 Or Less
Crowdfunding has opened up real estate investments to a whole new class of investors. There is no longer any need to spend time and energy managing an investment property or dedicating a lot of capital to buying a property.
With real estate crowdfunding, investors can bring in some of the money needed to finance a deal, while the sponsor takes responsibility for managing the assets. This has increased the attractiveness of real estate investments for passive investors who want to benefit from the high returns and security of real estate.
Low minimum investment crowdfunding options: Crowdfunding has reduced the need for capital to invest in real estate, but most platforms still require a minimum investment of at least $ 25,000 and require investor accreditation.
If you’re looking to test crowdfunding as an investment with a smaller amount of capital, or if you don’t qualify to be an accredited investor, there are some great ways to start with $ 500 or less.
$ 500 minimum investment: DiversyFund is offering shares in its multi-family real estate portfolio to both accredited and non-accredited investors for just $ 500. You can also set up recurring investments to grow your equity over time. Visit DiversyFund here to learn more.
$ 100 minimum investment: Arrived Homes is one of the newer crowdfunding platforms out there, offering stakes in high-yield rental properties with a minimum investment of just $ 100. The company is responsible for real estate management and distributes quarterly distributions to investors. Visit Arrived Homes here to learn more.
$ 10 minimum investment: That’s right, you can start investing in real estate for as little as $ 10. Groundfloor provides short-term hard money loans to real estate investors and builders for the renovation or construction of residential properties. The company then sells portions of those loans to investors on its platform in increments of $ 10. The loans are secured by the underlying property and bear interest rates between 6% and 12%. Visit ground floor here to learn more.
Should You Invest in Real Estate Crowdfunding ?: The decision whether or not to invest in real estate through crowdfunding depends on your overall investment goals and how long you are willing to keep your money tied up. Real estate investments are illiquid so if you need to access your funds before the investment term expires, your shares cannot be sold.
DiversyFund and Arrived Homes are both long-term investments, so you need to keep your money invested for at least five years. Ground floor investments usually only have a term of six to twelve months, but can be longer if the loan is not repaid on time.
Overall, if real estate is an asset class you want to invest in, crowdfunding is a good option. Leave the hard work to the sponsors with years of experience and just reap the benefits.
See Also: Best Real Estate Crowdfunding Platforms For Unaccredited Investors
Photo: Who is Denilo? on Unsplash.
© 2021 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.