3 Ways to Add Commercial Real Estate to Your Portfolio With $5,000

There’s little argument that commercial real estate is a great asset class to add to an investment portfolio. It provides strong potential returns and has little correlation with the stock market, making it a smart way to hedge against inflation and economic downturn. 

The main problem investors face when it comes to investing in commercial real estate is the amount of capital that’s typically required to participate in this asset class. The down payment required to purchase a property can be in the millions of dollars, and most real estate funds have minimum investments of $100,000, or more. 

How Retail Investors Can Invest in Commercial Real Estate: While purchasing a property or investing in a real estate fund may be out of reach for most investors, a few investment platforms provide retail investors with access to institutional-quality commercial real estate investment opportunities with as little as $5,000. 

EquityMultiple: EquityMultiple is a real estate investment platform with a variety of options available to accredited investors. Investors can choose from direct investments in targeted deals, fund investments and short-term real estate notes. 

EquityMultiple has a 16.8% historic rate of return, with gross distributions of $126.7 million paid out to investors. 

See also: EquityMultiple Review

MogulREITs: The real estate crowdfunding platform RealtyMogul offers 2 non-traded REITs. MogulREIT I is the company’s income-focused REIT with a diversified portfolio of commercial real estate assets. The REIT currently has an annualized dividend yield of 6% with distributions paid monthly. 

MogulREIT II is the company’s second REIT, which invests in apartment buildings located in resilient markets that offer steady income and solid growth potential. While this REIT is focused on capital appreciation, it still pays out a quarterly dividend with a 4.5% annual yield. 

See also: RealtyMogul Review

Streitwise: Streitwise is another popular real estate investment platform that offers a non-traded REIT with a solid performance history. The platform’s current offering is 1st Streit Office, which has a portfolio of 2 class-A commercial properties and a target dividend yield of 8% to 9%. 

The REIT’s most recently declared dividend has an 8.4% yield and has provided an average return of 9.4% over the past 18 quarters. 

See also: Streitwise Review

Photo by Greg Rakozy on Unsplash