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Real estate is one of the greatest wealth builders of all time, but investing in this asset class has traditionally required a significant amount of capital, time and energy. Fortunately, there are few innovative companies making it possible for virtually anyone to invest in real estate on any budget.
Changes in securities regulations have opened up the private markets to non-accredited investors, making crowdfunding an easy way to add real estate to your portfolio. Here are three investment platforms that will let you start investing today with $100, or less.
Arrived Homes
Rental properties are one of the most popular types of real estate investments and for good reasons. They’re one of the most inflation-resistant investments available and they will always be in high demand.
Arrived Homes acquires quality rental properties in some of the fastest-growing markets across the United States and allows individual investors to purchase shares of these properties with a minimum investment of only $100.
The company takes care of all of the management responsibilities while investors collect their share of the cash flow from the rental income and wait for the properties to appreciate in value. Properties typically have a target hold period of five to seven years, at which point Arrived Homes sells the property and distributes the profits from the sale to the investors.
View rental property investments currently available on Arrived Homes
Fundrise
Most investment experts would agree that a healthy portfolio is a diversified portfolio, and that remains true with real estate.
Fundrise gives the everyday investor access to a diversified portfolio of institutional-quality real estate with a minimum investment of only $10 for the platform’s Starter account. However, larger investments will give you access to more options, such as choosing between different risk and return profiles.
The platform automatically distributes your investment across multiple properties and developments, including commercial, multifamily and single-family rentals.
View investment options currently available on Fundrise
Groundfloor
Equity isn’t the only way to invest in real estate. In fact, some of the biggest players in the real estate industry are the ones making loans secured by real property.
Groundfloor has created a platform that gives investors access to the private real estate debt market to earn interest on real estate-backed loans, just like the big banks.
The company provides short-term, high-interest loans to real estate investors and home builders for the renovation or construction of residential properties. It then offers shares of these loans to investors on its platform with a minimum investment of only $10.
The low minimum investment allows investors to easily diversify across several loans, which typically have terms that range from six to 12 months with annualized returns from around 6% to 15%.
View loan offerings currently available on Groundfloor
Photo by Cytonn Photography on Unsplash
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