Real Estate Crowdfunding Offerings With Investment Minimums Of $500 Or Less

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Crowdfunding has opened up real estate investing to a whole new class of investors. It’s no longer necessary to invest the time and energy needed to manage an investment property or put up a large amount of capital to buy a property. 

Real estate crowdfunding allows investors to contribute a portion of the money needed to fund a deal while the sponsor takes on the responsibility of managing the asset. This has made real estate investing a lot more attractive to passive investors who want to take advantage of the high returns and security that real estate can provide. 

Crowdfunding Options With Low Minimum Investment: Crowdfunding has reduced the amount of capital needed to invest in real estate, but most platforms still require a minimum investment of at least $25,000 and require investors to be accredited.

If you want to test crowdfunding as an investment with a smaller amount of capital or if you don’t meet the requirements to be an accredited investor, there are some great options to get started with $500 or less. 

$500 Minimum Investment: DiversyFund offers shares of its multifamily real estate portfolio to both accredited and non-accredited investors for only $500. You can also set up recurring investments to grow your equity over time. Visit DiversyFund here to find out more. 

$100 Minimum Investment: Arrived Homes is one of the newer crowdfunding platforms on the market and offers shares of income-producing rental properties with a minimum investment of only $100. The company handles property management and sends out quarterly distributions to investors. Visit Arrived Homes here to find out more. 

$10 Minimum Investment: That’s right, you can even start investing in real estate with as little as $10. Groundfloor provides short-term hard money loans to real estate investors and home builders for the renovation or construction of residential properties. The company then sells portions of these loans to investors in increments of $10 on its platform. The loans are secured by the underlying properties and come with interest rates between 6% and 12%. Visit Groundfloor here to find out more. 

Should You Invest In Real Estate Crowdfunding?: The decision of whether or not to invest in real estate through crowdfunding depends on your overall investment goals and how long you’re willing to leave your money tied up. Real estate investments are illiquid, so your shares can’t be sold if you need to access your funds before the end of the investment term. 

DiversyFund and Arrived Homes are both long-term investments, so you’ll need to keep your money invested for at least five years. Groundfloor investments typically have a term of only six to 12 months but can end up being longer if the loan isn’t repaid on time. 

Overall, if real estate is an asset class you want to invest in then crowdfunding is a great option. You can leave the hard work to the sponsors with years of experience and simply reap the rewards. 

See also: Best Real Estate Crowdfunding Platforms for Non-Accredited Investors

Photo: Who’s Denilo ? on Unsplash.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.