New to real estate crowdfunding? Check out these 3 beginner-friendly platforms (all for non-accredited investors)

Real estate crowdfunding sites allow you to invest in different types of real estate, some with minimums as low as $10. With this model, you acquire ownership of real estate without the headaches of taking on tenants or finding funds for a large down payment.

Below are three of the best real estate crowdfunding platforms suitable for beginners and open to non-accredited investors. These platforms offer quality educational resources and have affordable minimums.

Fund raising

Fund raising is one of the most popular real estate crowdfunding platforms that provides options for both accredited and non-accredited investors. It also offers low minimums as the starter package only requires a $10 investment. You can also reduce your tax liability and enjoy tax-deferred growth by placing these investments in an IRA.

Fundrise also has a strong education center that includes Investing 101, Point of View, and Advanced Investing. Investing 101 focuses on the basics of real estate investing, and Point of View shares high-level market trends as well as personal finance advice. Advanced Investing takes things up a notch and provides in-depth analysis from its in-house real estate professionals.

DiversyFund

DiversyFund is an unlisted real estate investment trust (REIT) that is simple for novices. Like the other options on this list, it has a low minimum – just $500. He also has an extensive blog with articles on a variety of topics ranging from personal finance basics to more in-depth real estate articles. This section also contains updates on real estate markets across the states and on DiversyFund itself.

Unlike other crowdfunding sites, it only offers a few main options: Growth REITs I and II, which specialize in multi-family apartments. They target apartment communities that have more than 100 units each and focus on options that can provide an internal rate of return (IRR) of 10% to 20% or more. Like other real estate investments, DiversyFund emphasizes long-term investing with a minimum holding period of five years.

DiversyFund is relatively simple to use as it has an easy onboarding process. All you need to do is provide basic documentation (Social Security Number and US residential address) and a link to your bank account. It also has an app on the Apple Store that lets you manage your account and receive important tax documents like 1099s.

Homes arrived

Homes arrived is another real estate crowdfunding platform that has a minimum of just $100 and specializes in single-family homes. Arrived Homes purchases a home and gives ownership to an individual Limited Liability Company (LLC). This LLC sells shares to investors and you can earn more equity in the property with a higher investment.

Like other crowdfunding platforms, it has an extensive blog on real estate topics. Although this content is useful, it is relatively high level and focuses on basic concepts. Conversely, Fundrise has more in-depth sections on real estate trends and personal finance.

A nice touch this platform adds is a 15-minute Zoom call for new users with an Arrived Homes professional. This call walks them through the basics of the platform and what to expect as investors. However, this call is optional and users can start using the platform on their own.

Final remark

With real estate crowdfunding, you can invest directly in various real estate projects. You own one percent of the property based on the amount you invest. All without the need to finance a mortgage, save six figures for a down payment or deal with repairs.

There are many real estate crowdfunding platforms out there, but Fundrise, DiversyFund, and Arrived Homes stand out as some of the best options for novice, unaccredited real estate investors.

Photo by L Link on Unsplash

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