You don’t need to be a millionaire to invest in real estate. Thanks to new platforms and regulations, non-accredited investors can now access real estate opportunities that were once reserved for the wealthy. From crowdfunding to REITs, there are multiple ways to start investing with a small budget.
Key Takeaways
- Non-accredited investors can invest in REITs, crowdfunding, and real estate syndications.
- SEC regulations now allow broader access to real estate deals.
- Some platforms let you start investing with as little as $10.
What Is a Non-Accredited Investor?
A non-accredited investor is anyone who does not meet the SEC’s accredited investor requirements, which include earning over $200,000 annually ($300,000 for couples) or having a net worth of $1 million (excluding their primary residence). In the past, these investors were excluded from many private real estate deals, but new regulations have opened doors to alternative investment options.
Investment Options for Non-Accredited Investors
- Public REITs (Real Estate Investment Trusts) – These are stocks that invest in income-producing real estate. They provide passive income through dividends and are easy to buy through brokerage accounts.
- Private REITs – Platforms like Fundrise and DiversyFund offer private REITs that allow non-accredited investors to access diversified real estate portfolios with low minimums.
- Real Estate Crowdfunding – Websites like Groundfloor and RealtyMogul let investors pool money together to fund property purchases or development projects, often with a low minimum investment.
- Real Estate Syndications (Reg CF or Reg A+) – Some real estate group investments are open to non-accredited investors under special SEC regulations.
Pros and Cons
Pros:
- Low minimum investment requirements.
- No need to manage properties directly.
- Access to real estate markets without large capital.
Cons:
- Limited control over property decisions.
- Some investments lack liquidity and require long-term commitment.
- Dividends and returns may vary based on market conditions.
FAQs
Q: Can I invest in real estate with $100 or less?
A: Yes. Many crowdfunding platforms and REITs allow investments with as little as $10–$100.
Q: Are non-accredited real estate investments safe?
A: While regulated, all investments carry risk. Stick to well-known platforms and diversify your portfolio.
