What You Need to Know About Non-Accredited Real Estate Crowdfunding

Real Estate Crowdfunding Platforms for Non-Accredited Investors

While almost all real estate crowdfunding platforms are available to accredited investors, the list of options for non-accredited investors is decidedly smaller. We have compiled a list of five prominent crowdfunding platforms that offer investment opportunities for those investors who currently satisfy only the non-accredited investor status.

1. Fundrise

Fundrise is perhaps the most prominent of the major crowdfunding platforms, with a heavy presence online and in financial media like CNBC, WSJ, Barron’s, etc. Their high stature is in part due to the fact that they were one of the first to adopt crowdfunding to finance real estate, launching (actually) in 2010 before even the JOBS Act was passed, and entering the eREIT space in 2015. Currently, Fundrise has three public offerings for unaccredited investors and is planning on expanding that lineup pending guidance from regulators regarding easing access rules on crowdfunding opportunities for less-capitalized or lower-income investors. 

This platform is attractive for a number of reasons, including low minimum investments, the fact that it is open to all investors, and the easy to use user-interface and great website. IRA accounts are also available at Fundrise, which draws in retirement savers looking to maximize their tax advantages. Some of the drawbacks of using this platform (and other real estate crowdfunding platforms) include the fact that most opportunities are highly illiquid, with difficult to understand fees. Remember that these are complex investments that require rigorous due diligence.

2. RealtyMogul

Next on our list is RealtyMogul.com. Much like Fundrise, this crowdfunding platform uses the updated securities exemption regulation A+ to give both non accredited and accredited investors the ability to invest in real estate projects. Their CEO, Jilliene Helman, stresses their desire to enable investors to connect with unique real estate investments that fill a need not being met by traditional equities, bonds, commodities, etc. The minimum investment for a crowdfunded real estate product at RealtyMogul is $1,000, with much more substantial opportunities available for investors who qualify as being accredited.

3. GROUNDFLOOR

GROUNDFLOOR calls themselves a “wealth tech company” that offers investors the ability to purchase high-yield, short-term real estate debt investments, with a focus on the general public rather than high-net-worth and accredited investors. While many crowdfunding platforms where investors purchase equity stakes in real property through funds or eREITS, GROUNDFLOOR’s investment options are underpinned by secured, collateralized real estate debt, with relatively short (12-18 month) terms. 

They offer investments as low as $10, and boast of average returns of 10% per year. Additionally, they stress that all investments are secured by real assets; meaning by real estate property. For more information about GROUNDFLOOR’s non accredited real estate investment options, check out their Investor Page. One feature that makes GROUNDFLOOR stand out is their attention to detail and technology. This can be especially attractive for digitally-oriented investors who crave the latest and greatest user interface and data resources.

4. Roofstock

This Oakland-based real estate crowdfunding startup defines its mission as making ownership of investment real estate radically effective, simple, and cost-effective. Their platform is geared toward a wide range of investors, from beginners to global asset managers. Since launching in 2015, Roofstock has surpassed more than $2 billion dollars in transactions. Roofstock offers opportunities for both non-accredited and accredited investors, you can find out more about investor requirements and how their platform works in their FAQ. 

One thing to note about Roofstock; they primarily work with single-family properties, so if you’re interested in commercial or multifamily opportunities you may want to consider a different option. This platform offers investors a 30-day money back guarantee in addition to guaranteed rent on vacant properties. See more about their unique guarantee here. 

5. Small Change

Small Change describes their mission as a focus on mobility, community, and economic vitality and is one of the only Regulation CF Funding Portals operating in the United States that focuses solely on real estate. They style themselves as a socially responsible investment platform, with projects that tend to orient towards bettering the community in some way, either through revitalization, creating affordable housing, green building, and other similar pro-social investment avenues.

Developers list projects they seek to fund, which are vetted by Small Change staff to ensure compliance with regulations and their mission. Anyone is eligible to invest in their regulation crowdfunding offerings. Like the other platforms on this list, there are also opportunities available exclusively for accredited investors, with some being available to non-accredited investors. If you’re looking for a platform that combines the power of social change with directed real estate investment, Small Change might be one to consider.