If you want to invest in commercial real estate but don’t have the capital to buy a property outright, there are a few options available:
1. Real Estate Crowdfunding Platforms
Thanks to online real estate crowdfunding platforms, you can buy a property with less know-how, less work, and less risk. Minimum required investments can be as low as $1,000. With these sites, you can purchase a “share” of a real estate mortgage or loan. But in order to take advantage of many of these opportunities, you must be an accredited investor.
Crowdfunding is not new, but the 2012 Jumpstart Our Business Startups (JOBS) Act kicked this industry into high gear here in the U.S. many platforms offer commercial deals to choose from.
Here are some of the most popular real estate crowdfunding platforms with commercial opportunities, along with links to our reviews of each service:
Highlights | |||
Rating | 9/10 | 8/10 | 9/10 |
Minimum Investment | $10 | $25,000 | $5,000 |
Account Fees | 1%/year | None | 1-1.25%/year asset management fee |
Private REIT | true | true | true |
Of course, on any of these crowdfunding platforms, you need to perform due diligence. However, all the documents allowing you to do so are often at your fingertips on each website.