What are the Best Crowdfunding Reg A Investor Platforms for Passive Income ?
I just made an account to GroundFloor.us
Their minimum investment is $10....
I'm planning to also get into Grant Cardone's fund.
People also use Fundrise and Crowdstreet if you're accredited and looking for 506(c) investments.
If you're accredited that'll open up a lot of 506(b) syndication options for you as well.
I haven't seen many Reg A+ sites that had appealing deals. Groundfloor's deals that I saw were so-so at best.
Sophia, when you say regulation A, I'm assuming you mean offerings that allowed nonaccredited investors. If so, you should realize that there are other offerings that target nonaccredited investors that run under different portions of the law/regulations.
In my opinion there is no such thing as a single "best offering" for everyone. The best choice for someone that is an aggressive investor is probably a terrible choice for a conservative investor like myself. If I were a nonaccredited investor, first one I would look at is Blackstone Real Estate Investment Trust (BREIT). Blackstone is one of the most experienced and largest in the industry. Leverage is at 60% LTV which is a little bit on the high side for a core plus fun but not horrible, and certainly a lot less leverage them virtually every value-added and opportunistic fund out there.
I would also consider Broadstone Direct Real Estate Access (BDREX). This allows access into institutional quality real estate funds that might have a $5 million minimum if you tried to invest directly. It also has a sleeve that has exposure to public REITs, and another sleeve that is going to be allocated to direct real estate. These are rock-bottom and lead the industry.
Someone who's more aggressive will have a completely different opinion. Good luck.
I'd recommend aligning with a syndicator that is doing 506b syndication's. 506b allows for non-accredited investors. Chances are the returns on a 506b syndication will be much more appealing than a Reg A. Feel free to DM me if you have any other questions.
I have been following some REITs with my Robinhood account
Right now I am looking to only invest in $500-$1000 increments per month
Not sure if that amount would be good for 506b syndications...
What do you think?
@Sofia Ruano most syndicators (myself included) usually have minimums around $50,000 to $100,000 to invest in a 506(b) syndication. To my knowledge, that's pretty standard no matter what asset class. Self-storage, mobile home parks, multifamily, etc... are all going to require more than $500 to $1,000.
I would be hesitant to work with an operator that accepts that little of money on a 506(b) structure.
Another platform worth looking at is SmallChange which is one of the only Reg CF (Crowdfunding) platforms out there that specializes in real estate. Rich Uncles also takes non-accredited investors. Brock Modenson's comment to align with a syndicator doing 506(b)s is interesting though most developers doing that kind of offering don't necessarily want to include smaller investment levels as they will have set their minimums at accredited investor levels (i.e. outside of regulated levels permitted to non-accredited investors).
Hi @Sofia Ruano , you should definitely check out Realtyfolio. They are relatively new, but the deals they offer are solid! They have premium real estate partners, and you can invest in both short-term debt deals and longer-term equity deals, I believe you can start with $1000.
Feel free to DM me if you need more advice on this, I'm familiar with most platforms out there.
@Shaun Ashkenazy , You said you are familiar with most of the platforms out there and you can advise.
How many platforms do you know of for non-accredited RE investors? To get a sense of the market size.
Given the platforms you do know about, are most of them operating as an exchange (they sit in the middle like a the New York Stock Exchange) or are they offering only their own deals?
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@John Corey Most offer their own deals. Not so much as an exchange, since real estate is not publicly traded, hence their always 2 parties involved (Lender - Norrower | Investor - Developer | Buyer - Seller | etc ).
When saying "their own deals", that usually means the platforms source the project/deal, they vet and work with the borrower/developer and usually underwrites and services the deal (or sell it to a servicing company). So you, as a passive investor, get all that done for you, all is left is to pick the deals you are interested in and invest (after doing your own due diligence and analysis of course).
Im not sure exactly how many non-accredited platforms are out there, but there are about 7 popular ones such as Fundrise, Rich uncles, Realty Mogul, Groundfloor, Realtyfolio, and a few
Hope this answers your question!
*Disclaimer- I have worked with the founder of Realtyfolio on a number of projects. Also, this should not be taken as advice to invest with any platform, you should do your research.
I've invested in some of the Reg A+ and Reg CF offerings mentioned above and am happy with my results so far.
To get an idea of the available offerings, Crowdfunding Investment Websites is a good starting point.
Since things change so often is this space, you might want to cast your own net with DisclosureQuest.
The best investment period in my opinion would be with Blackstone. $475 billion under management.
These are great resources.
I will look into them ☺
Still.. www.breit.com the gold standard!
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