Arrived Homes is considered the best real estate investment company for their data-driven approach, personalized investment opportunities, and transparent process. Offering a low barrier to entry for investors and provide a hands-off, hassle-free way to build a diversified real estate portfolio.
Real estate investment companies play a crucial role in the real estate market by providing a platform for investors to diversify their portfolios and generate passive income. These companies typically specialize in acquiring, managing, and developing properties with the aim of maximizing returns for their investors. By pooling together funds from multiple investors, real estate investment companies are able to acquire larger properties or projects that may be out of reach for individual investors.
These companies often have a team of experienced professionals who handle property acquisitions, financing, leasing, and property maintenance on behalf of investors. This can be particularly attractive for individuals looking to invest in real estate without the responsibilities of day-to-day management. Let’s check out the best real estate investment companies to help you take advantage of the benefits of real estate ownership.
Quick Look: Best Companies to Invest in Real Estate With
- Best for Low Minimum Investments: Arrived Homes
- Best for Institutional-Quality Commercial Real Estate Investments: CrowdStreet
- Best for Diverse Range of Alternative Investments: Yieldstreet
- Best for Investors Looking to Diversify: Streitwise
Best Crowdfunding Platforms for Real Estate Investing
A growing trend in real estate is crowdfunding. The hands-off benefits of crowdfunding are similar to those of REITs but offer a little bit more control over the investment. Both crowdfunding and REITs allow investors to direct money toward properties and see returns without needing to actively manage the property. The main difference is that with crowdfunding you can funnel your money directly into tangible real estate assets, while with REITs you are investing money with the company which in turn goes and invests in real estate. A few crowdfunding platforms include:
Best for Low Minimum Investments: Arrived Homes
Arrived Homes‘ innovative business model, user-friendly platform, and commitment to democratizing real estate investing make it a standout choice for individuals seeking reliable and accessible opportunities in the real estate market. By choosing Arrived Homes, investors can benefit from the expertise of a trusted company while enjoying the potential for long-term financial growth through real estate investments.
Why We Picked It: One key reason behind choosing Arrived Homes as the best real estate investment company is its unique business model that allows investors to pool their resources and collectively own residential properties. This approach enables individuals to diversify their investment portfolios and enjoy the benefits of real estate ownership without having to purchase an entire property on their own.
Features: Arrived Homes leverages technology to simplify the investment process, making it convenient for beginners and experienced investors alike. The platform offers a user-friendly interface that allows investors to browse properties, track their investments, and receive regular updates on property performance. This transparency and ease of use set Arrived Homes apart from traditional real estate investing avenues, making it an ideal choice for those looking to enter the market or expand their existing real estate portfolios.
Minimum Investment: $100
Best for Institutional-Quality Commercial Real Estate Investments: CrowdStreet
CrowdStreet’s combination of investment diversity, transparency, and support makes it the top choice for individuals looking to enter the real estate market and build a diversified investment portfolio.
Why We Picked It: The company differentiates itself by offering a range of commercial real estate projects, giving investors the ability to diversify their portfolios with high-quality properties across various sectors such as multifamily, retail, industrial, and office spaces.
Features: CrowdStreet’s platform is user-friendly and transparent, allowing investors to easily browse and select investments that align with their financial goals and risk tolerance. Moreover, its rigorous vetting process for property deals ensures that only top-tier projects are featured on the platform, giving investors confidence in the quality of opportunities available. CrowdStreet also provides extensive due diligence materials and ongoing support to help investors make informed decisions and track the performance of their investments.
Minimum Investment: $25,000
Best for Diverse Range of Alternative Investments: Yieldstreet
Yieldstreet’s commitment to innovation, transparency, and investor protection sets it apart as the best real estate investment company in the market. It makes real estate investing accessible and transparent for individual investors looking to grow their wealth through alternative investment opportunities.
Why We Picked It: Yieldstreet provides access to a variety of real estate investment opportunities, including commercial properties, residential developments, and other high-yield projects that are typically only available to institutional investors. This allows individual investors to diversify their portfolios and potentially earn higher returns compared to traditional real estate investments.
Features: Yieldstreet conducts thorough due diligence on each investment opportunity, providing detailed information and risk assessments to help investors make informed decisions. Its platform also offers robust investor education resources and customer support to ensure that investors have the tools and knowledge needed to navigate the real estate investment landscape effectively. Additionally, Yieldstreet’s user-friendly platform and streamlined investment process make it easy for investors to get started and manage their investment portfolios efficiently.
Minimum Investment: $10,000
Best Platforms for Non-Traded REITs
REITs are a simple and accessible way to invest in real estate without becoming a landlord or investing thousands of dollars at once. In most cases, buying REITs is just as easy as buying equities like stocks and bonds.
Best for Investors Looking to Diversify: Streitwise
Streitwise’s combination of transparency, performance, and accessibility makes it the top choice for investors seeking to add real estate to their investment portfolios. By prioritizing investor needs and delivering strong returns, Streitwise has earned its reputation as the best real estate investment company in the industry.
Why We Picked It: Streitwise provides investors with access to institutional-quality commercial real estate investments typically reserved for high-net-worth individuals and institutional investors. By offering direct access to these opportunities, Streitwise allows individual investors to diversify their portfolios with real estate assets and benefit from potential income and appreciation.
Features: One of the key features that makes Streitwise an exceptional choice is its transparent and investor-focused approach. The company’s dedication to providing regular updates and communication to its investors further enhances transparency and trust in the investment process.
Minimum Investment: $5,000
Working with Real Estate Investment Companies
There is a wide slate of real estate companies from which to choose. Not every company offers the same type of investments, however. Investors have the option to use a private real estate investment trust (REIT), a crowdfunding platform or a real estate marketplace.
Other Real Estate Investing Platforms
Real estate investing platforms are online marketplaces where investors can find both commercial and residential properties and either buy the property or buy shares in it. The platform where you find the properties will usually take care of the physical management of that property, still making it less of a hassle than finding and managing the property on your own.
What distinguishes these platforms from the ones we talk about above is that they are usually only exclusive to accredited investors – those with at least $250,000 yearly salary and/or $1 million net worth.
Pros of Real Estate Companies vs. Regular Real Estate Investing
There are definite advantages to investing through real estate companies as opposed to traditional investment vehicles. Among these are:
Cost
The buy-in is a lot less onerous when you’re investing with a real estate company. In particular, REITs can be most cost-effective — you can get in for as little as $500. Compare that to the cost of purchasing a property, getting it into shape and maintaining it, and either serving as a landlord or paying a property management firm for the privilege. You’ll quickly realize that real estate companies are the most budget-friendly way to start investing.
Barrier of Entry
The major barriers are experience and investment capital. When you opt to invest in real estate companies, these two factors are not nearly as crucial. Since you’re pooling your money with other investors, your initial outlay is relatively minimal compared to what it costs to purchase a commercial or residential property. Keep in mind that most real estate investors are financed by other individuals and not by banks. If you’re concerned about finding private funding, real estate companies are the way to go.
Less Risk
A good portion of the risk associated with real estate investing has to do with your duties as a landlord plus finding capital; neither of these applies when you invest through a real estate company. The company itself takes on the risk on your behalf, mitigating the danger of losing money.
Cons of Real Estate Companies vs. Regular Real Estate Investing
However, there are also a few disadvantages. These include:
Slow Returns
Property may be a solid way to make money, but it isn’t the most rapid one. Often renovations must be done before the property itself sees a profit — and in turn, you see one as well. If you’re looking to realize a profit right away, consider an investment property that’s already tenant-occupied or a REIT; both will provide quick cash flow.
Accessibility
While new investors can find a home with real estate companies, they won’t be able to do so with all such companies. Many deals are inaccessible unless you have $1 million in assets or at least $200,000 in annual income — and these can be the choice opportunities. This isn’t a deal-breaker but something to know as you start.
Risky Asset Class
While risk is mitigated by the lower amount of investment here, the fact that real estate company deals are backed by just one asset does amp up the risk a bit. If rents plunge, for example, you will feel the sting.
Lack of Liquidity
If you need the money now, you can’t simply sell a building. In fact, if you’re investing through a real estate company, expect to commit to at least three years. That means you won’t be accessing tons of cash any time soon.
Start Your Investing Journey with Top Real Estate Investment Firms
Real estate investing is its own animal, regardless of whether you’re doing it through a crowdfunding platform or in a more traditional manner. Regardless of the venue, you have to be prepared to put cash upfront and be comfortable with the fact that this is not a liquid investment.
You’ll be making a commitment — and you won’t immediately be able to pull out your investment monies, so be prepared to stay with a property for at least three years. With real estate as with many things, longevity is its own reward.
Frequently Asked Questions
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Many REITs have relatively low initial investment requirements, which can range from as little as $500 to $5,000 or more. Some platforms even offer the option to invest in REITs with as little as $100, making them accessible to a broader range of investors.
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