How Much Do You Need to Get Started?
Understanding minimum investment requirements across different platforms and what they mean for your investment strategy.
Typical Platform Minimums
Real estate crowdfunding platforms have varying minimum investment requirements. Here's what you can expect from some popular platforms:
Platform | Minimum Investment | Investor Type |
---|---|---|
Fundrise | $10+ | Non-accredited & Accredited |
Arrived | $100+ | Non-accredited & Accredited |
RealtyMogul | $5,000 | Non-accredited (REITs) & Accredited (deals) |
EquityMultiple | $5,000-$10,000 | Accredited only |
CrowdStreet | $25,000+ | Accredited only |
Pool (cross-platform) | Varies by platform | Varies by platform |
Accredited vs. Non-Accredited Investors
Accredited Investors
- $200,000+ annual income ($300,000+ joint) for past 2 years
- $1 million+ net worth (excluding primary residence)
- Access to all platform offerings
- Often higher minimum investments
Non-Accredited Investors
- Anyone who doesn't meet accredited criteria
- Limited to certain offerings (Reg A+, REITs)
- Often lower minimum investments
- Growing number of accessible platforms
The Importance of Diversification
Even with low minimums, diversification is crucial. Here's why:
- Spreads risk across multiple properties and markets
- Balances different property types and investment strategies
- Provides exposure to various geographic locations
- Creates a mix of income and appreciation potential
Platforms with lower minimums make it easier to diversify with a smaller total investment. For example, with $1,000, you could invest in 10 different properties on Fundrise rather than a single property elsewhere.
Key Takeaway
"Start small — but know what kind of investor you need to be."
Quiz: Test Your Knowledge
Q1: Which platform has one of the lowest investment minimums?
Q2: Accredited investors are required for:
Q3: Which of the following is a benefit of low minimums?