RE Investing for non-accredited investors

Rental Property Investor · Los Angeles, CA · Member since 2018 · 77 posts · 22 votes

Hey BP!

I'm looking for ways to invest in RE properties but most of the companies I've found require me to be an accredited investor, which I'm not. Do any of you have ideas/suggestions of ways to invest without being accredited? I know of CrowdStreet and RealCrowd but don't know much about them. Does anyone have experience with them or others?

Thanks

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Nate Marshall

Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 734 votes

You definitely have fewer options being non-accredited but I am seeing a lot more funds being developed where they can invest. Secured Investment Coro. aka COGO Capital is about to launch its fund for that so you will have the power of Lee Arnold and COGO Capital behind it. I see a lot of good things from that since it's a solid lender which an amazing track record. I recommend everyone watch this one!

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Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
7y
Originally posted by @Nick Ruffini:

Hey BP!
I'm looking for ways to invest in RE properties but most of the companies I've found require me to be an accredited investor, which I'm not. Do any of you have ideas/suggestions of ways to invest without being accredited? I know of CrowdStreet and RealCrowd but don't know much about them. Does anyone have experience with them or others?
Thanks
Most real estate investors are not accredited.
But, it does take some money. The more money you have the wider the field of options. Here is one method of investing for those with about $60k. It might work in your area or you might need to go out of state to Arizona, Nevada, Ohio, Tennessee, Oklahoma, Texas etc but it typically is not useful in Washington, Oregon or California at this time. There has to be a particular mortgage to rent ratio to be effective.
Average Turnkey Cash Flow Per Door In Phoenix Metro Area No Bank Needed
https://www.biggerpockets.com/forums/600/topics/584916-average-cash-flow-per-door-in-phoenix-metro-area
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Alina Trigub
Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
7y
@Nick Ruffini
You can invest as a sophisticated investor in syndications, granted you qualify as one as per SEC rules...https://www.sec.gov/fast-answers/answers-rule506htm.html . In order to do that you need to establish and maintain the relationships with the deal sponsors so that the next time they have a deal you can qualify as someone who has pre-existing relationships with them.
The alternative is to set a goal to become an accredited investor and work backwards towards this goal.
If you want to learn more about crowdfunding investing, then @Ian Ippolito is your guy.
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Ian IppolitoBusiness Member
Investor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Nick Ruffini, CrowdStreet and RealCrowd are accredited investor platforms. For nonaccredited you can check out deals/platforms like Blackstone Real Estate Investment Trust, STREItwise, Broadstone Real Estate Access and Fundrise. The best choice for you depends on how conservative or aggressive you are.
The Real Estate Crowdfunding Review
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Multifamily Syndicator · Conifer, CO · Member since 2018 · 80 posts · 84 votes
7y
@Nick Ruffini
I'd, first, find a team of operators that allow qualified sophisticated investors to participate in their syndications.
Then, really get to know each-other, build confidence and trust over time; learn the business inside and out and when they present an opportunity that's aligned with your criteria - invest alongside of them.
The SEC requires them to have a substantive preexisting relationship before collaborating on an investment. Allowing them to conducting a needs-analysis to better understand what you are looking for in deal specific multifamily investments & completing and SEC qualification questionnaire will help them understand your qualifications, knowledge level, and ability to make investment decisions.
Hoping this was helpful.
Don’t hesitate to reach out-
Dino
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Timothy Lewman
Flipper/Rehabber · Worcester, MA · Member since 2016 · 179 posts · 113 votes
7y
@Nick Ruffini I invested my sd-ira into fundrise and realty mogul. No complaints. They pay dividends and send updates on the properties. It's as passive as it gets.
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Nate Marshall
Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 734 votes
7y
You definitely have fewer options being non-accredited but I am seeing a lot more funds being developed where they can invest. Secured Investment Coro. aka COGO Capital is about to launch its fund for that so you will have the power of Lee Arnold and COGO Capital behind it. I see a lot of good things from that since it's a solid lender which an amazing track record. I recommend everyone watch this one!
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