Best Real Estate Investment Companies

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.

Did you know that you can invest in real estate without physically having anything to do with the property? Such is the power of real estate investing companies. These companies equip you to hold a stake in real estate without worrying about issues such as maintenance or handling tenants.  By taking the administration and landlord issues off your shoulders, real estate investment companies set you up to make passive income without worrying about the finer details of property management.

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 for Beginner Accredited Investors: RealtyMogul

Best Crowdfunding Platforms for Real Estate Investing

A growing trend in real estate is crowdfunding. The hands-off benefits of crowdfunding is similar to that 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 with crowdfunding, you can funnel your money directly into tangible real estate assets. With REITs you are investing money with the company who in turn goes and invests money in real estate. A few crowdfunding platforms include:

Best for Low Minimum Investments: Arrived Homes

Arrived Homes has brought real estate investing to the masses with its platform that allows non-accredited investors to purchase shares of rental properties with a minimum investment of only $100. The company takes care of all of the property management headaches while passive investors collect cash flow from the rental income and wait for the property to increase in value over time.

Best for Institutional-Quality Commercial Real Estate Investments: CrowdStreet

If you're looking for access to institutional-quality commercial real estate investments, then CrowdStreet is definitely the platform to turn to. The types of investments on CrowdStreet's crowdfunding platform have traditionally been unavailable to the average investor. The company regularly adds new investment offerings that range from ground-up developments to stabilized cash-flowing properties.

Best for Diverse Range of Alternative Investments: Yieldstreet

Ready to access alternative investments, especially those that used to only be available for hedge funds and large institutions? Yieldstreet’s offerings give you access to innovative income-generating products with low stock market correlation backed by collateral. 

Specifically, Yieldstreet’s offerings currently focus on a number of alternative asset classes, mainly for accredited investors: 

• Commercial and residential real estate
• Litigation finance
• Marine finance
• Commercial and consumer finance
• Art finance

You can make 1 allocation spread across multiple classes and sectors, diversify your portfolio, reinvest your dividends and gain immediate portfolio acceleration.

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 is a private REIT that invests in commercial real estate assets. Aiming to provide equal investment opportunities for all investors, regardless of their size. Its real estate investment trust is one of the few online platforms accessible to non-accredited investors. The REIT is open to non-accredited investors and comes with an average dividend yield of over 8%.

Best for Beginner Accredited Investors: RealtyMogul

RealtyMogul's unique online platform enables investors to handle the entire commercial real estate investing process right from their RealtyMogul dashboard. With rigorously vetted property listings, expertly managed REITs, and a commitment to providing top-notch service and support to its members, RealtyMogul makes commercial real estate accessible to everyday investors. 

RealtyMogul is an online property investment company that streamlines the commercial real estate investing process and provides investors with a wide range of opportunities and products to grow their portfolio. The innovative online platform is the first of its kind to make commercial real estate investing more accessible to regular investors. 

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 market place. Here is how you can start investing with the best real estate investment companies.

Other Real Estate Investing Platforms

Real estate investing platforms are online market places 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 however is that they are usually only exclusive to accredited investors - those with at least $250,000 yearly salary and/or $1,000,000 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 with real estate companies, these 2 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, 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 out.

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 3 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 3 years. With real estate as with many things, longevity is its own reward.

Frequently Asked Questions

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