An accredited investor has access to some of the best investment options that can help them increase their net worth and get richer. Once they meet requirements, they can access certain accredited investor opportunities that can be highly lucrative.
There are a few investments geared for accredited investors such as crowdfunding, real estate syndication, convertible investments, REITs, venture capital, private equity real estate, interval funds, and hard money loans.
We’ve already reviewed the best real estate crowdfunding sites for non-accredited investors. Now, we’ll go over the best real estate crowdfunding options for accredited investors.
What is an Accredited Investor?
Let’s start by determining what an “accredited investor” is.
The majority of these internet real estate investment opportunities are only available to accredited investors.
The SEC and FINRA are two massive regulatory bodies that screen investments available. These agencies’ mission is to safeguard average investors. The trouble is that these institutions are unable to review each and every investment opportunity accessible.
Some investment opportunities, in place of this rule, are only available to qualified investors. Because these investments are unsupervised, they anticipate that the individual investor will conduct their own research.
These investors have a higher income or greater net worth than most retail investors. These regulatory agencies recognize that this sort of investor has a stronger risk tolerance, implying that they can participate in these unregulated investments with greater safety.
Don’t worry! The vast majority of these high-yield investments for accredited investors are entirely legitimate — we’ve done the vetting for you.
It’s just important for you to find an option that fits your long-term investing strategy.
Income/Net Worth Requirements
To be an accredited investor, you must fulfill one of the following conditions:
- Your yearly income must be $200,000 or more for single filers or $300,000 for married couples.
- You must have a net worth of at least $1 million, excluding the value of your primary residence.
However, if you fulfill either of these conditions, you are deemed an accredited investor. That means you may invest in both accredited and non-accredited investment opportunities like using Fundrise alternatives.
If you meet these requirements, here are the best investments for accredited investors.
6 Best Investments for Accredited Investors
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1. Yieldstreet: Best for Accredited Investors
- Minimum Investment: $5,000 for most marketplace listings
- Fees: 1% – 2.5% in management fees
- Fund: Access to real estate, commercial, marine, legal and art investments.
Yieldstreet is an alternative investing marketplace that brings private investment opportunities to retail investors that have typically been dominated by hedge funds and the ultra-wealthy. There is no other platform that lets you invest in real estate, art, legal finance, and more — that is until Yieldstreet.
Yieldstreet, unlike other crowdfunded real estate platforms, funds the crowdfunding incurred to finance those projects — as well as a number of other deals.
Yieldstreet is a marketplace where individuals can invest in private structured credit deals, which are typically inaccessible to retail investors.
Although most transactions are limited to accredited investors, Yieldstreet launched the Prism Fund in August 2020, which is accessible to nonaccredited investors with a $5,000 minimum investment.
As of October 2020, $1.5 billion had been invested on the platform. Yieldstreet was placed 46th on the 2020 Inc. 5000, a list of the fastest-growing privately held businesses in the United States.
YieldStreet is the best option for most accredited investors who are looking to invest passively. Yieldstreet has been in business since 2015 and has a community of over 225,000 members who look to alternative investments as a way to diversify their investment portfolios outside of the stock market.
To date, Yieldstreet has returned over $600 million in principal and interest payments to its investors.
- One of the best options for accredited investors.
- Variety of investment options such as real estate, commercial, marine, legal and art financing deals
- Fees can be low for certain projects
- Nonaccredited investors can participate in the Prism Fund.
- Highly illiquid investments.
- Most investments are open only to accredited investors.
- Limited offerings are available.
Yieldstreet is an alternative investment platform that connects you to income-generating investments that traditionally have been reserved for institutions and the ultra-wealthy.
These alternative investment opportunities are typically backed by collateral, and span across various asset classes such as art finance, real estate, commercial finance, legal finance, and more. These asset classes have been known to generate returns for decades, but have typically been closed off to retail investors.
Simply Click Here to Signup and get started.
2. CrowdStreet: Best for Commercial Real Estate Investing
- Minimum Investment: $25,000 for most marketplace listings
- Fees: 0.50% to 2.5% for most investments
- Fund: Offers single properties or two types of funds
Out of all the commercial real estate investing options for accredited investors, CrowdStreet is one of the largest and most flexible.
On CrowdStreet, you can invest in individual deals on commercial real estate properties, and there’s usually several properties on this online marketplace. Typically, single-property investments require at least $25,000 to invest.
Alternatively, you can invest in two funds: a single-sponsor fund that’s run by one real estate firm or a CrowdStreet fund that invests in a variety of properties. If you want more diversification and someone handling real estate investing for you, this is better than investing in properties on your own.
Project fees typically range from 0.50% to 2.5%. Fund fees can also reach around 3% depending on your investments.
CrowdStreet also has a Private Managed Account service that builds a real estate investment portfolio to match your goals. The advisory service requires a $250,000 minimum balance, and fees vary depending on your investments.
CrowdStreet is an ideal choice for accredited investors who want less hands-on investing in commercial real estate. If you want a personally managed account, CrowdStreet is also for you.
- Variety of investment options.
- Fees can be low for certain projects.
- Plenty of marketplace listings at a given time.
- High minimum investment amount.
CrowdStreet has a high minimum investment requirement, but this is one of the best ways for accredited investors to diversify their portfolios with commercial real estate.
3. EquityMultiple: Best for Investment Variety
- Minimum Investment: $5,000 for short-term loans and $10,000 or more for equity-based investments
- Fees: Typically 0.50% to 1.5%
- Fund: Variety of investment options, including debt, preferred equity, and opportunity funds,
EquityMultiple states it makes real estate investing “simple, accessible, and transparent” for accredited investors. And, with a $5,000 investment minimum and a variety of ways to build your portfolio, this claim is quite fair.
You have three options to invest with EquityMultiple:
- Direct Investing: Invest in single properties with as low as $10,000 with target durations of six months to five years.
- Fund Investing: Invest in multiple assets for increased diversification. The EquityMultiple fund requires a minimum investment of $20,000 and has a target duration of 1.5 to 10+ years.
- Savings Alternative: Invest in diversified notes with as low as $5,000 with target durations of three to nine months.
Fees vary depending on your investment type. Equity investments usually charge 0.5% to 1.5% while debt investments charge 1% or less.
Funds have varying origination fees and annual administrative expenses, but this is still normally under 2% in annual fees.
Accredited investors who want a variety of real estate investment options and lower minimum investments than platforms like CrowdStreet.
- Variety of investment options.
- Low fees.
- Variety of investment properties.
- Equity-based projects have higher minimum investment requirements.
- Fees vary and are somewhat confusing to understand.
Overall, EquityMultiple has more variety than most Fundrise alternatives. Equity, debt, funds, and 1031 Exchanges are all available, and properties range from townhouses to commercial office spaces.
4. PeerStreet: Best for Real Estate Debt Investing for Accredited Investors
- Minimum Investment: $1,000
- Fees: 0.25% to 1.00%
- Fund: Real estate debt investments and a Credit Opportunity Fund
PeerStreet lets you provide peer-to-peer debt financing for real estate projects to earn interest from borrowers.
When you sign up, you answer a brief questionnaire about your investing experience, goals, and risk tolerance. Afterwards, you can view dozens of listings to find the right debt investment.
PeerStreet does an excellent job at giving investors information on loans. For starters, loans show the yield, loan-to-value ratio, term, and loan amount. PeerStreet also includes borrower credit score, track record on previous PeerStreet loans, the loan strategy, and property type information.
You need at least $1,000 to start investing, and new loan opportunities appear daily. Typically, loan periods last from one to 36 months.
You earn monthly interest payments, and you can also enable Automated Investing to invest in properties that match your investing criteria. PeerStreet charges a servicing fee on loans that’s a spread between borrowers and lenders that’s typically 0.25% to 1.00%.
PeerStreet is best for accredited investors who want a low minimum investment amount on short-term real estate debt investments.
- $1,000 minimum investment
- New loans get added daily
- You can automate your investing
- Monthly interest payments
- Lenders still pay some fees on loans.
- A real estate fund is available but requires a $100,000 minimum investment.
If you want to earn monthly interest payments on short-term real estate loans, PeerStreet is for you.
5. AcreTrader: Diversifying Your Portfolio With Farmland
- Minimum Investment: $10,000
- Fees: 0.75%
- Fund: Invest in U.S. farmland
Most accredited investments let you invest in commercial real estate, rental properties, or debt. In contrast, AcreTrader lets accredited investors take advantage of U.S. farmland.
According to AcreTrader, farmland delivers an average annual return of 11.0% and has low volatility. Farmland investing also lets you generate returns in two ways: land appreciation and rental payments from farmers.
AcreTrader has an intense vetting process, so there aren’t always listings. But new farms appear every week, with the minimum investment amount usually ranging from $10,000 to $40,000.
Listings include the type of crop that’s being grown, gross cash yield, and net annual return. According to AcreTrader, a yield of 3% to 5% is typical for lower-risk properties.
One downside of investing in farmland versus traditional real estate is that it’s even less liquid. They are diligently working on the secondary marketplace for investors so you can sell your shares, but it is not available to investors yet.
AcreTrader is best for accredited investors who want to diversify their portfolio with income-generating farmland.
- Earn through appreciation and rental payments
- AcreTrader has a thorough vetting process for listings
- Potentially lower annual returns than traditional real estate investing
- Less liquid than traditional investments
AcreTrader is one of the most reputable platforms for investing in farmland.
6. Cadre: Best Real Estate Investing Option for Liquidity
- Minimum Investment: $25,000
- Fees: 1% of your gross invested dollars upfront per transaction and a 1.5% of net asset value recurring annual management fee.
- Fund: Access Fund
Cadre offers real estate investing for accredited investors. They have a high 18.2% historical rate of return and it is a great option for investors who want to diversify with real estate.
Over the past six years, Cadre has developed an innovative platform that gives you direct access to highly curated commercial real estate investments alongside some of the largest financial institutions in the world.
Cadre members benefit from its rigorous technology-driven, experience-led investment selection process with greater transparency and low fees.
Overall, Cadre appears to be a good platform for qualified investors seeking for value over quantity. While the minimum investment is high-end, the fees are modest and the performance thus far has been excellent.
- Every transaction, from the company’s leaders and employees to investors, Cadre stakeholders, and even contractors, is aligned with one another.
- Cadre’s compensation is primarily based on long-term contract success, not the volume of transactions conducted on its platform.
- Its secondary market has the potential for liquidity.
- There are no non-accredited investment opportunities.
- A high $25,000 minimum investment is required.
- There are no real estate investment trusts or other highly diversified funds offered by Cadre.
- Not a lot of deal flow, only about one new deal every month, which means you may miss out on an excellent real estate investment opportunity.
Cadre offers accredited investors direct access to institutional-quality assets. The minimum investment of $25,000 is among the greatest of real estate platforms, although the historical return of 18.2% per year is also high. Cadre is a good fit for high-net-worth investors who want their money to make them money.
Real Estate Investing FAQs
Real estate crowdfunding uses funds from a group of investors to help fund real estate investments.
This could mean using funds to purchase properties in opportunity zones, develop existing properties into higher-value assets, or to provide loans for real estate development.
Real estate crowdfunding is different than traditional real estate investing. There are four main ways to make money with real estate crowdfunding:
Capital Appreciation: This occurs when you own shares in real estate and the property appreciates.
Rental Income: Many real estate crowdfunding platforms invest in single-family rental properties or commercial real estate to generate rental income.
Dividend Payments: Some crowdfunding sites pay annual or quarterly dividends to shareholders.
Interest Payments: If you fund real estate loans, you earn interest as the borrower pays off their loan.
Picking the best real estate crowdfunding platform depends on your goals, starting capital, and risk tolerance. Yieldstreet is the best platform overall for investing for accredited investors. While companies like DiversyFund are best for long-term, equity-based investing. In contrast, you can try companies like Cadre for shorter-term investing, as the platform offers more liquidity.
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Armed with investment alerts, you can create a real estate portfolio with just a few clicks and start building real wealth today. Priced at $149 per year, Real Estate Winners teaches subscribers how to build a real estate portfolio and develop real wealth.
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The Bottom Line: Greater Rewards Can Come With Greater Risks
Accredited investors have access to a wider range of potential investment possibilities than those with less ready access to money. While capable of delivering greater profits than traditional investments, many of these opportunities also carry more risk.
If you’d like to try a more aggressive investment approach with the potential for greater returns, these real estate crowdfunding investments are the best for accredited investors. Readers who wish to diversify their portfolios may look into other real estate opportunities in addition to this.
In summary, we recommend using Yieldstreet as it is the best option, with the best track record, for both accredited investors and nonaccredited investors alike. And your money deserves high target yields, at Yieldstreet.