The post Best Real Estate Investment Companies by Kaitlyn Wolf appeared first on Benzinga. Visit Benzinga to get more great content like this.
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.
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 Direct-to-Manager Access: Lightstone
- Best for Low Minimum Investments: Arrived Homes
- Best for Tax-Deferred Real Estate Investments: 1031 Crowdfunding
- Best for Institutional-Quality Commercial Real Estate Investments: CrowdStreet
- Best for Diverse Range of Alternative Investments: Yieldstreet
- Best for Investors Looking to Diversify: Streitwise
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Best Real Estate Investment Companies
Here are a few real estate investment platforms to consider:
Best for Direct-to-Manager Access: Lightstone
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Lightstone is a leader in the real estate crowdfunding sector. With $12 billion in assets, investors gain access to exclusive multifamily and industrial real estate investments. With four decades of success to draw on, Lightstone uses a direct-to-manager approach to cut out the middle man to provide institutional-grade access to investors.
- Working with well-established real estate firms
- Massive portfolio of opportunities
- Puts 20% of equity into every deal
- Coinvests regularly
- Direct-to-manager access
- Long track record of success
- Minimum investment may be too high for some investors
Lightstone is revolutionizing the real estate investment market by offering a $12 billion portfolio that contains a wide swath of opportunities. With four decades of success to draw upon, Lightstone helps investors reach the best properties without buying directly.
Investors with Lightstone also enjoy benefits that are built into every new deal:
- Institutional-grade access
- No middle man
- Regular coinvesting
- Multifamily and industrial deals
Best for Low Minimum Investments: Arrived Homes
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Arrived is a real estate investment platform that allows individuals to invest in rental properties with low capital. Founded in 2019 and backed by notable investors, Arrived enables fractional ownership of single-family rental homes, making real estate investing more accessible. With a fully managed approach, investors earn passive income without the responsibilities of property management. This review explores Arrived’s investment process, returns, fees, and overall suitability for different types of investors.
- Small- to medium-sized investors
- Investors interested in rental income
- Investors looking to diversify
- Buy-ins as low as $100
- Open to non-accredited investors
- Offers ownership shares in real property (and all the tax benefits)
- Multiple ways to earn dividends (rental income and property appreciation)
- Great way to diversify portfolio
- Open to self-directed individual retirement accounts (IRAs)
- Detailed analytics and data to help investors make informed decisions and maximize their returns
- Long hold periods
- No secondary market to liquidate shares
Minimum Investment: $100
Overview: 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.
Best for Tax-Deferred Real Estate Investments: 1031 Crowdfunding
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1031 Crowdfunding is a premier real estate investment platform focused on 1031 exchanges and alternative investment vehicles specifically designed for tax deferral. With over 100 offerings at any given time, including Delaware Statutory Trusts (DSTs), the platform caters to investors seeking to defer capital gains taxes through real estate investments. The platform is powered by a highly experienced management team with a history of executing over $3.4 billion in real estate transactions and $2.1 billion in securities sales. Though industry-standard fees apply, 1031 Crowdfunding offers a unique combination of a large inventory, expert guidance, and proprietary tools to help investors tailor their portfolios to their needs.
- Investors seeking tax-deferred real estate investments
- Individuals involved in 1031 exchanges Investors interested in senior housing DSTs
- Experienced investors looking for a diverse selection of real estate offerings
- Extensive inventory of 1031 exchange-eligible properties
- Proprietary tools for portfolio customization
- Expert guidance from a seasoned management team
- High customer service ratings with personalized support
- Limited access for non-accredited investors
Minimum Investment: $25,000; $5,000 for REITs
Overview: 1031 Crowdfunding is a real estate investment platform that focuses on 1031 exchanges and DSTs. This is a place where you can learn more from the platform, access dozens of deals and defer taxation on the profits you will enjoy.
Why We Picked It: 1031 Crowdfunding specializes in offering real estate investment opportunities using 1031 exchange strategies. These allow investors to defer capital gains taxes by reinvesting proceeds from a property sale into similar assets.
Best for Institutional-Quality Commercial Real Estate Investments: CrowdStreet
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One of the key benefits of investing in commercial real estate is the potential for attractive returns. This asset class often provides steady cash flow through dividends, adding diversity to your investment portfolio with tangible assets. By diversifying into commercial real estate, investors can access a market that is the third-largest after equities and bonds.
Making the transition from single-family real estate to commercial properties may seem daunting at first. Investing in commercial real estate through platforms like CrowdStreet can provide investors with access to a wide range of opportunities across different property types and markets.
CrowdStreet offers a platform where investors can browse and select specific commercial real estate projects to invest in, allowing for greater control over their investment decisions.
- Accredited investors
- Long-term investors
- Investors looking to diversify from stocks
- User-friendly interface
- Diverse investment offerings
- Great investor resources
- Proven performance history
- Many offerings eligible for inclusion in self-directed IRA
- Accredited investors only
- Most offerings require a $25,000 minimum investment
Minimum Investment: $25,000
Overview: 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: 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.
Best for Diverse Range of Alternative Investments: Yieldstreet
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Yieldstreet is an alternative investment platform that provides access to asset classes typically reserved for institutional investors. Founded in 2015, it offers opportunities in real estate, art, marine finance, legal finance, and more. By focusing on income-generating investments with varying risk levels, Yieldstreet aims to help individual investors diversify their portfolios and potentially achieve higher returns. This review explores Yieldstreet’s offerings, fees, returns, and overall suitability for different types of investors.
- Accredited investors looking to diversify
- Alternative investments to stocks and bonds
- Investors looking for passive income
- Easy-to-use platform
- Carefully selected offerings
- Excellent mobile app
- Full spectrum of alternative offerings
- Options for non-accredited investors
- Majority of investments only open to accredited investors
Minimum Investment: $10,000
Overview: 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. Yieldstreet conducts thorough due diligence on each investment opportunity, providing detailed information and risk assessments to help investors make informed decisions.
Best for Investors Looking to Diversify: Streitwise
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Real estate investing has long been one of the most reliable ways to build wealth, but for many, the high capital requirements and management headaches can be major barriers to entry. That’s where real estate crowdfunding platforms like Streitwise come in—offering everyday investors access to high-quality commercial properties without the need to become a landlord.
In this review, we’ll take a close look at what Streitwise offers, its pros and cons, and whether it could be a smart addition to your investment portfolio.
- Investors looking to diversify
- Investors with less than $200k in annual income
- Passive traders
- Consistent quarterly dividends
- Low, transparent fees
- Low investment minimum
- Convenient and easy to use
- Limited offerings
Minimum Investment: $5,000
Overview: 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.
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.
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EquityMultiple is an online real estate investment platform that connects accredited investors with commercial real estate opportunities. Offering a range of investment options, from equity investments to debt offerings, EquityMultiple allows investors to diversify their portfolios by investing in high-quality real estate projects.
The platform provides access to detailed investment opportunities, real-time reporting, and a transparent fee structure. With a focus on institutional-grade properties and a commitment to thorough due diligence, EquityMultiple aims to simplify real estate investing, making it accessible for investors seeking passive income and potential capital appreciation.
- Accredited investors
- Hands-on investors
- Investors looking for quick returns
- Investors looking for low buy-in offerings
- Many investments with low buy-ins less than $10,000
- Numerous offerings with pay-outs in less than 12 months
- High-functioning website
- Incredible client support
- Only available to accredited investors
Real estate remains the most popular alternative investment market valued for its potential for portfolio diversification, reducing volatility and amplifying returns via tax advantages, income and capital appreciation. The asset class may perform well even in an inflationary or volatile economic environment because investment properties derive value from a rent-based multiple. As rent rises because of inflation, the overall property value may increase. The best part is there are multiple ways you can passively invest in real estate without the hassle of buying or managing properties, dealing with tenant-landlord laws or covering out of pocket ongoing upkeep expenses.
Besides real estate investment trusts (REITs) and crowdfunding platforms, another excellent option is the Delaware Statutory Trust (DST) 1031 Exchange — a legal entity created for holding title to investment real estate. As a form of passive real estate ownership, DSTs lets you diversify your portfolio by allowing investments into multiple properties instead of just one. The IRS considers well-structured DSTs as like-kind 1031 exchange-qualified replacement property, meaning you can use them to defer capital gains taxes. If you’re seeking DST properties or offerings for your 1031 Exchange, 1033 Exchange or direct cash investment, Kay Properties & Investments could be a fantastic platform to access these Delaware Statutory Trust investments.
This best-in-class 1031 Exchange platform specializes in DST investments from over 25 different DST sponsor companies. Kay Properties & Investments leverages its team of experts with a combined 200 years of experience to guide investors on the potential benefits and risks of DST investments, helping them decide if the available DST options in the market are ideal for their real estate investment and 1031 exchange needs. By providing investors access to the marketplace of DSTs across various asset classes (think multifamily apartments, industrial warehouses, medical facilities, self storage properties and long-term triple net leased DSTs), geographic locations (the platform has DST investments across the United States in many different cities and states, various leverage scenarios ranging from 0% debt free DST offerings to 30-85% loan to value DST offerings (1031 exchange investors need varying degrees of leverage to complete their 1031 exchanges with a full tax deferral) and lastly numerous DST sponsor companies (these are the asset managers that put together these Delaware Statutory Trust investments), the www.kpi1031.com marketplace platform enables tax-smart investing, tax deferral utilizing the 1031 exchange and DST combination and numerous options for investors from over 25 different DST sponsor companies. Read on for a comprehensive review of Kay Properties & Investments, including its core service offerings and pros and cons.
- Investors aiming to diversify their portfolios by spreading investments across various real estate properties and locations seeking suitable options through the platform’s diverse DST offerings
- Investors who value expertise and guidance in navigating the complexities of DST investments and who wish to benefit from Kay Properties & Investment’s team of professionals with a combined 200 years of experience
- Accredited 1031 exchange investors seeking to defer capital gains taxes by reinvesting in like-kind properties through DSTs and subsequently keeping their entire equity amount invested and producing income potential. Passive real estate investors or those looking for a hands-off approach to real estate ownership who could benefit from the passive nature of DST investments offered by Kay Properties & Investments
- Investors that are looking for advice and guidance regarding the 1031 exchange Delaware Statutory Trust industry as the Kay Properties team has helped thousands of investors nationwide complete these transaction.
- Tax-conscious investors or those prioritizing tax efficiency, given the platform’s focus on tax-smart investing and the potential tax benefits associated with DSTs, especially in the context of 1031 and 1033 exchanges
- Access to over 25 different DST sponsor companies
- Robust DST inventory – About 20 to 40 DST investment offerings available at any given time
- DST Expertise – Participated in excess of $30 billion in total DST 1031 offerings
- Overseen by experts with over 200 years of combined real estate investment experience
- Excellent and professional customer support and guidance from the Kay Properties team members
- Excellent educational resources to facilitate clients’ understanding of DST 1031 exchange investing
- Hassle-free registration and account setup
- Ownership has been investing in DSTs personally since 2008 with over 50 different DST investments from multiple DST sponsor companies. This hands on experience has benefitted the Kay Properties clientele immensely over the years.
- The Kay Properties marketplace has many DST offerings including leveraged DST offerings (typically 30-60% loan to value) as well as the industry’s largest selection of debt free DST offerings (debt free DST offerings are ideal for investors that do not want the risk of losing their entire investment principal to a lender foreclosure)
- Available only for accredited investors
- Involves buy-and-hold long-term strategy – DST offerings typically are held for 3-5 years but could go for even longer
- Investors have limited control over the investment
- No guarantees – All real estate and Delaware Statutory Trust properties contain no guarantees for income or appreciation
DLP Capital is a private financial services and real estate investment firm. Their private real estate funds focus on making a positive impact on some of the nation’s largest crises, especially attainable workforce housing, by providing innovative solutions through lending and investment products, services, education, and systems. Since their inception, they have never missed paying a distribution to their investors or lost any investor principal.
- Individual investors seeking passive income
- Accredited investors
- Investors interested in private investments to diversify away from the stock market
- Experienced investors looking to diversify their portfolio
- Investors seeking investments with strong due diligence and screening
- High returns on investments
- Four funds allow you to choose the strategy that works best for you
- Focus on workforce housing, a growing area with high demand
- Monthly dividends with automatic reinvestment
- High $200,000 investment minimum
- Only for accredited investors
- Fund system offers limited portfolio customization
Pros of Real Estate Companies
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
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
What is the largest real estate investment company?
What is a real estate investment firm?
What is the minimum investment for a REIT?
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.
Related content: FARMTOGETHER REVIEW
The post Best Real Estate Investment Companies by Kaitlyn Wolf appeared first on Benzinga. Visit Benzinga to get more great content like this.
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