Unlocking the Door to Real Estate Investing: A Beginner’s Guide
Real estate investing may be more accessible than you think. While traditional ownership models often demand significant time and capital, online real estate platforms have revolutionized the landscape, making it easy for the average retail investor to participate without the burden of property management. This article will guide you through the various avenues available for investing in real estate, focusing on the top online real estate investment apps as highlighted by Business Insider’s editors in 2025.
The Rise of Passive Investment Strategies
Passive investment strategies, such as real estate crowdfunding, limited partnerships, and Real Estate Investment Trusts (REITs), are generally considered more accessible for beginners. These options allow investors to earn returns without the need for direct involvement in property management. However, before investing in a property or real estate fund, it’s crucial to ensure that it aligns with your risk tolerance and time horizon.
Best Real Estate Investing Apps
Here’s a look at some of the best real estate investing apps that cater to various investor profiles:
1. Fundrise: Best for Non-Accredited Investors
Fundrise allows you to invest in commercial real estate projects across the U.S. with a low minimum investment of just $10. It offers various investment plans, including:
Venture Capital Plan
Long-Term Growth Plan
Supplemental Income Plan
Balanced Investing Plan
Pros:
Available to non-accredited investors
Low minimum account size
Passive income generation
Cons:
Investments are illiquid
Not ideal for short-term investing
2. EquityMultiple: Best for Accredited Investors
EquityMultiple is tailored for accredited investors looking to invest at least $5,000 in institutional commercial real estate. It offers managed assets, including equity, preferred equity, and senior debt.
Pros:
Low fees
Multiple property types available
Self-directed IRAs
Cons:
Only accepts accredited investors
High minimum investment requirements
3. Yieldstreet: Best for Alternative Asset Classes
Yieldstreet provides access to a variety of alternative investments, including real estate, private equity, and legal finance. While it primarily caters to accredited investors, non-accredited investors can access the Yieldstreet Prism fund.
Pros:
Diverse investment options
Regular interest payouts
Cons:
Higher-risk investments
Limited options for non-accredited investors
4. RealtyMogul: A Comprehensive Crowdfunding Platform
RealtyMogul offers pre-vetted public and non-traded REITs, making it accessible to all investors. You can invest in commercial real estate through REITs or single properties, although the latter is limited to accredited investors.
Pros:
Pre-vetted investment options
Generates passive income
Cons:
High minimum investment of $5,000
Money locked up for at least a year
5. Groundfloor: Best for Short-Term Investments
Groundfloor specializes in short-term real estate debt investments, allowing both accredited and non-accredited investors to participate. Investment terms range from 30 days to 36 months.
Pros:
Low minimum investment of $100
No management fees
Cons:
Limited educational resources
Loans pose significant risks
Learning the Basics of Real Estate Investing
While online platforms have made real estate investing more accessible, substantial risks remain. Here are some essential steps to consider before diving in:
Define Your Real Estate Goals
Understanding your investment goals is crucial. Are you looking to generate passive income, accumulate long-term wealth, or diversify your portfolio? Knowing your objectives will help you choose the right investment strategy.
Understand Investment Strategies
Some investment strategies are better suited for beginners, including:
REITs: These allow you to invest in real estate without the need to manage properties directly.
Real Estate Limited Partnerships (RELPs): These provide a diversified portfolio of real estate investments.
Online Real Estate Platforms: Crowdfunding platforms enable you to invest in real estate projects with lower capital requirements.
Direct Real Estate Investment: Owning Property
If you’re interested in a more hands-on approach, consider direct real estate investments. This can involve purchasing a home, owning rental properties, or even house flipping. Each method has its own set of challenges and rewards.
Essential Skills for Real Estate Investors
To succeed in real estate investing, you should develop the following skills:
Market Analysis: Stay informed about market trends and economic shifts.
Financial Analysis: Understand key metrics such as cap rate, cash flow, and ROI.
Negotiation: This skill can help you secure better deals when purchasing or selling properties.
Property Management: If you manage properties directly, knowledge of maintenance and tenant relations is essential.
Resources for Beginner Investors
To enhance your understanding of real estate investing, consider the following resources:
Books: Titles like "The Book on Rental Property Investing" by Brandon Turner can provide valuable insights.
Local Real Estate Investment Clubs: Networking with other investors can help you learn and grow.
Real Estate Agents and Brokers: Consulting with professionals can provide tailored advice and resources.
Choosing the Right Real Estate Investing App
The best real estate investing app for you will depend on your investment goals, risk tolerance, and available capital. Many platforms allow you to customize your portfolio based on your preferences, making it easier to find an option that suits your needs.
Conclusion
Real estate investing has evolved, offering a variety of accessible options for both novice and experienced investors. By leveraging online platforms and understanding the fundamentals of real estate, you can unlock the potential for passive income and long-term wealth accumulation. Whether you choose to invest through REITs, crowdfunding, or direct property ownership, the key is to do your research, define your goals, and choose the right strategy for your financial future.