Investment platforms for those looking to start their investment journey with a minimum of $100
Groundfloor enables individuals to begin investing in real estate with a minimal initial requirement of only $10.
Investing on Groundfloor involves credit risk from borrower default, market risk due to real estate market fluctuations, liquidity risk as investments are tied up until loan maturity without a secondary market for early exit, regulatory risk from changes in laws affecting real estate and crowdfunding, and platform risk related to operational disruptions or cybersecurity threats.
On Groundfloor, liquidity is tied to the term of the real estate loans, which range from 6 to 18 months. Investors' funds are committed until the loan matures and the borrower repays.
Groundfloor's loans are graded from A to G, with interest rates ranging from 5.5% to 25.5% annually, based on risk. A diversified portfolio across all repaid loans to date would have earned a 10.72% annualized net return.
Groundfloor investments have loan terms ranging from 6 to 18 months.
Groundfloor is accessible to investors both in the US and internationally. However, for non-US investors, a minimum transfer-in amount of $5,000 is required.
Fundrise allows a minimum investment of $10 for taxable accounts and $1,000 for IRAs.
Investing with Fundrise involves risks such as limited liquidity, potential modifications to the share repurchase program, market volatility affecting asset values, the possibility of total investment loss, and regulatory changes impacting operations.
Fundrise offers liquidity through its share repurchase program, allowing investors to redeem shares quarterly with no penalties or costs.
Investors on Fundrise can expect returns through dividends and appreciation, with an average income return of 4.81% over 7 years.
Fundrise is designed for long-term investments, ideally for a period of 5 or more years, due to its focus on strategies aimed at long-term return potential.
To be eligible to invest with Fundrise, individuals must meet several criteria: they must be at least 18 years old, have permanent residency in the United States, possess a valid U.S. tax ID, and file taxes in the U.S. The platform is open to both accredited and non-accredited investors.