Real estate investment has long been a popular choice for investors looking to diversify their portfolios and generate long-term returns. And while traditionally, real estate investment was only accessible to accredited investors, recent years have seen a surge in options for non-accredited investors as well.
One such option is investing in online real estate (ORE) platforms, which allow investors to pool their money together to invest in various real estate projects. Compared with traditional real estate investment strategies, ORE has historically been considered higher risk because ORE investments are less liquid, less regulated, and less transparent than traditional investments.
However, as the industry continues to evolve, ORE platforms are becoming more sophisticated and more accessible to non-accredited investors. For example, some platforms now offer lower minimum investment amounts, more transparency, and more diversification options.
Another trend in real estate investment is the consolidation of firms offering various investment strategies under one roof. For example, in 2020, two real estate investment firms, Resource Real Estate and CION Investment Corporation, merged to create one of the largest non-traded real estate investment trusts (REITs) in the US. The combined firm's offerings include private funds, a non-traded REIT, mutual funds, an interval fund, and a strategic credit fund.
In addition to these industry trends, there are also various real estate investment strategies investors can consider. Some of these include:
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Commercial real estate investment brokerage: This involves buying and selling commercial properties, such as office buildings, retail spaces, and warehouses.
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Financing: This involves providing loans to real estate developers or investors to fund their projects.
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Ancillary services: This includes property management, asset management, and other services related to real estate investment.
Of course, before investors can choose a real estate investment strategy, they must first determine their investment goals, risk tolerance, and other factors. Only from there can investment and management strategies be tailored accordingly. For example, investors looking for long-term, stable returns may be more interested in investing in commercial properties, while those looking for higher returns may be more interested in financing or ancillary services.
One real estate investment platform that offers a range of investment strategies is Slate Asset Management. Slate's platform has a range of real estate and infrastructure investment strategies, including opportunistic, value add, core plus, and debt strategies. The company's focus is on investing in properties that are undervalued or undermanaged and then improving them to increase their value.
Another real estate investment platform that offers a range of strategies is CrowdStreet. CrowdStreet offers a range of real estate investment opportunities, including equity investments, debt investments, and funds. The platform's focus is on commercial real estate, and investors can choose from a range of property types, including office, industrial, retail, and multifamily.
Of course, as with any investment, real estate investment carries risk. Investors should always re-think their investment strategies and seek professional advice before making any investment decisions. This is especially true for non-accredited investors, who may be less familiar with the risk and regulations surrounding real estate investment.
One firm that offers research and insights into real estate investment is JLL. JLL is a global real estate services firm that offers a range of services to investors, including brokerage, property management, and research. The firm's European Real Estate Strategic Outlook report for Q1 2023 provides insights into the market trends and opportunities for investors in Europe.
In summary, real estate investment options continue to grow for non-accredited investors, with the rise of ORE platforms, the consolidation of investment firms, and the availability of various investment strategies. However, investors must carefully consider their investment goals, risk tolerance, and other factors before choosing a strategy. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial advisor.
