Why Real Estate Investing?

Real estate investing offers multiple paths to building wealth, from passive income to long-term appreciation, making it accessible to investors at every level.

Wealth Building

Real estate has historically outpaced inflation and built generational wealth for millions of investors.

Multiple Income Streams

Generate passive income through rental yields, appreciation, and interest payments.

Tangible Asset

Unlike stocks, real estate debt is backed by real property, reducing risk.

Accessible Entry

Modern platforms allow you to start with just $100, making real estate accessible to everyone.

How Much Do You Need to Start?*

$100 – $1,000 REITs, Fractional Investing
$1,000 – $10,000 Crowdfunding Platforms
$20,000 – $50,000+ Direct Property Ownership

*Investment minimums vary by deal and platform.

Real Estate Investment Options Explained

Traditional Real Estate Investment Trusts (REITs)

Min: $100-500 High Liquidity

Typically offered by publicly traded companies that own income-producing real estate. Think of them as mutual funds for real estate properties.

Pros

  • High liquidity – buy/sell like stocks
  • Professional management
  • Instant diversification
  • Low barrier to entry

Cons

  • Market volatility
  • Less control over investments
  • Limited reinvestment potential
  • Management fees
Typical Returns 4-8% annually
Time Commitment None
Best For Complete beginners wanting stock-like liquidity

Real Estate Crowdfunding

Min: $500-25,000 Low Liquidity

Pool funds with other investors to invest in larger real estate projects like commercial buildings and apartment complexes.

Pros

  • Access to larger, institutional-quality projects
  • Professional management and due diligence
  • Portfolio diversification
  • Passive investment approach

Cons

  • Long lock-up periods (3-7+ years)
  • Platform risk and fees
  • Limited liquidity during holding period
  • High minimum investments
Typical Returns 6-12% annually
Time Commitment None
Best For Investors wanting exposure to commercial projects

Rental Properties

Min: $20,000-50,000+ Low Liquidity

Direct ownership of residential or commercial properties that you rent out to tenants for monthly income.

Pros

  • Direct control over investment decisions
  • Significant tax benefits and deductions
  • Property appreciation potential
  • Steady monthly cash flow

Cons

  • High capital requirements for down payment
  • Active property management required
  • Market and tenant risks
  • Illiquid investment
Typical Returns Varies widely by market
Time Commitment High
Best For Investors with significant capital and time

House Flipping

Min: $50,000-100,000+ Medium Liquidity

Buy properties at below-market prices, renovate them, and sell them quickly for profit.

Pros

  • High profit potential on successful flips
  • Relatively quick returns (3-12 months)
  • Benefit from market appreciation
  • Develop valuable real estate skills

Cons

  • High risk and potential for losses
  • Requires construction/renovation expertise
  • Very time and labor intensive
  • Market timing dependent
Typical Returns High potential but variable
Time Commitment Very High
Best For Experienced investors with construction knowledge

Why Groundfloor is Perfect for Beginners

Discover the revolutionary platform that’s making real estate investing accessible to everyone

Fractional Real Estate Debt Investing

Groundfloor allows you to invest in fractions of real estate development loans, earning interest as developers complete their projects. It’s like being the bank, but with lower risk and higher returns than traditional options.

Industry-Leading Low Minimum

Start with just $100 for Flywheel auto-investing or $10 for individual loans

No Investor Fees

Unlike other platforms, borrowers pay all fees – you keep 100% of your returns

Short-Term Investments

6-24 month loans vs. years of lock-up with other platforms

Proven Track Record

Historic 10% annualized returns since 2013 with over $1.6B in successful lending

How Groundfloor Works

1

Choose Your Investment

Select individual loans (A-G risk grades) or use Flywheel for auto-investing

2

Earn Interest

Receive weekly interest payments as developers work on their projects

3

Get Repaid

When projects complete and sell, you receive your principal back plus final interest

Groundfloor vs. Other Options

Feature Groundfloor REITs Crowdfunding Rental Properties
Minimum Investment $100 $100-500 $500-25,000 $20,000+
Investor Fees $0 0.5-2% 1-3% Various
Time Commitment None None None High
Lock-up Period 6-36 months None 3-7+ years None (but illiquid)
Historical Returns 10% annually 4-8% 6-12% Varies

How Groundfloor Compares to Other Real Estate Investment Platforms

See why Groundfloor stands out in the crowded real estate investment space

Groundfloor

Real Estate Debt
Minimum Investment $10-$100
Investment Type Short-term loans (6-36 months)
Investor Fees $0
Historical Returns 10% annually
Unique Advantage: Only platform offering real estate debt to non-accredited investors with industry-lowest minimums

Fundrise

Real Estate Equity
Minimum Investment $500
Investment Type REITs/Funds (5+ years)
Investor Fees 0.15-1.85% annually
Historical Returns 6-11% annually
Focus: Commercial real estate equity with long-term appreciation

YieldStreet

Alternative Assets
Minimum Investment $2,500-$10,000
Investment Type Mixed alternatives (1-5+ years)
Investor Fees 0.5-2.5% annually
Historical Returns 4-14% annually
Focus: Diversified alternatives including real estate, art, legal

CrowdStreet

Commercial Real Estate
Minimum Investment $25,000+
Investment Type Direct commercial deals (3-10 years)
Investor Fees Varies by deal
Historical Returns 8-18% annually
Focus: Accredited investors only, institutional commercial properties

Arrived Homes

Fractional Ownership
Minimum Investment $100
Investment Type Single-family rentals (3-7+ years)
Investor Fees 8-12% of rental income
Historical Returns 4-8% annually
Focus: Fractional ownership of individual rental properties

RealtyMogul

Commercial REITs
Minimum Investment $5,000
Investment Type REITs/Direct deals (5+ years)
Investor Fees 1-2% annually
Historical Returns 5-12% annually
Focus: Commercial real estate for both accredited and non-accredited

Detailed Feature Comparison

Feature Groundfloor Fundrise YieldStreet CrowdStreet Arrived RealtyMogul
Accredited Investor Required No No Mostly Yes Yes No Mixed
Minimum Investment $10-$100 $500 $2,500+ $25,000+ $100 $5,000
Liquidity 6-36 months 5+ years 1-5+ years 3-10 years 3-7+ years 5+ years
Investment Focus Real estate debt Equity REITs Mixed alternatives Commercial equity Rental property shares Commercial REITs
Management Fees 0% 0.15-1.85% 0.5-2.5% Varies 8-12% of income 1-2%
Geographic Focus US-wide US-wide Global US-wide US-wide US-wide
Auto-Investing Yes (Flywheel) Yes Limited No No Yes
Secondary Market No Limited No No No No

Why Beginners Choose Groundfloor

Lowest Barrier to Entry

At just $10-$100 minimum, Groundfloor offers the lowest entry point in the industry, making it perfect for testing the waters.

No Hidden Fees

Unlike competitors charging 0.5-2.5% annually, Groundfloor charges investors $0 in fees – you keep 100% of your returns.

Shorter Lock-up Periods

While most platforms lock your money for 3-7+ years, Groundfloor’s loans typically complete in 6-36 months.

Transparent, Asset-Backed

Every investment is secured by real property, providing more transparency than complex REIT structures.

Consistent Performance

Historic 10% annual returns since 2013, with over $1.6B in successful lending track record.

Beginner-Friendly

Simple debt investments are easier to understand than complex equity structures or alternative asset classes.

Which Platform is Right for You?

Choose Groundfloor if:

  • You’re a complete beginner with limited capital
  • You want to avoid investor fees
  • You prefer shorter investment periods
  • You want transparent, asset-backed investments
  • You’re not an accredited investor

Consider alternatives if:

  • Fundrise: You want long-term equity exposure to commercial real estate
  • CrowdStreet: You’re accredited with $25K+ and want direct commercial deals
  • Arrived: You want to own pieces of specific rental properties
  • YieldStreet: You want diversification beyond real estate

Getting Started With Real Estate Investing: Your Action Plan

1. Educate Yourself

Spend time learning about different investment options, risks, and market dynamics. Knowledge is your best protection.

2. Start Small

Begin with small amounts to gain experience without risking significant capital. You can always increase investments later.

  • Start with $100-1,000 for your first investment
  • Test different platforms and strategies
  • Learn from small mistakes rather than large ones

3. Diversify Early

Don’t put all your money in one investment or strategy. Spread risk across multiple options.

  • Mix different types of real estate investments
  • Invest in various geographic markets
  • Consider different risk levels

4. Track and Adjust

Monitor your investments’ performance and adjust your strategy based on results and changing goals.

  • Keep detailed records of all investments
  • Review performance quarterly
  • Adjust strategy based on learnings

Common Beginner Mistakes to Avoid

Investing Money You Can’t Afford to Lose

Always maintain an emergency fund separate from investments

Chasing High Returns Without Understanding Risk

Higher returns usually mean higher risk – make sure you understand both

Not Reading the Fine Print

Understand fees, lock-up periods, and exit strategies before investing

Emotional Decision Making

Stick to your investment plan and avoid impulsive decisions

Ready to Start Your Real Estate Investment Journey?

The best time to start investing was yesterday. The second best time is today.

The Top Real Estate Investment Option for Beginners

Start with Groundfloor

Begin your real estate investing journey with just $100. No fees, short-term investments, and historically strong returns make it ideal for beginners.

  • Start with just $100
  • No investor fees
  • Historic 10% returns
  • 6-36 month investments
Join Groundfloor

Remember: Real estate investing is a marathon, not a sprint. Start small, learn continuously, and let compound growth work in your favor over time.