• Skip to primary navigation
  • Skip to main content
  • Skip to footer
Solo 401k

Solo 401k

by Nabers Group

  • Learn
    • Setup >
      • Solo 401k Setup Process
      • Pricing
      • Services
      • Features
      • Deadlines
      • Compliance Calendar
      • Who is the Trustee and Custodian?
      • Do I Need a Third Party Administrator?
      • Multi-Member LLC and the Solo 401k
      • Is a Solo 401k Protected Against Bankruptcy?
      • Checkbook IRA >
        • What is the IRA LLC?
        • IRA LLC Setup Process
    • Funding >
      • Funding Your Solo 401k
      • What’s the Difference Between a Transfer and a Rollover?
      • Rollover Real Estate from the Self-Directed IRA to the Solo 401k
      • How to Document an Indirect Rollover
      • Rollover Real Estate from the IRA LLC to the Solo 401k
    • Contributions >
      • Solo 401k Contributions
      • Contribution Calculator
      • Sole Proprietorship Contributions
      • LLC and Partnership Contributions
      • Voluntary After-Tax Contributions
      • Corporation Contributions
      • Mega Backdoor Roth
      • Contribution FAQs
    • Qualification >
      • How to Qualify
      • Multi-owner LLC Business and the Solo 401k
    • Reporting >
      • Solo 401k Reporting Requirements
      • IRS Form 1099-R
      • How to File Form 5500-EZ
      • Where to File the 5500-EZ and Other FAQs
    • Roth Solo 401k
    • Prohibited Transactions
    • Calculators and Tools >
      • Contribution Calculator
      • Roth Conversion Calculator
      • Solo 401k Retirement Calculator
      • Home Budget Calculator
      • Roth vs Traditional Contribution Calculator
    • Blog
    • Solo 401k FAQ
  • Invest
    • Cryptocurrency >
      • Cryptocurrency Basics
      • Crypto In Your Solo 401k
      • Grow Crypto Gains Tax Free with Roth 401k
      • FAQ – Bitcoin In the Solo 401k
    • Real Estate >
      • Real Estate and the Solo 401k
      • Real Estate Example
      • Financing
      • Non-Recourse Loans
      • Non-Recourse Lending Resources
    • Promissory and Mortgage Notes
    • Tax Liens & Deeds
    • Gold & Silver
    • Brokerage Accounts
    • Private Placements
  • Borrow
  • Pricing
  • Reviews
    • Reviews
    • About Us
    • Refer a Friend
  • Network
  • Support
    • Knowledge Base
    • Community
    • December Daily Q&A
  • Login
Sign Up

How to Invest $1000 in a Skyscraper

You are here: Home / Blog / How to Invest $1000 in a Skyscraper

December 12, 2018 by Editorial Team 2 Comments

Real estate is an extremely popular asset class for Solo 401k investors. But what do you do if you don’t have enough money to buy a property? How many horror stories have you heard of nightmare tenants or deals gone wrong?

While real estate is understood by many, it’s well-executed by few. Fortunately, there are lots of options to dip your toe into real estate investing.

Because this type of investing can involve more risk, some providers will require you be an accredited investor. An accredited investor is an individual who has a net worth of $1MM or greater, not counting your home value. Alternatively, you can qualify to be an accredited investor if you earned $200,000 or more the last two consecutive years.

REITs

Real Estate Investment Trusts (REITs) are a popular way to invest in real estate, without the work of owning a property. Additionally, REITs can be publicly or privately managed. There are several brokerage firms who include REITs in their portfolio. You will often pay a percent of expenses due on the properties, based on how much you have bought into the REIT.

REITs are attractive to investors for a number of reasons:

  1. High liquidity
  2. Often regulated by the SEC
  3. Provide cash flow
  4. Often uncorrelated with stocks and bonds.

While REITs were a popular option for a number of years, the advent of the Internet has created a new REIT option for investors. The JOBS Act made crowdfunding available to regular investors. This opened doors for all kinds of new investments, including real estate crowdfunding.

Real Estate Crowdfunding

Many investors use real estate crowdfunding sites to own a piece of multiple types of real estate. With real estate crowd funding, you can own a piece of a skyscraper, hospital, or shopping mall – all within your Solo 401k or self-directed retirement account.

Real estate crowdfunding offers a variety of investment options. Some projects are structured as a debt offering, some are equity, and some are a mix of both.

Own a piece of a skyscraper in your Solo 401k
Your Solo 401k can use real estate crowdfunding to own a piece of a skyscraper, hospital, shopping mall, and more.

Options, Options, Options

There are several real estate crowdfunding sites you can use to invest personal or retirement funds. While we encourage you to do your own research and due diligence, let’s cover a few options:

Fundrise

Fundrise Real Estate Crowdfunding

Fundrise is an online real estate investing platform open to non-accredited investors. They package individual holdings into a vehicle they call an eREIT. The minimum investment is typically $1,000. You are able to redeem your shares quarterly, and have the option to reinvest dividends.

PeerStreet

PeerStreet real estate crowdfundingPeerStreet is an online market of secured loans. The loans are backed by underlying real estate assets. If you’ve used private lending sites like Lending Club or Prosper, this will be familiar to you. PeerStreet is open to accredited investors only. They focus on short-term conservative loans. Typically the term is 6-24 months. Loan to value (LTV) is kept to 75% or less. PeerStreet charges a small servicing fee on each loan (typically 0.25%-1.00%). The minimum investment is $1,000.

Rich Uncles

Rich Uncles is a great place to get started in fractional real estate ownership. You can begin for as little as $500. Rich Uncles is a Student Housing REIT for real estate crowdfunding. Their focus is properties built for university student living environments. All of the properties in the REIT are within one mile of an NCAA Division I university with over 15,000 enrolled students. Rent payments received from the students are paid out to investors on a regular basis. Also available to non-accredited investors.

Realty Mogul

Realty Mogul Real Estate Crowdfunding

RealtyMogul is available to both accredited and non-accredited investors. Their specialty is commercial real estate. Accredited investors may invest in specific deals. Non-accredited investors can invest in a MogulREIT (similar to Fundrise). Investments begin at $1,000.

Senior Living Fund

Senior Living Fund Real Estate Crowdfunding

Senior Living Fund focuses on senior housing. Examples of investments include assisted living and memory care facilities. They fund and develop senior housing communities. Furthermore, the belief is these investments will generate good returns because of the need for senior housing in the near future. Senior Living Fund believes senior housing is real estate’s most “recession-proof asset class”. They project annual returns of 13%-21%. Their minimum investment is not publicly available. Senior Living Fund is open only to accredited investors.

Investment Funds Flow

Investing in real estate crowdfunding with your Solo 401k is a simple process. First, select which platform you plan to use. Make sure you know which platforms will accept accredited vs non-accredited investors. After you select your platform, create an account. If you plan to invest with Solo 401k funds, you cannot use a pre-existing account. You must open or establish a new account for use with the Solo 401k.

Generally, the account will be titled in the name of your Solo 401k trust. Use your Solo 401k trust EIN (Employer identification number) wherever a tax ID is requested. Most platforms will allow you to open an account in the name of a trust. You should be listed as the trustee. If you need to submit a W-9 to the platform, make sure the information is for your Solo 401k trust, using your Solo 401k trust tax ID number.

Once your account is open in the name of the 401k trust, wire funds from the Solo 401k bank account to the investment platform. Ensure your Solo 401k bank account is connected to the platform for any distributions. This ensures any distributions stay in your retirement account.

If you follow the steps above, your Solo 401k will be well on its way to investing in real estate crowdfunding.

Category iconBlog,  Real Estate,  Solo 401k,  Solo 401k Investing Tag iconblog,  real estate,  Solo 401k,  Solo 401k Investing

5 Ways To Buy Bitcoin

Learn about 5 ways to buy Bitcoin and the pros and cons of each.

(Including how to put BTC in your IRA or 401k)

Learn More

Reader Interactions

Trackbacks

  1. How to Invest $1000 in a Skyscraper – Site Title says:
    January 3, 2019 at 3:22 pm

    […] https://www.solo401k.com/blog/real-estate-crowdfunding-solo-401k/ […]

    Reply
  2. How to Invest $1000 in a Skyscraper | Site Title says:
    January 3, 2019 at 3:22 pm

    […] https://www.solo401k.com/blog/real-estate-crowdfunding-solo-401k/ […]

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ready to take control of your financial future?

Start where you are. Use what you have. Invest in what you want.

Get Started

Footer

Solo 401k by Nabers Group

Solo 401K experts at Nabers Group will help you get your retirement funds into your control, where they belong.

600 17th Street
Suite 2800
Denver, CO 80202

Phone: 877-SOLO-401 [877-765-6401]
Fax: 775-201-1456
Email: [email protected]

Business Hours:
Monday-Saturday 8 am-6 pm MT
Sunday by appointment

Nabers Group BBB Business Review

Sitemap

  • Home
  • Pricing
  • About Us
  • Reviews
  • Blog
  • Solo 401k Client Login
  • Contact Us

About the Solo 401k

  • Qualification
  • Pricing
  • Setup Process
  • Investment Options
  • Roth Solo 401k
  • Reporting Requirements
  • Prohibited Transactions
  • Participant Loan
  • Crypto In Your Solo 401k
  • Real Estate in Your Solo 401k
  • FAQ

Stay Connected

Get the latest self-directed investor news, market updates and trainings straight to your inbox.

Copyright © 2021 Nabers Group LLC | Terms | Privacy

Digital asset services are provided by Nabers Digital LLC