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The investing landscape keeps expanding. Beyond traditional stocks and bonds, a growing number of private opportunities—many restricted to accredited investors—offer ways to diversify and potentially boost returns. Accredited investors can access private placements, startup funding, real estate deals, and other offerings that don’t trade on public exchanges. These investments often have higher minimums, longer lockups, and less regulatory oversight, so they require careful due diligence.
Who qualifies as an accredited investor? Historically it meant meeting income or net-worth thresholds, but rules changed in August 2020 to include people with certain licenses and other categories such as family offices and registered investment advisors. In short, accreditation now recognizes both financial means and certain professional knowledge. Still, accredited status assumes the investor can understand and accept the higher risks of private deals.
What accredited opportunities offer
– Access to private deals and asset classes not available on public markets.
– Potentially higher yields than many public investments, though with greater risk and less liquidity.
– Options for diversification—real assets, private credit, venture capital, farmland, and more.
– Some investments offer tax advantages, such as Opportunity Zone projects.
What to watch out for
– Private placements often lack SEC-level protections; do your own due diligence.
– Minimums, fees, and lockup periods can be substantial.
– Investments can be illiquid and carry the risk of large losses, including total loss.
– Tax reporting can be more complex.
Selected alternative investment platforms and what they do
Groundfloor (minimum $10)
A real-estate debt marketplace where investors buy fractional mortgage notes. Borrowers apply through the platform and loans are graded by risk. Terms are short—often 6–12 months—and Groundfloor reports average returns around 10% for many loans, with higher returns on riskier notes. Offers shorter lockups than many competitors.
EquityMultiple (minimum $5,000)
Crowdfunded commercial real estate investments across the U.S. Offers debt deals, private equity real estate, and Opportunity Zone projects that can provide tax benefits. Minimums are lower than buying property outright but still targeted at serious investors.
FarmTogether (minimum $15,000)
A platform for investing in farmland. The team targets mid-single-digit to low-double-digit returns by buying and managing agricultural properties. Farmland provides a low-correlation asset class driven by supply-and-demand dynamics of land and food production.
CrowdStreet (minimum $25,000)
A large marketplace for institutional-quality commercial real estate deals, including individual projects and funds. CrowdStreet also offers portfolio management tools and can build custom strategies for larger commitments (often $250,000+).
AcreTrader (minimum varies, often $10,000–$25,000)
Specializes in farmland ownership via fractional investment. Returns come from annual lease payments and eventual land appreciation. Offerings typically have 5–10 year hold periods and undergo detailed underwriting.
Cryptocurrency platforms (minimums from a few dollars)
Digital currencies are their own asset class with high volatility. Many apps and exchanges let accredited and non-accredited investors buy crypto directly or access related products. Crypto can offer high upside but also extreme price swings and regulatory uncertainty.
RealtyMogul (minimums vary, often $5,000)
A long-standing real estate crowdfunding marketplace offering private placements and REITs. Some products focus on income generation with monthly distributions; others target appreciation. RealtyMogul provides both accredited-only offerings and REITs available to non-accredited investors.
StartEngine (minimum $200)
An equity crowdfunding platform for startups and early-stage companies, plus a collectibles marketplace for items like art and rare cards. Startups undergo vetting, and the platform lists upcoming offerings so investors can track deals.
PeerStreet (minimum $100) — caution
A platform that historically allowed investors to fund real estate loans nationwide, offering fixed-income returns from borrower payments. Note: PeerStreet has faced significant operational and financial issues; potential investors should check current status and risks before participating.
DiversyFund (minimum $500)
A real estate crowdfunding firm that buys, renovates, and manages multifamily properties. It aims to provide rental-income exposure without landlord duties, typically through pooled investments.
Percent (minimum $500)
A marketplace for private credit and non-bank lending. It offers short-term, higher-yield debt products with target returns that can be substantially higher than traditional fixed income. Investment durations range from one month to several years.
FundersClub (minimum $3,000)
A vetted venture capital platform for accredited investors. FundersClub accepts a small percentage of startups and allows investors to join single-company or multi-company funds. Some investors also engage with portfolio companies beyond capital.
Yieldstreet (minimum $10,000)
Offers access to income-generating alternative assets—real estate debt, legal finance, art, and structured credit—often backed by collateral. Yieldstreet provides predetermined cash flow schedules and varying lockup lengths, aiming for assets with low correlation to public markets.
Cadre (minimum $25,000)
Focuses on institutional-quality commercial real estate investments. Cadre’s team has deep industry experience and co-invests alongside clients. The platform offers access to market-specific opportunities and curated funds.
FNRP / First National (minimum $50,000)
A vertically integrated commercial real estate firm focused on grocery-anchored centers, plus multifamily and industrial properties. FNRP emphasizes steady cash flows from national-brand tenants and allows investors to choose specific deals that fit their goals.
Balancing benefits and risks
Accredited investors gain access to unique investments that can enhance diversification and offer higher potential returns. But those opportunities are often less liquid, less regulated, and more volatile than public securities. Investors should understand fee structures, tax implications, and exit timing before committing capital. Private investments are best suited for those who can tolerate losses and have the time horizon to handle long lockups.
Who is a qualified investor?
A “qualified investor” is distinct from an accredited investor and usually must meet higher thresholds—one common benchmark is having a $5 million investment portfolio. Accredited investors typically meet income or net-worth tests (for example, a $1 million net worth excluding primary residence, or $200,000 individual income/$300,000 joint), or they qualify through certain professional credentials. Paths to accreditation include higher earnings, accumulated assets, or professional licensing.
Final note
Being able to invest in private placements doesn’t mean you should. These opportunities are speculative and often require active evaluation. A well-rounded portfolio that matches your goals, timeline, and risk tolerance remains essential whether you invest in public or private markets.
