Best Real Estate Investment Companies in 2022 • Benzinga (2023)

Did you know that you can invest in real estate without physically having anything to do with the property? Such is the power of real estate investing companies. These companies equip you to hold a stake in real estate without worrying about issues such as maintenance or handling tenants. By taking the administration and landlord issues off your shoulders, real estate investment companies set you up to make passive income without worrying about the finer details of property management.

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Best Real Estate Investment Companies in 2022 • Benzinga (1)
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Table of Contents [Show]

  • List of Companies to Invest in Real Estate
  • Crowdfunding Platforms
  • Non-Traded REITs
  • Real Estate Investing Platforms
  • Pros of Real Estate Companies vs Regular Real Estate Investing
  • Cons of Real Estate Companies vs Regular Real Estate Investing
  • What Else Should I Know?
  • Frequently Asked Questions

List of Companies to Invest in Real Estate

There is a wide slate of real estate companies from which to choose. Not every company offers the same type of investments however. Investors have the option to use a private REIT, a crowdfunding platform or a real estate market place.

Crowdfunding Platforms

A growing trend in real estate is crowdfunding. The hands-off benefits of Crowdfunding is similar to that of REITs, but offer a little bit more control over the investment. Both crowdfunding and REITs allow investors to direct money toward properties and see returns without needing to actively manage the property. The main difference is with crowdfunding, you can funnel your money directly into tangible real estate assets. With REITs you are investing money with the company who in turn goes and invests money in real estate. A few crowdfunding platforms include:

Arrived Homes

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Arrived Homes has brought real estate investing to the masses with its platform that allows non-accredited investors to purchase shares of rental properties with a minimum investment of only $100. The company takes care of all of the property management headaches while passive investors collect cash flow from the rental income and wait for the property to increase in value over time.

CrowdStreet

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If you're looking for access to institutional-quality commercial real estate investments, then CrowdStreet is definitely the platform to turn to. The types of investments on CrowdStreet's crowdfunding platform have traditionally been unavailable to the average investor. The company regularly adds new investment offerings that range from ground-up developments to stabilized cash-flowing properties.

Gatsby Investment

Gatsby Investment was founded in 2016 by Dan Gatsby to provide accredited investors with a place where they can find a range of residential and commercial properties providing regular returns.

The firm gives investors access to house flips, renovations, new developments, short-term rentals and long-term rental properties. Plus, these investment opportunities all come from the L.A. real estate market—one of the most vibrant and valuable in the world.

A real estate syndication structure allows investors to pool funds and invest in large properties they could not have purchased on their own. Plus, the company can handle renovations, maintain these buildings, provide a good experience for tenants and generate profits.

With a minimum of $10,000, you can get started today and track the properties you’ve invested in at any time.

CityVest

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    Must be accredited investing a minimum of $25,000.

CityVest is a real estate investment platform that provides accredited investors unique access to institutional real estate investment opportunities that typically require minimum investments of $1 million, or more.

The company does this by pooling multiple investor contributions into one bundle large enough to satisfy the minimum investment requirements of the top institutional real estate funds that are otherwise unavailable to individual investors.

Yieldstreet

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Ready to access alternative investments, especially those that used to only be available for hedge funds and large institutions? Yieldstreet’s offerings give you access to innovative income-generating products with low stock market correlation backed by collateral.

Specifically, Yieldstreet’s offerings currently focus on a number of alternative asset classes, mainly for accredited investors:

  • Commercial and residential real estate
  • Litigation finance
  • Marine finance
  • Commercial and consumer finance
  • Art finance

You can make 1 allocation spread across multiple classes and sectors, diversify your portfolio, reinvest your dividends and gain immediate portfolio acceleration.

Mortar Group

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If you want to move away from REITs or want to get started with a full-service crowdfunding firm, you can go with Mortar Group. The group has been a multifamily investment leader in New York for around 2 decades, offering value to all investors. Plus, the firm acts as both a developer and an asset manager.

Buying into Mortar Group is a streamlined process that can create passive income with no upfront fees and personalized service from the firm’s asset managers. Best for those saving for retirement, this crowdfunding platform is perfect for professionals who need a place to park their savings.

While only accredited investors may engage, this is a good place to start when you’ve just entered the world of accredited investing.

Non-Traded REITs

REITs are a simple and accessible way to invest in real estate without becoming a landlord or investing thousands of dollars at once.In most cases, buying REITs is just as easy as buying equities like stocks and bonds.

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RealtyMogul

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RealtyMogul's unique online platform enables investors to handle the entire commercial real estate investing process right from their RealtyMogul dashboard. With rigorously vetted property listings, expertly managed REITs, and a commitment to providing top-notch service and support to its members, RealtyMogul makes commercial real estate accessible to everyday investors.

RealtyMogul is online property investment platform that streamlines the commercial real estate investing process and provides investors with a wide range of opportunities and products to grow their portfolio. The innovative online platform is the first of its kind to make commercialreal estate investingmore accessible to regular investors.

Streitwise

Streitwise is a private REIT that invests in commercial real estate assets. The REIT is open to non-accredited investors and comes with an average dividend yield of over 8%.

Real Estate Investing Platforms

Real estate investing platforms are online market places where investors can find both commercial and residential properties and either buy the property or buy shares in it. The platform where you find the properties will usually take care of the physical management of that property, still making it less of a hassle than finding and managing the property on your own. What distinguishes these platforms from the ones we talk about above however is that they are usually only exclusive to accredited investors - those with at least $250,000 yearly salary and/or $1,000,000 net worth.

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    Long-term real estate funds

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    For Accredited Investors Only

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Pros of Real Estate Companies vs Regular Real Estate Investing

There are definite advantages to investing through real estate companies as opposed to traditional investment vehicles. Among these are:

  • Cost: The buy-in is a lot less onerous when you’re investing with a real estate company. In particular, REITs can be most cost-effective — you can get in for as little as $500. Compare that to the cost of purchasing a property, getting it into shape and maintaining it, and either serving as a landlord or paying a property management firm for the privilege. You’ll quickly realize that real estate companies are the most budget-friendly way to start investing.
  • Barrier of entry: The major barriers are experience and investment capital. When you opt to invest with real estate companies, these 2 factors are not nearly as crucial. Since you’re pooling your money with other investors, your initial outlay is relatively minimal compared to what it costs to purchase a commercial or residential property. Keep in mind that most real estate investors are financed by other individuals, not by banks. If you’re concerned about finding private funding, real estate companies are the way to go.
  • Less risk: A good portion of the risk associated with real estate investing has to do with your duties as a landlord plus finding capital; neither of these applies when you invest through a real estate company. The company itself takes on the risk on your behalf, mitigating the danger of losing money.

Cons of Real Estate Companies vs Regular Real Estate Investing

However, there are also a few disadvantages. These include:

  • Slow returns: Property may be a solid way to make money, but it isn’t the most rapid one. Often renovations must be done before the property itself sees a profit — and in turn, you see one as well. If you’re looking to realize a profit right away, consider an investment property that’s already tenant-occupied or a REIT; both will provide quick cash flow.
  • Accessibility: While new investors can find a home with real estate companies, they won’t be able to do so with all such companies. Many deals are inaccessible unless you have $1 million in assets or at least $200,000 in annual income — and these can be the choice opportunities. This isn’t a deal-breaker but something to know as you start out.
  • Risky asset class: While risk is mitigated by the lower amount of investment here, the fact that real estate company deals are backed by just one asset does amp up the risk a bit. If rents plunge, for example, you will feel the sting.
  • Lack of liquidity: If you need the money now, you can’t simply sell a building. In fact, if you’re investing through a real estate company, expect to commit to at least 3 years. That means you won’t be accessing tons of cash any time soon.

What Else Should I Know?

Real estate investing is its own animal, regardless of whether you’re doing it through a crowdfunding platform or in a more traditional manner. Regardless of the venue, you have to be prepared to put cash upfront and be comfortable with the fact that this is not a liquid investment.

You’ll be making a commitment — and you won’t immediately be able to pull out your investment monies, so be prepared to stay with a property for at least 3 years. With real estate as with many things, longevity is its own reward.

Frequently Asked Questions

Questions & Answers

Q

What are the standards for a REIT?

A

It must invest 75% of its assets in real estate, generate 75% of its income from real estate and pay 90% of its income to shareholders in the form of dividends.

Q

Who can invest in REITs?

A

Anyone can invest in REITs that are trading on the stock exchanges.

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FAQs

What are the best REITs for 2022? ›

Best-performing REIT stocks: October 2022
SymbolCompanyREIT performance (1-year total return)
BRGBluerock Residential Growth REIT, Inc.114%
FREVSFirst Real Estate Investment Trust of New Jersey, Inc.39.1%
IVTInvenTrust Properties Corp.31.8%
LTCLTC Properties, Inc.19.6%
1 more row
10 Oct 2022

Is 2022 a good year to invest in property? ›

There is no guarantee that interest rates will remain low, especially as the world recovers from the pandemic. That makes 2022 a good year to invest in real estate and take advantage of the low rates before they change.

What is the best rated investment company? ›

10 Best Investment Companies to Consider
  • Vanguard.
  • Fidelity.
  • Charles Schwab.
  • Merrill Lynch.
  • Wealthfront.
  • TD Ameritrade.
  • JP Morgan.
  • BlackRock.

What is the best private REIT? ›

The top 2 best private REITs for investors are Streitwise and RealtyMogul.

What REIT does Warren Buffett Own? ›

14. STORE Capital is the only REIT in the large equities portfolio of Berkshire Hathaway, the conglomerate run by the legendary investor Warren Buffett.

What REIT pays the highest dividend? ›

High Dividend REITs
CompanyCurrent PriceDividend Yield
ARR ARMOUR Residential REIT$5.23 +3.6%22.94%
IVR Invesco Mortgage Capital$11.37 +1.2%22.87%
CHMI Cherry Hill Mortgage Investment$5.26 -0.9%20.53%
NLY Annaly Capital Management$18.11 +1.5%19.44%
24 more rows

Where should I invest in property in 2022? ›

12 best places to invest in property in India in 2022
  • Sector 75 – Noida. Being one of the fastest developing locations, Noida definitely is one of the best cities to buy property in India. ...
  • Sector 129 – Noida. ...
  • Wakad – Pune. ...
  • Dhankawadi – Pune. ...
  • Panvel – Navi Mumbai. ...
  • Mahadevpura – Bangalore. ...
  • Hebbal – Bangalore. ...
  • Lucknow.
27 Jul 2022

Should I invest in stocks or real estate in 2022? ›

Which provides the better long-term return on investment: stocks, or real estate? In 2022, as asset prices plummet from their peak, the answer is a resounding: neither. Stock prices have fallen from historic heights, down 17% from a year earlier in the third quarter (Q3) of 2022.

Who is the largest real estate investment trust? ›

Annaly Capital Management

How many REITs should I own? ›

Many investors believe a reasonable portfolio allocation to REITs is between 5 percent and 15 percent, and there are two research-based factors that support the idea that allocations to REITs in an optimally-diversified portfolio may be at the higher end of the scale for many investors.

Is it a good time to buy REITs now? ›

Key Points. Buying high-quality discounted REITs today could lead to superior pricing and returns in the future. For those with patience, now looks like a good time to invest . However, not all REITs are a value buy right now and some investors should take caution.

What is the safest investment right now? ›

Overview: Best low-risk investments in 2022
  • Short-term certificates of deposit. ...
  • Money market funds. ...
  • Treasury bills, notes, bonds and TIPS. ...
  • Corporate bonds. ...
  • Dividend-paying stocks. ...
  • Preferred stocks. ...
  • Money market accounts. ...
  • Fixed annuities.
1 Oct 2022

Who is the best wealth management firm? ›

2022 Rank2021 RankFirm
11Morgan Stanley Private Wealth Management
22Morgan Stanley Private Wealth Management
34Morgan Stanley Private Wealth Management
48Merrill Private Wealth Management
63 more rows

Which investment firm is best for retirees? ›

Many people look for the best investment firms for retirement to avoid these risks and manage their wealth.
...
Top 10 Best-Performing Retirement Investment Funds
  • Vanguard Institutional Index.
  • Fidelity 500 Index.
  • Vanguard PrimeCap.
  • T. ...
  • BlackRock High Yield Bond Portfolio.
  • Vanguard Wellington.

What is the largest REIT in the US? ›

Notable REITs

The five largest REITs in the United States in 2021 are: American Tower Corporation, Prologis, Crown Castle International, Simon Property Group and Weyerhaeuser.

Is it smart to invest in REITs? ›

Are REITs Good Investments? Investing in REITs is a great way to diversify your portfolio outside of traditional stocks and bonds and can be attractive for their strong dividends and long-term capital appreciation.

How much of portfolio should be in REITs? ›

In general, a good rule of thumb is that REITs should not make up more than 25% of a well-diversified dividend stock portfolio, depending on your individual goals (such as what portfolio yield and long-term dividend growth rate you're targeting, and how much volatility you can stomach).

Which REIT pays monthly? ›

Real estate investment trusts (REITs) are a great investment for collecting steady income. There are a handful of REITs that pay frequent dividends, on a monthly or quarterly basis. Some of the most well-known monthly dividend payers include AGNC Investment Corp. (AGNC) and STAG Industrial (STAG).

Do REITs do well when interest rates rise? ›

REITs have historically delivered strong performance following interest-rate increases. Listed real estate securities are well positioned to withstand elevated inflation as well as stagflation. REITs have solid dividend growth prospects and cash flow growth estimates above their historical average.

Is Fundrise better than REITs? ›

Fundrise platform fees are 1% annually, which is higher than the average public REIT fee. While the Fundrise investment model is pretty simple, return yields may be lower than public REITs, depending on the portfolio you choose.

Is it a good time to buy REITs now? ›

Key Points. Buying high-quality discounted REITs today could lead to superior pricing and returns in the future. For those with patience, now looks like a good time to invest . However, not all REITs are a value buy right now and some investors should take caution.

What are the highest paying REITs? ›

The 17 Best High-Yield REITs In 2022
  • Gladstone Commercial (NYSE: GOOD)
  • Ryman Hospitality Properties, Inc. ...
  • Healthpeak Properties, Inc. (NYSE: PEAK)
  • AvalonBay Communities, Inc. (NYSE: AVB)
  • STORE Capital Corporation (NYSE: STOR)
  • STAG Industrial, Inc. (NYSE: STAG)
  • Realty Income Corporation (NYSE: O)
  • UDR, Inc. (NYSE: UDR)

Is it good to invest in REITs now? ›

Are REITs Good Investments? Investing in REITs is a great way to diversify your portfolio outside of traditional stocks and bonds and can be attractive for their strong dividends and long-term capital appreciation.

Do REITs do well when interest rates rise? ›

REITs have historically delivered strong performance following interest-rate increases. Listed real estate securities are well positioned to withstand elevated inflation as well as stagflation. REITs have solid dividend growth prospects and cash flow growth estimates above their historical average.

How many REITs should I own? ›

Many investors believe a reasonable portfolio allocation to REITs is between 5 percent and 15 percent, and there are two research-based factors that support the idea that allocations to REITs in an optimally-diversified portfolio may be at the higher end of the scale for many investors.

Are REITs better than rental property? ›

Perhaps the biggest advantage of buying REIT shares rather than rental properties is simplicity. REIT investing allows for sharing in value appreciation and rental income without being involved in the hassle of actually buying, managing and selling property. Diversification is another benefit.

Are REITs riskier than stocks? ›

While stocks traditionally have the highest potential for reward over time, they're also the riskiest, and as stock markets plummet around the world, we can see that high risk investments aren't necessarily the best way to get higher returns. So for long term investments, REITs win.

Is Fundrise better than REITs? ›

Fundrise platform fees are 1% annually, which is higher than the average public REIT fee. While the Fundrise investment model is pretty simple, return yields may be lower than public REITs, depending on the portfolio you choose.

What is the highest yielding ETF? ›

Top 100 Highest Dividend Yield ETFs
SymbolNameDividend Yield
GTOInvesco Total Return Bond ETF7.96%
JEPIJPMorgan Equity Premium Income ETF7.95%
IAUFiShares Gold Strategy ETF7.85%
SDIVGlobal X SuperDividend ETF7.76%
92 more rows

How reliable are REIT dividends? ›

While many investors focus on traditional dividend stocks, real estate investment trusts, commonly referred to as REITs, can be an excellent source for reliable dividends because of their unique structure.

Will REITs do well in 2022? ›

Summary. The REIT sector has endured declines in 6 of the first 8 months of 2022, including a -5.29% total return in August. Micro cap REITs (+6.9%) outperformed in August, while large caps (-5.17%), small caps (-6.65%) and mid caps (-7.51%) declined. Only 15.06% of REIT securities had a positive total return in August ...

What are disadvantages of REITs? ›

REITs also have some drawbacks, including:
  • Sensitive to Demand for Other High-Yield Assets. Generally, rising interest rates could make Treasury securities more attractive, drawing funds away from REITs and lowering their share prices.
  • Property Taxes. ...
  • Tax Rates.

Should I invest in real estate or stocks 2022? ›

Which provides the better long-term return on investment: stocks, or real estate? In 2022, as asset prices plummet from their peak, the answer is a resounding: neither. Stock prices have fallen from historic heights, down 17% from a year earlier in the third quarter (Q3) of 2022.

Why are REITs declining? ›

REITs are down heavily in the recent past. They have dropped mainly due to rising interest rates, and the Federal Reserve has made it clear that they expect to hike rates again in the near term, according to Seeking Alpha Author Jussi Askola. It may seem as if REITs are likely to drop a lot more in the near term.

Do REITs do well during inflation? ›

REITs tend to outperform in the high inflation periods, with strong income returns offsetting falling REIT prices. On average, REITs outperformed the S&P 500 by 5.6 percentage points during these periods.

How will REITs do in a recession? ›

A recession.

Normally during recessions, commercial real estate occupancy declines, corporate bond yields spike, REITs' interest expenses rise, tenants default or fall behind on rent, and rent rates decline or at least slow their growth.

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