Investing in private real estate is now becoming an increasingly accessible option for small investors looking to diversify their portfolios with smaller dollar value investments.

Called micro-investing, it allows investors to buy shares of properties and real estate portfolios with purchases as small as $5 in some cases, according to Yahoo Finance. These investments work much like real estate investment trusts, but don’t allow investors to buy into specific properties and do not require the high dollar commitments needed to participate in most REITs.

 

Compound is a company that buys and flips properties and shares those profits with small investors. It also brings in cash to act as a buy-side broker for purchases and charges a fee to the seller. The New York-based firm offers investors the option to invest in four properties in different cities.

The best portfolios are diversified, and real estate performs very uniquely, in a way that is unrelated to the stock market and bonds most of the time.

CrowdStreet is another similar company.  This startup allows investors to buy shares in commercial real estate in the U. S. Founder Darren Powderly says it’s better for diversification than REITs because those investments are tied to a property’s performance whereas REITs are closer to the stock market in its movement.

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