Modiv review: Real estate investing with a $1,000 minimum
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- Modiv is a real estate investment platform offering real estate investment trusts (REITs) and IRAs.
- The platform has a $1,000 minimum requirement, but no advisory fees.
- You won’t have to pay custodial fees for your IRA as long as you maintain a $1,000 account balance.
- Click here to set up an account with Modiv.
Is Modiv right for you?
|You may like Modiv if you…||You may not like Modiv if you…|
Formerly known as Rich Uncles, Modiv is an investor-owned real estate crowdfunding investment platform. Modiv offers commercial real estate investments through publicly listed and non-public real estate investment trusts (REITs). Publicly listed REITs trade on an exchange like stocks, while non-public REITs — which are usually more illiquid (harder to convert to cash) — don’t.
When you invest in one of Modiv’s REITs, you’ll be purchasing shares of Modiv’s commercial real estate properties. The company currently has investments in 14 states.
Led by CEO Aaron Halfacre, the company says it has more than $400 million in assets under management with roughly 10,000 individual investors.
Bottom line: Modiv is best for traders interested in earning monthly income and cash distributions from commercial real estate investments. The investment app could also be a good fit for retirement investors interested in working real estate into an IRA.
|Editor’s rating||3.85 out of 5|
|Account minimum||$1,000 (additional investments must be at least $100)|
|Promotion||None at this time|
How does Modiv compare?
$1,000 (additional investments must be at least $100)
$10 ($5,000 minimum transfer for non-US residents)
1% (additional $125 for IRAs)
Real estate investment trusts (REITs)
Limited Recourse Obligations (LROs), notes
Electronic real estate investment trusts (REITs), electronic real estate funds, and Fundrise IPOs
|Open an account||Open an account||Open an account|
While Modiv is a good option for investors solely focused on REITs, Fundrise offers both a lower account minimum and a wider range of investment options. Fundrise and Modiv also share the non-listed REIT option, but Fundrise is the better choice for other investments like electronic real estate funds and IPOs.
On the other hand, Groundfloor could be a better fit for those in search of shorter-term real estate investments. Its unique investment options — limited recourse obligations (LROs) and notes securities— have terms ranging from six to 18 months.
If you’re set on staying the REIT course, though, keep reading to see what Modiv offers.
Ways to invest with Modiv
Personal brokerage accounts: This is how it works with Modiv’s REITs investments: Modiv’s team of real estate professionals picks which properties your money is invested in. Those properties — which have tenants who pay monthly rent — earn you taxable cash distributions each month.
Self-directed IRAs: The Modiv investment app also partners with Forge Trust to provide self-directed IRAs. These accounts include no custodial fees, and the difference between self-directed IRAs (SDIRAs) and traditional IRAs is that its SDIRAs allow you to incorporate real estate assets into your portfolio, according to Modiv.
As long as you maintain a minimum of $1,000, Modiv will cover all custodial and setup costs for your IRA.
Educational resources: Modiv doesn’t offer many educational materials for beginners. The investment platform provides an FAQ section and investing news and insights posts, but it may not be the best option for newcomers who want more support and guidance.
Is Modiv trustworthy?
The Better Business Bureau has given Modiv (formerly Rich Uncles) an A rating. BBB ratings range from A+ to F, so this indicates that Modiv has excelled in its customer interactions.
The BBB also says its ratings reflect its opinion of how a business is likely to interact with its customers. When evaluating companies, the bureau considers type of business, time in business, complaint history, licensing and government actions, and more.
In 2019, the US Securities and Exchange Commission (SEC) handed Rich Uncles’ external advisor, BrixInvest, LLC, a cease-and-desist order and $300,000 fine for securities law violations. The company has closed one complaint in the last 12 months, according to the BBB.
Rickie Houston is a wealth-building reporter at Personal Finance Insider who covers investing, brokerage, and wealth-building products.
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