9 Best Alternative Investments for Non-Accredited Investors

As a non accredited investor, you might not have access to some asset classes. 

But, there are some exciting alternative assets (like fine wine and art) thatyou can tap into - whether you’re accredited or not! 

Let's explore nine best alternative investments for non accredited investors, their benefits, and the investment platforms you can use to start investing today! 

Accredited Investors Vs. Non-Accredited Investors 

To be an accredited investor, you need to fulfill one of the following criteria: 

• Have a net worth of more than $1 million 
• Earn at least $200,000 per year (for the last two years)
• Be a general partner, director, or executive officer   

If you do not meet one of these requirements, you are considered a non accredited investor. 

You may be restricted from certain traditional investments accessible only to accredited and institutional investors.      

According to Rule 506 of Regulation D:  

• Companies can receive investments from unlimited numbers of accredited investors but only 35 non-accredited investors.  
• Non-accredited investors must prove they have specific knowledge and experience of the investment. 

Essentially, the Reg D restrictions mean that most non-accredited investors do not have the same opportunities to invest as accredited investors.     

So what investments are available to non-accredited investors?

9 Best Alternative Investments and Investment Platforms for Non-Accredited Investors 

Let’s look at some of the best alternative investments for non accredited investors.

1. Wine
2. Art
3. Real Estate Investments for Non-Accredited Investors
4. Equity Crowdfunding
5. Precious Metals
6. Agriculture
7. Hedge Fund ETFs
8. Peer-To-Peer Lending
9. Business Lending

1. Wine

We all love a glass or two to unwind in the evenings!

But your favorite evening indulgence may hold more value than simply being an excellent accompaniment to a meal.

As a valuable collectible, wine is a great investment opportunity for non-accredited investors.  

Additionally, wine investing is far less risky than some other traditional investments. 

Benefits of Wine Investment: 

There’s much more to wine investment than its stability, including:   

• Accessibility: Unlike some conventional investments,wine investment is now accessible to all investors - whether you’re accredited or not. Platforms like Vinovest help you invest in the most sought-after bottles with just a click of your mouse!  
• Scarcity: Wineries make investment-level wines in small batches, so the most coveted labels come in limited numbers. Additionally, fine wines become rarer over time as demand increases, which means their supply gradually decreases. 
• Inflation-resistant: Investment wines are fairly insensitive to inflation. They have also beaten the Global Equity Index (a measure of global equity performance) for the last 15 years and demonstrate just a third of the volatility of other sectors.     
• A tangible asset: Rather than existing only “on paper” like shares and stocks, wine has intrinsic value that grows over time. And, platforms like Vinovest let you physically own the bottles you invest in - you can either have it stored in professional warehouses, or delivered to your home for a celebration! 
• Low volatility: Wine has lower volatility than other safe investments like bonds. For example, in the last three years, wine has had a volatility index of 4.09%, as opposed to US treasury bonds, coming in at 7.08%. 

Investment Platforms:

Vinovest is a leading wine investment platform that helps you buy and sell some of the world’s finest and rarest wine labels. Let's take a look at how it works: 

• Vinovest takes care of all the hard work by sourcing, authenticating, storing, and insuring your wines.
• Vinovest’s wine experts help you buy and sell your wine at the best price possible, maximizing your profits.
• The starting costs are low, as you can begin investing from as little as $1,000.  

All you have to do is sign up on the platform, and Vinovest will take care of the rest. 

2. Art 

Art is a great alternative investment for non accredited investors as its value tends to grow steadily over time. This steady growth makes it a suitable and less risky asset for inexperienced investors. 

Benefits of Investing in Art:

There are several reasons why you may want to invest in art, namely:

• Accessible for non-accredited Investors: Non accredited investors can access art auctions and online platforms. Furthermore, online platforms are making art investment even more accessible to lower-income investors through the opportunity to buy shares in art pieces.       
• Diversifies your investment portfolio: Art is a great way to diversify your portfolio since it does not directly correlate with traditional markets. 
• Increases in value over time: Sought-after works of art tend to increase in value. According to AMR, the art market index (calculated using the sum of artist prices) has increased by 22% since 2007 (from 18176 to 79253). 

Art investment has some drawbacks, including low liquidity, resulting in a holding period ranging from a few years to decades. 

Additionally, a fair amount of knowledge and research is needed to determine whether a piece will appreciate.                 

Investment Platforms:

You can now use different platforms to purchase partial shares of an art piece rather than buying the art piece yourself.

• Masterworks: Masterworks does all the heavy lifting regarding research and acquiring art. All you have to do is invest in shares on their platform (either directly trade them on their secondary trading market or wait for Masterworks to sell the art, potentially at a profit).
• Otis: Otis allows investors to purchase collectibles, NFTs, and art shares. You can sell shares on their investment platform or when the piece you invested in is sold. 

3. Real Estate Investments

While real estate has performed well historically, this asset class has typically been accessible by mostly large, accredited investors with a high net worth.

But with the advent of more advanced real estate investing strategies and real estate crowdfunding platforms, non-accredited investors can also tap into this alternative asset class.

Let’s take a look at the different types of real estate investment opportunities for non-accredited investors:   

• Real estate crowdfunding: Real estate crowdfunding platforms allow multiple investors to get involved in real estate investing. Because real estate crowdfunding is shared between multiple investors, the minimal amount needed from each investor is much smaller.    
• Holding rental property: Even a non accredited investor can buy a property and rent it out to make a consistent passive income.   
• House hacking: “House hacking” is a newly coined term for renting out part of your home. 
• Fixing and reselling property: Buying a property, fixing it up, and then reselling it at a higher price is an investment strategy that is open to all investors. 
• Buy, rehab, rent, refinance, and repeat strategy (BRRRR): You buy a property, renovate it and start renting it out. Then, by refinancing the property, you pull out some of your initial investment to repeat the process with a new property. 
• Private lending: Sometimes, investors need additional funds to purchase a “fix and flip” or a rental property. Non-accredited investors can make money by loaning other investors the capital they need for their projects.    
• Joint venture partnerships or real estate syndication: In real estate syndication, several people pool their resources (capital, knowledge, and skills) together to generate profit through collective investments. 

The Benefits of Real Estate Investments:

• A variety of investment opportunities: Real estate investment can done in many ways. You can invest alone or in a group, choose equity or debt investment, and even use your property to generate passive income.  
• Control over your investments: Many real estate investment strategies grant you significant control. You can decide how much to spend, when to sell, and how much to charge for rent. 

Investment Platforms: 

• LEX Markets: Open to accredited and non-accredited investors, the shares on LEX markets start at $250. The low minimal investment makes it a great crowdfunding platform if you’re looking for affordable real estate investment options, including commercial real estate. 
• Arrived: If you don’t want to spend big, Arrived is a good option for investing in commercial real estate. With their low minimum investment of $100, you can buy fractional ownership of income-producing rental properties. 
• Groundfloor: Groundfloor is involved in “property flipping” (buying and renovating properties to sell them at a higher price). Their minimum investment is only $10, which offsets some property flipping risks. 

4. Equity Crowdfunding

Equity investment refers to owning shares in a private company and is one of the most common conventional investments.  

A private equity investment is usually a high-risk and high-reward asset that is a popular option for wealthy investors willing to provide venture capital.

With the advent of various crowdfunding opportunities, mutual funding of private company establishments is now opened up to a broader range of investors. 

The Benefits of Equity Investment:

• Potential strong returns: Provided the company is successful, you will be able to sell your shares for far more than you initially invested. 
• Lower minimal investment: The more investors are allowed access to the initial funding rounds, the more venture capital, and the less each investor will be required to invest. 

Investment Platforms:

• Netcapital: Netcapital is an excellent crowdfunding platform for non-accredited investors, offering startup investments from $99.  
• Republic: With Republic, you can invest in the private equity of startups, real estate, video games, and crypto. 
• WeFunder: This  crowdfunding platform lets you invest in startups using three different methods: debt investment, convertible notes, and stocks.   

5. Precious Metals

Precious metal investments typically involve buying gold or silver, but other metals, such as platinum, are also sought after.  

The Benefits of Investing in Precious Metals: 

Here are some of the main benefits associated with investing in precious metals.

• Protection against inflation: Precious metals have intrinsic value. Their value doesn’t fluctuate like currencies do because they are finite and cannot be printed indefinitely.
• Less affected by supply and demand: Gold, in particular, is a stable investment option. The amount of stored gold is far greater than the amount of gold yet to be mined, meaning supply becomes less of a concern. 

Investment Platforms:

• OneGold: OneGold is a mobile application that allows investors to buy and sell gold with a storage fee of 0.12%.  
• Vaulted: With Vaulted, you can purchase gold which will be stored at the Royal Canadian Mint for 0.4% per year. 

6. Agriculture

Agricultural investment can take many forms and is a great way to diversify your investment portfolio. 

While it is not necessarily the most straightforward asset to invest in, it is certainly an attractive investment opportunity. 

The Benefits of Agricultural Investment:

• Fundamental to society: Agricultural investments can be considered inflation-proof because there will always be a demand for food. 
• Predicted increased demand: The demand for food is also predicted to increase as the population continues to grow. This growth will lead to further demand for investments in this sector. 
• Improving accessibility for non-accredited investors: Accessibility has been increasing in recent years thanks to the introduction of debt investment, REIT investment, and land ownership opportunities.    

Investment Platforms:

• FarmAField: FarmAfield provides investment opportunities in cattle and solar projects. 
• Farmfolio: Farmfolio allows you to purchase land ownership titles.
• Steward: Steward helps you fund farmers through debt investments. 

7. Hedge Fund ETFs

Hedge funds are typically a form of investment only open to accredited investors due to the higher risks and fees involved.

But with the advent of hedge fund ETFs, non-accredited investors can also tap (indirectly) into this asset class. 

So what's the difference between a hedge fund and a hedge fund ETF?

Hedge funds hold fewer assets and often seek high returns. ETF funds are traded directly on the stock market, and index strategies are often used, making them less risky.

That makes ETFs attractive investment opportunities for non-accredited investors. 

The Benefits of Hedge Fund EFT Investment:

• Accessibility: Most hedge funds are only open to accredited investors. They have higher fees (often around a 2% fee and earning 20% of the profits) and involve far more risk. ETFs typically incur lower fees as they are not as closely managed.  
• Lower risk: ETFs are more stable than hedge funds since they only try to replicate the hedge fund strategy. Additionally, you can invest a much smaller amount, which makes this a more attractive asset class to non-accredited investors with less experience. 
• Liquidity: Essentially, you can buy and sell your shares in an ETF at any time as the funds are traded on the stock market. This offers far more flexibility in terms of reducing risk. 

Investment Platforms:

• TitanVest: This platform is a financial advisor that mimics the strategies of hedge funds and invests capital into stocks. 
• Fidelity Investments: Fidelity is a broker that offers no commission fees on your ETF investments.  

8. Peer-To-Peer Lending

This alternative investment involves lending money that is paid back with interest. 

The Benefits of Peer-to-Peer Lending:

• Earning interest on multiple loans: Online platforms allow you to buy partial ownership of loans that are paid back at interest rates of up to 10% and above.
• Diversifying your investments: Because you are able to purchase ownership or provide a loan through online platforms, you don’t necessarily have to focus on one type of business investment. 
• Choosing the risk level: Being able to view the profile of the borrower on the platform helps determine how viable a loan may be.    

Unfortunately, peer-to-peer loans are not secured, meaning there is nothing that can be done if the debt cannot be repaid.

Investment Platforms 

• Prosper: Prosper offers low minimum investments and stable monthly returns.
• Bondora: While you must be a member of the European Union (or an accredited investor) to invest, Bondora has very low minimum investment requirements. 
• Zopa: Investments start at £1,000 with returns between 2%-5.3%.  

9. Business Lending

Business lending involves loaning money to an already established business to help it expand. 

The Benefits of Business Lending: 

• Attractive returns: Investment platforms offer loan opportunities that pay up to 25% interest. 
• Security: Providing a loan to an established business is a more secure option than loaning to an individual. 
• Low initial investment: As many investors provide the loan, the minimal investment is often quite low.  

Investment Platforms:

• Kickfurther: Kickfurther allows you to invest in businesses that need to increase their inventory. 
• Mainvest: With Mainvest, you can invest in small businesses that start at $25 and receive between 10-25% returns. 
• Worthy: Worthy allows the retail investor to buy bonds from as little as $10 and earn a 5% interest rate, so you needn’t be a sophisticated investor to get started.  

Now, if you were to pick a stable, high-returns asset as a non-accredited investor, which one would you consider?

Invest in Wine As a Non-Accredited Investor 

Fine wine ages beautifully, while increasing in value regardless of economic conditions. And platforms like Vinovest make it super-easy to invest in this asset, for any kind of investor.

Simply sign up on Vinovest now. From buying, storing, and insuring your wines to selling them, they’ve got it all covered!