Why I Invested in Nyce: The Importance of Accessible Real Estate Investment Opportunities

Most people understand the value of owning property. But not everyone has a truly equal opportunity to make those investments.

Recently I’ve seen a lot of platforms that allow you to invest in real estate for fractions of the price. Diversyfund has a minimum of $500, and Fundrise starts at $1,000. All things considered, it’s a pretty low barrier to entry to invest in property.

And I’m a big fan of low barriers to entry when it comes to wealth-building opportunities.

Real estate is a reasonably reliable asset. It’s why Chinese investors have been buying up property abroad (so much that Australia has introduced policies to deter foreign investment). It’s why private equity funds and pensions are buying up subdivisions and neighborhoods. And it’s why investors gobbled up mortgage-backed securities in the early 2000s.

Regardless of class, education, race, gender, or creed, most people understand the value of owning property. But not everyone has a truly equal opportunity to own property – and not just because they can’t afford the down payment.

Property Ownership Is More than Just the Building Itself

Let’s go back to funds like private equity funds, pensions, and even Fundrise. They’re eating up property left and right, like this entire subdivision in Texas. Or consider the hundreds of luxury high rises in New York, which were built exclusively for the wealthy.

Property has always been expensive, but nowadays, ownership has risen far out of reach for too many. Whether it’s limited housing availability in hot job markets or luxury-only buildings, fewer and fewer Americans can afford to own a home in their own neighborhoods. As a result, the few who can own real estate have the most influence on the local area, regardless of whether the owners even occupy the property.

Owners should be invested in the neighborhoods and areas where the property is located. While property in itself may be neutral, its success as an asset heavily depends on the life within it and around it.

It’s important to me that, if I invest in a real estate investment company, they are sensitive to gentrification and neighborhood development. I want to invest in a company that collaborates with existing residents to increase wealth for everyone affected. Property ownership is so much more than financial return.

Neither Diversyfund or Fundrise make a clear effort to explain whether they consider the local impact of their investments. Nyce does.

Why I Invested in Nyce

I had heard about Diversyfund and Fundrise for months from newsletters like the Hustle and Morning Brew. It seemed like a great investment opportunity.

But I knew that someone, somewhere had to be working on a real estate investment startup that I wanted to invest in. One that truly prioritized closing the wealth gap and cared about the ripple effects of their investments.

And then in June 2021, Wefunder dropped the Nyce crowdfunding campaign in my inbox.

Nyce makes real estate investment even more accessible than Dviersyfund and Fundrise with a lower minimum of $100, which I love. But the real deciding point for me was when founder Philip Michael said that Nyce prioritizes the neighborhood residents where they invest.

Their initial project, Temple I, is their first community-owned project, built in north Philadelphia by Temple University in a historically Black neighborhood. Nyce encouraged residents to own a piece of this new property so that they could have a stake in this wealth-building opportunity rising on their streets.

Nyce wants local residents to invest in the projects they want to build. This demonstrates a prioritization and consideration of the impact of the asset, rather than just investing in assets to make money.

Because, clearly, you can do both.

Things I Found Interesting

• Packy McCormick launched his $8 million venture fund Not Boring Capital (his announcement motivated me to get going on this post!)

• Sifted compiled a list of 100 female angel investors in Europe

• I joined Ada Ventures as a scout!

• BackedVC in London is hiring an Investment Associate

• TheVentureCity is leading an effort to establish a €3 billion fund of funds for women-led funds

Final Thoughts

Owning property is supposed to be an accessible, free market way for people to build generational wealth. I may not own or invest in any property yet, but knowing that Nyce is an option makes me hopeful.