Overall, Fundrise is the best real estate crowdfunding platform. It features an unparalleled level of transparency, affordable pricing, exemplary account service, and a wide range of additional features.
Real estate crowdfunding allows investors to fund real estate projects through an online platform and aim to profit from appreciation and passive income. This alternative investment method has skyrocketed in popularity in recent years, and a number of crowdfunding platforms have made it more accessible than ever.
Current rules allow investors to pool capital for all types of collective real estate investments. In this roundup, we evaluate the top real estate crowdfunding platforms based on criteria such as fees, ease of use, investment selection, and overall performance.
Overview: Real estate crowdfunding platform
Best Real Estate Crowdfunding Sites
We have evaluated various real estate crowdfunding platforms and these are our top picks that have led the way in real estate crowdfunding.
1. Great for diversification: Financing
Fundrise has options for virtually every investor with a variety of account levels for both accredited and non-accredited investors. The platform has 14 funds and you can invest with account minimums as low as $10.
Why we chose it: Fundrise's performance speaks for itself. Its diversified portfolio model consistently delivers positive returns at all account levels, making real estate crowdfunding a much less risky investment. Fundrise customers have seen annual returns ranging from 3% to 22%.
Fees: 0.15% advisory fee on all Fundrise assets, plus 0.85% for real estate funds, 1.85% for innovation funds, and $10 per month or $99 per year for Fundrise Pro. Minimum investment amount: $10 For non-accredited investors: Yes
2. Ideal for rental properties: Arrived housing
Arrived Homes is one of the newest and fastest growing crowdfunding platforms on the internet. The company allows non-accredited investors to purchase shares in carefully selected rental properties.
Why we chose this: With a minimum investment of just $100, it's easy to earn passive income from real estate, which can be spread across multiple properties. You receive quarterly dividends from your assets as you watch them grow in value over time. Arrival residential customers can plan on returns of 6-10% per year.
Fees: Long-term rental: 3.5% procurement fee, 0.15% AUM fee. Vacation Rentals: 5% Procurement Fee, 5% Gross Rent, Property Management Fee (Third Party Pass-Through Fee): Varies Minimum Investment: $100 For Non-Accredited Investors: Yes
3. Ideal for single person rental: mogul
mogul is a fractional real estate investment platform that allows anyone to easily start investing in real estate. mogul offers a wide range of investment opportunities in single-family rental properties. Whether you are looking for a short, medium or long term rental investment, Mogul offers a variety of options.
Why we chose it: Leading companies boast an average internal rate of return of 18.8%, along with monthly dividends, potential real estate value appreciation, and tax benefits. Fast and user-friendly sign-up process that takes less than 30 seconds. Additionally, investors benefit from property insurance and landlord insurance, providing additional protection and peace of mind.
Fees: 3% fee plus an additional 2% incremental fee for certain services. Minimum investment amount: $250 Non-accredited investors can participate: Yes
4. Best for alternative investments: Yieldstreet
Yieldstreet offers investment products across several different alternative asset classes, including real estate crowdfunding. Unlike other real estate investment platforms on this list, Yieldstreet also has regular bond offerings, allowing individuals to invest in real estate bonds backed by institutional quality real estate assets.
Why we chose it: Yieldstreet allows you to participate in real estate crowdfunding, along with a variety of alternative investments including real estate, REITs, commercial ventures, legal assets, art, and more. Yieldstreet's annual net income before fees is 9.6%.
Fees: Varies depending on investment. For short-term bond series, it ranges from 0.00% to 2.0%. Minimum investment amount: $10,000 For non-accredited investors: Yes
5. Best for tax-deferred real estate investment: 1031 Crowdfunding
1031 Crowdfunding is a real estate investment platform focused on 1031 exchanges and tax-deferred alternative investments. There are typically more than 100 services offered at a time, including DST. Our management team strives to ensure that you have the best opportunity to earn quality benefits. The website features easy-to-use tools, portfolio customization tools, and friendly customer service agents to ensure the best experience for all investors. Please note that there is limited availability to non-accredited investors.
Why we chose it: 1031 crowdfunding offers a unique combination of alternative investments that help you defer DST and taxes. This platform is ideal for investors looking for a hands-off approach to property management. Investors typically expect annual returns of 5% to 7%.
Fees: Depending on trade Minimum investment: $25,000; $5,000 for REITs Open to non-accredited investors: Limited access to non-accredited investors
6. Ideal for diverse services: EquityMultiple
EquityMultiple is a new alternative investment platform that uses technology to make real estate investing easier to understand for investors, especially when you need help choosing the right investments.
Why we chose it: EquityMultiple combines crowdfunding with traditional real estate investment strategies, offering high return potential. With short-term and long-term growth options, you can make the most of your invested cash.
Fees: Varies depending on investment. The approximate range is 0.5% to 1.5% plus origination fees. Minimum investment amount: $5,000 For non-accredited investors: No
7. Best for commercial real estate: CrowdStreet
CrowdStreet is the largest and most diverse commercial real estate marketplace. Ideal if you are an experienced, accredited investor and want to choose the properties in which to invest yourself, rather than leaving the decisions to a fund or REIT manager.
Why we chose it: Choose between investing in a managed portfolio or direct access to individual commercial real estate investment opportunities. You can then see and compare deals that meet your criteria. To date, the average return to investors on fully realized transactions is 17.1% and the average investment period is 2.3 years.
Fees: Varies by deal and paid to Sponsor. Minimum investment amount: $25,000 For non-accredited investors: No
8. Ideal for multifamily real estate: RealtyMogul
RealtyMogul offers a variety of institutional quality properties, but stands out for its selection of multifamily real estate investments in some of the nation's hottest markets.
Why we chose it: RealtyMogul has investment options for non-accredited investors. While direct investing is only available to investors who meet the accredited investor requirements, non-accredited investors have access to two non-traded REITs sponsored by RealtyMogul, each with a diversified portfolio of high-quality assets. is held. The average return for investors over the past five years is 12%.
Fees: Varies depending on investment. Income REITs have fees of up to 4.5%, and apartment growth REITs have annual fees of up to 4.75%. Minimum investment amount: $5,000 For non-accredited investors: Yes
Choose the best real estate crowdfunding site for you
Real estate crowdfunding was previously limited to accredited investors, but thanks to new Securities and Exchange Commission (SEC) guidelines in 2016, this investment vehicle continues to grow in popularity and profitability.
If you're considering investing in real estate through crowdfunding, it's important to choose the right platform that meets your investment goals and provides reliable returns. Remember that not all crowdfunding platforms are created equal. It’s important to do your research before investing any money.
FAQ
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Real estate crowdfunding allows you to diversify your portfolio by investing in real estate.
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Real estate crowdfunding can be valuable for investors looking to diversify their portfolio and gain exposure to real estate without the need for large amounts of capital. It offers the opportunity to invest in a variety of properties and projects, with the potential for attractive returns. However, like any investment, there are risks, including possible market fluctuations and the possibility of project delays or failures.
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Investing in real estate crowdfunding is relatively safe compared to traditional real estate investing, but it is not without risks. It is important to thoroughly research the platform and specific investment opportunity before investing. Factors such as the reliability and track record of the platform, the quality of the underlying real estate project, and the terms of your investment should all be carefully considered.
