11 Best Real Estate Crowdfunding Platforms

• Who it’s for: Smaller investors who want to diversify their portfolios

• Fees: No fees for investors

• Account minimum: $100

• Pros:

  • Low minimum investment

  • Unique opportunities, such as fractional real estate debt

  • Convenient auto investing

  • Shorter-term investment than many platforms offer

• Cons:

• Promotions: None currently

EquityMultiple focuses exclusively on commercial real estate equity deals available to accredited investors. It offers the vets institutional-quality office, retail, industrial, and multifamily properties in top U.S. markets. Minimum investments start at $5,000. EquityMultiple projects target returns for its offerings between 7% to -15% per year.

• Who it’s for: Serious investors who want to maintain some liquidity

• Fees: 0.50% to 1.50% for common equity; approximately 1% for debt and preferred equity; varied origination fees for funds; $30 to $70 administrative fee for all investors

• Account minimum: $5,000

• Pros:

• Cons:

• Promotions: None currently

DiversyFund makes owning commercial real estate easy through its Multifamily Fund targeting undervalued multifamily properties. With a target of 12 to 15 investments, the fund has a four- to six-year hold period and is available to accredited and non-accredited investors. Its portfolio includes multifamily, industrial and retail properties, with a minimum of $500 per month, or one-time payment of $25,000, to invest. As of Nov. 1, the platform also has two opportunities for accredited investors.

• Who it’s for: Accredited investors and non-accredited investors who plan to invest at least $500 per month

• Fees: Must be member to review

• Account minimum: $500 for monthly payments

• Pros:

  • $500 monthly minimum more affordable than $25,000 one-time minimum

  • Open to non-accredited investors

• Cons:

  • Just one fund currently open to investors

  • No distributions until fund begins selling properties

  • No phone support; email support can take up to 72 hours for response

• Promotions: None currently

AcreTrader brings farmland investing to accredited investors. Its farmland portfolio is diversified across crop types and geographic regions for reduced risk. Current offerings have $15,000 minimums. Previous AcreTrader projects have provided 13.7% to 23.3% realized returns with lower-than-projected hold periods.

Similarly, FarmTogether allows individuals to invest in sustainable farmland. Each deal is thoroughly vetted, aiming to provide annual returns to investors in the 6-11% range over five to 10-plus years. Offerings require accredited investor status with minimum investments between $15,000 (crowdfunded investments) and $20 million.

• Who it’s for: Accredited investors interested in sustainable investments

• Fees: Vary by opportunity

• Account minimum: $15,000

• Pros:

• Cons:

• Promotions: None currently

TrinityInvestors partners with developers in new construction and rehab projects. Assets run the gamut of commercial uses, from multifamily to office, retail, healthcare, hospitality, senior living and more. The average hold period for investments is 47 months, and the company’s historic aggregated realized returns are 19.4%. Investments on this crowdfunding real estate platform typically start at $75,000 and are only open to accredited investors.

• Who it’s for: High-net-worth investors who can wait out longer hold periods in exchange for higher returns

• Fees: 0.25% on up to $10 million in assets; may charge other fees

• Account minimum: $75,000 to $100,000, depending on investment

• Pros:

  • Large portfolio

  • Solid net returns

• Cons:

• Promotions: None currently

CrowdStreet is one of the largest real estate crowdfunding platforms, with over $4 billion invested in nearly 800 projects. Offerings include equity and debt investments in commercial properties and real estate companies, with minimums starting at $25,000. Historically, realized CrowdStreet deals have achieved 12.2% aggregate returns. Target hold periods are three to five years.

• Who it’s for: Accredited investors with no need for liquidity

• Fees: Usually no fee to CrowdStreet for using platform; sponsors may charge fees; varied advisory fees for funds

• Account minimum: $25,000

• Pros:

• Cons:

• Promotions: None currently

ArborCrowd is the first real estate investment crowdfunding platform from a real estate institution, and it focuses specifically on multifamily apartment investments located in many of the fastest-growing US housing markets. Their offerings require accredited investor status with minimums between $25,000 to $50,000. Projected net returns of 12% to 23%, with current hold periods of three to five years.

• Who it’s for: Accredited investors interested strictly in multifamily properties

• Fees: Vary by project; must register account to view fees

• Account minimum: $25,000

• Pros:

• Cons:

• Promotions: None currently

Streitwise allows non-accredited investors to invest in commercial real estate through public non-traded REITS. Offerings have a low minimum investment of $1,000. Streitwise vets each property purchase thoroughly and averages 8.3% dividends.

• Who it’s for: Non-accredited investors looking for a low minimum investment

• Fees: 2% fee, deducted from dividend payments

• Account minimum: $1,000

• Pros:

• Cons:

• Promotions: None currently

Real estate crowdfunding has allowed ordinary investors to earn passive income from an asset class previously only accessible to the ultra-wealthy. By pooling money with others to invest in vetted real estate projects, Americans can build significant wealth over time through cash flow and appreciation. Just be sure to avoid spending more on crowdfunded real estate investing than you can afford to lose.

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