Real estate has long been regarded as one of the best assets for building long-term wealth. However, the high capital required to invest in physical properties puts this out of reach for many Americans. Fortunately, real estate crowdfunding now allows accredited and non-accredited investors to earn passive income from real estate with much lower investment minimums.
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Keep reading to discover 11 top-rated platforms that provide easy access to vetted real estate investments.
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Fundrise
Founded in 2010, Fundrise has financed over $7 billion in commercial real estate assets and has over 150,000 users. Investors can start with just $10 and earn dividend income from Fundrise’s portfolio of apartments, hotels, and commercial buildings across the country. The platform projects long-term returns between 7-12%.
RealtyMogul
With over 300,000 members, RealtyMogul offers one of the most popular real estate crowdfunding platforms. Investors can choose from public, non-traded REITs and private real estate funds, with minimums starting at $5,000. RealtyMogul vets each deal thoroughly and has achieved realized returns averaging 12-20% annually.
Groundfloor
Groundfloor offers investments in short-term real estate loans, providing regular monthly interest payments. Groundfloor finances fix-and-flip projects, new construction, and more across 43 states. Investors can start with minimum investments as low as $10, with historical returns averaging 9-12% annually.
EquityMultiple
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 US markets. Minimum investments start at $5,000. EquityMultiple projects target returns for its offerings between 7-15% per year.
DiversyFund
DiversyFund makes owning commercial real estate easy through its diversified private REIT (DF Growth REIT) available to accredited and non-accredited investors. Its portfolio includes multifamily, industrial, and retail properties, with a minimum of just $500 to invest. DF Growth REIT has a 5-year CAGR of 18.42% net of fees, with steady dividend payouts.
AcreTrader
AcreTrader brings farmland investing to both accredited and non-accredited investors. Its farmland portfolio is diversified across crop types and geographic regions for reduced risk. Offerings have minimums from $15,000 to $50,000. AcreTrader projects annual returns to investors between 6-11% over a 5-10 year hold period.
FarmTogether
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 5-10+ years. Offerings require accredited investor status with minimum investments between $15,000 to $50,000.
RealCrowd
RealCrowd vets and selects the highest quality commercial real estate offerings across property types, including industrial, multifamily, self-storage, and more. Investors can expect 8-16%+ projected returns from fixing and flipping to long-term holds. Investments start at $25,000 and are only open to accredited investors.
CrowdStreet
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 17-20%+ annual returns.
ArborCrowd
ArborCrowd 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. Target annual returns range from 7-12% from property appreciation over 5-10-year hold periods.
Streitwise
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, focusing on appreciating assets projected to achieve returns averaging 8-12% annually.
Bottom Line
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 only risk what you can afford to lose.
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This article originally appeared on GOBankingRates.com: 11 Best Real Estate Crowdfunding Platforms: Here’s How Investors Can Earn Passive Income
