Best Real Estate Crowdfunding Platforms for August 2024 • Benzinga

Overall, Fundrise is the best real estate crowdfunding platform. Distinguished by its unparalleled level of transparency, affordability, exemplary account services and an impressive range of additional features.

Real estate crowdfunding allows investors to fund real estate projects via online platforms, aiming for profits through capital appreciation or passive income. This alternative investment method has surged in popularity in recent years, with numerous crowdfunding platforms making it more accessible than ever.

Current rules allow investors to share capital for collective property investments of all types. This roundup evaluates top real estate crowdfunding platforms based on criteria such as fees, usability, investment selection and overall performance.

Quick Look: Real Estate Crowdfunding Platforms

Best Real Estate Crowdfunding Sites

We’ve evaluated various real estate crowdfunding platforms and these are the top picks that have led the way in real estate crowdfunding. 

1. Best for Diversification: Fundrise

Fundrise has options for virtually any investor with various account levels for both accredited and non-accredited investors. The platform has 14 funds available to invest in with account minimums starting at just $10. Investors can choose to craft their own portfolio or let Fundrise choose their allocation based on investment goals and timeline.

Fundrise’s performance speaks for itself. Its diversified portfolio model has consistently delivered positive returns across all account levels, making real estate crowdfunding a much less-risky investment.

• Fees: 0.15% advisory fee for all Fundrise assets plus 0.85% for real estate funds, 1.85% for innovation fund, and $10 per month or $99 per year for Fundrise Pro.
• Minimum investment: $10
• Open to non accredited-investors: Yes

2. Best for Rental Properties: Arrived Homes

Arrived Homes is one of the newest and fastest growing crowdfunding platforms on the internet. The company allows non-accredited investors to buy shares in carefully selected rental properties.

The minimum investment is only $100, making it easy to start earning passive income from real estate and to diversify across multiple properties. Investors simply collect quarterly dividends from their properties while waiting for the asset to increase in value over time. Arrived Homes takes care of finding tenants as well as all of the management responsibilities.

• Fees: Long Term Rentals: 3.5% sourcing Fee, 0.15% AUM fee. Vacation rentals: 5% sourcing fee, 5% gross rents fee, property management fees (third party-pass-through fees): vary
• Minimum investment: $100
• Open to non accredited-investors: Yes

3. Best for Diverse Offerings: EquityMultiple

EquityMultiple is a new alternative investment platform that uses technology to make real estate investing easier to understand for the investor, especially when you need help choosing the right investments. There are short-term and long-term growth options, and you can make the most of the cash you invest by pinpointing the real estate in which you would like to invest, without buying properties yourself.

In short, EquityMultiple offers:

• Quick returns
• Low buy-in pricing, often less than $10,000
• Excellent client support

Remember, this platform is only for accredited investors, but it allows you to do the hands-on work that you do with your other investments. You can learn all the information you need to know, but you’re never tasked with managing these properties. You simply see the profits when they come in.

• Fees: Investment-dependent; approximate range is 0.5% to 1.5% plus an origination fee.
• Minimum investment: $5,000
• Open to non accredited-investors: No

4. Best for Residential Real Estate: Cityfunds

When you invest in Cityfunds by Nada, you can invest in a piece of a city for as little as $250. Anyone can buy into the program at any time with this small minimum deposit, and you are putting your stake into a piece of a city.

The firm invests in residential real estate in a particular market, especially high-demand markets like Miami, Dallas and Austin. You can also buy and sell your shares in these cities like stocks so that you aren’t relying on a particular development to see a return.

In short, Cityfunds by Nada combines what you love about ETFs with what is the largest asset class in the world. Plus, you can get yourself on the waitlist for the Nada Card, a debit card that will allow you to earn rewards that you can invest further in your real estate portfolio.

• Fees: 1.5% asset management fee quarterly based on the net asset value, a 1.0% acquisition fee on single-family rental acquisitions, and a 5.0% to 7.0% asset sale fee for each home equity investment asset acquired.
• Minimum investment: $100
• Open to non accredited-investors: Yes

5. Best for Alternative Investments: Yieldstreet

Yieldstreet has investment offerings across several different alternative asset classes – including real estate crowdfunding. Unlike the other real estate investment platforms on this list, Yieldstreet also regularly has debt offerings, allowing individuals to invest in real estate notes secured by institutional-quality real estate assets.

While most offerings are only available to accredited investors, Yieldstreet recently launched its Growth & Income REIT, which is available to all investors with a $5,000 minimum investment. This REIT provides access to a diversified portfolio of all real estate offerings that hit the Yieldstreet platform.

• Fees: Investment-dependent; ranges from 0.00% for short-term note series to 2.0%.
• Minimum investment: $10,000
• Open to non accredited-investors: Yes

6. Best for Commercial Real Estate: CrowdStreet

CrowdStreet is the largest and most diverse commercial real estate marketplace. It’s a good match if you’re an experienced, accredited investor and prefer to choose properties to invest in yourself instead of leaving the decisions up to a fund or REIT manager. 

Choose from investment in a managed portfolio or direct access to individual commercial real estate investment opportunities. You can then review and compare deals that meet your own criteria.

A minimum of $25,000 is required for most offerings and your investment can be much steeper depending on the project. To date, the average return to investors on fully realized deals is 17.1% with an average investment term of 2.3 years.

Live webinars provide an opportunity for direct access to the project sponsor. The platform also provides numbers and analytical data from past projects so you can compare and consider the potential success of investments.

• Fees: Varying depending on the deal, and are paid to the sponsor.
• Minimum investment: $25,000
• Open to non accredited-investors: No

7. Best for Grocery-Anchored Real Estate: First National Realty Partners

First National Realty Partners is a growing private equity firm focused on offering accredited investors the opportunity to invest in grocery-anchored commercial real estate properties. The company focuses on acquiring properties with long-standing, national tenants, especially within necessity-based markets. Some of the largest tenants currently occupying properties owned by FNRP include:

• Publix
• Kroger
• Whole Foods
• Walmart 
• Lowe’s
• McDonald’s
• Starbucks

FNRP has higher minimum investments but overall is a trusted and high quality real estate investing platform.

• Fees: Annual asset management fee of 1-2% commercial  property deals. Other fees not disclosed.
• Minimum investment: $50,000
• Open to non accredited-investors: No

8. Best for Multifamily Real Estate: RealtyMogul

RealtyMogul offers a variety of institutional-quality real estate offerings, but it stands out with its selection of multifamily real estate investments in some of the hottest markets throughout the country.

The platform is also one of the few that has investment options for non-accredited investors. While direct investments are only available to those that meet accredited investor requirements, non-accredited investors have access to the two RealtyMogul-sponsored non-traded REITs, each with a diverse portfolio of quality assets.

• Fees: Investment-dependent; Income REIT has a maximum fee of 4.5% and Apartment Growth REIT has a maximum annual fee of 4.75%.
• Minimum investment: $5,000
• Open to non accredited-investors: Yes

Choosing the Best Real Estate Crowdfunding Site for You

Real estate crowdfunding was previously restricted to accredited investors, thanks to new guidelines from the Securities and Exchange Commission (SEC) in 2016, this investing avenue has continued to grow in popularity and profitability.

If you’re considering investing in real estate through crowdfunding, it’s crucial to select the right platform that aligns with your investment goals and offers reliable returns. Remember, not all crowdfunding platforms are created equal, and it’s important to do your research before committing your money. 

Learn more about real estate investing and crowdfunding today with Benzinga.

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