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.
Why We Picked It: 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. Fundrise clients have seen annual returns from 3% all the way to 22%.
- 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.
Why We Picked It: The minimum investment is only $100, making it easy to start earning passive income from real estate and to diversify across multiple properties. You collect quarterly dividends from their properties while waiting for the asset to increase in value over time. Arrived Homes clients can plan to see returns from 6 -10% annually.
- 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 Residential Real Estate: Cityfunds
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Best For:
Index Like Real Estate Funds
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securely through Nada / Cityfunds’s website
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.
Why We Picked It: Cityfunds by Nada combines what you love about ETFs with what is the largest asset class in the world. The firm invests in residential real estate in a particular market and offers investors stable cash flow with a 7-8% APY, backed by real estate assets. You can also buy and sell your shares of cities like stocks so that you aren’t relying on a particular development to see a return.
- 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
4. 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.
Why We Picked It: Yieldstreet allows you to engage in real estate crowdfunding, along with a diverse range of alternative investments, including real estate, REITs, commercial ventures, legal assets, and art. Yieldstreet has a net annual return before fees of 9.6%.
- 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
5. 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.
Why We Picked It: EquityMultiple combines crowdfunding with a traditional real estate investment strategy, offering the potential for high returns. There are short-term and long-term growth options, and you can make the most of the cash you invest.
- 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
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.
Why We Picked It: 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. To date, the average return to investors on fully realized deals is 17.1% with an average investment term of 2.3 years.
- 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.
Why We Picked It: First National Realty Partners gives accredited investors the opportunity to earn quarterly cash flow from grocery-anchored commercial real estate properties. Investors with FNRP have seen average annual returns of 12% to 18%.
- 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.
Why We Picked It: RealtyMogul 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. Investors have seen an average return of 12% over the last 5 years.
- 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.
Frequently Asked Questions
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Real estate crowd funding allows you to diversify your portfolio by investing in real estate.
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Real estate crowdfunding can be worth it 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, potentially providing attractive returns. However, like any investment, there are risks involved, such as the potential for market fluctuations and the possibility of project delays or failures.
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Investing in real estate crowdfunding can be relatively safe compared to traditional real estate investing, but it is not without risks. It is important to thoroughly research the platform and the specific investment opportunity before investing. Factors such as the credibility and track record of the platform, the quality of the underlying real estate project, and the terms and conditions of the investment should all be carefully considered.
