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 Single Family Rentals: mogul
mogul is a fractional real estate investing platform that makes it easy for anyone to start investing in real estate. mogul offers a range of investment opportunities in single-family rental properties. Whether you’re looking for short-term, medium-term, or long-term rental investments, Mogul provides a variety of options.
Why We Picked It: mogul boasts an average internal rate of return of 18.8%, along with monthly dividends, potential property appreciation, and tax benefits. With a fast, user-friendly sign-up process that takes less than 30 seconds. Additionally, investors benefit from property and landlord insurance, offering added protection and peace of mind.
- Fees: 3% fee and an additional 2% incremental fee for specific services.
- Minimum investment: $250
- 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 Tax-Deferred Real Estate Investments: 1031 Crowdfunding
1031 Crowdfunding is a real estate investment platform that focuses on 1031 exchanges and alternative investments that are designed for tax deferral. There are generally over 100 offerings at any one time, including DSTs. The management team ensures that you get the best opportunity at quality returns, there are easy-to-use tools on the website, portfolio customizing tools and helpful customer service agents who ensure the best experience for every investor. Remember that there is limited availability for non-accredited investors.
Why We Picked It: 1031 Crowdfunding offers a unique blend of DSTs and alternative investments that can help you defer taxation. The platform is ideal for investors looking for a hands-off approach to property management. Investors typically see annual returns anywhere from 5% – 7%.
- Fees: Deal-dependent
- Minimum investment: $25,000; $5,000 for REITs
- Open to non-accredited investors: Limited access is available to non-accredited investors
6. 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
7. 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
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.
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.
