Best Real Estate Crowdfunding Platforms


Jeremy BiberdorfBy: Jeremy Biberdorf

July 10, 2022July 10, 2022

Real estate investment does not have to be daunting. There are easier and straightforward ways to add real estate to your portfolio if you want to avoid carrying out extensive real estate research. This is possible because of real estate crowdfunding platforms. You can diversify your portfolio by adding commercial properties, residential properties, and other real estate investments at a low cost.

In this article, we’ve compiled a list of the best real estate investing platforms to help narrow down your options. Continue reading to find the best match for you.

1. Fundrise (Our Top Pick):

Best for Beginners and Non-Accredited Investors

FeesMinimum investmentAverage annual returnsTotal investor distributionsInvestment optionsAccredited investors only
0.85% Asset management fee; 0.15% Advisory feeDepending on account level:$10 to $100,000From 2017 to 202: 7.31% to 16.11%$124 million+It varies based on the account level selected No

FundriseThe Starter Portfolio of Fundrise requires only $10 to begin investing. Furthermore, it is not necessary for you to be an accredited investor. Fundrise offers portfolios for both income and growth investors, as well as a hybrid of the two. At only 1% per year, the fee structure is simple and straightforward.

For various reasons, Fundrise is at the top of our list. To begin with, Fundrise was founded in 2010, making it one of the platforms with the longest operating histories compared to others.

Fundrise is a crowdfunding real estate investing platform that offers a variety of investment portfolios.

Fundrise, we believe, has something for everyone. Fundrise employs a value investment strategy when it comes to real estate investment. This crowdfunded real estate platform aims to purchase properties for less than the market value and then, through improvements, build equity.

Pros

  • Fundrise is open to non-accredited investors
  • Trading on the platform requires a small minimum account size
  • It has five levels of different accounts that you can choose from
  • Fundrise is a highly diversified investments platform
  • Excellent for passive investing

Cons

  • illiquid investments, meaning you cannot easily cash out or sell your investments as you can with liquid assets such as mutual funds and stocks.
  • Its fee schedule is complex
  • Fundrise is not suitable for short-term investments

Get Started With Fundrise

2. RealtyMogul: Best for Income Investors

FeesMinimum investmentAverage annual returnsTotal investor distributionsInvestment optionsAccredited investors only
1% to 1.5%$1,0004.5% to 8%$136 million
  • 1031 exchanges.
  • Individual properties (office, self-storage, multifamily, medical office, industrial, retail).
  • Real estate investment trusts (REITs)
 No

RealtyMogul

More than 219,000 investors have joined RealtyMogul since its inception in 2012 to gain access to its real estate investment trusts (REITs) and private market offerings. RealtyMogul is known for its exceptional due diligence, as it personally assesses every potential real estate and scrutinizes each deal using proprietary models and methods.

This crowdfunded real estate platform looks for well-leased properties or existing leases. It only works with real estate partners with experience managing assets and a proven track record. It does not make non-cash-flowing investments like ground-up construction or raw land. Investors can select one of the three goals: diversification, growth, and passive income.

Pros

  • RealtyMogul has a good investment selection
  • Detailed due diligence
  • Monthly auto-investment in real estate investment trusts (REITs) starts at $250 per month

Cons

  • Each investment comes with different fees
  • Investments are difficult to sell or trade
  • Some extended hold periods

Get Started With RealtyMogul

3. CrowdStreet: Best for Accredited Investors

FeesMinimum investmentAverage annual returnsTotal investor distributionsInvestment optionsAccredited investors only
CrowdStreet funds: 0.50% to 2.5%. Other fees vary by offering$25,000As of 2021, it was 17.3%. Generally, it depends on the investment$220 million
  • Individual deals.
  • Funds.
  • A professionally managed, tailored portfolio
 Yes

Crowdstreet has attracted over 100,000 investors from across the United States. Its innovative technique provides direct access to a carefully vetted portfolio of real estate investments with a high-quality organized establishment. Accredited investors can choose to invest in a single property or a fund.

Crowdstreet, founded in 2014 and headquartered in Portland, Oregon, has published over 550 commercial real estate investment offerings. 63 of those commercial real estate investment offerings have been fully realized.

Pros

  • With its helpful chatbot feature, Crowdstreet is a user-friendly platform
  • Easily accessible investment details upon signing up for a free account
  • Institutional-quality offerings

Cons

  • Open to accredited investors
  • High investment minimums
  • It doesn’t support early withdrawals

Get Started With CrowdStreet

4. EquityMultiple

FeesMinimum investmentAverage annual returnsTotal investor distributionsInvestment optionsAccredited investors only
Equity investments have a 1% fee. Other fees are determined by offering$10,000Historically, 16.8%$126.7 million
  • 1031 exchange investment.
  • Preferred equity and senior debt.
  • Institutionalcommercial real estate.
  • Opportunity zones.
 Yes

EquityMultiple is a crowdfunded real estate platform that focuses almost solely on commercial and institutional real estate and also provides preferred equity, senior debt, and equity investments. EquityMultiple recently expanded its portfolio with tax-advantaged real estate investments (1031 exchange and Opportunity Zone) and fund products. The deal’s distribution frequency varies but is usually monthly or quarterly.

Pros

  • It has a good investment selection
  • Assortment of target hold periods
  • It is an easy-to-use, crowdfunded real estate platform

Cons

  • Available only to accredited investors
  • High minimum investment
  • Redemption options are limited

Get Started With EquityMultiple

5. Yieldstreet: Best for Real Estate and Alternative Investments

FeesMinimum investmentAverage annual returnsTotal investor distributionsInvestment optionsAccredited investors only
For Prism, the fees are 1% to 2%. Other investments start at 0%

 

$500. Some investments require an initial investment of $10,000. $1,000 minimum investment is required for Short-term note options9.71% average rate of return$100 million
  • Short-term notes options.
  • Alternative investments.
  • Multi-asset class funds.
 No

Yieldstreet provides alternative investments and real estate to accredited investors with a minimum investment of $500. The company currently allows you to invest in the following alternative asset classes: real estate, marine finance, legal finance, art finance, and commercial and consumer finance.

But don’t be concerned if you’re not an accredited investor. The Yieldstreet Prism fund is still available for investment to non-accredited investors. This Prism fund also requires a minimum investment of $500. Still, it allows you to invest in various alternative asset classes.

Pros

  • It offers access to alternative investments such as lawsuits, real estate, art, debt, etc.
  • Privately structured credit deals are open to individuals investors
  • Non-accredited investors are welcome
  • Each investment is backed by tangible assets.
  • The platform is easy to use
  • It is possible to manage it online or via mobile apps

Cons

  • Investments are illiquid.
  • Only accredited investors have access to most of its investments
  • Relatively exorbitant fees
  • Customer ratings and Consumer complaints raise concerns

Get Started With Yieldstreet

6. AcreTrader

FeesMinimum investmentAverage annual returnsTotal investor distributionsInvestment optionsAccredited investors only
0.75%Typically, it varies; $10,000 – $25,0007-9%$40 millionFarmland Yes

Farmland may be an option for individuals considering a less common approach to real estate investment.

AcreTraderAcreTrader is a farmland platform available to accredited investors only that allows you to invest in working farm shares. Income is generated by renting out the land to farmers or selling it for a higher price years later. The minimum investment ranges from $10,000 to $25,000.

Pros

  • AcreTrader farmland investing platform assists farmers by handling insurance, property management, administration, and other facets of land ownership
  • 7-9% target returns range
  • Investment can be made using self-directed IRAs (SDIRAs)
  • Sale leasebacks, capital-raising options, and property expansion for farmers
  • Due diligence process and rigorous underwriting for properties

Cons

  • Only accredited investors are welcome
  • A small number of new offerings
  • Investment selection is limited
  • Illiquid investments, meaning shares of farmland, cannot be easily bought and sold like you could with ETF or stock

Get Started With AcreTrader

7. First National Realty Partners

FeesMinimum investmentAverage annual returnsTotal investor distributionsInvestment optionsAccredited investors only
Typically 0.50% to 1.5%$50,00012-18%$914 million
  • Real Estate
  • Individual deals
 Yes

First National Realty Partners (FNRP) is a real estate investment open only to accredited investors. It is a platform that enables investors to increase their wealth by investing in grocery-anchored commercial real estate. First National Realty Partners (FNRP) was founded in 2015. It is based in New Jersey. Opportunity Funds or Individual properties are available for investment. The holding period for the Opportunity Fund ranges from three to seven years.

Pros

  • It offers property acquisition criteria that are clear and consistent
  • Grocery chains and tenant relationships with major retail
  • It supports simple diversification of fund option

Cons

  • The minimum investment is relatively high
  • Available to accredited investors only
  • The website can be difficult to navigate

Get Started With First National Realty Partners

Conclusion

Hopefully, with all the information in this article, you can make a well-informed decision about the best Real Estate Crowdfunding platform for you.

Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. After working many years in the website marketing industry, he decided to take on blogging full time and also get his finances headed in the right direction. He has been blogging at ModestMoney since 2012. Also check out his contributions to Equities.com and Benzinga.

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