If your investment goals involve expanding your portfolio beyond the stock market then you might find yourself considering getting started with real estate investing!
Of course, not everyone is interested in purchasing a rental property for passive income, and the real estate market itself can be quite competitive (further serving as a deterrent). Fortunately, potential investors have another option: using a real estate crowdfunding platform!
Below, we’ve gathered platforms from the top crowdfunding real estate reviews that you should consider if you’re looking into these types of portfolio investments. Tons of real estate investors have already started building their portfolio of properties: today’s your time to shine! non-accredited investors
That said, a real estate crowdfunding investment isn’t a term that all investors are familiar with, so—before we go any further—let’s go over what that term actually means.
What is Crowdfunding Real Estate?
Crowdfunded real estate investments are types of investments funded by multiple everyday investors. With this approach, a real estate project can achieve funding without needing to rely on traditional financing options (such as bank loans).
As you might expect, each real estate crowdfunding investment is a little different. Some may have higher investor requirements, such as requiring prospective investors to be accredited. Others may accept both accredited and non-accredited investors.
Some real estate deals require retail investors to commit to the entire investment lifecycle; others do not. Initial investment minimum requirements also vary.
Fortunately, most investment options will disclose this information transparently, making it easy to know what you’re getting into before you take advantage of any potential investment opportunities.
Generally, a real estate crowdfunding site will offer individual deals as one of two types of investments: an equity investment or a debt investment.
With equity investments, investors become partial owners of the properties of projects, which entitles them to a share of the profits. Investment performance is directly tied to project performance, making it hard to anticipate the annual return for this type of investment.
With debt investments, retail investors serve as lenders. They will earn interest on their investment(s) and receive payments over time. This approach can offer lower returns, but it makes the annual income of your investment decisions much more predictable.
Now that you’re familiar with the different types of investments you can add to your real estate portfolio, let’s take a look at the top-rated real estate platforms!
Yieldstreet offers investment opportunities to both accredited and non-accredited investors, although it has a minimum investment requirement of $5,000. Using the Yieldstreet Prism Fund, investors can instantly diversify their portfolio with a single investment!
If you’d prefer to make individual investments, the investing minimum rises to $10k. However, Yieldstreet offers many more alternative investment options than just real estate properties, with private credit, art, and transportation all being potential investments.
If your preferred portfolio consists of commercial properties (such as apartment buildings or multifamily properties), then RealtyMogul is definitely a strong contender!
This A+ BBB-rated business offers REITs for non-accredited investors; accredited investors can choose which individual property (or properties) they wish to invest in.
Unlike many other platforms, RealtyMogul actually offers a buyback program, which makes for a safer investment for investors. That said, there are limitations and time restrictions you’ll want to be aware of.
The average return on this platform varies widely but offers high potential returns for more experienced investors willing to do the research beforehand. You can check out all of the current offerings by clicking here.
For the individual investor who can afford the minimum investment of $25k and meets the required investor status, CrowdStreet is one of the best real estate companies to build your investment portfolio with.
Completely transparent and even offering educational resources for newer investors, each and every offer you’ll see on this website have already been vetted by the CrowdStreet team.
First National Realty Partners (4.9/5)
If you’re looking for a company with a track record of success, then First National Realty Partners (FNRP) is the company for you.
Focusing primarily on grocery-anchored commercial properties, this company requires an investing minimum of $50k for those who want to take advantage of its highly-successful investment strategy.
Your investment will be directed to a property of your choosing, which—in turn—will provide you with quarterly payments.
Rated 4.7/5 on Google, 4.11/5 by the BBB, and being BBB accredited (with an A+ rating on their website), we think that FNRP is an investment opportunity worth considering for those who can meet its high requirements.
Look Deeper Into Crowdfunding Real Estate Reviews
As you can see, you have a lot of different choices when it comes to selecting a real estate crowdfunding platform. While the companies we’ve mentioned above primarily focus on commercial properties, other options like residential properties or farmland investments are available as well.
Offering direct access to exclusive deals and potentially high returns, there’s no better time to get started with a real estate crowdfunding platform than today!