5 Best Real Estate Crowdfunding Investment Platforms:
Real estate crowdfunding has transformed the real estate investing landscape. Once reserved for only the most affluent investors, many crowdfunding platforms have significantly lowered the barrier to entry for this type of alternative investment.
What’s the difference between these platforms and REITs?
Real estate investment trusts are companies that own real estate, such as hotels, malls, shopping centers, or rental properties. Publicly traded REITs can be purchased through a brokerage just like individual stocks or mutual funds.
Real estate crowdfunding platforms, on the other hand, pool funds together to let average investors participate in the real estate market through private REITs — which aren’t available through traditional brokerages — as well as private market real estate investments, like individual properties. These could potentially provide higher returns than the REITs available through traditional brokerages, but they may also carry higher risks.
Ready to get started? Below are our top picks for the best real estate crowdfunding platforms based on several factors, including account minimums, customer support, redemption options, fees, and more.
Best Real Estate Crowdfunding Investment Platforms
1. Fundrise
Fundrise is an online real estate company that lets average investors buy into private commercial and residential properties by pooling their assets through an investment platform. The company offers eREITS, or real estate funds that don’t trade on a public exchange.
Pros
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Low minimum investment.
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Open to all investors.
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Easy-to-use website.
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IRA accounts are available.
Cons
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Highly illiquid investment.
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Fees can be difficult to understand.
- Complex investments that require investor due diligence.
2. RealtyMogul
RealtyMogul offers investments for accredited and nonaccredited investors alike, but the complexity of its offerings — particularly when it comes to fees and liquidity — may turn off those who dislike reading the fine print.
Pros
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REIT products are open to nonaccredited investors.
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REIT buyback program can add liquidity.
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High targeted rates of return.
Cons
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High investment minimums.
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Complex fee structures vary by investment.
- Relatively short track record.
3. Yieldstreet
Yieldstreet allows investors to participate in crowdfunding for a wide array of alternative investments, including real estate, commercial, legal, and art. The platform is open only to accredited investors.
Pros
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Access to real estate, commercial, marine, legal, and art investments.
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The ability for individuals to invest in privately structured credit deals.
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Investments backed by assets may provide some protection in event of default.
Cons
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Highly illiquid investments.
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Most investments are open only to accredited investors.
- Limited offerings are available.
4. EquityMultiple
EquityMultiple blends crowdfunding with a more traditional real estate investing approach that can lead to high returns. Unfortunately, it’s only available to accredited investors.
Pros
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Access to commercial real estate investments.
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Easy-to-use website.
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Possible high rates of return.
Cons
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Only open to accredited investors.
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High investment minimum.
- A complex fee structure that varies by investment.
5 CrowdStreet
CrowdStreet provides a convenient platform for accredited investors to add commercial real estate projects to their portfolios. But investors should do their own due diligence and be prepared to leave their money locked up for years at a time.
Pros
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Access to commercial real estate deals,5 Best Real Estate Crowdfunding Investment Platforms of October 2022.
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Potential to earn passive income.
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Easy-to-use website.
Cons
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Highly illiquid investments,5 Best Real Estate Crowdfunding Investment Platforms of October 2022.
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Steep minimum investment,5 Best Real Estate Crowdfunding Investment Platforms of October 2022
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Available only to accredited investors,5 Best Real Estate Crowdfunding Investment Platforms of October 2022.