13 Best Real Estate Crowdfunding Platforms For Investments

Real estate crowdfunding is worth exploring if you want to diversify your investment portfolio with single-family or commercial real estate.

By allowing investors to pool their money and share the ownership of a property or a portfolio, real estate crowdfunding opens up new opportunities for people to get involved in the real estate market.

Our post will take a closer look at the various real estate crowdfunding platforms and tell you how to start investing in real estate.

Quick Picks

Real estate investing doesn’t have to be rocket science! It can be as simple as using the best and more informative real estate platforms.

Here is our short list of the best real estate crowdfunding platforms we’ve reviewed:

Lowest Minimum Investment – Fundrise
Best For Accredited Account – RoofStock One
Best For Rental Property – ArrivedHomes
Most Portfolio Diversity – Yieldstreet

Best Real Estate Crowdfunding

1. Fundrise

Minimum Investment: $10 (Starter level)

Accredited Only?: No

Fundrise is one of the best real estate crowdfunding platforms that allows any type of investor to build wealth by investing in real estate.

The five tiers are Starter, Core, Advanced, Pro, and Premium. Each tier offers increasing access and control over where your money is invested. 

With every account type, your money goes towards projects pre-vetted for potential returns.

When you choose Fundrise, all the legwork in finding an investment opportunity will already be done for you.

You also have a lot of diversity among investment options- from single-family homes to multi-family apartments to commercial real estate investments like retail spaces and more.

Our Fundrise Review is a great way to learn more about investing with Fundrise. With our review, you can get an idea of what it’s like to invest with them.

Pros:

Lower minimum investment – $10
Wide variety of real estate investment options
Don’t have to be an accredited investor

Cons:

It may take 3 to 5 years to see any investment returns
The asset management fee (0.85%) is higher than other platform management fees

2. ArrivedHomes

Minimum Investment: $100

Accredited Only?: No

ArrivedHomes is a crowdfunding platform that allows people who aren’t accredited investors to buy shares in rental properties.

They have made it easy for real estate investors to earn passive income from rental properties while doing less of the managerial work themselves.

Arrived Homes is unique because the company takes care of all aspects of managing the rental properties- from finding tenants and collecting rent payments to performing regular maintenance and repairs.

Having a property manager makes it easier for investors who don’t have the time or resources to manage investment properties themselves.

Investors collect quarterly dividends from their investment properties while waiting for the asset value to increase over time.  

Our ArrivedHomes Review is an in-depth look at the process of everyday investors buying residential properties.

By reading our review, you can learn more about their services and make an informed decision about buying a rental property.

Pros:

Affordable investment minimum
Long-term rental and short-term rental properties are available to invest in
Homes are purchased through an LLC, so there is no personal liability to investors.
Each of the properties has been put through a thorough vetting
Available to non-accredited investors
ArriveHomes handles selling the property at a later date

Cons:

It may take five to seven years to sell the investment property
No secondary market to sell your shares in Arrived Homes property

3. Yieldstreet

Minimum Investment: $10,000; Short-Term Notes and Yieldstreet Prism Fund: $5,000

Accredited Only?: Yes, except for Prism Fund

For investors looking to diversify their holdings beyond the stock market, the real estate crowdfunding platform, Yieldstreet, provides a unique opportunity for alternative investments.

It’s one of the best real estate crowdfunding platforms that offers a broad portfolio that can help individual investors grow their wealth for the long term.

Yieldstreet makes investing easy with its suite of tools that help investors analyze potential investments quickly and accurately.

Yieldstreet also features unique products like the Yieldstreet Prism Fund. The Prism fund also invests across multiple asset classes, including art, commercial, consumer, legal, real estate, and more.

To start investing in the Prism Fund, there is a minimum investment of $5,000, and it’s open to accredited and non-accredited investors.

Another reason Yieldstreet is one of the best real estate crowdfunding platforms is the security it provides to investments. All transactions are secured by bank-level encryption technology and monitored 24/7 for suspicious activity.

Our Yieldstreet Review can help you learn more about the company and its services, including details on management fees and their unique approach to real estate investing.

Pros:

Diversified investments with a variety of asset classes to choose from
Potentially higher returns than traditional investments
Individual investors can invest in privately structured credit deals

Cons:

A non-accredited investor can only invest in the Prism Fund
A secondary market doesn’t exist on Yieldstreet
Real estate investments are long-term commitments, and they lack liquidity

4. Roofstock

Minimum Investment: $5,000

Accredited Only?: No

RoofStock simplifies investments by providing an online platform that connects buyers interested in single-family rental properties.

They have a team of professionals who specialize in conducting due diligence on each property and provide a detailed property report to ensure investors make informed decisions.

Roofstock’s experienced property managers also handle all aspects of day-to-day management operations, such as tenant screening, rent collection, maintenance, and more. 

Users can complete their purchases online without attending meetings or visiting offices, allowing buyers to save time and money while quickly and efficiently accessing quality investments.

Knowing experts are assisting them throughout the process makes it easier for investors to invest confidently and be hands-off.

Our Roofstock Review can provide insight into the features and benefits of the real estate crowdfunding site. We help you compare this investment to other real estate investment platforms, including management fees and more.

Pros:

Numerous ownership structures to invest in, each with unique advantages investors can capitalize on
Property managers can expertly oversee and monitor your investments to maximize your return
An IRA investment option is available

Cons:

Minimum period for investment is five years
Roofstock One is only available to accredited investors
No mobile app

5. Peerstreet

Minimum Investment: $100

Accredited Only?: Yes

PeerStreet is a secure and reliable online marketplace that allows investors to invest in private real estate loans.

All of the loans are carefully vetted and monitored by the PeerStreet team, providing investors with peace of mind that their investments are being handled responsibly.

PeerStreet specializes in residential debt, offering investors a chance to invest in single-family projects, including homes and storefronts.

However, they also get the occasional condo building or other multi-family real estate crowdfunding projects.

Additionally, people can invest in multiple locations, with different lenders and borrowers, in different asset classes, with different terms, loan-to-value ratios, and rates.

The team at PeerStreet has created an intuitive user experience that makes it easier than ever for investors to access high-quality real estate investments.

From setting up an account to researching potential investments and monitoring returns on existing loans – everything can be done quickly and safely on the platform’s website or mobile app.

Pros:

Low minimum investment
Offers short-term investments – 6 to 36 months
Choose to invest manually or opt for automated investing

Cons:

Only available to accredited investors

6. RealtyMogul

Minimum Investment: $5,000

Accredited Only?: No

RealtyMogul is a different kind of real estate crowdfunding space.

It gives investors a chance to invest in good real estate investing that they might not be able to get otherwise, especially multi-family properties in markets that are doing well.

What makes RealtyMogul different from other investment platforms is that it’s committed to making commercial property accessible to everyone.

It offers direct investments in multi-family properties, Real Estate Investment Trusts (REITs), and other institutional-grade investments – even non-accredited investors can participate.

Experts rigorously vet all its properties, and the team is always available to provide personalized service and support when needed for real estate crowdfunding deals. 

Pros:

Easily find the perfect property, complete all legal paperwork and track your portfolio progress with RealtyMogul’s user-friendly platform
All properties go through a careful check by RealtyMogul before they are listed
Automated investing is available

Cons:

Exclusively accessible to accredited investors
Doesn’t provide portfolio management services

7. Crowdstreet

Minimum Investment: $25,000

Accredited Only?: Yes

CrowdStreet is an ideal solution for accredited investors looking to access the potential of commercial real estate investing.

The CrowdStreet Marketplace is where you can invest in different types, like multi-family homes, retail stores, office buildings, industrial buildings, and land.

With CrowdStreet, investors can choose between managed portfolios or direct access to individual deals.

Each investment option is tailored to meet individual criteria and comes with full transparency so investors can make more informed decisions.

Pros:

Investment details are easily found on the Crowdstreet website
The website is easy to navigate
You can decide on a particular investment or one that an experienced advisor manages
Investors can contact customer support by chat

Cons:

Available for accredited investors only
High minimum of $25,000
Investment funds can’t be withdrawn early

8. EquityMultiple

Minimum Investment: $5,000

Accredited Only?: Yes

EquityMultiple is one of the real estate crowdfunding sites that offers investors access to various real estate investing deals.

That includes equity, institutional commercial real estate, preferred equity, and senior debt investments.

The firm typically looks for large-scale developments such as industrial warehouses, multi-family housing complexes, and mixed-use properties.

EquityMultiple performs financial analysis and verifies property values before making any investments or loans to real estate developers as part of its due diligence process to help ensure that each project has adequate security for its funds. 

The platform’s deals are backed by Mission Capital, an established national advisory firm that helps source new deals.

EquityMultiple has also added unique tax-advantaged products such as Opportunity Zone and 1031 exchange investments to its portfolio and fund products.

By leveraging its extensive network of lenders and advisers, EquityMultiple can source deals that focus on institutional commercial properties worldwide.

Pros:

Offers debt and equity investments on institutional commercial real estate investing deals
Platform is easy-to-use
The possible rates of return are high
Distributions from investments usually occur monthly or quarterly

Cons:

Accredited investors are the only ones who can invest
The investement minimums are high
Varied fees depend on the type of investment

9. Cityfunds

Minimum Investment: $250

Accredited Only?: No

Nada, a fintech platform based in Dallas, is working to make property wealth accessible to everyone through Cityfunds real estate crowdfunding platform.

Nada’s Cityfunds are groundbreaking for the real estate industry – they’re the first index-like fund of their kind, providing investors with direct access to a single city’s residential market investment offerings.

Cityfunds, index-like real estate investment products offered by Nada, all accredited and non-accredited investors to buy into home equity markets in cities across the U.S. with a minimum of $250.

Nada currently has investable Cityfunds in the Dallas, Austin, Tampa, and Miami markets and plans to expand its product offering with six more funds over the next 12 months.

Beyond providing real estate investment opportunities for everyone, Nada Cityfunds also plans to give homeowners a chance to spend their home equity on everyday expenses with a real-estate-backed debit card.

Pros:

Open to non-accredited investors
Low investment minimums of $250
Can buy fractional shares of the home equity market

Cons:

Only available in specific markets
The company is relatively new
The secondary market for Nada Cityfunds has yet to be created at the time of this writing

10. CityVest

Minimum Investment: $10,000

Accredited Only?: Yes

CityVest is an online real estate investment platform that allows small and medium-sized investors to access opportunities that typically have high minimum requirements. 

The company does this by gathering the contributions of multiple investors into a single fund, which is large enough to meet the minimum requirements of top institutional private equity real estate investment funds. 

When investing through CityVest, individuals don’t directly invest in real estate funds. Instead, they invest in a management company run by CityVest.

The CityVest management company invests these funds in carefully selected development projects and opportunities. When these investments generate income, it is distributed to CityVest investors every quarter.

Pros:

High-performance real estate funds available
Can see investment opportunities without registering
CityVest vests investment opportunities intensely
Investment earnings are distributed quarterly

Cons:

Accessible exclusively to accredited investors
Less available fund options

11. HoneyBricks

Minimum Investment: $1,000

Accredited Only?: Yes

HoneyBricks is a platform that helps accredited investors access commercial real estate opportunities at a low cost.

 By investing a minimum of $1,000, investors can join the Polygon Network and access real estate projects that are managed to maximize value. 

The Polygon Network also helps to reduce transaction fees. Investors can earn rewards of up to $500 by participating in certain activities on the platform.

When it comes time to receive distributions from their investments, investors can receive payment in any supported cryptocurrency.

HoneyBricks also manages the investments to ensure the properties are used to their full potential. After a 12-month holding period, investors can also sell their tokens to other interested parties.

Pros:

Opening an account is fast and easy – get signed up in a flash in just two minutes
Get access to commercial investments that aren’t available to most people
Securities and Exchange Commission compliant
New blockchain technology makes transaction costs low
HoneyBricks manages the investment properties

Cons:

The track record of blockchain technology in real estate is limited
It is only available to accredited investors
There’s a risk of new regulatory rules

12. Alpha Investing

Minimum Investment: $25,000

Accredited Only?: Yes

Alpha Investing’s personalized concierge service gives accredited investors a one-of-a-kind experience.

This unique program allows you to access real estate crowdfunding opportunities and has a private manager to provide exclusive guidance.

Not only that, but you will also be able to directly communicate with a principal at the firm for customized attention tailored just for you!

It’s worth noting that Alpha Investing is only open to an accredited investor and requires a phone interview before an investment can be made.

Not all applicants are approved, so it’s essential to make sure you meet the requirements before requesting an interview.

Pros:

Have your private manager
Can communicate with a principal at Alpha Investing
Properties go through a due diligence vetting before they are bought

Cons:

Open to accredited investor only
Requires a phone interview

13. First National Realty Partners

Minimum investment: $50,000

Accredited investors: Yes

First National Realty Partners allows accredited investors to invest in high-performing, nationally-branded commercial properties anchored by grocery stores across the United States. 

They offer institutional-quality properties anchored by well-known national brands such as ShopRite, Kroger, Publix, Lowe’s, Walmart, Dollar Tree, and Aldi. 

These properties are valued below their replacement cost. Valuing the properties below their replacement cost allows them to develop exit strategies through sale or refinance within a 3 to 5-year period. 

Alternatively, investors can choose to invest in the real estate fund, Opportunity Fund. It has an investing minimum of $50K and guarantees placement in the offerings.

Pros:

Anchor tenants are in every property offered
The K-1 allows you to take depreciation on your taxes
Produces an annual cash flow

Cons:

Only a limited number of opportunities to invest
Open to accredited investors only
The minimums for investment are very high
The hold period for most properties is over 5 years

FAQs

How does crowdfunding work?

Real estate crowdfunding allows investors, whether they’re a non-accredited or accredited investor, to invest in the real estate market by joining forces with other retail investors.

Investors can browse and choose various real estate projects on real estate crowdfunding sites, such as a new commercial building or renovating an existing residential property.

After selecting a project, the platform handles the investment process and distributes funds to the developer. Investors receive a share of the profits when the project is sold or generates income.

How much money do I need to invest in real estate?

The amount of money required to invest can vary widely depending on the type of investment you are interested in.

With Fundrise, you can invest for only $10 in fractional shares. However, some sites like RoofStock start at $5,000 and increase for more intensive or large projects.

Some people decide they can invest $1,000 now and again, and others decide to put down hundreds of thousands to make more from real estate projects.

For example, suppose you are looking to purchase a rental property. In that case, you will need enough money to cover the property’s purchase price, closing costs, and necessary repairs or renovations.

Suppose you are interested in investing in properties through one of the real estate crowdfunding sites. The minimum amount will depend on the specific platform and the individual projects offered.

It’s also possible to invest through a real estate investment trust (REIT), which are diversified portfolios of private real estate assets, or by purchasing shares of a publicly traded company.

How much money can I earn from real estate investments?

We’ve seen some articles posting that real estate investors make $74,000+ a year with their portfolios, but in my experience, it always comes down to what investments you make!

The amount of money you’d make depends on various factors, including the type of investment, the property’s location, and the property’s condition.

Common private real estate investments include rental properties, flipping houses, and real estate crowdfunding. These can make you anywhere from $20K – $60K a year.

The rental income from your rental property creates a passive income stream, but how much you earn depends on what you charge.

Real estate crowdfunding can also be a source of income, as investors receive a share of the profits when the project is sold or generates income.

The potential returns from real estate crowdfunding options will depend on the specific project and the terms of the investment.

What benefits are there to using crowdfunding platforms instead of regular investment options?

Crowdfunding platforms offer several benefits when compared to other investment options.

Access to a broader pool of investors: Crowdfunding platforms allow entrepreneurs to access a large pool of potential investors, including individuals and organizations that may not have been accessible through traditional channels.
Less initial capital: Crowdfunding platforms tend to require less initial capital, allowing entrepreneurs and small businesses access to needed funds even if they don’t have the financial resources needed for other investments.
Increased transparency: Crowdfunding campaigns provide a high level of transparency, as all campaign details, including the funding goal and use of funds, are typically shared with potential investors.
Opportunity to build a community: Crowdfunding campaigns can effectively build a community of supporters and advocates for a company or product. This can be especially valuable for companies looking to build loyal customers.

Final Thoughts

Real estate crowdfunding is an attractive option for investors looking to diversify investment portfolios and access high-value investing opportunities.

By pooling capital from multiple investors, each investor can acquire a stake in more substantial ventures than if they were to invest independently.

Different real estate crowdfunding platforms offer flexibility, liquidity, and risk exposure for reasonable fees.

Fundrise is one of the best real estate crowdfunding sites available today, and each provides investors with high-quality investment opportunities and professional services.

Whether you’re looking for a long-term hold or short-term gains, real estate crowdfunding can help you reach your financial goals.