Real Estate Crowdfunding Platforms
Real estate crowdfunding offers a way for individual investors to invest in real estate. Some of the best real estate crowdfunding sites offer access to various kinds of investments, including debt and equity. However, selecting the right platform can help ensure successful returns.
RealtyMogul is one of the oldest and most reliable best crowdfunding platforms for real estate in the industry. This company uses proprietary models to screen deals for potential investors, so you can rest assured your investment will be secure. The company works with only real estate partners with a proven track record. It also has a low minimum investment, making it a great option for newbies.
Fundrise is a crowdsourced real estate investing platform that has grown to more than 330,000 users. It provides access to real estate investing through eFunds and iPOs, or “Investment Portfolios”. These diversified portfolios of private real estate assets in the United States have earned over $194 million in net dividends. They offer two types of funds for both seasoned and beginner investors.
7 Best Real Estate Crowdfunding Platforms
PeerStreet is a real estate crowdfunding site that offers access to institutional-quality offerings. The company has an excellent track record, having completed more than a billion dollars in real estate transactions. Most of their offerings are multi-family and retail spaces, but they also invest in single-family properties. The site is typically geared towards long-term investments, with loan durations of five years or more.
DiversyFund is another crowdfunded real estate investment opportunity. This company offers a wealth-building portfolio of commercial and residential properties without charging any administration fees or broker fees. The company acquires a portfolio of properties and divides earnings amongst its investors. To get started, you will need to make a $500 investment.
EquityMultiple is another platform offering a diversified portfolio of private real estate assets, and a number of ways to customize your investments. Their minimum isn’t too high, and their website shows that they have returned over $240.3 million to investors. But they do require that you have a certain amount of income, or a household net worth of at least $1 million.
Groundfloor is a best crowdfunding platforms for real estate site that focuses on rehabbed residential properties. You can either invest in a fund that pays monthly dividends, or you can invest in an opportunity zone. While these two options offer a lot of potential, they may not be suitable for a beginner.
Patch Lending (formerly known as Patch of Land) is a crowdfunding real estate investment site that aims to make it easy for all investors to participate. You can invest in a variety of funds, with minimums as low as $500. In addition, the site allows automatic rounding up of purchases, so you don’t have to worry about miscalculations.
Happy Nest, formerly known as Patch of Land, is another crowdfunding real estate site that makes it possible for everyday investors to get involved in commercial real estate. Although the website isn’t entirely transparent about fees per listing, the company targets an average return of 6%.