Given the recent boom, interest and publicity around real estate crowdfunding sites, many firms – including many new startups and market entrants – are competing for your investment dollars. And no two platforms are created equal. Every site will offer its unique feature set, opportunities, potential return on investment and suite of tools to maintain and keep track of your investments. Remember, real estate crowdfunding is a relatively new form of investing. It pays to research, dive into user comments and feedback and weigh the pros and cons associated with each online vendor before investing. Here is a list of some popular or well-established sites that offer access to real estate crowdfunding opportunities:
Fundrise
Fundrise allows investors (even nonaccredited investors) to quickly get started with real estate crowdfunding and start buying into both residential and commercial properties by teaming up with other investors. The money you invest is pooled into REITs and used to purchase properties, buy land, develop real estate and pursue private real estate deals.
Its easy-to-use, intuitive website makes the online real estate investment process approachable. But keep in mind, the privately held investments Fundrise offers may be highly illiquid and largely appeal to long-term investors. Considering the speculative nature of these opportunities, it’s crucial to do your due diligence on any investments upfront.
RealtyMogul
RealtyMogul offers both nonaccredited and accredited investors access to commercial real estate investments and individual properties, including a variety of REITs that allow investors to spread their investment dollars across a range of real estate holdings.
Investment minimums hover around $5,000, and the fees can vary greatly among individual investment vehicles. If you’re looking for high rates of return, the real estate crowdfunding giant aims to deliver. It also offers accredited investors access to 1031 exchanges (investments that help you defer capital gains tax from property sales).
CrowdStreet
CrowdStreet is one of the more well-known real estate crowdfunding sites. It provides accredited investors with access to commercial real estate projects that aim to deliver high returns on investment. CrowdStreet also provides minimal due diligence for investors by conducting background and reference checks on developers soliciting financial contributions.
Whether you’re looking to invest in funds (which hold a variety of real estate projects) or individual properties, many offerings require a minimum investment of $25,000. Any money you invest may remain illiquid and sit untouched for several years.
Yieldstreet
If you’re looking to invest in a variety of privately structured deals backed by assets that help protect your principal (which may provide some small measure of assurance to prospective investors in the event of default) – Yieldstreet can help.
Largely targeted toward accredited investors, Yieldstreet offers a way to crowdfund real estate financing vehicles rather than own a part of residential or commercial property holdings. Nonaccredited investors who want to invest a minimum of $1,000 may find passive income-generating opportunities on the platform.
If you’re just looking to dip your toes into real estate crowdfunding, the site also offers investment opportunities that range from 6 months to 5 years.
EquityMultiple
Although a minimum investment of $5,000 is required, EquityMultiple (which aims to make real estate investing simple, transparent and more accessible to everyday investors) allows you to invest in privately managed commercial holdings. Real estate investment opportunities can include office spaces, assisted living facilities, hotels, data centers and more.
Open to accredited investors, minimum investments can range from $10,000 to $40,000 and range from 6 months to 10 years or more. If you’re a wealthy investor looking to increase your exposure to new opportunities and overall deal flow, EquityMultiple could be your first port of call.
