Top 10 Real Estate Crowdfunding Platforms

Real estate crowdfunding has revolutionized the way investors access investment opportunities in commercial and residential properties. This article identifies and ranks the top 10 real estate crowdfunding platforms based on available data for each platform. We dig deep into how they work so that you can get an idea of which platform is best-suited to your options as a savvy investor.

Fundrise

Fundrise is an online real estate investment platform that allows users to invest in commercial and residential properties without the hassle of traditional real estate investing.

Pros include low minimums, no fees for investors, and a wide variety of investments available. Cons include limited liquidity options and lack of transparency regarding certain aspects of their investments. Minimums are as low as $500 with no additional fees for investors, making it one of the most accessible platforms on the market today. Fundrise also offers a wide range of investments from single family homes to large-scale commercial projects.

Crowdstreet

Crowdstreet is an online real estate investment platform that allows investors to access a variety of commercial real estate investments, including office buildings, retail centers, and multifamily properties.

The minimum investment amount for each offering varies depending on the project but typically ranges from $25K-$100K. Crowdstreet charges a 1% annual asset management fee plus any additional fees associated with the specific property or fund being invested in. The platform also offers educational resources such as webinars and white papers to help investors understand their options better before investing. On the downside, there are limited opportunities available at any given time so it may be difficult to find suitable investments quickly.

YieldStreet

YieldStreet is an online investment platform that offers access to alternative investments with low minimums and competitive returns. YieldStreet provides investors with a variety of asset classes, including real estate, litigation finance, marine finance, and art finance.

The main advantages of investing through YieldStreet are the low minimums (as little as $1,000) and the potential for higher yields than traditional investments. Additionally, YieldStreet has no management fees or hidden costs associated with their services. On the downside, some of their offerings may be too risky for conservative investors due to their illiquid nature and lack of transparency in terms of underlying assets. Furthermore, there are certain fees associated with each investment such as origination fees which can reduce overall returns.

Roofstock

Roofstock is an online marketplace for single-family rental homes that provides investors with access to a wide selection of properties and the ability to purchase them remotely.

The platform offers a variety of benefits, including low minimums (as little as $10,000) and no hidden fees or commissions. Additionally, Roofstock's proprietary analytics tools allow users to quickly assess potential investments and make informed decisions about their portfolios. On the downside, some investors may find the platform's pricing structure somewhat expensive compared to other options in the market. Furthermore, while Roofstock does offer support services such as property management referrals and tenant screening services, these are not included in its basic package.

Cadre

Cadre is an online investment platform that provides access to institutional-quality real estate investments for accredited investors. Cadre offers a variety of opportunities, including direct ownership in properties and funds managed by experienced operators.

The main benefit of investing with Cadre is the ability to diversify your portfolio into high-yield real estate investments without having to manage them yourself. The minimum investment amount varies depending on the type of asset you are interested in, but it typically ranges from $50K-$250K. Additionally, there are no fees associated with using their platform; however, some investments may have additional costs such as management or performance fees.

PeerStreet

PeerStreet is an online investment platform that allows investors to purchase fractional shares of real estate debt investments, such as residential and commercial bridge loans, fix-and-flip loans, and rental property loans.

The main advantages of PeerStreet are its low minimums (investors can start with just $1,000) and competitive fees (0.25% for loan origination). On the downside, PeerStreet does not offer any tax benefits or direct ownership in properties like traditional real estate investing does. Additionally, there is a 1% servicing fee on all investments which can add up over time.

RealtyShares

RealtyShares is an online real estate investment platform that allows investors to invest in pre-vetted commercial and residential properties across the United States.

The minimum investment amount for RealtyShares is $5,000 per deal, which can be a bit high for some investors. Additionally, there are fees associated with investing on the platform including closing costs, management fees, and other miscellaneous expenses. On the plus side, RealtyShares offers a wide variety of deals from different asset classes such as multifamily apartments and office buildings so investors have plenty of options to choose from when it comes to diversifying their portfolio.

AcreTrader

AcreTrader is an online platform that allows investors to purchase shares in farmland and earn passive income from rental payments. The company was founded in 2018 with the mission of making it easier for people to invest in agricultural land.

The main benefit of AcreTrader is its low minimum investment requirement, which starts at just $5,000. This makes it a great option for those who don't have a lot of capital but still want to diversify their portfolio into real estate investments. Additionally, there are no management fees or hidden costs associated with investing through AcreTrader; all you pay is the initial purchase price plus closing costs when you buy a property. On the downside, returns can be unpredictable since they depend on factors such as weather conditions and crop yields.

Realty Mogul

Realty Mogul is an online real estate investment platform that allows users to invest in commercial and residential properties across the United States. It provides investors with access to a variety of deals, including debt investments, equity investments, and crowdfunding opportunities.

The minimum investment amount for Realty Mogul is $5,000 per deal or $10,000 for a portfolio of multiple deals. The company charges a 1% annual asset management fee on all invested capital plus any additional fees associated with each individual deal. On the positive side, Realty Mogul offers diversified portfolios which can help reduce risk as well as educational resources such as webinars and articles about investing in real estate. However, it does not offer fractional shares so investors must commit large amounts of money upfront.

Groundfloor

Groundfloor is an investment platform that allows investors to invest in real estate projects with as little as $10. It provides access to high-yield, short-term investments backed by real estate and offers a variety of loan types for both residential and commercial properties.

The main benefit of Groundfloor is its low minimums, allowing investors to start investing with just $10. Additionally, the platform has no fees or commissions on investments made through it. On the downside, there are limited options available compared to other platforms and some states have restrictions on who can use the service due to local regulations. Furthermore, returns may be lower than those offered by other platforms since they are typically shorter term loans.