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This content is for informational purposes only and is not intended to provide financial advice.
Real estate investing has traditionally been locked behind a very high entry barrier. This is a type of investment that was accessible to only the most wealthy individuals or large corporations. This all changed in 2012 when the Jumpstart Our Business Startups Act created the equity crowdfunding industry in the US. This allowed smaller and non-accredited investors to pool resources together and access otherwise unreachable investments.
In this review, we will go over the 5 best real estate crowdfunding platforms available in the US for both accredited and non-accredited investors, and we’ll break down the benefits of each. Keep in mind this is a summary review; for more in-depth information, we’ve added a link to our full articles for each of these platforms, and you can check our best platforms for beginners here.
Without further ado, here are the best real estate crowdfunding platforms:
#1 Fundrise
Founded in 2010, Fundrise is a Washington-based investing company that focuses on real estate investments and the real estate sector as a whole. It was the first company to successfully step into this market using a crowdsourced approach by keeping initial investments very low ($10), allowing virtually anyone to gain exposure.
Since launching its first product in 2012, Fundrise has become a stalwart in the Real Estate market: As of early 2022, it has over 350,000 active investors and manages well over $1 billion worth of equities and assets.
Based on your initial investment, you will have access to additional features like customized portfolio strategies, priority access to a dedicated support team, and direct allocation of funds. There are 5 account types, starting with the Starter Account, which is unlocked after you deposit your first $10, and ending with the Premium account, unlocked after you deposit your first $100,000. We go over the benefits of each accounts on our full Fundrise review.
Features
- Very low minimum investment ($10)
- High yearly returns (From 8% to 16%)
- Available for accredited and non-accredited investors
- 5 Account tiers based on initial investment
- Strong focus on residential and commercial properties
- $25-$100 Fundrise welcome bonus
- Supports self-directed IRAs
- Access to customized portfolio strategies
- Regulated by the SEC
Fees
- Sales Commission: None
- Annual Advisory Fees: 0.15%/year
- Management Fees: 0.85%/year
#2 RealtyMogul
RealtyMogul is an institutional investment company based in Los Angeles, California, and it was launched in 2012 by Justin Hughes and Jilliene Helman. This platform is available for both accredited and non-accredited investors, and it uses a crowdfunding model with a somewhat high minimum investment of $5,000.
RealtyMogul facilitates networking by connecting investors with real estate investment opportunities, and one of its main goals is to bring transparency to the real estate industry. We go deeper into the pros and cons of RealtyMogul in this quick review.
As of 2021, RealtyMogul has over 200,000 active investors and $512 million in assets under management. Some of the investment opportunities available include residential, office, retail, and industrial properties. In total, there are over $5 billion worth of deals published on the platform.
Features
- $5,000 minimum investment
- Yearly returns ranging from 6% to 8%
- Available for accredited and non-accredited investors
- $100-$600 RealtyMogul welcome bonus
- Focus on residential, office, retail, and industrial properties
- Highly diversified investments
- Regularly audited by Cohn Reznick
- Monthly auto-investing starting at $250/month
Fees
- Management Fees: From 1% to 1.5% (additional fees may apply)
#3 CrowdStreet
CrowdStreet is a real Estate crowdfunding platform based in Austin, Texas. The main reason for co-founders Tore Steen and Darren Powderly to launch this platform was to offset the overreliance of investors on Wall Street when realizing investment opportunities. Since its inception in 2012, CrowdStreet has traded over $3 billion worth of real estate properties and investments, and completed over 656 deals.
CrowdStreet’s returns are some of the highest across real estate crowdfunding platforms, and, consequently, has a very steep investment entrance: this platform is only available for accredited investors willing to make an initial deposit of $25,000. After signing up, Investors will gain access to expertly-made REIT portfolios.
All assets are insured for up to $500,000, through CrowdStreet’s partnership with the Securities Investor Protection Corporation (SIPC).
Features
- $25,000 minimum investment
- High yearly returns ranging from 16.5% to 17.5%
- Available for accredited investors only
- $200 CrowdStreet welcome bonus
- Insured by the SIPC for up to $500,000
- Access to expertly-made diversified REIT portfolios
- Customer support available 24/7
Fees
- Management Fees: From 0.5% to 2.5% (additional fees may apply)
#4 DiversyFund
Based in San Diego, California, DiversyFund is a real estate investing platform that is available for both accredited and non-accredited investors. It was launched in 2014 as a direct competitor of some of the more established REIT investing platforms like Fundrise.
Like Fundrise, it pools funds from everyday investors, purchases properties (mainly institutional-quality multifamily assets), and pays out dividends. It also gives investors the option to reinvest their dividends automatically.
DiversyFund is more accessible than some of the other platforms listed here; for starters, its minimum investment is very affordable at $500, yearly returns are very competitive, and investments are focused on growth.
DiversyFund fees include management and developer fees and range from 4% to 8% of the total invested amount, paid when the property is liquidated; all in all, not too far off the industry standard. DiversyFund complies with all SEC regulations.
Features
- $500 minimum investment
- Yearly returns ranging from 11% to 16%
- Automatic reinvest option
- Available for accredited and non-accredited investors
- Focus on institutional-quality multifamily assets
Fees
- Management Fees: 2% of the total investment
- Developer Fees: From 2% to 4% of the total investment (additional fees may apply)
#5 PeerStreet
PeerStreet is a very unique real estate investing platform. Instead of investing directly in properties, PeerStreet invests in real estate debt. It works like this: PeerStreet puts up a loan for investment for a property. Investors can choose to take on the loan and receive monthly interest. PeerStreet takes from 0.25% to 1% of the total interest paid, which usually ranges from 2% to 9% of the total value of the property.
At its core, PeertStreet is an online marketplace. It lists only very high-quality private real estate loans, and it’s available for accredited investors only. Investors also have the option to diversify their portfolios automatically by setting parameters like location, asset classes, loan terms, loan to value (LTV) rates, and more.
Features
- $1,000 minimum investment
- Yearly returns ranging from 2% to 9%
- Available for accredited investors only
Fees
- Management Fees: 1% of the total interests paid
Conclusion
Based on data from the last 20 years, REITs have consistently outperformed most dividend stocks, and it’s likely the margin will increase. If you’re looking to start earning a regular income, Fundrise is a great way to do that while gaining exposure to the real estate sector as a whole. It has very low fees compared to all other platforms listed here. It is accessible by virtually anybody: you can get started with as little as $10, and there is no investor accreditation required. Fundrise has an excellent track record and is one of the most trusted platforms, with over 350,000 monthly investors.
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