Real estate crowdfunding has made it possible for more people to invest in properties by pooling their money together. This method allows individuals to get into real estate investing with smaller amounts of money.
In the US, many crowdfunding platforms offer different options for investors. In this blog post, we’ll look at the top 10 real estate crowdfunding platforms in the US. We’ll discuss what each platform offers and why they might be a good choice for you.
What Does Mean By Real Estate Crowdfunding?
Real estate crowdfunding is a way for people to invest in property projects by contributing small amounts of money along with many other investors. Instead of needing a large sum to buy a property on your own, you can join others to fund real estate developments
With real estate crowdfunding, you can choose from a variety of projects listed on online platforms. These projects can range from residential homes to commercial buildings. You decide how much money you want to invest in a particular project, and your investment is pooled with contributions from other investors.
Popular Real Estate Crowdfunding Platforms in The USA
1. Fundrise
Fundrise stands out as an essential investment platform for beginners who are new to real estate investing.
Remarkably, you can start investing with as little as $10. With over 2,110,397 users following Fundrise for smarter investment strategies, it’s a go-to for those looking to make intelligent investment decisions with minimal initial capital.
Investment Model: Fundrise caters to both low-budget and no-budget investors, making it a versatile platform for various investment needs.
The platform’s investment structure comprises a Venture Ratio of 30.0% and a Real Estate Ratio of 70.0%, demonstrating a strong focus on real estate.
This balanced approach has elevated the investment experience for many, supporting everyone from small-scale investors to those with significant capital.
Market Presence: As the second-largest direct-to-consumer private market manager in America, Fundrise boasts a robust portfolio valued at over $7 billion.
It ranks as the 50th largest investment platform worldwide. From 2021 to 2022, Fundrise generated an impressive $1 billion annually, reflecting its significant impact on the investment landscape.
Fees
- Minimum investment: $10
Pros
- Budget-Friendly: Ideal for investors with limited funds.
- Support for All Investors: Welcomes both small and large investors.
- Variety of Plans: Offers numerous investment plans to suit different needs.
- User-Friendly: Known for its clear and easy-to-use platform.
- Quarterly Payments: Allows for a quarterly payment plan, adding flexibility.
Cons
- Limited Liquidity: This does not offer quarterly liquidity, which may be a drawback for some investors.
- Customer Service: Lacks direct phone support without an email request, which can be inconvenient.
Best For
- Beginners: Perfect for those new to real estate investing.
- Low Fees: Attractive to those looking to minimize costs.
- Overall Use: An excellent choice for a broad range of investors due to its comprehensive and accessible investment options.
2. DiversyFund
DiversyFund is an excellent choice for investors, providing an accessible entry point with a minimum investment of just $500.
The platform helps protect your portfolio from the volatility of the stock market by offering a diversified multifamily real estate portfolio.
Known for its past performance and future potential, DiversyFund helps investors earn passive income and build wealth through real estate.
Investment Model: DiversyFund goes beyond just being an investment platform; it breaks down barriers to high-quality investments, making it easier for people to secure their financial future through real estate.
The platform’s multifamily portfolio is valued at $220 million, offering significant potential for wealth creation through private investments.
With over 30,000 investors, DiversyFund provides simple paperwork and logistics, ensuring that your investments are secure and well-managed.
Investors can track their real estate investments easily and achieve their investment goals quickly. The platform also offers venture investments, making it a versatile and trusted option.
Fees
- Management fee: 2%
Pros
- Inclusive: Accepts non-accredited investors.
- Low Minimum Investment: Start investing with as little as $500.
- Strong Returns: Offers the potential for significant returns.
- Automated Income: Investments are passive and automated.
- Accessibility: Available on both desktop and mobile platforms.
Cons
- Limited Choices: Investment options are limited.
- Illiquidity: Investments are highly illiquid.
Best For
- Online Brokers: Ideal for stock trading brokers.
- Beginners: Great for those new to investing.
- IRA Accounts: Suitable for Individual Retirement Accounts (IRAs).
3. EquityMultiple
EquityMultiple is a premier investment platform tailored for accredited investors. With over 48,000 investors, it offers a sophisticated approach to real estate investing. The platform provides three distinct types of investments to help users diversify their portfolios:
- Keep: Focused on cash management tools for investors’ savings.
- Earn: Designed to generate near-term income.
- Grow: Aimed at long-term growth.
Investment Model: EquityMultiple blends commercial funding with traditional real estate investing, offering high-profit potential. The platform is known for its rigorous due diligence, accepting only about 5% of investments.
This meticulous approach ensures that investors receive the highest level of protection. EquityMultiple’s industry-leading asset management team works diligently to enhance profits and safeguard investor finances.
Fees
- Minimum initial investment: $5,000
- Minimum investment for three-year term: $10,000
Pros
- Wide Range of Investment Options: Offers a broad spectrum of investment opportunities.
- Comprehensive Details: Provides detailed information on all investment offers.
- Accessible Support: Easy to reach via chatbot, email, phone, and FAQ.
- Flexible Investment Ranges: Offers varied minimum investment amounts.
- Assorted Lock-Up Terms: Provides different lock-up terms to suit investor needs.
Cons
- No FDIC Insurance: Investments are not insured by the FDIC.
- Estimated Returns: Return target rates are projected and not guaranteed.
Best For
- Accredited Investors: Ideal for those who meet the criteria for accredited investors.
- Transparency: Excellent choice for investors seeking clear and detailed information.
4. PeerStreet
PeerStreet is a transparent and highly regarded real estate investment platform. It allows investors to start with as little as $1,000, making it accessible to a broader audience.
PeerStreet specializes in providing access to high-yield, short-term loans, and simplifying debt investing for its users.
Investors can rely on PeerStreet to manage the intricacies of real estate investments, collect payments, and pay monthly interest on real estate loans.
Investment Model: PeerStreet operates on a powerful platform technology that supports a diverse range of products. It is the first and largest two-sided marketplace for real estate investments, continually improving to meet investor needs.
The platform enables investments that align with investor goals, providing detailed data points to ensure transparency and maximize returns. Investors earn a 4.00% interest rate on cash, making it an attractive option for those seeking fixed-income returns.
Fees
- Minimum investment: $1,000
Pros
- Low Minimum Investment: Requires only $1,000 to start investing.
- Diversification Opportunities: Allows for a diversified investment portfolio.
- Short-Term Maturity: Offers investments with short-term maturity.
- Fixed-Income Returns: Provides steady, fixed-income returns to investors.
- Easy Investment Process: Features one-click deposit, investment, and earning.
Cons
- Investor Complaints: There have been numerous complaints from investors.
- Illiquidity: Investments are non-liquid assets.
Best For
- Accredited Investors: Ideal for accredited investors looking for low minimum investments.
- Automatic Investment: Suitable for those who prefer automated investment processes.
- Diversified Loan Portfolio: Great for investors seeking a diversified real estate loan portfolio with a small amount of money.
5. YieldStreet
YieldStreet, based in New York, is a platform that provides access to a wide range of alternative investments, including real estate, legal cases, and art.
Founded in 2015, YieldStreet opens its doors to both accredited and non-accredited investors, with a minimum investment requirement of $10,000.
This platform aims to expand access to private market investment products, allowing a diverse group of investors to participate.
Investment Model: YieldStreet focuses on offering diversified alternative investments, enabling investors to include debt and equity positions in their portfolios.
The platform is committed to selecting highly scrutinized investment managers to ensure quality and reliability.
By offering a variety of accounts and maintaining an equitable fee structure, starting at 0.00% for notes, YieldStreet aims to provide a fair and transparent investment experience.
Pros
- Diverse Investment Options: Provides a variety of alternative investment opportunities.
- Experienced Managers: Selects investment managers with thorough vetting.
- Fair Fee Structure: Features an equitable fee structure, with some fees starting at 0.00%.
- Multiple Account Types: Offers numerous accounts to cater to different investor needs.
Cons
- Variable Investments: The number and types of investments available can change over time.
- Limited Availability: Not available to investors in Nebraska or North Dakota.
Fees
- Minimum investment: $10,000
Best For
- Alternative Investment Selection: Ideal for those looking to diversify their portfolio with alternative investments.
6. CityFunds
CityFunds is a top alternative investment platform that offers a diverse portfolio of home equity investments.
It opens the home equity market to both homeowners and real estate investors through diversified portfolios, allowing investments to start with as little as $500.
Investment Model: CityFunds has made this asset class accessible to individuals, offering various markets for investments including Yield, Dallas, Miami, Tampa, Austin, Los Angeles, Houston, Denver, Phoenix, and Nashville.
The platform provides a way for people to build wealth through real estate investments. By holding these investments, individuals can enjoy the benefits of investor returns and make real estate investing a part of their everyday lives.
Pros
- Investing with Homeowners: Allows for investments alongside homeowners.
- Market Discounts: Offers a 10-15% discount to market value.
- Easy Trading: Enables investors to buy and share trades directly from the app.
- Inclusive: Open to non-accredited investors.
Cons
- US Residents Only: Available exclusively to US residents.
- No Monthly Passive Income: Not suitable for those seeking monthly passive income through rental returns.
Fees
- Minimum investment: $100
Best For
- Accredited and Non-Accredited Investors: Ideal for both accredited and non-accredited investors looking to diversify their real estate portfolios.
7. CrowdStreet
CrowdStreet is a prominent real estate investment platform that offers a straightforward investment process for its users. With 329,000 registered members, CrowdStreet has facilitated $4.3 billion in investments and funded over 790 deals.
The platform is dedicated to helping private investors access real estate opportunities across the country.
Investment Model: CrowdStreet partners with experienced commercial real estate (CRE) firms from across the United States, providing a variety of investment opportunities.
The platform covers a wide range of geographies, risk profiles, and asset classes, ensuring a comprehensive selection for investors.
CrowdStreet conducts a thorough screening and due diligence process for each deal, ensuring that only the best opportunities are presented.
Platform Features: Investors can explore regularly updated investment deals on the CrowdStreet marketplace. The platform offers live Q&A sessions to address investor concerns and provides detailed information pages for each deal.
CrowdStreet’s professional team is committed to making investors more confident and knowledgeable. The platform also provides tools and services available 24/7 to assist investors.
Best For
- Certified Investors: Ideal for accredited investors.
- Risk-Tolerant Investors: Suitable for those willing to take on higher risks.
- Long-Term Investors: Great for investors ready to commit their money for at least a year.
Pros
- User-Friendly: Easy to navigate and use.
- Access to Commercial Real Estate: Offers direct access to commercial real estate investments.
- Potential Earnings: Provides opportunities for significant returns.
Cons
- Accredited Investors Only: Restricted to certified investors.
- Illiquid Investments: Investments are highly illiquid.
8. RealtyMogul
RealtyMogul is a prominent real estate investment platform known for its extensive private market offerings. Since its inception on March 31, 2024, RealtyMogul has attracted over 280,000 members and facilitated $1.1 billion in capital investments.
The platform hosts properties valued at $7 billion, providing investors with clear and comprehensive information to make informed decisions and track their financial plans.
Investment Model: RealtyMogul offers a robust investment program where investors can access a wide range of real estate projects.
The platform is designed to assist investors in making personal investment decisions and tracking their progress. Investors can also ask questions and get solutions to their problems through the platform’s support system.
Pros
- Detailed Information: Provides extensive details on investment opportunities.
- Inclusive Opportunities: REI funds offer investment options for non-accredited investors.
- Direct Access: Grants direct access to various real estate projects.
Cons
- High Fees: The platform’s fees are relatively high.
- IRA Investments: Investing through an IRA can be challenging.
Fees
- Minimum investment fee: $100
Best For
- Public REITs: Ideal for investors interested in public Real Estate Investment Trusts (REITs).
- Private Placements: Particularly beneficial for private investment placements.
9. AlphaFlow
AlphaFlow is a specialized platform for personal estate investments. It offers a comprehensive utility for non-bank real estate lending, utilizing advanced software to facilitate investments. Since launching two new products in Q2 2021, AlphaFlow has seen a 2.3x increase in business volume, particularly in long-term rental loans and credit lines.
The platform returns high-risk investments with minimum money covering 75% of real estate on the web. AlphaFlow earns 1.5% on all loans sold to clients and raised $2.5 million in a Q3 seed extension round.
Investment Model: AlphaFlow provides a streamlined route for building business capital quickly, offering diversification with a single investment.
It acts as a central utility for real estate lending, making it an excellent choice for investors looking to minimize risks while maximizing returns.
Pros
- Diversification: Offers diversification with a single investment.
- Responsive Service: Provides a responsive service with comprehensive reporting.
- Low Payments: Company payment fees are very low.
Cons
- Accredited Investors Only: Open exclusively to accredited investors.
- High Retail Investment: High entry barrier for retail investors.
Fees
- Minimum investment: $10,000
Best For
- Business Angels: Ideal for a multitude of angel investors in the business.
10. Roofstock
Roofstock, an Oakland-based fintech startup founded by Gary Beasley, specializes in single-family rental (SFR) properties.
The platform leverages data, analytics, and cutting-edge technology to manage and sell properties more efficiently and quickly than traditional methods.
With a minimum investment of $5,000, Roofstock provides an accessible entry point for investors.
Investment Model: Roofstock offers a service model that diversifies investors’ portfolios with SFR properties. The platform provides various ways to access SFR investments, which typically yield higher total returns compared to other real estate sectors.
Roofstock generates rental income and offers property management through a network of managers, ensuring a passive investment experience for its users.
Pros
- Annual Resource Additions: Continuously add new resources each year.
- Low Minimum Investment: Start investing with just $5,000.
- Low Transaction Fees: Offers competitive transaction fees.
- Valuable Information and Services: Provides extensive information and services to investors.
- IRA Investment Options: Supports purchases with self-directed IRA funds.
Cons
- Customer Service Issues: Some supplementary customer service issues have been reported.
- Accredited Investors Only: REIT securities are offered exclusively to accredited investors.
Fees
Charges 0.5% or $500 for investors.
Best For
- Single-Family Home Management: Ideal for managing and selling single-family rental homes.
Conclusion
Real estate crowdfunding has created new opportunities for investors, making it easier to diversify and grow their portfolios. By selecting the right platform, you can find investment opportunities that align with your financial goals and risk tolerance, making real estate investment more attainable than ever. We published one more article some days ago, You may read about the Top 10 Crowdfunding Platforms for Business in the USA.
