4 Best Real Estate Crowdfunding Investment Platforms of July 2024 - NerdWallet (2024)

BEST OF

By Chris Davis

Edited byPamela de la Fuente

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Real estate crowdfunding has transformed the real estate investing landscape. Once reserved for only the most affluent investors, many crowdfunding platforms have significantly lowered the barrier to entry for this type of alternative investment.

Low account minimums, simple fee structures and clean user interfaces make it easier than ever to include real estate in a well-diversified portfolio. It’s important to note that some real estate crowdfunding platforms, including some of our picks below, are open only to accredited investors.

What's the difference between these platforms and REITs?

Real estate investments trusts are companies that own real estate, such as hotels, malls, shopping centers or rental properties. Publicly traded REITs can be purchased through a brokerage just like individual stocks or mutual funds.

Real estate crowdfunding platforms, on the other hand, pool funds together to let average investors participate in the real estate market through private REITs — which aren’t available through traditional brokerages — as well as private market real estate investments, like individual properties. These could potentially provide higher returns than the REITs available through traditional brokerages, but they may also carry higher risk.

Ready to get started? Below are our top picks for the best real estate crowdfunding platforms based on several factors, including account minimums, customer support, redemption options, fees and more.

Real estate crowdfunding has transformed the real estate investing landscape. Once reserved for only the most affluent investors, many crowdfunding platforms have significantly lowered the barrier to entry for this type of alternative investment.

Low account minimums, simple fee structures and clean user interfaces make it easier than ever to include real estate in a well-diversified portfolio. It’s important to note that some real estate crowdfunding platforms, including some of our picks below, are open only to accredited investors.

What's the difference between these platforms and REITs?

Real estate investments trusts are companies that own real estate, such as hotels, malls, shopping centers or rental properties. Publicly traded REITs can be purchased through a brokerage just like individual stocks or mutual funds.

Real estate crowdfunding platforms, on the other hand, pool funds together to let average investors participate in the real estate market through private REITs — which aren’t available through traditional brokerages — as well as private market real estate investments, like individual properties. These could potentially provide higher returns than the REITs available through traditional brokerages, but they may also carry higher risk.

Ready to get started? Below are our top picks for the best real estate crowdfunding platforms based on several factors, including account minimums, customer support, redemption options, fees and more.

Best Real Estate Crowdfunding Investment Platforms From Our Partners

Our pick for

Nonaccredited Investors

Yieldstreet

Fees

0% - 2.5%

management fees; other fees apply.

Account minimum

$10,000

Promotion

None

no promotion available at this time

Pros

  • Access to real estate, commercial, legal and art investments.

  • Ability for individuals to invest in private structured credit deals.

  • Investments backed by assets, which may provide some protection in event of default.

Cons

  • Highly illiquid investments.

  • Most investments open only to accredited investors.

  • Limited offerings available.

Why We Like It

Yieldstreet allows investors to participate in crowdfunding for a wide array of alternative investments, including real estate, commercial, legal and art. The platform is open only to accredited investors.

Our pick for

Accredited Investors

NerdWallet rating

4.5/5
Learn more

on EquityMultiple's website

Fees

0.5% - 1.5%

other fees apply

Account minimum

$1,000

Promotion

Earn a Special 1% Return Boost

on Your First Investment

Pros

  • Access to commercial real estate investments.

  • Easy-to-use website.

  • Liquidity options for certain investments.

Cons

  • Only open to accredited investors.

  • Complex fee structures that vary by investment.

Why We Like It

EquityMultiple blends crowdfunding with a more traditional real estate investing approach that can lead to high returns. Unfortunately, it’s only available to accredited investors.

Want to compare more options? Here are our other top picks:

  • RealtyMogul

  • Fundrise

Last updated on July 1, 2024

Methodology

How do we review real estate platforms?NerdWallet’s comprehensive review process evaluates and ranks companies that allow U.S. customers to invest in real estate, primarily through non-traded REITs or private equity. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.

We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across eight factors. The final output produces star ratings from poor (one star) to excellent (five stars).

For more details about the categories considered when rating brokers and our process, read our full methodology.

To recap our selections...

NerdWallet's Best Real Estate Crowdfunding Investment Platforms of July 2024

  • Yieldstreet: Best for Nonaccredited Investors
  • EquityMultiple: Best for Accredited Investors
  • RealtyMogul: Best for Nonaccredited Investors
  • Fundrise: Best for Nonaccredited Investors

Frequently asked questions

4 Best Real Estate Crowdfunding Investment Platforms of July 2024 - NerdWallet (2024)

FAQs

What is the best real estate investing platform? ›

Top-Rated Real Estate Investing Apps of 2024
  • Best overall: RealtyMogul.
  • Best for non-accredited investors: Fundrise.
  • Best for real estate and alternative investments: Yieldstreet.
  • Best for short-term real estate investments: Groundfloor.
  • Best for accredited investors: EquityMultiple.
Jul 30, 2024

Which crowdfunding platform is best? ›

10 best crowdfunding platforms
  • Best overall: Kickstarter.
  • Runner-up: Indiegogo.
  • Best for small businesses: Fundable.
  • Best for Shopify stores: Crowdfunder.
  • Best for content creators: Patreon.
  • Best for UK and Europe: Crowdcube.
  • Best for personal fundraising: GoFundMe.
  • Best for nonprofits: Mightycause.
May 17, 2024

What is the average return on real estate crowdfunding? ›

Equity crowdfunding investments on reputable platforms, with terms of 5 or more years, have an average IRR of over 17%. Shorter-term real estate crowdfunding investments have average returns in 10% to 12% range.

Is $5000 enough to invest in real estate? ›

Yes, $5,000 is enough to invest in real estate, although your options will be more limited.

Is crowdfunding real estate a good idea? ›

The Bottom Line. While real estate crowdfunding and investing may not be for everyone, it can be a great way for you to start investing in real estate without needing to spend a substantial amount of money. Placing less money into the investment means that the risk will often be lower.

Which real estate platform is best? ›

Compare Providers
Company NameCost
Zillow Best OverallFree to buyers, renters, and sellers
Realtor.com Most AccurateFree to buyers and renters
Trulia Best Mobile AppFree for users
Foreclosure.com Best for Foreclosures$39.80 monthly for web version;14 $39.99 for mobile version
3 more rows

How much money do I need to invest in crowdfunding? ›

Key Takeaways

Crowdfunding is a way for companies and individuals to raise capital from a large group of investors, with contributions starting as low as $10. There are restrictions as to who is allowed to fund a new business and how much they're allowed to contribute.

How do you make money from real estate crowdfunding? ›

Real estate crowdfunding is similar to the equity version of it in that an investor can buy into a property and become a shareholder. Investors don't need to purchase entire properties, and they earn a part of the profits generated from the investment based on the amount they invest.

Are crowdfunding investments worth it? ›

Startups and early-stage ventures can and do fail, and you could lose your entire investment. In addition, crowdfunding investments carry liquidity risks, as you'll be limited in your ability to resell your investment for the first year—and you might need to hold your investment indefinitely.

What is the 50% rule in real estate investing? ›

The 50% rule advises investors to estimate a property's operating expenses will amount to roughly half of its gross income. While this estimation proves helpful in projecting rental property cash flow, it is not a flawless measurement and should only ever be used as a starting point for further research and analysis.

What is the 1 rule in real estate investing? ›

The 1% rule of real estate investing measures the price of an investment property against the gross income it can generate. For a potential investment to pass the 1% rule, its monthly rent must equal at least 1% of the purchase price.

What is the 4% rule in real estate investing? ›

The 4% rule in retirement planning is used to determine how much you should withdraw from your retirement account each year. Basically, the idea is to give yourself a healthy stream of income, while maintaining an active account balance during retirement.

What is the best investment platform to use? ›

Summary: Best Online Brokerage
CompanyForbes Advisor RatingBEST FOR
TD Ameritrade4.4Best Online Broker For Beginners And Best For Mobile App Users
Fidelity Investments4.4Best Online Broker For Everyday Investors
Charles Schwab4.3Best Online Broker For Customer Service
Tastytrade3.9Best Online Broker For Options Trading
1 more row
Jul 29, 2024

What is the most profitable real estate to invest in? ›

Commercial real estate, like retail complexes, office spaces, and industrial properties, remains reliable for generating substantial income. This sector often provides long-term leases with stable cash flows, making it an attractive option for those investors seeking a consistent return on investment.

What is the best way to invest $200000 in real estate? ›

Rental Properties

Owning a rental property could be one of the most profitable ideas for how to invest $200,000 for monthly income over the long term. You could invest your $200,000 towards the purchase of a rental property, then collect rental income for as long as you hold it.

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