Best Real Estate Crowdfunding Platforms Of July 2024 (2024)

Best Real Estate Crowdfunding Platforms Of July 2024 (2)

E. NapoletanoContributor

E. Napoletano is a former registered financial advisor and award-winning author and journalist.

E. Napoletano

Best Real Estate Crowdfunding Platforms Of July 2024 (4)

E. NapoletanoContributor

E. Napoletano is a former registered financial advisor and award-winning author and journalist.

Contributor

Best Real Estate Crowdfunding Platforms Of July 2024 (7)

Michael AdamsLead Editor, Investing

Michael Adams is lead editor, investing at Forbes Advisor. He's researched, written about and practiced investing for nearly two decades. As a writer, Michael has covered everything from stocks to cryptocurrency and ETFs for many of the world's major financial publications, including Kiplinger, U.S. News and World Report, The Motley Fool and more. Michael holds a master’s degree in philosophy from The New School for Social Research and an additional master's degree in Asian classics from St. John’s College.

  • Best Real Estate Crowdfunding Platforms Of July 2024 (9)

Reviewed

Michael Adams

Best Real Estate Crowdfunding Platforms Of July 2024 (10)

Michael AdamsLead Editor, Investing

Michael Adams is lead editor, investing at Forbes Advisor. He's researched, written about and practiced investing for nearly two decades. As a writer, Michael has covered everything from stocks to cryptocurrency and ETFs for many of the world's major financial publications, including Kiplinger, U.S. News and World Report, The Motley Fool and more. Michael holds a master’s degree in philosophy from The New School for Social Research and an additional master's degree in Asian classics from St. John’s College.

  • Best Real Estate Crowdfunding Platforms Of July 2024 (12)

Lead Editor, Investing

Reviewed

Updated: Nov 20, 2023, 12:49pm

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

If you think it takes a ton of cash to invest in real estate, think again. There’s a new class of real estate crowdfunding platforms that make it easy for regular folks to access property assets that once upon a time were only available to sophisticated investors.

To help with your search for alternative assets, we’ve taken a look at some of the best real estate crowdfunding platforms available on the market today. Our list includes platforms tailored for accredited and non-accredited investors. Just remember, like all alternative investments, real estate carries heightened risks, lower liquidity and volatile prices.

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Show Summary

  • Yieldstreet
  • Best Real Estate Crowdfunding Platforms for Regular Investors
  • Best Real Estate Crowdfunding Platforms for Accredited Investors
  • Methodology
  • What Is an Accredited Investor?
  • What Is Crowdfunding?
  • Real Estate Crowdfunding vs. REITs
  • Real Estate Crowdfunding vs. Individual Real Estate Investing
  • Next Up In Investing

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Yieldstreet

Best Real Estate Crowdfunding Platforms Of July 2024 (13)

What is Yieldstreet?

An online platform that makes it easy to invest in alternative investments.

What investments are offered?

Private Credit, Structured Notes, Real Estate, Art, Legal Finance and other alternatives.

Net annualized return

9.6% net annualized return since 2015.

Best Real Estate Crowdfunding Platforms Of July 2024 (14)

Learn More Best Real Estate Crowdfunding Platforms Of July 2024 (15)

On Yieldstreet's Website.

An online platform that makes it easy to invest in alternative investments.

Private Credit, Structured Notes, Real Estate, Art, Legal Finance and other alternatives.

9.6% net annualized return since 2015.

Best Real Estate Crowdfunding Platforms for Regular Investors

CompanyFeesAccount Minimum

Fundrise

1.00%

$10

Groundfloor

None

$1,000

Realty Mogul

1.00% to 1.25% for REITs

$5,000

Diversyfund

None

$500

Best Real Estate Crowdfunding Platforms Of July 2024 (17)

1% (0.15% advisory; 0.85% asset management)

$10

A+

Editor's Take

Fundrise boasts a real estate portfolio in excess of $7 billion—something emerging real estate investors can access for a nominal $10 investment.

But beyond low account minimums and reasonable fees, Fundrise offers a variety of real estate investment trusts to get your feet wet, plus a streamlined account opening process to help you get started in a flash.

And in exchange for a modest monthly fee, you can access Fundrise Pro to build a custom investment plan and dive deeper into the data behind each of the company’s offerings.

Groundfloor

Best Real Estate Crowdfunding Platforms Of July 2024 (18)

Fees

None

Account Minimum

$1,000 ($10 increments for further investments)

BBB rating & reviews

B

Best Real Estate Crowdfunding Platforms Of July 2024 (19)

None

$1,000 ($10 increments for further investments)

B

Editor's Take

With a historical track record of producing 10% returns over the most recent 8-year period, Groundfloor could be an attractive option for those new to real estate investing.

Open to everyday and accredited investors, Groundfloor offers investments in fractionalized offerings—in $10 increments after the $1,000 minimum is reached—in individual real estate loans. Individual investors come together to pool money to fund loans with terms ranging from six to 12 months, while the company’s fee-free platform lowers investor risk.

Loans are risk-rated using grades A through G—with A being the least risky and G the most risky. Most A-rated loans yield roughly 5.5%, and G-rated loans yield 26%. Your returns aren’t credited to your account until the property sells, so it’s best not to invest cash you may need before the loan’s maturity date.

Realty Mogul

Best Real Estate Crowdfunding Platforms Of July 2024 (20)

Fees

1% to 1.25% for REITs, varying fees for other assets

Account Minimum

$5,000

BBB rating & reviews

A+

Best Real Estate Crowdfunding Platforms Of July 2024 (21)

1% to 1.25% for REITs, varying fees for other assets

$5,000

A+

Editor's Take

With more than 274,000 investors on the platform, Realty Mogul, a home for flexible investment options, lets non-accredited investors get a taste for real estate through its REIT offerings. While private placements are available, those are reserved for accredited investors.

The initial $5,000 investment isn’t for the faint of heart, but Realty Mogul’s two REIT offerings have posted respectable returns—in the high 7% to 8% range for their Income and Apartment Growth REITs. Of course, if you’re income-minded, each REIT offers a decent track record for distributions: 21 consecutive quarters for the Apartment Growth REIT and 79 consecutive months for the Income REIT.

Diversyfund

Best Real Estate Crowdfunding Platforms Of July 2024 (22)

Fees

None

Account Minimum

$500

Best Real Estate Crowdfunding Platforms Of July 2024 (23)

None

$500

Not yet rated

Editor's Take

With only 28,000 investors, Diversyfund offers a smaller crowdfunding platform than many of its peers. The company’s $175 million portfolio focuses on multifamily properties across six states. The platform is fee-free, and with modest minimums Diversyfund provides new investors easy access to real estate sector exposure.

The platform’s deals tend to have a 5- to 7-year time horizon, and non-accredited investors have access to Diversyfund’s Growth REIT at a $500 investment minimum. They also offer Premier Opportunities. However, those are reserved for accredited investors and have minimum investments of $25,000 or more.

Best Real Estate Crowdfunding Platforms for Accredited Investors

CompanyFeesAccount Minimum
First National Realty PartnersVaries$50,000
AcreTrader0.75% annual management fee$15,000 to $40,000
Crowdstreet1.50% of NAV$25,000
EquityMultipleTypically a 1% annual management fee$5,000
PeerStreetTypically 1% of net proceeds$1,000

First National Realty Partners

Best Real Estate Crowdfunding Platforms Of July 2024 (24)

Fees

Varies by deal

Account Minimum

$50,000

BBB rating & reviews

A+

Best Real Estate Crowdfunding Platforms Of July 2024 (25)

Varies by deal

$50,000

A+

Editor's Take

First National Realty Partners’ tech-powered deal selection process gives well-heeled investors access to real estate opportunities where “people live, shop, work and play,” per the firm’s motto. For a minimum investment of $50,000, you’ll gain access to commercial real estate properties like multi-family housing projects, grocery-anchored retail shopping centers and industrial centers.

First National Realty’s investment process is 100% online, which could be a pro or a con depending on whether you prefer in-person consultations before settling on a major investment with minimums at this level. However, you can attend webinars for each deal, giving you the chance to ask questions and get answers from an actual human.

AcreTrader

Best Real Estate Crowdfunding Platforms Of July 2024 (26)

Fees

0.75% annual management fee

Account Minimum

$15,000 to $40,000

BBB rating & reviews

A+

Best Real Estate Crowdfunding Platforms Of July 2024 (27)

0.75% annual management fee

$15,000 to $40,000

A+

Editor's Take

For accredited investors who want to add agricultural exposure to their portfolios, AcreTrader has you covered. A fresh take combining the two markets, this platform exclusively offers investing opportunities for farmland, a niche that the site says has historically been able to offer investors attractive returns and low volatility.

Accredited investors can invest as individuals or institutions (providing they meet specific criteria) with a $15,000 minimum. AcreTrader’s investments are also eligible for use in self-directed IRAs.

Crowdstreet

Best Real Estate Crowdfunding Platforms Of July 2024 (28)

Fees

1.5% of NAV

Account Minimum

$25,000

BBB rating & reviews

A+

Best Real Estate Crowdfunding Platforms Of July 2024 (29)

1.5% of NAV

$25,000

A+

Editor's Take

If you’re in search of a simplified way to add commercial real estate exposure to your holdings, Crowdstreet is worth a look. This one-and-done private, diversified REIT includes multiple property types. Here, accredited investors won’t find a slew of deals to parse. Instead, Crowdstreet offers a single investment—their C-REIT—which invests in commercial properties across health sciences, multifamily, industrial and beyond.

For a $25,000 minimum investment, you’ll gain access to a private, diversified REIT managed by a professional team. Management fees will run you 1.5% of net asset value (NAV) on the REIT annually, which could be the encouragement you need to price shop compared to other private REIT offerings.

EquityMultiple

Best Real Estate Crowdfunding Platforms Of July 2024 (30)

Fees

Varies, but typically a 1% annual management fee and no carried interest charges

Account Minimum

$5,000

BBB rating & reviews

C+

Best Real Estate Crowdfunding Platforms Of July 2024 (31)

Varies, but typically a 1% annual management fee and no carried interest charges

$5,000

C+

Editor's Take

With a 17% total net return since inception, EquityMultiple can turn some heads. While investment minimums run as low as $5,000, this isn’t a platform for the fledgling investor—it’s accredited investors only. With an in-house vetting and underwriting process where only 5% of prospective investments ultimately make the cut, investors have plenty of options for where to put their dollars.

Available investments range from ultra-short-term investments that promise yields above the average CD to separate yield- and growth-focused options with varying holding periods. And compared to other platforms that charge investors carried interest, EquityMultiple says there’s generally no carried interest charge on most investments, making them unique in the space.

PeerStreet

Best Real Estate Crowdfunding Platforms Of July 2024 (32)

Fees

Typically 1% of net proceeds, but can vary by investment

Account Minimum

$1,000

BBB rating & reviews

Not yet rated

Best Real Estate Crowdfunding Platforms Of July 2024 (33)

Typically 1% of net proceeds, but can vary by investment

$1,000

Not yet rated

Editor's Take

PeerStreet specializes in real estate debt. Investment durations typically range from one to 36 months, and the company says they make new loan offerings available daily. This provides accessible real estate debt investment assets for accredited investors.

Unlike most other crowdsourcing operations on our list, each PeerStreet security is secured by a single property, which makes sense since you’re investing in debt instruments. The company only takes a first lien position on all investments, keeping its investors at the front of the line for repayment in the event of default.

Methodology

Forbes Advisor’s list of best crowdfunding platforms divides this unique class of investing tools into options that are tailored to accredited investors and non-accredited investors. This is a key distinction, as non-accredited investors may not access the investment assets offered by many of the platforms.

For sophisticated accredited investors, owning real estate via private REITs and other investment funds provides portfolio diversification and a shot at outperformance that beats more conventional asset classes. That said, past performance is never indicative of future returns, and real estate is a notoriously fickle market.

The platforms tailored to regular investors offer access to public REITs, real estate debt and in some cases fractional ownership of individual property development deals.

For both groups, we surveyed the universe of real estate crowdfunding options in an effort to provide our readers with a basic look at some of the best regarded platforms on the market. Our research was based on public information available on each platform’s website, and we encourage readers to undertake in-depth research of platforms they are considering for their own investment goals.

To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates investing products.

What Is an Accredited Investor?

An accredited investor has the wealth and experience required to own advanced investment assets that are off-limits to the general public.

Things like private equity, venture capital, startups and private REITs receive much less regulatory scrutiny from the Securities and Exchange Commission (SEC), which means they are less transparent and much riskier than more common asset classes.

For individuals to be considered an accredited investor, one of the following criteria must be met:

  • Sustained annual income of at least $200,000, or $300,000 for married couples.
  • A net worth of at least $1 million—individually or with a spouse—excluding a primary residence.
  • Be a “knowledgeable employee” of an investment company, or hold a valid Series 7, 65 or 82 license.

The reason accredited investors are afforded the option to invest in more restricted products is that, due to their wealth or experience, they are presumed to have the ability to navigate the elevated risks implicit in owning alternative investment assets.

What Is Crowdfunding?

Crowdfunding harnesses online communities and social networks to raise funds for projects, causes or businesses. The model involves soliciting financial support from a large number of individuals, often through online platforms. Creators or entrepreneurs present initiatives, and backers contribute money to achieving a project’s goals.

In donation-based crowdfunding, contributors provide financial support without expecting any returns, usually for charitable causes or community projects. Reward crowdfunding offers the backers rewards or perks in exchange for their contributions, such as early access to products or exclusive merchandise.

The platforms listed above are considered to be a type of equity crowdfunding, which allows individuals to invest in a company or project in exchange for ownership or equity. In this model, investors expect financial returns based on the success and profitability of the venture.

Crowdfunding has become popular due to its potential to democratize finance and provide opportunities for individuals who may have difficulty accessing traditional funding sources. It allows project creators to reach a wide audience, tap into the collective wisdom of the crowd, and build a community around their initiatives.

Real Estate Crowdfunding vs. REITs

In many ways, real estate crowdfunding platforms and public REITs are very similar models. Whether you’re using a crowdfunding platform or the stock market, non-accredited investors can only get access to public REITs. These are regulated investments that must meet standards established by the SEC.

You don’t have to use a real estate crowdfunding platform to find a public REIT. There are countless examples traded on markets, available via an online broker or via a financial advisor. If you already have an IRA or taxable brokerage account set up, it could pay to do a search for REITs where you currently hold your account.

On the other hand, accredited investors can access both public REITs and private REITs through crowdfunding platforms. Private REITs are a kind of private placement and can include offerings like 1031 exchanges, individual properties and more.

Typically, private placements have much less stringent regulatory hurdles, which increases their risks. Private REITs tend to be more illiquid than public REITs—many of which trade on exchanges just like mutual funds and ETFs.

Real Estate Crowdfunding vs. Individual Real Estate Investing

If you’re trying to decide between investing in real estate through a crowdfunding site or individual properties, there are a few key criteria to consider, chiefly your liquidity needs and your available investment dollars.

Liquidity Needs

If you want easy access to your cash or the flexibility to buy and sell real estate-related investments at your whim, a REIT offered through a crowdfunding site or an exchange-traded REIT from a brokerage will be a better choice.

Exchange-traded REITs offer the highest liquidity as there’s always a market through the stock exchanges, but some proprietary REITs through crowdfunding sites come in a close second. When investing in individual properties, your ability to buy and sell relies heavily on market conditions.

Available Investment Dollars

If you’re new to real estate investing, crowdfunding platforms can be a great way to whet your whistle. For non-accredited investors, it’s possible to find platforms with low minimums that can help you learn the sector without risking too much of your total portfolio.

For example, new investors may find that coming up with the cash to buy an individual property is too big an ask. That’s where investors of all net worths could benefit from real estate crowdfunding platforms. Between access to REITs and private placements where multiple investors come together to fund single-property deals, crowdfunding sites can help find the type of real estate investment that aligns with your available funds.

However, it’s important to keep in mind that when investing in any single asset class, you expose yourself to sector risk. Real estate is no different. Since there’s no investing crystal ball, not even expert analysts can say for sure where real estate is headed next.

If you’re considering investing through a real estate crowdfunding site, the wisest move is to limit your investment to a fraction of your portfolio—especially if you’re investing using retirement funds.

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Best Real Estate Crowdfunding Platforms Of July 2024 (2024)

FAQs

What is the #1 fundraising platform for crowdfunding? ›

Fundraising on GoFundMe is easy, powerful, and trusted.

With no fee to start, GoFundMe is the world's leading crowdfunding platform—from memorial tributes and funerals to medical emergencies and nonprofits.

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

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.

Which crowdfunding site has the lowest fees? ›

1. Givebutter: A free crowdfunding site that's easy and fun. 💸 Fees: Givebutter is free. 0% platform fee, thanks to optional donor tips.

What is the most successful crowdfunding campaign? ›

This article uses bare URLs, which are uninformative and vulnerable to link rot.
RankProjectAmount raised
1EOS$4,100,000,000 (7.12 million ETH)
2Star Citizen$714,097,952+
3Filecoin$257,000,000
4Tezos$232,000,000
46 more rows

Is there a better option than GoFundMe? ›

Other important factors to consider when researching alternatives to GoFundMe include reliability and ease of use. The best overall GoFundMe alternative is Givebutter. Other similar apps like GoFundMe are Donorbox, Classy, Fundly, and Snap! Raise.

Is crowdfunding real estate worth it? ›

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

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.

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.

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.

What is the ROI for crowd funded real estate? ›

Real Estate Crowdfunding Returns

Real estate crowdfunding has done even better than the 10.71% annual return since 2012 due to fragmentation in the space. I'm regularly seeing deals return 12% – 16%, although such drastic outperformance may narrow with more capital flooding to the sector.

What is the biggest drawback about crowdfunding? ›

However, there are also some disadvantages to consider before you decide to launch a crowdfunding campaign. These include the possibility of not reaching your funding goal, the risk of not being able to deliver on your promises, and the potential for negative publicity if your project is not successful.

How do I choose a crowdfunding platform? ›

💻 Research platform options

Explore different crowdfunding platforms like Kickstarter, Indiegogo, GoFundMe, Patreon, and more. Take the time to understand their features, target audiences, fee structures, and success rates to find the best fit for your project.

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 largest crowdfunding platform? ›

GoFundMe was founded in 2010 and is the largest crowdfunding platform. The company has more than 100 million global users, and its campaigns have raised more than $25 billion collectively.

Which online platform is one of the first to offer crowdfunding? ›

Indiegogo /ˌɪndiˈɡoʊɡoʊ/ is an American crowdfunding website founded in 2008 by Danae Ringelmann, Slava Rubin, and Eric Schell. Its headquarters are in San Francisco, California. The site is one of the first sites to offer crowd funding.

What is the most popular type of crowdfunding? ›

Rewards Crowdfunding

Rewards-based crowdfunding is the most common type of crowdfunding option available.

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