By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info.
Real estate crowdfunding is a relatively new way to invest in commercial real estate. Some sites give everyday investors access to assets traditionally reserved for the wealthy. Real estate investment platforms (aka crowdfunding sites) pair developers and other real estate professionals with individual investors who want exposure to real estate without the hassles of owning, financing, and managing properties.
While real estate crowdfunding is inherently risky, real estate investments can help diversify your portfolio and provide competitive returns. We evaluated more than two dozen platforms to find our top picks for real estate crowdfunding sites. Here they are, in alphabetical order.
Crowdstreet
More than 100,000 investors throughout the U.S. have invested on the CrowdStreet platform. Its innovative approach gives direct access to a vetted range of institutional-quality real estate investments. Accredited investors can pick a single property or invest in a fund.
Founded in 2014 and headquartered in Portland, Oregon, the company has published more than 540 commercial real estate investment offerings.
User-friendly platform with a helpful chatbot
Institutional-quality offerings
Easy to find investment details once you sign up for a free account
Accredited investors only
Steep investment minimums
No early withdrawals
DiversyFund’s model is unique in the real estate crowdfunding space. Instead of serving as a broker that connects investors with projects, DiversyFund buys, develops, and manages a portfolio of properties, collects the cash flow, and divvies up the profits amongst its investors.
Unlike some crowdfunding platforms, it doesn’t charge any management or broker fees. Currently, you can invest in the DiversyFund Growth REIT ($500 minimum).
Zero management fees for investors
One of the few platforms with a mobile app
Low minimum investment
Limited investment choices
No early withdrawals
Payment at the end of the investment term
EquityMultiple focuses almost entirely on institutional commercial real estate, and it also offers equity, preferred equity, and senior debt investments. The company recently added tax-advantaged real estate investments (Opportunity Zone and 1031 exchange) and fund products to its lineup. Distribution schedules vary by deal but are usually monthly or quarterly.
Good investment selection
Variety of target hold periods
Easy-to-use platform
Accredited investors only
Steep minimum investment
Limited redemption options
Since its launch in 2012, Fundrise has invested in more than $5 billion worth of real estate across the U.S. Today, it manages over $1.5 billion of equity on behalf of more than 170,000 individual investors.
Fundrise offers five account levels: Starter, Basic, Core, Advanced, and Premium. There’s a minimum investment amount at each level and varying investment strategies and potential returns.
No accreditation required
Well-rated mobile app
Request share redemption at any time (possible fees and redemption not guaranteed)
Nonqualified dividends
PeerStreet is an online marketplace where accredited investors can invest in high-quality private real estate loans. Here’s how it works: Your investment gives lenders capital to lend to real estate borrowers, then PeerStreet collects the monthly payments from the borrowers, and you (the investor) get a share of those monthly payments.
You can diversify your portfolio manually or automatically with investments from various locations, lenders, borrowers, asset classes, terms, loan-to-value (LTV) ratios, and rates.
Unique offering among real estate investment platforms
Diversification across various parameters
Low interest rate risk because loans are a maximum of 36 months
Accredited investors only
Only offers investments in debt
Higher risk than some other crowdfunding options
Since its inception in 2012, more than 219,000 investors have joined RealtyMogul to access its REITs and private market offerings. Known for its exemplary due diligence, the company vets every potential property in person and scrutinizes each deal using propriety methods and models.
The company looks for well-leased properties or those with existing leases, and it works only with real estate partners with proven track records and experience managing assets. It does not invest in non-cash-flowing investments, such as raw land or ground-up construction. Investors can choose from three objectives: passive income, growth, and diversification.
Good investment selection
Thorough due diligence
Monthly auto-investing in REITs starting at $250 per month
Different fees associated with each investment
Investments not easily sold or traded
Some long hold periods
Real estate crowdfunding platforms offer entry into real estate to a wide range of people, from experienced, accredited investors to individuals who are just starting out. The right platform for you depends on your needs and expectations. If you're an accredited investor and you need access to institutional-quality offerings, CrowdStreet might fit the bill for you. DiversyFund is a good pick for those seeking zero management fees and a reasonable entry points. Accredited investors will also find a good selection and low fees at EquityMultiple. Investors who are not accredited and need a low entry point will find it at Fundrise. If you're an accredited investor who needs low interest rates, Peer Street is a good choice for you. RealtyMogul is a good option for investors who are not accredited and are looking for a reasonable investment minimum.
Crowdfunding is a way to fund a project or venture by pooling small investments from a large group of investors. The idea is that when enough people make small investments, it’s possible to raise substantial amounts of money quickly. One of the most well-known crowdfunding sites is GoFundMe, a platform used to raise money for everything from creative projects to medical bills.
Real estate crowdfunding raises capital for real estate investments. When developers or real estate professionals find investment opportunities, they may not want to fund the entire investment themselves (or they may not be able to). Thus, they turn to crowdfunding to let individual investors help finance the project. The process enables investors to invest in real estate without owning, financing, or managing properties.
Real estate exposure without having to own, finance, or manage properties
Low minimum investment, so you can access assets that would be unaffordable otherwise
High profit potential through distributions and a lump-sum return at the end of the investment
Automatic investing on most platforms
Illiquid, so your money may be tied up for at least three to five years
Higher risk than other types of equity investments
High fees, depending on the platform and investment you choose
Some opportunities only for accredited investors
Real estate investment platforms connect investment opportunities with funding. Most real estate crowdfunding deals have a sponsor, a crowdfunding platform, and investors. Here’s a quick rundown of how it works:
Crowdfunding platforms connect sponsors and real estate investors. To get started in real estate crowdfunding, research the various crowdfunding sites to find an opportunity that interests you—whether that’s an individual property or a fund that owns dozens of properties.
Pay close attention to the platform’s vetting process for deals as well as its sponsors. The top platforms employ high levels of due diligence to make sure that sponsors—and any deals offered by the sponsors—have been rigorously evaluated.
Yes, real estate crowdfunding platforms give individual investors access to commercial real estate projects, such as hotels, apartment complexes, medical complexes, self-storage, and retail. Without crowdfunding, these large-scale investments would otherwise be unaffordable to most individuals.
Yes, there is potential to earn competitive returns in real estate crowdfunding. The platforms we reviewed boast annual returns ranging from 2% to nearly 20%. Still, real estate crowdfunding is considered a risky investment. Just like the stock market, there are no guaranteed returns, and you could lose your entire investment. In addition—depending on the investment and unlike the stock market—your money may be tied up for years.
Real estate investment platforms connect investors with investment opportunities. Carefully research the crowdfunding platform, sponsor, and opportunity before investing any money.
To choose the top real estate crowdfunding sites, we considered a variety of factors, including:
We also investigated each company’s online reputation—including average monthly search volume, recent news, customer reviews, and complaints—to ensure the platform is well respected and legitimate.
Crunchbase. "CrowdStreet: Summary."
Real Estate Investing
Real Estate Investing
Fund Trading
Real Estate Investing
Alternative Investments
Real Estate Investing
About Author
