Are you researching the best real estate crowdfunding platforms for your money? I’ve invested on three different real estate crowdfunding platforms since 2016 and researched several others. I hope this guide can help you decide which platform is right for you.
What I’ve learned is each platform is very different. So if you want to invest in real estate crowdfunding sites, you need to perform due diligence, not just for the properties but also before you join a platform.
I currently invest about $25,000 between the Fundrise and PeerStreet platforms and have earned 7%-9% annually over the past few years, with no capital losses. These are my favorites because I know them best.
But there are several other options, especially for accredited investors (those with invested assets greater than $1 million or income over $200,000, $300,00 joint income – full definition here), who can participate in larger, more profitable deals.
Here’s a list of my favorite real estate crowdfunding platforms for 2020. Below the table, you’ll find a brief description of each platform and some links to review. Then some tips on how to choose the best platform for you.
For a more comprehensive guide to real estate crowdfunding investing, check out my detailed comparison guide. A “*” in the last column is indicative of partner platforms. I maintain affiliate relationships with many of these platforms, and I may receive compensation if investors sign up and fund accounts through this website.
| Platform | REITs | Equity | Debt | Minimum | Liquidity | Fees | Acc? | |
|---|---|---|---|---|---|---|---|---|
 | Yes | Yes | Yes | $500 | Early withdrawal penalty | 1% | No | * Learn More → |
| Within 3 years - 3% | ||||||||
| Within 3-4 years - 2% | ||||||||
| Within 4-5 years - 1% | ||||||||
 | No | No | Yes | $1,000 | Per note | 0.50% to 1.00% | Yes | * Learn More → |
| 1 Month to 2+ Years | ||||||||
 | No | Yes | No | $5,000 | 3- 5 years | 2% of initial investment | Yes | * Learn More → |
| + 0.75% annual | ||||||||
 | No | Yes | Yes | $10,000 | Duration of deal | 0.5% annual | Yes | * Learn More→ |
| 5+ years | +10% of profits | |||||||
 | Yes | Yes | Yes | Private: $10,000+ | Duration of deal | Private: Paid by sponsor | No | * Learn More→ |
| REITs: $1,000-$5,000 | REITs: 1.5%-2% acquisition | |||||||
| + 1.5 annual | ||||||||
 | Yes | Yes | Yes | $5,000 | Private deals 1%-2% | 3% of initial investment + 1%-1.25% annual | No | * Learn More→ |
 | Yes | Yes | No | $1,000 | 1st year - no redemtions | 3% of initial | No | * Learn More→ |
| Early withdrawal penalty | + 2% annual | |||||||
| 1-2 years - 10% of value | ||||||||
| 2-3 years - 7.5% | ||||||||
| 3-4 years - 5% | ||||||||
| 4-5 years - 2.5% | ||||||||
| 5+ years - 0% | ||||||||
 | No | No | Yes | $10,000 | Duration of deal | Per deal 1%-4% | Yes | * Learn More→ |
 | Yes | Yes | Yes | $10,000 | 1-year lockup | 1% mgt fee | Yes | Learn More→ |
| Quarterly redemption | + investment fees | |||||||
 | Yes | Yes | No | $5 | Early withdrawal penalty | 3% of initial investment | No | Learn More→ |
| < 1 year - 3% | + 1.2% mgt fee | |||||||
| 1-2 years 2% | + profit share after 6.5% | |||||||
| 2-3 years - 1% | ||||||||
| >3 years - no fee | ||||||||
 | No | No | Yes | $10 | Duration of deal | None for investors | No | Learn More→ |
Best Real Estate Crowdfunding Platforms Descriptions
Fundrise (review) – Industry trailblazer. The first to create and fully fund crowdfunded REITs. $500 minimum to invest.
PeerStreet (review) – Lending Club for real estate, peer-to-peer model. Notes are 1st lien through existing regional lenders and secured by the property — $1,000 to invest.
AcreTrader – Equity deals for farmland and agriculture. Age-old assets, now available in 1/10 acre land plots. Minimums deal dependent, generally starting at $5,000.
EquityMultiple (review) – Commercial deals. The only online investing platform backed by an established real estate company, Mission Capital, a leading national real estate capital markets firm. Minimums generally start at $10,000.
Crowdstreet – Quickly growing, has some of the highest deal volumes in the industry. Both REITs and private deals. $10,000 minimum private investments. $1,000-$5,000 for REITs.
RealtyMogul (review) – Started as mostly private deals, but pushing towards REITs. $5,000 minimum for both MOGULREIT I and MOGULREIT II.
Streitwise – Straightforward platform and fees. $1,000 minimum investment for non-accredited investors. Only one current investment offering at the time of publication.
YieldStreet – An alternative investment playground that offers more than just real estate. Also invest in litigation finance, marine financing, and crowdfunded fine art. Accredited investors only. Minimums per deal, typically $10,000 or more.
Alphaflow – Managed portfolio, fund of funds. Invests in other platforms for its clients as a registered investment advisor — $10,000 minimum.
Rich Uncles – Lowest minimum investment: $5 to invest in the Rich Uncles REIT. Not available in all states.
Groundfloor – Similar to PeerStreet and Lending Club. Single-family debt investments are available to non-accredited investors. $10 minimum investment.
Choosing the Best Real Estate Crowdfunding Platforms for You
Before getting started, you need to determine why you want to invest in real estate crowdfunding.
Are you thinking about buying a rental property? If so, you might need to save for a down payment instead.
Do you own stocks yet? Stocks and index funds are easier to own and more liquid. I would own stocks before real estate crowdfunding assets. Do you own any traditional REITs already? If you, you already have real estate exposure.
These considerations may impact your decision to move forward. Once you’ve decided to invest in real estate crowdfunding, you need to perform platform research.
You can use articles like this as a place to start, but you’ll undoubtedly need to look deeper into the platform websites and SEC filings before moving forward.
Always read the available offering circular or deal documentation before investing.
If you’re not sure real estate crowdfunding is for you, you’re not missing out. It’s not like the stock market where you watch a bull market rise out of control. New investable real estate deals emerge every day. You can always start investing another day. Returns on high-quality real estate will always be available.
Non-Accredited Investors
Start by determining if you are accredited or not. If you are not accredited (most readers, see definition earlier in the article), you’ll be limited to non-traded REIT investing.
That’s fine because there are still excellent options, and it’s a simpler process to invest in REITs.
Choose the REIT platform with the best diversification for your money. My favorite is Fundrise because it has several eREITs available for investment. I’ve invested on the Fundrise platform for a few years and have enjoyed near double-digit returns since I started investing.
But don’t jump in just because I invest there. Do your research before committing funds. Other REIT platforms may be just as good or better for your objectives.
Accredited Investors
Crowdfunding platforms are all vying for accredited investor money to fund the supply of loan volume. So accredited investors have their pick of the litter as they qualify to invest on any of the platforms.
First, decide how much money you are planning to invest. Keep in mind, some of your investment dollars may be tied up for several years. Only invest with money that you won’t need for 5-10 years.
If you expect to invest less than $10,000, REITs are still your best option to remain adequately diversified. Above $10,000, you may want to consider a peer-to-peer style debt platform such as PeerStreet, where liquidity is better than REITs.
I only recommend investing in private debt and equity deals if you plan to invest at least $20,000 for 5-10 years. More money is better, ideally more than $50,000, to be able to diversify your holdings.
Individual private equity real estate deals have the highest potential for long-term annual returns above 20%. Of course, these require significant minimum investments (often $25,000 or more) and come with a lot of risks. You may lose money.
If you decide to invest in private debt and or equity deals, choose a platform with a high volume of available deals. You want to have a diverse pool of deals to analyze and select the best options for your objectives.
Which companies are on your best real estate crowdfunding platforms list?
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