4 Real Estate Crowdfunding Sites to Add to Your Investing Portfolio

As many wealthy investors can tell you, real estate is a solid investment that can provide annual income as well as long-term growth.

Unfortunately, buying real estate also requires quite a bit of upfront capital, as well as time, energy, and money for maintenance. Plus there is the risk of finding and keeping good tenants.

Thankfully, individual investors no longer have to save up hundreds of thousands of dollars or become landlords to take advantage of real estate investments. Crowdfunding companies like Peerstreet, Fundrise, and RealtyMogul allow you to get started investing in Real Estate with as little as $500 or $1,000.

Here’s what you need to know about getting started in real estate crowdfunding:

What is Real Estate Crowdfunding?

Real estate crowdfunding allows a group of individuals to use their collective money to do more than each person could do alone.

The minimum investment for real estate crowdfunding ranges from as low as $500 all the way up to $20,000 or more.

The best crowdfunding platforms do a lot of due diligence to weed out the bad deals. While that does mean you end up paying some extra fees for that, it also means you can feel more confident that you’re investing in a good property without having to be a real estate expert.

Real Estate Crowdfunding makes real estate investing accessible to the average person. Fundrise and DiversyFund do not even require you to be an accredited investor and you can get started with as little as $500.

The law also allows this type of investment to be advertised online, which is not allowed for other types of pooled real estate purchases, such as commercial and apartment building syndication.

The Best Real Estate Crowdfunding Sites

1. PeerStreet

PeerStreet connects accredited investors with borrowers looking for short-term loans for real estate. The borrowers are all “real estate equity investors,” which means they are professional investors who purchase a home or property, fix it up quickly, and sell it again at a higher price. More info…show

  • Minimum Investment: $1,000
  • Fees: 0.25% to 1.00% servicing fee for each loan
  • Historical annualized returns: 6% to 9%
  • Limited to accredited investors? Yes

Read my full PeerStreet review here.

Related: 6 Ways to Invest in Real Estate (from $10 to $100,000)

2. Fundrisefundrise

With no accreditation requirement and a minimum investment of $500 for their Starter Portfolio, Fundrise provides a low barrier to entry for any newbie investor interested in real estate investing. More info…show

  • Minimum Investment: $500
  • Fees: 0.85% annual asset management fee, plus 0.15% annual investment advisory, plus potential miscellaneous fees
  • Historical annualized returns: 8.76% to 12.42%
  • Limited to accredited investors? No

Check out our full review of Fundrise here.

3. RealtyMogul

RealtyMogul allows accredited and non-accredited investors to put money into a variety of real estate investments. Investments such as apartment buildings, office space, industrial sites, self-storage, retail space, medical buildings, or hospitality establishments. More info…show

  • Minimum Investment: $15,000 – $50,000 for Private Placement investments, $1,000 for REIT.
  • Fees: varies depending on individual investments for Private Placement, capped at 3% annually for REIT
  • Historical annualized returns: not listed for Private Placement investments, 8% to 11% for REIT
  • Limited to accredited investors? Private Placement yes, investing in REITs no

Check out our full review of RealtyMogul here.

4. EquityMultiple

EquityMultiple was launched by commercial real estate professionals who wanted to harness technology to open their business to new accredited investors. EquityMultiple is backed by Mission Capital Advisors, a leading national real estate capital markets firm. More info…show

  • Minimum Investment: $5,000 for some investments (although $10,000 is a more common minimum).
  • Fees: 0.5% annual fee, 10% of profits
  • Historical annualized returns: 7% to 14%, depending on investment structure
  • Limited to accredited investors? Yes

5. DiversyFund

DiversyFund is a zero-fee platform that focuses on growth REITs to diversify your investment portfolio with real estate. They invest in multifamily properties (also known as apartment buildings) that require some updates, but already have cash flow from tenants. Using funds from investors, they upgrade all of the units within the first year of ownership, allowing them to increase rents and the value of the buildings through forced appreciation. More info… show

  • Minimum Investment:;$500
  • Fees: none!
  • Historical annualized returns:17.6%
  • Limited to accredited investors?:No, unless you want to participate in their Series A Round and invest directly into DiversyFund itself, in which case you will need accreditation.;

With DiversyFund, it is as easy to start investing as it is to pay a bill online. Hedge yourself against market volatility and watch your investment grow with their integrated tools and easy to understand dashboard.

An Alternative to Real Estate Crowdfunding: Roofstock

Want the ease of real estate crowdfunding, but would rather own whole properties? If so, check out Roofstock. It’s an online marketplace for turnkey, tenant-occupied properties across the country.

The goal of Roofstock is to use its platform to match buyers and sellers more efficiently and at a lower cost.

With Roofstock, buyers pay a 0.5% marketplace fee while sellers pay a 2.5% listing fee. This is much lower than going through a real estate agent. Most of the properties listed are single-family homes.

Roofstock allows you to look at detailed investment property information, like an inspection report, detailed photos, a 3D model, floor plans, and more.

Because most of the properties are currently occupied by tenants, you’ll start earning money through rent from day one.

Properties listed on Roofstock have gone through a rigorous vetting process. Roofstock does most of the work so you don’t have to. It makes finding viable real estate properties easy.

Click here to get started with Roofstock

The Bottom Line

Real estate crowdfunding can give you the benefits of real estate investing without the call-in-the-middle-of-the-night headaches that come with owning and leasing out property.

Though accreditation requirements may keep some potential investors out of some aspects of real estate crowdfunding, there are still options available for real estate crowdfunded investing for the non-accredited investor.

Have you ever used any real estate crowdfunding platforms? Tell us about your experience in the comments!

Next: How to Get Started with Equity Crowdfunding

Emily Guy Birken About Emily Guy Birken

Emily Guy Birken is an award-winning writer, author, money coach, and retirement expert. Her four books include The Five Years Before You Retire, Choose Your Retirement, Making Social Security Work For You, and End Financial Stress Now.

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