3 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. Real estate crowdfunding has made real estate investing much more accessible.

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 does 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.

Related: How to Get Started with Equity Crowdfunding

The Best Real Estate Crowdfunding Sites

1. PeerStreet

Learn more about 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.

PeerStreet Connecting lenders (like you) with borrowers looking for short-term real estate loans! Get Started PeerStreet We earn a commission if you click this link and make a purchase at no additional cost to you.

2. Fundrisefundrise

Learn more about Fundrise.

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

Fundrise Price $500 minimum You can invest your money, according to your goals, in a portfolio filled with dozens of real estate projects — each one carefully handpicked and proactively developed with the goal of growing your net worth. START INVESTING Fundrise We earn a commission if you click this link and make a purchase at no additional cost to you.

3. RealtyMogul

Learn more about 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, REIT no

Read: RealtyMogul review

RealtyMogul Price Invest in apartment buildings, office space, industrial sites, self-storage, retail space, medical buildings, or hospitality establishments and more with RealtyMogul. Get started for as little as $1,000. Learn More RealtyMogul We earn a commission if you click this link and make a purchase at no additional cost to you.

[Bonus!] 4. EquityMultiple

Learn more about 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

EquityMultiple Price 5,000 Invest in professionally managed commercial real estate in three different ways, syndicated debt, preferred equity, and equity. Get started for as little as $5,000. Learn More EquityMultiple We earn a commission if you click this link and make a purchase at no additional cost to you.

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.

CompanyInvestment Minimum?FeesAccredited Investor?How to Start
Equity Multiple$5,0000.5% service charge plus 10% of profitsYesSign Up
Fundrise$5001% per yearNoSign Up
PeerStreet$1,0000.25% - 1.00% rangeYesSign Up
Realty Mogul$1,0000.30% - 0.50% per yearNoSign Up

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

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About Emily Guy Birken

Emily Guy Birken is a former English teacher and respected personal finance blogger. She lives in Milwaukee, Wisconsin with her engineer husband and two high-energy little boys. She has written four books: The Five Years Before You Retire, Choose Your Retirement, Making Social Security Work For You, and End Financial Stress Now. Emily's thoughts on parenting and life in general are found at The SAHMnambulist.

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