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Real estate investment does not have to be daunting. There are easier and straightforward ways to add real estate to your portfolio if you want to avoid carrying out extensive real estate research. This is possible because of real estate crowdfunding platforms. You can diversify your portfolio by adding commercial properties, residential properties, and other real estate investments at a low cost.
In this article, we’ve compiled a list of the best real estate investing platforms to help narrow down your options. Continue reading to find the best match for you.
1. Fundrise (Our Top Pick):
Best for Beginners and Non-Accredited Investors
Fees
Minimum investment
Average annual returns
Total investor distributions
Investment options
Accredited investors only
0.85% Asset management fee; 0.15% Advisory fee
Depending on account level:$10 to $100,000
From 2017 to 202: 7.31% to 16.11%
$124 million+
It varies based on the account level selected
No
The Starter Portfolio of Fundrise requires only $10 to begin investing. Furthermore, it is not necessary for you to be an accredited investor. Fundrise offers portfolios for both income and growth investors, as well as a hybrid of the two. At only 1% per year, the fee structure is simple and straightforward.
For various reasons, Fundrise is at the top of our list. To begin with, Fundrise was founded in 2010, making it one of the platforms with the longest operating histories compared to others.
Fundrise is a crowdfunding real estate investing platform that offers a variety of investment portfolios.
Fundrise, we believe, has something for everyone. Fundrise employs a value investment strategy when it comes to real estate investment. This crowdfunded real estate platform aims to purchase properties for less than the market value and then, through improvements, build equity.
Pros
Fundrise is open to non-accredited investors
Trading on the platform requires a small minimum account size
It has five levels of different accounts that you can choose from
Fundrise is a highly diversified investments platform
Excellent for passive investing
Cons
illiquid investments, meaning you cannot easily cash out or sell your investments as you can with liquid assets such as mutual funds and stocks.
Its fee schedule is complex
Fundrise is not suitable for short-term investments
2. RealtyMogul: Best for Income Investors
Fees
Minimum investment
Average annual returns
Total investor distributions
Investment options
Accredited investors only
1% to 1.5%
$1,000
4.5% to 8%
$136 million
1031 exchanges.
Individual properties (office, self-storage, multifamily, medical office, industrial, retail).
Real estate investment trusts (REITs)
No
More than 219,000 investors have joined RealtyMogul since its inception in 2012 to gain access to its real estate investment trusts (REITs) and private market offerings. RealtyMogul is known for its exceptional due diligence, as it personally assesses every potential real estate and scrutinizes each deal using proprietary models and methods.
This crowdfunded real estate platform looks for well-leased properties or existing leases. It only works with real estate partners with experience managing assets and a proven track record. It does not make non-cash-flowing investments like ground-up construction or raw land. Investors can select one of the three goals: diversification, growth, and passive income.
Pros
RealtyMogul has a good investment selection
Detailed due diligence
Monthly auto-investment in real estate investment trusts (REITs) starts at $250 per month
Cons
Each investment comes with different fees
Investments are difficult to sell or trade
Some extended hold periods
3. CrowdStreet: Best for Accredited Investors
Fees
Minimum investment
Average annual returns
Total investor distributions
Investment options
Accredited investors only
CrowdStreet funds: 0.50% to 2.5%. Other fees vary by offering
$25,000
As of 2021, it was 17.3%. Generally, it depends on the investment
$220 million
Individual deals.
Funds.
A professionally managed, tailored portfolio
Yes
Crowdstreet has attracted over 100,000 investors from across the United States. Its innovative technique provides direct access to a carefully vetted portfolio of real estate investments with a high-quality organized establishment. Accredited investors can choose to invest in a single property or a fund.
Crowdstreet, founded in 2014 and headquartered in Portland, Oregon, has published over 550 commercial real estate investment offerings. 63 of those commercial real estate investment offerings have been fully realized.
Pros
With its helpful chatbot feature, Crowdstreet is a user-friendly platform
Easily accessible investment details upon signing up for a free account
Institutional-quality offerings
Cons
Open to accredited investors
High investment minimums
It doesn’t support early withdrawals
4. EquityMultiple
Fees
Minimum investment
Average annual returns
Total investor distributions
Investment options
Accredited investors only
Equity investments have a 1% fee. Other fees are determined by offering
$10,000
Historically, 16.8%
$126.7 million
1031 exchange investment.
Preferred equity and senior debt.
Institutionalcommercial real estate.
Opportunity zones.
Yes
EquityMultiple is a crowdfunded real estate platform that focuses almost solely on commercial and institutional real estate and also provides preferred equity, senior debt, and equity investments. EquityMultiple recently expanded its portfolio with tax-advantaged real estate investments (1031 exchange and Opportunity Zone) and fund products. The deal’s distribution frequency varies but is usually monthly or quarterly.
Pros
It has a good investment selection
Assortment of target hold periods
It is an easy-to-use, crowdfunded real estate platform
Cons
Available only to accredited investors
High minimum investment
Redemption options are limited
Get Started With EquityMultiple
5. Yieldstreet: Best for Real Estate and Alternative Investments
Fees
Minimum investment
Average annual returns
Total investor distributions
Investment options
Accredited investors only
For Prism, the fees are 1% to 2%. Other investments start at 0%
$500. Some investments require an initial investment of $10,000. $1,000 minimum investment is required for Short-term note options
9.71% average rate of return
$100 million
Short-term notes options.
Alternative investments.
Multi-asset class funds.
No
Yieldstreet provides alternative investments and real estate to accredited investors with a minimum investment of $500. The company currently allows you to invest in the following alternative asset classes: real estate, marine finance, legal finance, art finance, and commercial and consumer finance.
But don’t be concerned if you’re not an accredited investor. The Yieldstreet Prism fund is still available for investment to non-accredited investors. This Prism fund also requires a minimum investment of $500. Still, it allows you to invest in various alternative asset classes.
Pros
It offers access to alternative investments such as lawsuits, real estate, art, debt, etc.
Privately structured credit deals are open to individuals investors
Non-accredited investors are welcome
Each investment is backed by tangible assets.
The platform is easy to use
It is possible to manage it online or via mobile apps
Cons
Investments are illiquid.
Only accredited investors have access to most of its investments
Relatively exorbitant fees
Customer ratings and Consumer complaints raise concerns
6. AcreTrader
Fees
Minimum investment
Average annual returns
Total investor distributions
Investment options
Accredited investors only
0.75%
Typically, it varies; $10,000 – $25,000
7-9%
$40 million
Farmland
Yes
Farmland may be an option for individuals considering a less common approach to real estate investment.
AcreTrader is a farmland platform available to accredited investors only that allows you to invest in working farm shares. Income is generated by renting out the land to farmers or selling it for a higher price years later. The minimum investment ranges from $10,000 to $25,000.
Pros
AcreTrader farmland investing platform assists farmers by handling insurance, property management, administration, and other facets of land ownership
7-9% target returns range
Investment can be made using self-directed IRAs (SDIRAs)
Sale leasebacks, capital-raising options, and property expansion for farmers
Due diligence process and rigorous underwriting for properties
Cons
Only accredited investors are welcome
A small number of new offerings
Investment selection is limited
Illiquid investments, meaning shares of farmland, cannot be easily bought and sold like you could with ETF or stock
7. First National Realty Partners
Fees
Minimum investment
Average annual returns
Total investor distributions
Investment options
Accredited investors only
Typically 0.50% to 1.5%
$50,000
12-18%
$914 million
Real Estate
Individual deals
Yes
First National Realty Partners (FNRP) is a real estate investment open only to accredited investors. It is a platform that enables investors to increase their wealth by investing in grocery-anchored commercial real estate. First National Realty Partners (FNRP) was founded in 2015. It is based in New Jersey. Opportunity Funds or Individual properties are available for investment. The holding period for the Opportunity Fund ranges from three to seven years.
Pros
It offers property acquisition criteria that are clear and consistent
Grocery chains and tenant relationships with major retail
It supports simple diversification of fund option
Cons
The minimum investment is relatively high
Available to accredited investors only
The website can be difficult to navigate
Get Started With First National Realty Partners
Conclusion
Hopefully, with all the information in this article, you can make a well-informed decision about the best Real Estate Crowdfunding platform for you.
The post Best Real Estate Crowdfunding Platforms appeared first on Modest Money.
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