Real Estate can play an important part in your investment portfolio. The connective power of the internet now makes real estate investing more obtainable — even if you don’t have much capital. Real estate crowdfunding platforms allow you to connect with other investors and pool your money to purchase property for passive real estate income.
Paths previously restricted to accredited investors were opened by new guidelines from the Securities and Exchange Commission (SEC) in 2016. Current rules allow investors to share capital for collective property investment of all types. Check out our guide to learn more about real estate crowdfunding and find the best real estate crowdfunding platforms.
Real Estate Crowdfunding Platforms:
|Best For||Platform||Open to Non-Accredited Investors?||Minimum Investment|
|Access to Institutional Funds||CityVest||No||$25,000|
|Rental Properties||Arrived Homes||Yes||$100|
|Commercial Real Estate||HoneyBricks||No||$1,000|
|Multifamily Real Estate||RealtyMogul||Yes||$5,000|
|Commercial Real Estate||CrowdStreet||No||$25,000|
|Grocery-Anchored Real Estate||First National Realty Partners||No||$50,000|
|Real Estate Notes||Groundfloor||Yes||$10|
Best Real Estate Crowdfunding Platforms
Our top picks are online platforms that have led the surge in real estate crowdfunding.
CityVest provides accredited investors unique access to institutional real estate investment opportunities with investment minimums starting at $25,000, compared to the usual six-figure investment typically required to access these types of deals.
CityVest does this by pooling multiple investor contributions into one bundle large enough to satisfy the minimum investment requirements of the top institutional real estate funds that are otherwise unavailable to individuals.
In addition, CityVest only works with institutional funds that have auditors and administrators. Each offering has a third-party due diligence report verifying the investment manager’s information to make the investment as safe as possible. Given CityVest’s pooled investment size of $5 million, they not only gain access to institutional private equity funds, but they also are able to negotiate better investment terms, usually in the form of a higher preferred return and a more attractive profit split.
Must be accredited investing a minimum of $25,000.
2. Arrived Homes
Arrived Homes is one of the newest and fastest growing crowdfunding platforms on the internet. The company allows non-accredited investors to buy shares in carefully selected rental properties.
The minimum investment is only $100, making it easy to start earning passive income from real estate and to diversify across multiple properties. Investors simply collect quarterly dividends from their properties while waiting for the asset to increase in value over time. Arrived Homes takes care of finding tenants as well as all of the management responsibilities.
HoneyBricks helps connect accredited investors with commercial real estate at a low entry price. The minimum investment of $1,000 connects you to real estate opportunities that are managed on the Polygon Network. The Polygon Network reduces transactional costs, and you can earn up to $500 in rewards to access new features.
When you receive distributions from your investments, you can choose to take any supported cryptocurrency you prefer, and the platform manages the investments so that the property meets its highest and best purpose. Plus, you can sell your tokens to other investors after the 12-month holding period.
You can trust this platform primarily because it focuses on high-quality locations that are both stable and sit in the “value add” category.
RealtyMogul offers a variety of institutional-quality real estate offerings, but it stands out with its selection of multifamily real estate investments in some of the hottest markets throughout the country.
The platform is also one of the few that has investment options for non-accredited investors. While direct investments are only available to those that meet accredited investor requirements, non-accredited investors have access to the two RealtyMogul-sponsored non-traded REITs, each with a diverse portfolio of quality assets.
CrowdStreet is the largest and most diverse commercial real estate marketplace. It’s a good match if you're an experienced, accredited investor and prefer to choose properties to invest in yourself instead of leaving the decisions up to a fund or REIT manager.
Choose from investment in a managed portfolio or direct access to individual commercial real estate investment opportunities. You can then review and compare deals that meet your own criteria.
A minimum of $25,000 is required for most offerings and your investment can be much steeper depending on the project. To date, the average return to investors on fully realized deals is 17.1% with an average investment term of 2.3 years.
Live webinars provide an opportunity for direct access to the project sponsor. The platform also provides numbers and analytical data from past projects so you can compare and consider the potential success of investments.
6. First National Realty Partners
First National Realty Partners is a growing private equity firm focused on offering accredited investors the opportunity to invest in grocery-anchored commercial real estate properties. The company focuses on acquiring properties with long-standing, national tenants, especially within necessity-based markets. Some of the largest tenants currently occupying properties owned by FNRP include:
- Whole Foods
Groundfloor allows non-accredited investors to invest in crowdfunding through short-term loans made to real estate investors and home builders. They also offer the lowest minimum investment crowdfunding option available, allowing investors to get started with as little as $10.
Groundfloor offers short-term loans on residential properties, then sells portions of those loans to its investors through a limited recourse obligation (LRO). Investors can browse available loans and invest in whichever ones they want in $10 increments. Most loans on the platform pay an interest rate between 7% to 12% with terms of 6 to 12 months.
Investors can schedule recurring deposits into their Groundfloor account and even set up automatic investing based on criteria they set.
Streitwise offers both accredited and non-accredited investors access to its portfolio of commercial real estate assets through its private REIT, 1st Streit Office, Inc. The company charges minimal fees compared to many other private REITs and has one of the highest dividend yields in the industry at over 8%
The REIT's portfolio includes properties with solid credit tenants including the Panera Bread headquarters and other global and national companies.
9. Rocket Dollar: Mix Your IRA With Alternative Investments
When you register for a Rocket Dollar account, you can invest in all the platforms above. Rocket Dollar is an IRA platform that allows you to take complete control of your retirement funds and move your money to new and exciting places.
You could invest that money in anything, and you might try StreitWise, GroundFloor, etc. If you want to invest in real estate crowdfunding as part of your retirement strategy, there’s no need to open multiple accounts. Transfer your IRA to Rocket Dollar and invest in any of the platforms above.
You can also BYOD (Bring Your Own Deal) to Rocket Dollar and add that investment to your account. If you want more freedom while planning for the future, feel like real estate is the best place to put your money and want to be actively involved in your investments, try Rocket Dollar.
Other Real Estate Crowdfunding Options
While the options above represent our top picks for the best real estate crowdfunding platforms, there are more options to consider based on your personal investment strategy and goals. You can compare other real estate investment platforms below.
- Best ForDiverse range of alternative assets
- Best ForBeginner real estate investors
- Best ForFarm Investing
For Accredited Investors Only
Frequently Asked Questions
Real estate crowd funding allows you to diversify your portfolio by investing in real estate.
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Accelerate Your Wealth
Arrived Homes allows retail investors to buy shares of individual rental properties for as little as $100. Arrived Homes acquires properties in some of the fastest-growing rental markets in the country, then sells shares to individual investors who simply collect passive income while waiting for the property to appreciate in value over 5 to 7 years. When the time is right, Arrived Homes sells the property so investors can cash in on the equity they've gained over time. Offerings are available to non-accredited investors. Sign up for an account on Arrived Homes to browse available properties and add real estate to your portfolio today.