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 investments 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|
|Multifamily Real Estate||RealtyMogul||Yes||$5,000|
|Residential Real Estate||Cityfunds||Yes||$250|
|Commercial Real Estate||CrowdStreet||No||$25,000|
|Grocery-Anchored Real Estate||First National Realty Partners||No||$50,000|
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.
2. Arrived Homes
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.
EquityMultiple is a new alternative investment platform that uses technology to make real estate investing easier to understand for the investor, especially when you need help choosing the right investments. There are short-term and long-term growth options, and you can make the most of the cash you invest by pinpointing the real estate in which you would like to invest, without buying properties yourself.
In short, EquityMultiple offers:
- Quick returns
- Low buy-in pricing, often less than $10,000
- Excellent client support
Remember, this platform is only for accredited investors, but it allows you to do the hands-on work that you do with your other investments. You can learn all the information you need to know, but you’re never tasked with managing these properties. You simply see the profits when they come in.
Fundrise has options for virtually any investor with various account levels for both accredited and non-accredited investors. The platform has 14 funds available to invest in with account minimums starting at just $10. Investors can choose to craft their own portfolio or let Fundrise choose their allocation based on investment goals and timeline.
Fundrise's performance speaks for itself. Its diversified portfolio model has consistently delivered positive returns across all account levels, making real estate crowdfunding a much less-risky investment.
5. Elevate Money
Elevate Money offers an easy-to-use platform that allows anyone to invest with as little as $100. The platform is run by the owners of the investment properties included in the REIT. That means the people who manage the day-to-day details of each property in the REIT are calling the shots. This is an excellent platform for those who want to get up close and personal with their investments.
Elevate Money allows investors to get started quickly by linking their bank accounts and choosing the amount they want to invest. You can invest a one-time sum or contribute monthly with the auto-pay feature. The platform offers a 6.5% annualized dividend that is paid monthly. Currently, the portfolio has two properties, and as more shares are sold, more properties will be added. Investors will own a pro-rata portion of the portfolio as it grows.
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.
When you invest in Cityfunds by Nada, you can invest in a piece of a city for as little as $250. Anyone can buy into the program at any time with this small minimum deposit, and you are putting your stake into a piece of a city.
The firm invests in residential real estate in a particular market, especially high-demand markets like Miami, Dallas and Austin. You can also buy and sell your shares in these cities like stocks so that you aren’t relying on a particular development to see a return.
In short, Cityfunds by Nada combines what you love about ETFs with what is the largest asset class in the world. Plus, you can get yourself on the waitlist for the Nada Card, a debit card that will allow you to earn rewards that you can invest further in your real estate portfolio.
Yieldstreet has investment offerings across several different alternative asset classes - including real estate crowdfunding. Unlike the other real estate investment platforms on this list, Yieldstreet also regularly has debt offerings, allowing individuals to invest in real estate notes secured by institutional-quality real estate assets.
While most offerings are only available to accredited investors, Yieldstreet recently launched its Growth & Income REIT, which is available to all investors with a $5,000 minimum investment. This REIT provides access to a diversified portfolio of all real estate offerings that hit the Yieldstreet platform.
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.
10. 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
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.
Frequently Asked Questions
Whats so good about real estate crowdfunding?
Real estate crowd funding allows you to diversify your portfolio by investing in real estate.
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.