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Best Real Estate Crowdfunding Platforms

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Physical property 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:

Compare Real Estate Investment Platforms

Minimum Investment
$500
Fees
No management fees
Get started securely through Diversyfund’s website
Minimum Investment
$500
Fees
No management fees
1 Minute Review

DiversyFund isn’t your average crowdfunding platform. You’ll find that the company puts a twist on the traditional everyday crowdfunding platform, beyond anything you can find online with a simple Google search. You only have to look under DiversyFund’s skin one layer to surmise that DiversyFund is a conscientious developer and sponsor and helps hedge risk through improved vetting.

DiversyFund offers a multifamily real estate investment trust, the DiversyFund Growth REIT, and its main goals are to increase cash flow and resale value. It’ll automatically give you access to multi-million dollar real estate assets.

Best For
  • Those looking for an alternative investment beyond stocks and bonds
  • Individuals who aren’t sure they want to be landlords in the traditional sense
  • Investors who aren’t accredited
Pros
  • Only need to pony up $500 to get started
  • Open to investors all over the world
  • No expensive broker fees
Cons
  • You’ll only be able to access “blind pool” investments, which means that you can’t opt out of specific properties
  • There’s only one real investment option, the DiversyFund Growth REIT
Minimum Investment
$1,000
Fees
average 1-2%
Get started securely through Yieldstreet’s website
Minimum Investment
$1,000
Fees
average 1-2%
1 Minute Review

Yieldstreet is an alternative investment platform that allows you to access unique, diversified and expert-reviewed investments. From real estate offerings to works of art, Yieldstreet offers investments that have low correlations with the general markets, meaning they can act as a new source of portfolio diversity.

Yieldstreet’s platform is easy to initiate and use — open an account in just a few minutes and begin browsing available investments before your account is fully verified. Due diligence information is easy to find and clearly laid out, and most investments include additional resources to learn more about the investment’s industry or category. Although the majority of investments are only open to accredited investors, anyone can invest in Yieldstreet’s Prism Fund.

Best For
  • Passive income generation
  • Accredited investors
  • New investors looking for an intuitive platform
Pros
  • Wide range of expert-reviewed alternative investments
  • Investments that are pre-funded by Yieldstreet
  • Prism Fund open to non-accredited investors
Cons
  • Majority of investments only open to accredited investors
Minimum Investment
$5,000
Fees
Between 8% and 10% of the purchase price
Get started securely through Roofstock’s website
Minimum Investment
$5,000
Fees
Between 8% and 10% of the purchase price
1 Minute Review

Roofstock is a registered real estate broker and marketplace specializing in single-family rental properties. Unlike its competitors, Roofstock isn’t selling shares of properties through trusts or LLCs — they’re connecting buyers and sellers directly. Roofstock properties are carefully vetted by a qualified home inspector and come with a rental income guarantee. That’s right, Roofstock will pay you rent even if your property stays vacant.

Financial data on each property is available even to those who are not clients and nonaccredited investors are welcome to join free of charge. Cash and financing options are available when making a purchase, but Roofstock will tack on their own fees in addition to closing costs.

As the solitary owner of your property, you’ll be expected to fund repairs out of your own pocket. Still, Roofstock is a great way to get a foot in the door of the real estate industry and their fees are much lower than most of the competition.

Best For
  • Nonaccredited investors
  • Real estate investors with limited capital
  • Investors looking for income through rental properties
Pros
  • Free to sign up
  • No investment minimum
  • Ownership of real assets
  • Low fees 30-day money back guarantee
Cons
  • Single-family homes only
  • Need to finance repairs yourself
  • Requires down payments
Minimum Investment
$50,000 *Origin Investments is for Accredited Investors only
Fees
1.25% per year
Get started securely through Origin Investments’s website
Minimum Investment
$50,000 *Origin Investments is for Accredited Investors only
Fees
1.25% per year
1 Minute Review

Origin Investments is a real estate investment company that has leveraged technology to make investing in institutional-quality private real estate more accessible. Origin Investments places an emphasis on transparency, and fund information and documents are easy to find in their investor web portal. Getting started with Origin is equally as simple, though you’ll need to be an accredited investor to join.

Best For
  • Accredited investors
Pros
  • Your real estate investment is managed by experienced real estate fund managers who have executed more than $1 billion in transactions and resulted in 0 losses across 43 deals.
  • Origin has “boots on the ground” in their target investment markets, providing access to off-market deals
  • Origin principals have invested $56 million of personal capital alongside investors, to ensure alignment of interests.
  • Beginner-friendly platform is easy to operate
  • A personal Origin representative is provided to every investor for personalized customer service
Cons
  • Open to accredited investors only
Minimum Investment
$10,000
Fees
1% – 1.75%
Get started securely through CrowdStreet’s website
Minimum Investment
$10,000
Fees
1% – 1.75%
1 Minute Review

CrowdStreet is a commercial real estate investing platform where people can invest directly in commercial projects. Unlike a brokerage firm, CrowdStreet isn’t a middleman. Instead, the platform acts as a marketplace where investors can pick and choose the best deals for their time horizon and strategy.

Available investments range from family living spaces to office buildings to storage facilities and investors can sign up for a free membership. Your investment options are limited to what’s live on the Marketplace and you’ll need capital to build a diverse real estate portfolio. Only accredited investors can access deals through CrowdStreet.

Best For
  • Investors looking for diversification away from stocks
  • Real estate investors interested in new opportunities
  • Accredited investors with lots of capital at their disposal
Pros
  • Unique opportunities available
  • Makes real estate accessible and understandable
  • Investors can devote capital to both debt and equity offerings
  • Offers quality education materials and answers to FAQs
Cons
  • Real estate is highly illiquid
  • Most properties require a minimum $25,000 investment
  • You’re limited to what’s on the CrowdStreet Marketplace
Minimum Investment
$500
Fees
0.85% asset management fee per year
Get started securely through Fundrise’s website
Minimum Investment
$500
Fees
0.85% asset management fee per year
1 Minute Review

Fundrise, a real estate investment platform, allows small investors to gain exposure to a diversified portfolio of real estate projects hand-picked by the Fundrise team. Investors can choose between a starter plan and three advanced plans, all designed to meet certain investing goals. Each plan gives you an exposure to a specific portfolio which comes in a form of eREITs and eFunds, custom-made products which are not traded on security exchanges.

Best For
  • Small real estate investors
  • Passive investors
  • Long-term investors
  • Beginners
Pros
  • Allows small investors to get exposure to commercial real estate
  • Diversification in the real estate sector
  • Goal-oriented investing
  • Relatively low fees
  • 90-day guarantee
Cons
  • Liquidity issues as eREITs and eFunds are not exchange traded

Best Real Estate Crowdfunding Platforms

Our top picks are web-based companies that have led the surge in real estate crowdfunding. 

Minimum Investment
$500
Fees
No management fees

1. DiversyFund

DiversyFund is a useful tool if you don’t fit the traditional real estate investor mold. You don’t have to be accredited to invest, and you need relatively little capital to begin. The platform is user-friendly with a simple sign-up process. 

Register with a minimum of $2,500 invested in $500 increments. Your funds go directly to the privately-traded DiversyFund Growth Real Estate Investment Trust (REIT). The capital is used to develop properties and investors see an average of 11.4% return when properties are sold. Standard brokerage fees are also waived. 

Diversyfund provides full transparency on the value of its available properties, which makes things simple for beginners.

Minimum Investment
$10,000
Fees
1% – 1.75%

2. CrowdStreet

CrowdStreet is the largest and most diverse commercial real estate marketplace. It’s a good match if you’re an experienced, accredited investor who doesn’t mind a little risk. 

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 and your investment can be much steeper depending on the project. Investments are usually under rigid period terms. The potential for large returns is high, but expect to wait a few 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.

Minimum Investment
$5,000
Fees
Between 8% and 10% of the purchase price

3. Roofstock

Roofstock markets itself as a real estate investment industry disruptor. It acts as a liaison between REITs and holding companies to list available properties for individual investors. The company targets investors looking for turnkey rental properties — particularly single-family rental homes (SFR).

Use Roofstock’s custom filters to tailor your search and get notifications when there’s a matching property. You can take a 3D tour of potential properties, look at tenant payment history and local property management options before you buy. 

Making an offer is free. Roofstock charges a fee of 0.5% of your contract or $500, whichever is higher. Closing takes 15 days if you pay cash and 30 days if you’re financing. It also offers a 1-year rent payment guarantee. Roofstock is the perfect option for low-risk real estate investment without the extra work of flipping a property.

Minimum Investment
$500
Fees
0.85% asset management fee per year

4. Fundrise

Fundrise gives you the option of REIT investment regardless of your net worth. You can start with just a $500 commitment, and membership levels increase up to $100,000. Fundrise offers 2 options for investing in one of its private REITs. Its eREIT provides the option to invest in income-generating real estate such as rental properties. The eFund pools capital to purchase, develop and sell properties.

A Fundrise portfolio is made up of qualified offerings regulated by the SEC and must follow strict reporting requirements including annual audits and regular financial reporting. Fundrise is a great platform to diversify through long-term alternative investments with the potential for high returns. 

Minimum Investment
$50,000 *Origin Investments is for Accredited Investors only
Fees
1.25% per year

5. Origin Investments

Founded in 2007, Origin Investments is a real estate investment firm that acquires office and multi-family properties in Atlanta, Austin, Charlotte, Chicago, Dallas, Denver, Houston and Raleigh. Origin differs from other firms in its approach — it seeks the highest risk-adjusted returns for its investors by acquiring and managing high-quality real estate opportunities and it takes out the middleman and/or broker.

Origin evaluates demand drivers such as population growth, job growth, rent growth, access to multiple transportation modes and proximity to universities for access to a trained workforce. The innovative firm recently raised $151 million for its Origin Fund III. Funds operate through an LLC structure, which means that all tax benefits (such as depreciation and interest expense) pass through to investors, making it different from an REIT structure (in a REIT structure, the tax benefits are captured at the REIT-level and any income paid out is taxed at the ordinary income rate).

Origin’s offerings are available to accredited investors. Accreditation status is verified upon commitment to an offering.It’s easy to register for an account on Origin’s website. Click the “Sign Up” button in the upper right-hand corner of any page and follow the prompts to register and explore Origin’s offerings. Click “Invest Now” when you’re ready to invest.

Why Real Estate Crowdfunding?

Real estate crowdfunding offers the usual property investment incentives, such as tax breaks and greater diversification. But crowdfunding specifically has some benefits and risks you should be aware of before investing.

Pros

  • Once inaccessible real estate investment opportunities available to all
  • High return potential of at least 15%
  • Easy investment portfolio diversification 
  • Property management and improvement usually handled by sponsor
  • Partial insulation from market uncertainty

Cons

  • Most projects, properties and platforms are still restricted to accredited investors 
  • Higher risk over a longer period of time
  • Average commitment between 5 to 7 years 
  • Longer wait for return as compared to publicly-traded REITs or rental properties
  • Additional fees from platforms or project sponsors, including high fees for liquidating early

Get Involved in Crowdfunding Real Estate

The relatively new world of crowdfunding real estate gives all investors access to opportunities outside of stocks and bonds. Although real estate investment may mean low liquidity, property historically appreciates and provides a likely financial return over time. 

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