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Advertiser Disclosure

Our readers come first

 

Our primary goal at The Modest Wallet is to help our readers make smarter money decisions without needing a finance degree. Because personal finance education should be free and accessible to everyone.

 

As an independent publisher, transparency is at the core of what we do and how we do it, so we want you to know that we regularly partner with brands that have products and services that align with our values and will help our readers. When you click on some of the links on our site and complete a required action (i.e., sign up for a promotion, download an app, purchase an item, etc.), we may earn a small commission at no extra cost to you.

 

These partnerships may influence the products we review and write about (and where those products appear on the site), but they in no way affect our recommendation. All of our content and reviews are based on our research and honest opinion. This is regardless of the compensation. None of our partners or advertisers have editorial input or control because our relationship with our readers always comes first.

12 Best Real Estate Crowdfunding Sites in 2022

Real estate crowdfunding is an exciting way to get started in real estate, so we’ve distilled the best real estate crowdfunding sites for you.

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The information provided on this page is for educational purposes only. The Modest Wallet is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual.

So, you want to get started in real estate crowdfunding. Great!

The good news is that you can take your first steps in investing in properties of all kinds in many ways. However, finding the ideal platform is not as easy as you might think. That’s why we’ve curated a list of the best real estate crowdfunding sites for you.

We will give you an overview of what makes the platforms unique and provide insight into the pros and cons of every site. Once you’re through the article, you will know which one is the perfect site for your needs. 

Platform Minimum Investment Accreditation Required Learn More
Fundrise $10 No Learn More
Roofstock $0 ($5,000 for Roofstock One) No Learn More
DiversyFund $500 No Learn More
CrowdStreet $25,000 No (currently no non-accredited offerings available) Learn More
Streitwise $5,000 No Learn More
Cadre $25,000 Yes Learn More
RealtyMogul $5,000 No Learn More
Arrived Homes $100 No Learn More
Acretrader Varies ($10,000 - $25,000) Yes Learn More
EquityMultiple $5,000 Yes Learn More
Groundfloor $10 No Learn More
PeerStreet $1,000 Yes Learn More

12 Best Real Estate Crowdfunding Sites

Investing in real estate should be fun and easy. We believe you shouldn’t waste time searching the entire internet for the best real estate investing platform. We already did that for you. 

Here are the best real estate crowdfunding sites you should consider if you want to diversify your investment portfolio. Also, make sure to read our how to invest in real estate guide to learn more about real estate investing. If you’re not an accredited investor, read our guide on the best crowdfunding sites for non-accredited investors to learn more about other alternatives.

1. Fundrise: Best Overall

Fundrise is one of the most popular real estate crowdfunding platforms. It was founded in 2012 and quickly became one of the biggest players in the industry. The company provides a value-investing approach and offers institutional-quality real estate investments.

All investors — accredited and non-accredited — are welcome to invest through one of five account levels in diversified, low-cost portfolios consisting of residential and commercial properties. Every account level suits a particular type of investor. In addition, it allows you to grow without having to switch platforms in the process.

What’s most impressive about Fundrise is that you only need $10 to get started and fees are very low. This is ideal for empowering first-time investors while the fees don’t eat up too much of the returns. Read our full Fundrise review to learn more.

Pros:

  • Low fees
  • $10 investment minimum
  • Open to non-accredited investors
  • Self-directed IRA investing
  • Share redemption program
  • Income from dividends and capital appreciation
  • Dividends can be reinvested

Cons:

  • Highly illiquid investments
  • No individual deals
  • Investors have to do the due diligence themselves
  • Customer support only available via e-mail

In A Nutshell

on Fundrise’s website

2. Roofstock: Best For Single Family Rental Properties

On Roofstock, you can buy turnkey single-family rental properties in more than 70 US markets. These rental homes are usually occupied by tenants and provide you with rental income from the start. 

The company wants to make investing in real estate a breeze. Hence, they do all the heavy lifting for you — from screening and evaluating properties to negotiating and closing the deal. You just browse the marketplace, filter for your favorite factors, and make an offer.

Roofstock also allows investors to buy shares of fully managed rental properties and invest in custom portfolios similar to non-public REITs. You can also use 1031 exchanges and self-directed IRAs. But the best part is the unique 30-day money-back guarantee. Read our full Roofstock review to learn more.

Pros:

  • Tons of rental properties
  • Open to all investors (except Roofstock One)
  • Thorough inspection and vetting process
  • Low buying and selling fees
  • Roofstock connects you with property managers
  • 30-Day Money-Back Guarantee
  • IRA investing and 1031 exchanges

Cons: 

  • High minimum investment
  • Buying houses unseen
  • Illiquid investment
  • Homeowners need to set aside money for potential repairs

In A Nutshell

  • Minimum Investment: $0
  • Fees: 0.50% of purchase price or $500 (Buyers) and 3.00% of the sale price or $2,500 (Sellers)
  • Promotion: None

on Roofstock’s website

3. DiversyFund: Best For REIT Funds

The online crowdfunding platform DiversyFund wants to make the investment tools of the 1% available to everyone. They offer one public non-traded real estate investment trust, (REIT) which primarily invests in value-add multifamily real estate properties across the country.

You can start investing with just $500, which is perfect for investors with limited capital. You also don’t need accreditation to participate. What makes DiversyFund unique is that they own, develop, and manage the properties for you. While their service used to be free, the company now charges 2% in management fees.

Two things to keep in mind: you can’t withdraw any cash and your rental income will be reinvested automatically. You have to wait at least five years until the investment term of the Growth REIT ends to see your returns and initial capital. Read our full DiversyFund review to learn more.

Pros: 

  • $500 investment minimum
  • Open to non-accredited investors
  • Easy to use platform
  • Access to commercial real estate 
  • Educational resources

Cons:

  • Highly illiquid investment
  • No secondary market
  • Automatic reinvestment of dividends
  • High developer/sponsor fees on the REIT level
  • Short track record
  • Little diversification 

In A Nutshell

  • Minimum Investment: $500
  • Fees: No management fees; other fees may apply — 6.00% to 8.00% of soft and hard costs (Developer fees) and 1.00% of the sale price (Disposition of property)
  • Promotion: None

on DiversyFund’s website

4. CrowdStreet: Best For Investing in Private Equity Real Estate

CrowdStreet specializes in commercial real estate investments with holding periods between 2 to 10 years. Accredited investors can diversify their real estate portfolios across many projects in the United States and have extensive details at hand to make informed decisions.

The site offers access to institutional-quality real estate. It checks every deal sponsor and application before bringing them together with its investor audience. Next to standalone deals, investors can invest in managed funds or create a real estate portfolio with the help of the firm’s advisory team.

Since its launch in 2014, CrowdStreet has been boasting a solid track record and very attractive targeted return rates, making the platform a suitable choice for accredited investors. Still, the minimum investment is $25,000. Read our full CrowdStreet review to learn more.

Pros:

  • Access to institutional-level commercial real estate
  • No fees for investors
  • More than 500 closed deals and 50+ fully realized
  • Impressive track record and high returns
  • Thorough pre-screening process of sponsors
  • Excellent deal transparency
  • Robust and easy-to-use dashboard
  • Self-directed IRA investing
  • Extensive quality educational resources and help center

Cons:

  • Limited liquidity
  • Accredited investors only
  • High minimum investment of $25,000 per deal

In A Nutshell

  • Minimum Investment: $25,000
  • Fees: 0.50% to 2.5% (funds), project fees vary
  • Promotion: None

on CrowdStreet’s website

5. Streitwise: Best For Commercial Properties

A more conservative real estate platform is Streitwise. The company offers one private equity REIT that invests in commercial real estate with a debt ratio of 50% to 60%. Moreover, Streitwise targets properties that already have large tenants, such as Panera Bread or Allied solutions.

The REIT is open to accredited and non-accredited investors and provides regular cash flows. While investments are subject to a one-year lock-up, redemptions can be made each quarter. Streitwise has a solid rate of return, transparent fee structure, and an acceptable investment minimum to get started.

What sets the platform apart from most crowdfunding platforms is that it directly owns and operates the real estate properties you can invest in. Read our full Streitwise review to learn more.

Pros:

  • Institutional-quality real estate
  • Open to non-accredited investors
  • $5,000 minimum investment
  • Self-directed IRA accounts 
  • Funding via cryptocurrency is possible
  • Dividends can be reinvested
  • Experienced founders have skin in the game
  • Quarterly share redemptions
  • Strong return rate
  • Transparent fee structure

Cons:

  • No individual deals
  • Minimal diversification
  • Short track record
  • High share redemption penalties
  • One-year lock-up period

In A Nutshell

  • Minimum Investment: $5,000
  • Fees: 2% annual management fee
  • Promotion: None

on Streitwise’s website

6. Cadre: Best For Liquidity

With Cadre, accredited investors can back institutional-level commercial real estate. The company relies on technology, industry experience, and extensive due diligence to discover the best investments and generate excellent risk-adjusted returns. So far, Cadre has an intriguing track record.

The low-volume site allows you to invest in standalone deals and a diversified fund. Moreover, the management team invests alongside its members, which is great for proving alignment.

One strength of the platform is its opportunity zones offering. This feature can be desirable for investors looking for tax advantages of these zones. However, the $50,000 minimum investment is only suitable for high-net-worth individuals. Read our full Cadre review to learn more.

Pros:

  • Institutional-level real estate
  • Massive financial experience
  • Management and employees have skin in the game
  • Strong track record and high returns
  • Secondary Market
  • Opportunity Zones
  • Thorough due diligence and vetting process

Cons:

  • Only for accredited investors
  • $50,000 minimum investment
  • Low deal flow

In A Nutshell

  • Minimum Investment: $25,000
  • Fees:1.50% (asset management fee), up to 0.50% (administration fee), up to 3.50% (commitment fee) and 1.00% (transaction fee)
  • Promotion: None

on Cadre’s website

7. RealtyMogul: Best Platform and User Experience

RealtyMogul offers something for everyone on its marketplace, making it an excellent one-stop-shop for investors. The platform targets institutional-quality commercial real estate that regular investors typically don’t have access to and offers a buyback program to enhance investment liquidity. 

Non-accredited investors get the opportunity to invest in one of their two privately traded REITs: MogulREIT I for attractive, monthly cash distributions and MogulREIT II for capital appreciation. Accredited investors can further invest in specific standalone deals and participate in 1031 exchanges. 

Besides, RealtyMogul has one of the best due diligence processes in the entire industry for finding well-leased cash flow-producing properties. However, investors need at least $5,000 for the REITs and $25,000 or more for private placements. Read our full RealtyMogul review to learn more.

Pros:

  • Rigorous due diligence process 
  • MogulREITs open to non-accredited investors
  • Share Buyback Program
  • Standalone deals and 1031 exchanges
  • Monthly or quarterly distributions
  • Distributions can be reinvested
  • Automated investing

Cons:

  • High minimum investments
  • Accreditation needed for private placements
  • Complex fee structure
  • Slow deal flow

In A Nutshell

  • Minimum Investment: $5,000
  • Fees:1.00% to  1.25% per year asset management fee
  • Promotion: None

on RealtyMogul’s website

8. Arrived Homes: Best For Flexible Investment Amounts

Arrived Homes allows investors to participate in real estate investments for as little as $100. Like other platforms listed here, the company aims to make this asset class accessible to everyone. Investors, such as Jeff Bezos and Marc Benioff, back the firm financially.

The company specializes in single-family homes across the country. It takes care of finding tenants and dealing with maintenance needs and repairs. Arrived Homes rigorously vets real estate markets, neighborhoods, and properties to buy only those houses that show the most income-producing potential.

From there, investors can buy shares of the listed properties and receive quarterly dividend payments (Arrived Homes is classified as a REIT and taxed accordingly). Interestingly, tenants are co-owners as well. Read our full Arrived Homes review to learn more.

Pros:

  • $100 minimum investment
  • Open to all investors
  • Quarterly dividend payments
  • Easy to use platform
  • Professional property management
  • Protection from personal liability
  • Thorough vetting process
  • Good educational resources

Cons:

  • Limited liquidity
  • Share redemption isn’t guaranteed
  • Very low deal flow
  • Fees reduce rental income

In A Nutshell

  • Minimum Investment: $100
  • Fees: Annual management fee: 1%, property management fee: 8%, and sourcing fee: varies by property
  • Promotion: None

on Arrived Homes’ website

9. AcreTrader: Best For Farmland Investing

Investors looking for a different approach to real estate investing may want to consider AcreTrader. While we are mostly talking about commercial and residential real estate here, farmland investing is also included on this list.

The relatively new site is for accredited investors only and has a rigorous due diligence process. Instead of buying a farm and managing it yourself, you can purchase shares of investment-grade farmland nationwide. You then receive your income by renting that farmland out to farmers or reselling it at a higher price in the future.

If you have $5,000 to $10,000 (based on the price per acre) and want to invest in this fascinating asset class, this can be your platform. Read our full AcreTrader review to learn more.

Pros:

  • Low-volatility/ high-return asset class
  • Reasonable investment minimum
  • Thorough due diligence
  • Relatively low fees
  • Nationwide diversification
  • Helpful AcreTrader Farm Value Tool
  • Farmland ratings
  • Annual cash distributions and expected land appreciation
  • Educational resources 

Cons:

  • Only for accredited investors
  • Illiquid investment
  • Limited track record
  • Low deal flow

In A Nutshell

  • Minimum Investment: $10,000
  • Fees: Flat fee of 0.75% to 1.00% on the assets invested (*other fees may apply)
  • Promotion: None

on AcreTrader’s website

10. EquityMultiple: Best For 1031 Exchange Offerings

EquityMultiple, backed by the established real estate company Mission Capital, specializes in institutional, commercial real estate and is open for accredited investors. The site sources private properties across the United States and offers debt, equity, preferred equity, and CRE deals on its platform. 

Investors can invest in a diversified fund, standalone deals, or even short-term notes as an alternative to savings. Each approach has a unique strategy, time horizon, and minimum investment. Investors also get access to tax-advantaged investments such as opportunity zones and 1031 exchanges.

Distributions occur monthly or quarterly and fees vary for each deal. To get started, you need at least $5,000, but it’s usually between $10,000 and $30,000. Read our full EquityMultiple review to learn more.

Pros:

  • Access to institutional-level real estate
  • Different types of investments
  • Strong track record and high historical returns
  • Low investment minimums for standalone deals
  • Reasonable fees
  • Experienced team

Cons:

  • Highly illiquid
  • Only open to accredited investors
  • Complex fee structure 

In A Nutshell

  • Account Minimum: $5,000
  • Fees: 0.5% to 1.5% per year (Common Equity), 1% (Debt and Preferred Equity), varies (Funds), and $30 to $70 per year (Admin Fee)
  • Promotion: None

on EquityMultiple’s website

11. Groundfloor: Best For Low Investment Minimums

Groundfloor is a lending and investment crowdfunding platform that connects investors, whether accredited or not, with professional real estate developers looking for short-term financing. Investors can participate in short-term, high-yield debt (investment loans) that is backed by the properties.

So instead of owning a property yourself, you own debt on a fractional basis. You can choose from seven different risk levels with corresponding return rates; the riskier the investment, the more money you can make. That way, you can create a personalized portfolio according to your strategy.

This platform is excellent for beginners because you just need $10 to start investing and can use self-directed IRAs and automatic investing features. Plus, only borrowers pay fees, making Groundfloor’s offering free for investors. Read our full Groundfloor review to learn more.

Pros:

  • $10 minimum investment
  • Open to non-accredited investors
  • Zero fees for investors
  • High deal flow
  • Automatic investing
  • IRA-investments
  • Investors have full control over their investment choices
  • Deals are color-coded and graded according to their relative risk level

Cons:

  • Loan defaults are part of the business model
  • No bankruptcy protection
  • Loan updates only monthly
  • No diversification within asset classes

In A Nutshell

  • Minimum Investment: $10
  • Fees: No fees for investors
  • Promotion: None

on Groundfloor’s website

12. PeerStreet: Best For Automated Investing

Another platform for investments in high-quality, short-term real estate debt is PeerStreet. Accredited investors can self-select private loan investments from borrowers on the crowdfunding platform’s marketplace and build their portfolios. 

These loans are backed by a first lien position, and PeerStreet relies on technology and big data analysis to review investments. Every potential deal must pass a strict due diligence process, including the originator. The company only works with the highest quality originators with a solid track record.

To invest in commercial real estate debt, investors only need $1,000. The real estate loan’s investment terms usually range between six months and two years. PeerStreet collects monthly payments and then distributes them among its invested members. Read our full PeerStreet review to learn more.

Pros:

  • High deal flow
  • $1,000 minimum investment
  • Excellent diversification across states, property types, and LTV
  • Manual and automated investing 
  • Self-directed retirement accounts
  • Strong performance record and low default rates
  • Loans are backed by hard assets
  • Integration with Betterment, Wealthfront, and Mint 
  • Earn interest on idle cash through pocket
  • Transparent and investor-friendly fee structure
  • Excellent loan-to-value ratios between 60% and 75% 

Cons:

  • Highly illiquid investments
  • Loan defaults are part of the business model
  • Only accredited investors
  • No single deals or REITs

In A Nutshell

  • Account Minimum: $1,000
  • Fees: 0.25% to 1.00%
  • Promotion: None

on PeerStreet’s website

What to Look for in a Real Estate Crowdfunding Site?

We know that selecting one platform for your investments isn’t easy, even after reading through all the information on the best real estate crowdfunding sites. That’s why we added the most important things to look for in a real estate site. 

Investment Minimums

The formula for investment minimums is very simple: The lower the initial amount, the better for you. That way, you can easily diversify across assets, even if you have a low account balance or want to test out a platform before putting too many dollars at risk.

If you come across a platform with low minimum investments, this is often an indicator that it’s open to all investors. In contrast, higher minimum investments are typically found on platforms for accredited investors. Nonetheless, hand-picked investments that are riskier and usually reserved for high-net-worth individuals often require significant amounts to generate better returns than index funds or REITs.

Platform Fees

If you are investing in real estate through crowdfunding platforms, you need to be okay with paying some fees. These fees are the primary source of revenue for the platforms. The only time you can invest for free is when someone else, like the borrower of a loan, pays the fees for you. 

Some platforms only charge low management fees of 1%, whereas others charge a bunch of different fees that add up. Therefore, make sure to always check the details and understand the platform’s fee structure before investing. Avoid platforms with too-complex fee structures or high fees as they can diminish your returns. 

Historical Performance

Real estate is one of the best-performing asset classes in the past, which is the main reason people invest in real estate. The generated returns outperform those of the stock market, and investors have more options to make money. They benefit from price appreciation, rental income, and the tax benefits some investments offer.

Therefore, it makes sense to invest with platforms that offer the same money-making potential to their investors while generating average annual returns above 10%. Keep in mind that higher returns are often a sign of riskier investments you must sustain before being rewarded.

Liquidity

When talking about liquidity in real estate, we refer to how easy it is to withdraw your money from your investments. Real estate investments are typically very illiquid investments. Hold periods of 5 or more years are the general average in the industry. 

Only invest in real estate if you know you won’t need this money within the near future. Nevertheless, there are platforms that allow you to redeem your investments prematurely and provide at least some flexibility (usually REITs). In this case, you have to pay penalties for early redemptions after a specific lock-up period. Still, liquidity is often not guaranteed.

Platform Track Record

When choosing a crowdfunding platform, you should join a platform with an excellent track record. Ideally, this includes a high number of members, closed deals, and fully realized deals. Also, find out whether the platform has distributed enough cash payments to its investors in line with their target rates of returns. 

It’s much easier (and safer) to invest with a platform that has been around for years and demonstrated its capabilities compared to a relatively new platform where you don’t know what you will get. However, if you know that a new platform does exactly what you are looking for, then give it a try if there are no red flags for you. 

Requirements

If you invest in real estate via crowdfunding platforms, you must adhere to specific requirements. The most common requirement is being an accredited investor (for some platforms, not all), which requires investors, among other things, to be high-net-worth individuals. This is not another exclusive club you don’t get access to but a regulation by the SEC.

Another essential requirement is minimum investments, which we talked about earlier. These are necessary for the platforms to offer their services and cover their overhead costs. Additionally, investors typically have to be 18 years or older and US citizens.

Make sure you sign up for a platform that makes sense for your goals and financial needs.

Features

Ultimately, consider the available features when selecting a real estate crowdfunding platform. For example, some platforms focus on one offering, whereas others provide you with different types of real estate and multiple investment options. This allows for diversification on one single platform.

If you want to invest in just one category, you might not need all the unique features like a 30-day money-back guarantee or funding via crypto. But if you want to understand the ins and outs of real estate investments, it’s worth identifying those features that help you grow your portfolio.

FAQ Best Real Estate Crowdfunding Sites

Below are our answers to some of your frequently asked questions about the best real estate crowdfunding platforms.

What Is a Real Estate Crowdfunding Platform?

Crowdfunding is a modern way to finance real estate projects. Crowdfunding platforms typically raise money from a group of investors who are not interested in or cannot back the entire investment individually. They then pool the money and acquire or invest in real estate properties. Think of platforms like Kickstarter or GoFundMe but only with real estate.

Is Real Estate Crowdfunding Worth It?

Crowdfunding platforms provide access to real estate investments which would usually be out of reach for most investors. Some platforms allow you to participate in this asset class with as little as $10, allowing you to diversify your money efficiently. This alone makes them worth it. Moreover, you can make money from investments without the hassle of being a landlord or financing and managing properties.

Is Real Estate Crowdfunding Safe?

Generally speaking, no investment is without risk. Besides, investments that aim for higher returns often carry a significant amount of risk. While investing in properties, funds, and REITs is easy with most real estate crowdfunding platforms, we don’t know how they hold up during turbulent times. Keep in mind that these investments are relatively illiquid.

What Is an Accredited Investor?

Accredited investors get access to investments that are unregistered with the SEC. These investors have the necessary experience, financial resources, and understanding of risks to participate in such investments. Accredited investors must earn $200,000 per year ($300,000 with a spouse), including the last two years, or have a net worth of $1 million, excluding their primary residence.

Final Thoughts

While there are various crowdfunding platforms to choose from, you will probably invest in one or two, depending on your investment strategy, investor status, and cash at hand. You don’t have to join every platform, and that’s fine.

Keep in mind that every investor has a unique approach to real estate investing. Therefore, it’s important to pick those platforms that offer the right mix of real estate investment options, pricing, features, track record, and investment minimums that fit your investor profile.

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