The Best Real Estate Crowdfunding Sites
Buying real estate requires quite a bit of upfront capital, time, energy, and money for maintenance. Thankfully, individual investors no longer have to save hundreds of thousands of dollars or become landlords to take advantage of real estate investments.
We’ve listed the best real estate crowdfunding companies like Fundrise and RealtyMogul, which allow you to start investing with as little as $500 or $1,000.
Best for Beginners  | Best Overall  | Best for Commercial  | Most Established  |
4.3 | 4.9 | 4.5 | 4.3 |
$500 min | $5,000 min | $25,000 min | $5,000 min |
What Are the Best Real Estate Crowdfunding Sites?
1. Fundrise
With no accreditation requirement and a minimum investment of $500 for their Starter Portfolio, Fundrise provides a low barrier to entry for any newbie investor interested in real estate investing. More info…show
- Minimum Investment: $500
- Fees: 0.85% annual asset management fee, plus 0.15% annual investment advisory, plus potential miscellaneous fees
- Historical annualized returns: 8.76% to 12.42%
- Limited to accredited investors? No
Check out our full review of Fundrise here.
2. RealtyMogul
RealtyMogul allows accredited and non-accredited investors to put money into various real estate investments. Investments include apartment buildings, office space, industrial sites, self-storage, retail space, medical buildings, and hospitality establishments. More info…show
- Minimum Investment: $15,000 – $50,000 for Private Placement investments, $1,000 for REIT.
- Fees: varies depending on individual investments for Private Placement, capped at 3% annually for REIT
- Historical annualized returns: not listed for Private Placement investments, 8% to 11% for REIT
- Limited to accredited investors? Private Placement, yes, investing in REITs, no
Check out our full review of RealtyMogul here.
3. EquityMultiple
EquityMultiple was launched by commercial real estate professionals who wanted to harness technology to open their businesses to new accredited investors. Mission Capital Advisors, a leading national real estate market firm, back EquityMultiple. More info…show
- Minimum Investment: $5,000 for some investments (although $10,000 is a more common minimum).
- Fees: 0.5% annual fee, 10% of profits
- Historical annualized returns: 7% to 14%, depending on the investment structure
- Limited to accredited investors? Yes
4. Groundfloor
Here’s some information about Groundfloor. More info…show
- Minimum Investment: $1
- Fees: % servicing fee for each loan
- Historical annualized returns: % to %
- Limited to accredited investors? No
Here’s what you need to know about getting started in real estate crowdfunding:
What is Real Estate Crowdfunding?
Real estate crowdfunding allows a group of individuals to use their collective money to do more than each person could do alone.
The minimum investment for real estate crowdfunding ranges from as low as $500 to $20,000 or more.
The best crowdfunding platforms do a lot of due diligence to weed out the bad deals. While that does mean you end up paying some extra fees for that, you can feel more confident that you’re investing in a good property without having to be a real estate expert.
Real Estate Crowdfunding makes real estate investing accessible to the average person. Fundrise and DiversyFund do not even require you to be an accredited investor, and you can get started with as little as $500.
The law also allows this type of investment to be advertised online, which is not allowed for other types of pooled real estate purchases, such as commercial and apartment building syndication.
Alternatives to Real Estate Crowdfunding
Roofstock
Want the ease of real estate crowdfunding but would rather own whole properties? If so, check out Roofstock. It’s an online marketplace for turnkey, tenant-occupied properties across the country.
The goal of Roofstock is to use its platform to match buyers and sellers more efficiently and at a lower cost.
With Roofstock, buyers pay a 0.5% marketplace fee, while sellers pay a 2.5% listing fee. This is much lower than going through a real estate agent. Most of the properties listed are single-family homes.
Roofstock allows you to look at detailed investment property information, like an inspection report, detailed photos, a 3D model, floor plans, and more.
Because most of the properties are currently occupied by tenants, you’ll start earning money through rent from day one.
Properties listed on Roofstock have gone through a rigorous vetting process. Roofstock does most of the work so you don’t have to. It makes finding viable real estate properties easy.
Click here to get started with Roofstock
The Bottom Line
Real estate crowdfunding can give you the benefits of real estate investing without the call-in-the-middle-of-the-night headaches that come with owning and leasing out property.
Though accreditation requirements may keep some potential investors out of some aspects of real estate crowdfunding, there are still options available for real estate crowdfunding investing for non-accredited investors.
Have you ever used any real estate crowdfunding platforms? Tell us about your experience in the comments!
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