Investing in Real Estate Crowdfunding? Here Are the 10 Best Platforms for 2023

Posted by Scott Jacobs, Broker on Monday, August 28, 2023 at 4:32:49 PM By Scott Jacobs, Broker / August 28, 2023 Comment

Have you ever dreamed of investing in real estate, but assumed it was out of your financial reach? Think again. With the rise of real estate crowdfunding, joining large-scale projects is now possible with just a few clicks on your mobile device. In fact, the global real estate crowdfunding market hit a whopping $10.78 billion in 2021 alone and is predicted to continue growing at an impressive 45.6% compound annual growth rate from 2022-2030. To help you get started, we’ve rounded up the top 10 crowdfunding real estate platforms available today, each with unique features that set them apart from the rest. So, why wait? Join the investing revolution and start turning your real estate dreams into reality.

Becoming a successful investor is no easy feat. It requires dedication, patience, and the ability to learn from mistakes. After more than a decade of investing in real estate, I can confidently say that five key factors have contributed the most to my success. Although it took less than a decade of intentional investing to acquire an eight-figure investment portfolio that generates over $1 million in net cash flow annually, these five things will continue to be essential throughout my lifelong career as a real estate investor. Success doesn't happen overnight, but a commitment to these five factors will ensure a prosperous future in real estate investing.

#1. Arrived

Are you interested in investing in real estate but want to avoid the hassle of owning and managing a property? Look no further than Arrived. This innovative company offers fractional ownership in single-family rental homes, allowing investors to benefit from both appreciation and quarterly rental income. With as little as $100, you can get started in the vacation rental industry, which is projected to hit $20 billion by 2025. Arrived has a straightforward fee structure, with a yearly 1% asset management fee. Plus, you can take advantage of favorable real estate tax rules and diversify your portfolio with investments ranging from $100 to $20,000 per house. Don't miss out on this opportunity to enter the lucrative vacation rental market. Join Arrived today.

#2. CrowdStreet

For the savvy investor, CrowdStreet is a must-know platform. This online marketplace for accredited investors offers access to a diverse range of investment opportunities spanning various asset classes and risk profiles. The best part? Each investment opportunity is thoroughly vetted, so you can trust that you’re making an informed decision when investing your money. With over $4 billion invested and 752 deals funded to date, CrowdStreet has become a well-known name in the investing world for delivering strong returns. While $25,000 is the usual minimum investment required for its deals and real estate investment trusts (REITs), this platform is a valuable tool for those looking to make informed investing decisions.

Are you an accredited investor? If you meet one of the two criteria specified by the Securities and Exchange Commission (SEC), then you're eligible to invest on CrowdStreet's platform. As an accredited investor, you have access to private real estate investments and other alternative investments that are usually out of reach for non-accredited investors. These investments offer the potential for attractive returns and diversify your investment portfolio beyond traditional stocks and bonds. With CrowdStreet, you can easily browse and invest in deals online, which provides transparency and convenience. Don't miss out on the opportunity to explore new investment avenues and potentially enhance your returns -- become an accredited investor on CrowdStreet today!

#3. CityVest

Are you an accredited investor looking to invest in institutional real estate deals but discouraged by the high minimums of $1 million or more? Look no further than CityVest. With a minimum investment of just $25,000, you can now enjoy the stable returns usually reserved for the elite few. CityVest works exclusively with institutional funds that employ administrators and auditors, and each offering undergoes third-party due diligence to ensure as much security as possible. With around 15% returns or more, CityVest is opening up the doors of real estate investing to a wider audience. So why wait? Join the many investors who are enjoying the benefits of working with CityVest.

#4. Fundrise

If you're eager to start investing in real estate but you don't have a lot of cash to spare, Fundrise might just be the platform for you. With a minimum investment of just $10, Fundrise welcomes everyday people who are looking to add some diversity to their portfolios. As one of the biggest direct-to-consumer private markets managers in the country, Fundrise offers a wide range of investment opportunities that cater to different budgets and goals. Whether you're interested in single-family homes or commercial properties, you're sure to find something that suits you. You'll also appreciate the platform's transparent fee structure, which starts at a reasonable 0.85% annual asset management fee. Signing up on Fundrise is a breeze, too - you'll answer a few simple questions, and the app will suggest an investment strategy that makes sense for you. Who says commercial real estate investing is for the wealthy? With Fundrise, you can take the first step towards your real estate investment dreams today.

#5. Groundfloor

Have you ever considered crowdfunding to invest in real estate? While it can offer great returns, one downside is the lack of liquidity. Your investment could be tied up for years before you see any return. Enter Groundfloor – a platform that invests in high-yield real estate-secured debt with an average investment repayment time of 4-12 months. Instead of crowdfunding to buy properties, Groundfloor issues fix-and-flip loans to real estate investors, allowing you to benefit from their success. With consistent yields of 10%+ over the last six years, it’s a great option for those interested in real estate investing. Of course, there is always some risk involved, but investing small amounts in multiple loans can help minimize that risk. Best of all, the investment threshold starts at just $10, allowing you to invest in multiple loans with even a modest amount of savings!

#6. Concreit

If you're looking for a flexible investment option, Concreit may be exactly what you need. Not only does Concreit specialize in short-term real estate-secured loans, but they also offer a fixed annual dividend yield of 6.2%, which you receive in weekly payments. This means that your money can quickly compound over time. However, it's important to note that if you withdraw your funds within the first year, you'll face a penalty of 20% of your dividend payout. Also, keep in mind that it can take up to 60 days to receive your funds, so if you need emergency cash, Concreit may not be the best option. Nonetheless, for as little as $1, you can start investing with Concreit and let your money work for you.

#7. RealtyMogul

If you're looking to invest in commercial real estate but don't quite know where to start, RealtyMogul might be just what you need. This company pools together various real estate investment opportunities, giving you access to markets across the U.S. With over 270,000 members and exposure to over $5.9 billion nationwide, it's no wonder they've become a go-to for many investors. Plus, their two REITs for non-accredited investors - The Income REIT and The Apartment Growth REIT - make it easy to get started. Whether you want to invest in retail, multifamily, office, or ground-up development properties, there's something for everyone with RealtyMogul.

#8. Streitwise

Investing in real estate can be a smart way to diversify your portfolio, but it can also be intimidating and time-consuming. That's where Streitwise comes in. This innovative company offers investors a professionally-managed, tax-advantaged portfolio of real estate assets with an emphasis on transparency. What's more, the founders of Streitwise have over $5 million invested in the company, so you can be confident that they believe in what they're offering. As an investor, you can enjoy a diversified portfolio of stable institutional-quality commercial builders, with a distribution average of 7.8%. The best part? Streitwise is available to both accredited and non-accredited investors, with a minimum required investment of just $4,400. Keep in mind, this is a long-term investment, so plan to keep your money in the pool for five years or longer. With Streitwise, real estate investing can be both accessible and hassle-free.

#9. YieldStreet

When it comes to investing, you want to make sure you're making smart choices. That's where YieldStreet comes in. With a focus on alternative investments, they give you access to a whole range of opportunities beyond just real estate. Whether it's art, legal finance, consumer loans, or NFTs and crypto, you can diversify your portfolio and potentially earn higher returns. While some opportunities are only open to accredited investors, YieldStreet's Prism Fund is available to everyone with a minimum investment of $5,000. Additionally, non-accredited investors can participate in Yieldstreet's Growth and Income REIT, which includes three multifamily properties in different cities. So if you're ready to explore alternative investing, YieldStreet could be the perfect platform for you.

#10. DiversyFund

As an investor, finding the right platform to invest in can be daunting. Luckily, DiversyFund makes things easier and more accessible with a minimum buy-in of just $500. What sets this crowdfunding app apart is the fact that they own their properties outright, meaning that you never have to worry about hefty commission fees eating into your profits. With a goal focused on growth, DiversyFund is committed to expanding their portfolio quickly by reinvesting their profits into new properties. While their estimates of returns between 10%-20% per year is impressive, investors must understand that there won't be any dividends in the near future. However, with long-term investment in mind, the potential for appreciation and growth will provide ample opportunity to reap the rewards of a smart investment.

Final Thoughts

When it comes to investing in real estate, crowdfunding has become a popular option for many people. While we've already covered ten of the best apps out there, it's important to remember that there are other options to consider depending on your particular interests and investment goals. For instance, if farmland is your thing, AcreTrader might be right up your alley. They offer properties across the country, from the Carolinas to California, with a solid track record of delivering an average annual return of 11%. And if you're looking for a company that combines traditional real estate tactics with crowdfunding strategies, don't miss out on EquityMultiple–a platform that aims to make real estate investing accessible to a wider audience.

SCOTT JACOBS

(703) 346-5855

[email protected]

scottjacobsbroker.jacobsandco.com