The best real estate crowdfunding platforms

Table of contents

Best Real Estate Crowdfunding Platforms

Crowdstreet‘s

Roofstock‘s

RealtyMogul‘s

Fundrise

ArborCrowd

RealCrowd

PeerStreet

Small Change

GroundFloor

What is real estate crowdfunding?

What is the best real eastste platform for crowdfunding?

Can you use real estate crowdfunding platforms to buy a house?

Can you make money from crowdfunding?

Can you lose money with real estate crowdfunding?

Are crowdfunding investments worth it?

How much money can you make from real estate crowdfunding?

How much can you get from crowdfunding?

How much can I invest in crowdfunding?

Can you crowdfund for anything?

What are the disadvantages of real estate crowdfunding platforms?

What do you get from crowdfunding?

Who invented crowdfunding?

Richr’s best real estate crowdfunding platforms Take-Away

The real estate industry has changed significantly over the past decade, much of it pushed by technology. What’s even crazier – the popularity of real estate crowdfunding websites. Today, buyers can view homes for sale on the next street or across the globe on their devices. Sellers can sell their homes by themselves and still reach thousands of potential buyers on the internet. Even those in search of a weekend getaway or unique vacation spot can find it online. Another area in the real estate industry that has blossomed due to technology is crowdfunding. What are the best real estate crowdfunding platforms?

Crowdfunding has been used in the past to launch new, innovative products and to raise money for a variety of causes, but now investors are finding it is an easy way to invest in commercial or residential real estate projects. Real estate crowdfunding US can be used as an alternative to or in addition to owning real estate yourself or buying into Real Estate Investment Trusts (REITs).

As you’ll see, there are plenty of options out there, depending on your interests, goals, and resources. Here is a look at some of the best real estate crowdfunding platforms 2021 that have gotten or are gaining traction and one that hasn’t fared so well.

Best Real Estate Crowdfunding Platforms

Crowdstreet‘s

This is a commercial real estate investment platform that was formed in 2014. Since 2014 they have proposed 338 real estate investment offerings, 17 of which were fully realized. Annualized returns have averaged an impressive 25.5%. CrowdStreet has raised over $670 million throughout its lifespan, returning $64 million to its investors. This platform offers various investment options in a range of investment periods for short and long-term investors. As property crowdfunding usa gains traction, commercial property seekers have kept their eye on real estate crowdfunding sites like this one.

Roofstock‘s

Roofstock is one of the real estate crowdfunding sites that specializes in investing in single-family rental properties. This, they’ve apparently done very well, as they boast of $1 billion in completed single-family rental transactions in just under two years. Arguably one of the top real estate crowdfunding platforms out there. They have a unique guarantee that assures your satisfaction and that a property will be rented within 45 days of being “rent ready.” If you have ever thought of buying a rental property but didn’t want to be a landlord, Roofstock is an option as a real estate fundraising platform.

RealtyMogul‘s

This is a REIT and commercial real estate investment platform that claims to thoroughly vet each and every project by “…setting foot on every property and thoroughly scrutinizing each deal using proprietary due diligence principles and conservative financial models.” RealtyMogul says they have 180,000 investors participating in its projects. Whether they’re the best real estate crowdfunding solution altogether – we don’t have the data to give them the top real estate crowdfunding platforms medal yet.

Fundrise

This real estate crowdfunding for beginners resource allows even small investors to participate in million-dollar real estate projects. That’s why small start investors think of Fundrise as one of the best real estate funding sites. It permits investors to diversify among various projects depending on whether they are focused on short or long-term returns. Fundrise features a “Starters Portfolio” where investors can take the platform for a test drive for 90 days and get a free upgrade should they decide to continue. The Starters Portfolio takes just a $500 investment. Fundrise promotes itself as being a “simple, low-cost real estate investment platform.” Whether it’s the best of the best real estate crowdfunding sites, that’s for you to decide.

ArborCrowd

ArborCrowd is the first real estate investment institution that launched its own crowdfunding for real estate deals, basically opening up its investment network to a new type of property investor. ArborCrowd has owned or financed over 400,000 properties and has over $2 billion in assets. They screen projects rigorously, sifting through an average of about 500 projects per year and selecting only seven. They were investing in real estate before crowdfunding was a thing. As part of the exclusive group of the best real estate crowdfunding platforms, ArborCrowd set the standard for others to follow.

RealCrowd

This online real estate investment platform for serious investors gives users the same direct and free access to commercial real estate companies’ pension funds and university endowment programs. The platform says it is not a middleman but instead facilitates direct access and allowing investors to build their own relationships with investment vehicles. RealCrowd sits in the top 10 real estate crowdfunding websites as it vets its participating real estate companies to ensure each has at least “ten years of principal-level experience and at least $50 million in transactional history as principals.” This provides investors with a choice of proven, experienced, solid, and stable commercial real estate companies.

PeerStreet

PeerStreet is one of the property crowdfunding platforms that invest in debt backed with real estate to provide solid short-term returns. Investment durations average just six to 36 months and have average annualized returns of 6-9%. The company says it was started to give opportunities to average investors that were previously limited to a select few. Choose your own investments or allow PeerStreet to do it for you automatically. When curious about crowdfunding residential property, PeerStreet makes you money off borrower’s loans, so when people pay off their mortgages, you’re paid too.

Small Change

One of the best property crowdfunding sites allows smaller real estate investors to invest in socially conscious projects. Much like traditional crowdfunding websites, investors can read the stories and missions of various projects and decide to invest in those that appeal to them. “Small Change” refers to both the social impact of its investments and the small amount of cash required to participate. Investors can invest as little as $500. The website offers some fascinating reading and intriguing investment opportunities. Real estate investment sites that require as little start-up cash as possible are great options for first-time investors that are just learning the market.

GroundFloor

GroundFloor works for both house flippers and real estate investors and those interested in real estate investing. Investors can get good short-term returns, and borrowers can get better than competitive rates on hard money loans. How small of an investor can you be and still get involved in GroundFloor? How about $10? This is Everyman’s real estate investment platform. They make crowdfunding estate affordable for everyone.

What is real estate crowdfunding?

Real estate crowdfunding is an alternative way to having an interest in commercial or residential real estate. Instead of owning a home yourself or buying into REITs (Real Estate Investment Trusts), you can grow your money another way.

What is the best real estate platform for crowdfunding?

We’re proud to promote the best real estate crowdfunding sites, but choosing the best one for you depends on your experience and buy-in. Refer to our guide for various the largest real estate crowdfunding platforms that cater to different types of investors.

Can you use real estate crowdfunding platforms to buy a house?

Technically – you could use crowdfunding to buy a house, but not exactly the way you think. The most common and successful crowdfunding type involves real estate funding companies using your money to bring a project to fruition and give you money back based on the growth.

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Can you make money from crowdfunding?

You can make a great return on your investment when sourcing the top real estate crowdfunding projects. To gauge what type of investment is right for you, consider risk vs reward. By researching the best online real estate investing platforms, you’ll be more confident about your next decision.

Can you lose money with real estate crowdfunding?

Real estate crowdfunding companies aren’t always 100% dependable. That’s why researching their history and being active in the decision-making process is vital. Otherwise, you could run into an issue like Realtyshares when their venture fell through.

Are crowdfunding investments worth it?

Real estate crowdfunding companies give people an incredible opportunity to grow their wealth through real estate without the hassle of becoming a landlord. The best property crowdfunding sites to help you accomplish this include:

• Crowdstreet
• Roofstock
• RealtyMogul
• Funrise
• ArborCrowd
• RealCrowd
• PearStreet
• Small Change
• Groundfloor

How much money can you make from real estate crowdfunding?

When it comes to online crowdfunding real estate ventures, there are limitless possibilities regarding how much money you can make. It all comes down to is which online crowdfunding real estate option works best for the type of investment you’re ready to make.

How much can you get from crowdfunding?

The best property crowdfunding sites will equip you with the confidence to choose which type of investment will yield the most profitable results. Some boast upwards of a 25.9% return on your investment.

How much can I invest in crowdfunding?

You can invest as little as $10, $500 or upwards of $50 million dollars. When you weigh how much to invest, you need to keep in mind:

• Can I afford to lose this money? If it’s all your retirement savings, it may not be worth it, even given the historically stable outcome.
• Am I able to part with this amount for X amount of years before seeing any cash?
• Am I ready to research the right crowdfunding site that will fit with what I’m looking for?

Can you crowdfund for anything?

You really can crowdfund for anything. The only part you may be stuck on is convincing people to join your cause if you create something that’s not worth their time. Crowdfunding is typically used for the launch of new products or innovative technology. It’s also been common for a variety of causes. But real estate crowdfunding is getting bigger and better.

What are the disadvantages of real estate crowdfunding platforms?

The disadvantages of crowdfunding solely depend on joining a company, going solo, and what you’re willing to learn. Here are a couple of things to keep in mind that could be a disadvantage.

1. Projects could fail. This is why you have to vet the best online real estate investment companies.
2. If you don’t reach the funding target, you could end up getting nothing, and that money just sat around instead of earning you more wealth.
3. You might need the money in an emergency but can’t access it until the project is complete.

What do you get from crowdfunding?

When investing in crowdfunding, you have the opportunity to earn revenue on loans from borrowers through real estate, the gains on a real estate project coming to fruition, the money generated from a new product launch and more.

Who invented crowdfunding?

Crowdfunding isn’t exactly groundbreaking news. People have been doing this sort of thing since the 1700s, and likely even sooner. The first recorded instance was from author and Irish nationalist Jonathan Swift, who provided loans to poor but credible people. It was the rich giving to the poor – with interest, of course. However, how we know it today started when a British rock band funded their tour online through donations from fans. This started ArtistShare – the first platform in 2000.

Richr’s best real estate crowdfunding platforms Take-Away

Real estate crowdfunding platforms are not above experiencing bumps in the road. RealtyShares.com, for example, didn’t make the list of real estate crowdfunding sites. They suddenly stopped taking on real estate investors in November of 2018, apparently after new venture capital funding fell through. It behooves any real estate investor to perform their due diligence before choosing the platform right for them.

If you would be interested in investing in real estate without having to fill vacancies, chase rents, or getting late-night maintenance phone calls from tenants, check out one of the above resources from our guide to the best property crowdfunding sites.

And remember to check out Richr’s other articles if you are interested in what’s happening in the residential real estate market.