Fundrise is the best overall real estate crowdfunding platform due to its high level of transparency, low costs, excellent account services, and more. We researched 19 real estate crowdfunding platforms and evaluated them on 38 criteria, including fees, usability, account services, investment selection, and additional features. Best Real Estate Crowdfunding Platforms for April 2024 Best Real Estate Crowdfunding Platforms for April 2024 The Bottom Line Compare Providers How to Invest in Real Estate Online Why You Should Trust Us Frequently Asked Questions (FAQs) Methodology Guide to Real Estate Crowdfunding Why We Chose It Best Overall Fundrise delivers access to many real estate debt and equity investments online with a small initial investment. Those who stand behind Fundrise can also become owners through the initial public offering (IPO). Unlike competitors with long required capital lock-up periods, Fundrise provides quarterly redemption windows. Best for Beginners Beginning investors seeking real estate crowdfunding opportunities will appreciate the low $10 minimum for brokerage accounts and $1,000 for individual retirement accounts (IRAs). Best for Low Fees Fundrise’s fees are transparent and reasonable when compared with competitor platforms. Pros & Cons Pros Low $10 investment minimum Broad diversification among investment plans Transparent platform Quarterly redemption opportunities Cons Early liquidation is subject to penalties Quarterly liquidity is not guaranteed Complex investments require investor due diligence Phone-based customer service requires email request for a call back Overview At Fundrise, beginning investors can invest in alternative assets for just $10, a rare low investment minimum. The platform structure presents vast diversification for small investment amounts. The quarterly investment option adds to Fundrise’s consideration for best real estate investment platform. The expansive portfolio of underlying investments is both positive and negative. There’s great diversification of assets and complex information regarding the underlying holdings. Fundrise investors choose an investment plan from four options: Supplemental Income, Balanced Investing, Long-Term Growth, and Venture Capital. Each plan has a goal, from income through startup or venture capital investing. The assets within the plan are allocated among income and growth-focused real estate and debt assets. The venture capital plan offers a path to invest in startup companies. Within each plan, there are scores of investments from across the U.S. The debt investments finance commercial real estate projects, or startup companies (in the venture capital plan). Those seeking greater control over their investments can sign up for Fundrise Pro for a reasonable fee of $10 a month. This plan provides greater customization, suitable for more experienced investors. Founded in 2010, Fundrise is headquartered in Washington, DC, and serves more than 385,000 investors. Read the full 2024 Fundrise Review. Why We Chose It Best for Accredited Investors EquityMultiple incorporates a diverse range of real estate investments, from short-term to income and capital appreciation with a range of projected rates of returns. While minimum investment requirements typically range from $10,000 to $30,000, many of the offers have minimums near the low end of this range. Investors will find opportunities with a minimum investment of $5,000, enabling them to diversify their holdings within the platform. Best for Transparency The real estate project offers are clearly explained with all relevant details easily accessible from a one-page description, including an analysis of tax and individual investment features. Links to additional documentation are easily accessible at the bottom of the comprehensive information page. Pros & Cons Pros Wide variety of investment offers Comprehensive offer details Easy access to assistance via chatbot, email, phone, and FAQ Range of minimum investment amounts and diverse lock-up terms Cons Target rates of return are estimates and not guaranteed Investments are not FDIC insured Not available to non-accredited investors Overview EquityMultiple is a commercial real estate and technology firm that delivers various private real estate investments to accredited investors. The company accepts only 5% of the projects reviewed on the platform and has distributed $425 million to date. EquityMultiple’s investment offers are arranged into categories: Keep, Grow, and Earn, encompassing both debt and equity positions. The Keep investments have the shortest terms and might be compared with cash equivalent and short-term debt offers. The Grow investments focus on long-term growth with capital appreciation. Earn investments are higher yielding, with 10% or greater projected returns at present. Investors can access the investment type, target return, and investment minimum before investing. Lock-up periods vary, as do other features. The transparent offer description screen explains the investment goal, target return range, redemption opportunities, security type, tax implications, and minimum investment amount. The full-page copy delves into the details of the offer and how it might fit into your investment portfolio. Founded in 2015, EquityMultiple is headquartered in New York, New York, and serves approximately 48,000 registered investors. Read the full 2024 EquityMultiple Review. Why We Chose It Yieldstreet provides all investors access to a range of alternative investments, including debt and equity positions in real estate, legal cases, art, and more. Offers include diversified alternative investment funds and individual projects. Pros & Cons Pros Range of diversified alternative investment offers Highly vetted investment managers Reasonable fee structure, starting at 0.00% for notes Multiple account types available Cons Not available in Nebraska or North Dakota Onboarding requires proof of accreditation status Number and types of investments varies Overview If you’re seeking a supermarket of alternative investments, then Yieldstreet might be for you. Founded in 2015, YieldStreet partners with global alternative investment managers. The company claims over 450,000 members, who have invested $3.9 billion and earned an average 9.6% annualized return since 2015. The current and prior offerings span private credit, structured notes, real estate, art, legal finance, and transportation investments. The platform is open to both accredited and non-accredited investors with a $10,000 minimum investment requirement. However, some offers demand higher initial minimums. Non-accredited investors can invest in the Yieldstreet Alternative Income Fund (formerly known as the Yieldstreet Prism Fund). However, the $10,000 minimum might be a barrier for non-accredited investors. Accredited investors can access the full scope of the platform’s offers. The number of available investments will vary, but the Yieldstreet Alternative Income Fund is expected to be open to new investors continuously. Features such as highly vetted investments, live customer service, comprehensive educational content, and targeted private market recommendations justify the Best for Alternative Investment Selection award. Founded in 2015, Yieldstreet is headquartered in New York, New York. According to Yieldstreet, they serve over 450,000 members. Read the full 2024 Yieldstreet Review. Why We Chose It Sophisticated commercial real estate investors can invest in debt and equity deals provided by experienced property professionals. Expert real estate investors receive detailed commercial real estate investment documentation. Pros & Cons Pros Direct access to real estate project sponsors Thorough project screening, which includes assessment of many factors, including economic environment End-to-end commercial real estate investment platform with a range of experienced managers Cons Low inventory of commercial projects at present—which might be considered a positive sign of strict screening and oversight CrowdStreet REIT I (C-REIT) closed to new investors as of Dec. 21, 2023 High investment minimum Overview CrowdStreet partners with real estate companies to co-run and market a range of crowdfunded real estate deals. CrowdStreet’s guiding investment tenets include principal protection, lending opportunities to capture high current market interest rates, conservative property valuations, and underpriced commercial real estate opportunities. Sophisticated real estate investors can unpack the offers through project videos and detailed documentation. CrowdStreet vets potential real estate projects and only those that pass the strict screening process are included on the platform. As of Feb. 07, 2024, investors have invested over $4.3 billion in over 787 projects. According to a company representative, CrowdStreet is exercising extreme selectivity in this economic environment, which has led to fewer current available offers on the platform. Currently, only two opportunities are available for investors to choose for their portfolio. The company contact noted that a robust pipeline of investment opportunities is anticipated in 2024. Like the stock market, the world of real estate is dynamic. For this reason, real estate crowdfunding platforms often adjust the number of investments they make available to investors in response to changes in demand, economic factors, or market trends. The decision to scale up or down their project offerings usually comes after a deep analysis of key industry factors, such as project costs, operating expenses, cap rates, movement in interest rates, and overall industry demand. Founded in 2013, CrowdStreet is headquartered in Austin, Texas, and serves over 300,000 customers. Read the full 2024 CrowdStreet Review. In late July 2023, Tore Steen stepped down as CEO of CrowdStreet after $63 million went missingfrom deals involving a real-estate developer calledNightingale Properties, which raised money to buy office buildings in Atlanta and Miami. The Department of Justice is investigatingNightingale Propertiesafter the company allegedly divertednearly $40Mof equity raised on CrowdStreetinto accounts controlled by its CEO, Elie Schwartz. CrowdStreet has since tightened financial controls and replaced former Tore Steen with an Interim CEO, Jack Chandler. Why We Chose It RealtyMogul is accessible for both non-accredited and accredited investors and offers REIT funds and individual commercial real estate investments. The current five individual projects and two REIT funds provide investors with access to a diverse range of commercial real estate investments. Pros & Cons Pros REIT funds offer non-accredited investors a diversified investment portfolio of private real estate deals Diverse selection of individual projects Projected high rates of return Cons Might be difficult to invest through an IRA Website is opaque and difficult to navigate Fees are relatively high Overview RealtyMogul is a clearing house for commercial real estate investments offered by multiple real estate companies. The RealtyMogul website currently displays seven offers, with details for each project available after creating a login and password. The number of individual project offers will vary, while the REITs are always accessible. Accredited investors can invest in private placement offerings while both accredited and non-accredited investors can access two RealtyMogul real estate investment trusts (REITs). All project and REIT information is available online, although users need to dig down through several pages to get to the meat of each offer. The description pages of the individual offers are dense, which is suitable for those seeking the particulars of the project. Investors should take note of the lock-up period for REIT investments. The REITs are eligible for share repurchase after 12 months, the investor will only receive the full redemption value if the fund is held for a minimum of three years. Founded in 2012, RealtyMogul is headquartered in Los Angeles, California, and serves over 280,000 members. Read the full 2024 RealtyMogul Review. Why We Chose It Arrived offers small investors access to the rental home and vacation home markets through a fractional share ownership model. Arrived members can invest in single properties with as little as $100 per property, or select the Single Family Residential Fund, which includes many homes. Pros & Cons Pros Quarterly liquidation available for Single Family Fund (SFR) LLC structure gives investors true proportional real estate investment ownership Quarterly redemptions after a six-month holding period and full liquidation after a five-year holding period Cons Fees are difficult to estimate Short track record Cash flow projected returns are lower than current cash equivalents such as CDs or high-yield money market funds Overview Investors in Arrived Homes purchase fractional shares of rental residential homes, vacation real estate, or funds that include multiple homes. Investors have direct ownership in a percentage of the LLC which owns the property. Investors profit with regular cash flow derived from rental payments, less expenses. Upon sale, the home might also deliver capital appreciation. The number of available homes on the platform varies. Currently, there are single-family homes, vacation rentals, and fund options for investment property. Management responsibilities are outsourced, making this a true passive real estate investment. However, given that the company was founded recently, in 2019, investors may want to consider the short track record of this real estate company before investing. Founded in 2019, Arrived is headquartered in Seattle, Washington, and serves over 467,000 investors. Read the full 2024 Arrived Review. Why We Chose It DLP Capital offers professional investors a diverse range of opportunities through its five funds, which include diversified holdings within real estate preferred equity, real estate equity, preferred real estate credit, a senior secured mortgage pool, and a real estate credit fund. Pros & Cons Pros Clear fund disclosure Easy access to basic real estate debt and equity overviews Legacy planning and additional services for high-net-worth clientele Annual redemption opportunity for several funds Cons High minimum of $200,000 Difficult to find details about individual fund holdings After the target return is achieved, a performance split is levied Overview DLP is a private financial services and real estate investment company that serves an affluent clientele and real estate managers with real estate debt and equity funds, access to capital, real estate firm consulting, and legacy planning. DPL has 2,600 current investors and owns more than 18,000 housing units with $5 billion in assets under management. With 18 years in operation, DPL has been around for a while to prove itself. The real estate investment options include five real estate debt and equity funds. The Building Communities and DLP Housing (REIT) Funds include equity ownership in the development and construction of various types of rental communities and single- and multi-family homes. The three debt funds provide investors with various types of real estate fixed-income investing. The company targets impact-based investment strategies to combine profit and societal greater good projects. While the $200,000 minimum investment is steep, investors who can afford it will like the transparency surrounding the 2.0% management fee. Founded in 2006, DLP Capital is headquartered in St. Augustine, Florida, and serves approximately 2,600 investors. Read the full 2024 DLP Capital Review. Fundrise offers the best all-around blend of good things to look for in a real estate crowdfunding platform, like low fees, quick funding timelines, and high customer satisfaction scores. YieldStreet, RealtyMogul, and Arrived Homes all offer real estate crowdfunding investment opportunities for non-accredited investors as well as those with greater assets. Accredited investors will find excellent transparency and reasonable fees at EquityMultiple, while wealthy investors have an elite range of investment funds to choose from at DPL Capital. Investors can invest in real estate online in a couple of ways. The most common way is through publicly traded real estate investment trusts (REITs). REITs offer several options that investors can choose from, such as residential, commercial, and industrial real estate. The scope of your investment lies in your risk tolerance and goals; most investors who decide to invest in REITs do so to collect passive income through dividends. To invest in publicly traded REITs, Investors will need to open and fund a brokerage account and pick a REIT that meets their financial goals. Investors with a higher risk tolerance aiming for more profit potential will want to explore the real estate crowdfunding space. While real estate crowdfunding platforms also offer investors opportunities in residential, industrial, and commercial properties, these investments are often highly illiquid. In addition, investors must first determine their level of accreditation, since this will determine which platforms they qualify to use and which investments they can access. To start investing in real estate using a crowdfunding platform, investors must open an account, link their bank account, and start looking for worthy investments to fund. They will then need to follow their chosen platform's guidelines, as each platform has its process that investors are required to follow. Investopedia analyzed 19 real estate crowdfunding companies and scored each based on eight major categories and 38 criteria that are crucial in evaluating the offerings and usability of these platforms. We used this data to review each company for their fees, investment selection, transparency, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999 and has been helping readers find the best real estate crowdfunding platforms since 2020. Real estate crowdfunding opportunities target investors who want to diversify their publicly traded investment holdings. The commonalities of these private market alternative investments include longer holding periods and less liquidity. In exchange for the added risk of this asset category, promised returns are higher than you might encounter in typical financial market investments. Real estate crowdfunding is a path to invest in private market real estate deals. Crowdfunding platforms raise capital from investors to provide debt or mortgages as well as equity or ownership positions in a variety of commercial real estate. Along with greater risk, these investments frequently offer higher returns than those available in comparable REIT investments. Long-term capital lock-up periods and higher minimum required investment amounts are common characteristics of this alternative investment category. There are several ways to invest in real estate. Similar to other online investment portals, you begin by creating an account. Provide demographic and financial information including a Social Security number. Link a bank funding account and transfer money to the crowdfunding website. From among the available offers, either funds or individual investment offers, select which ones you are interested in and follow the prompts for investing. Some crowdfunding offers are open to all U.S. investors, while others require a specific level of income and/or net worth. First, educate yourself about this asset class. This crowdfunding explainer is a good place to start. Next, read reviews of various crowdfunding websites, understand what the companies invest in, what their investment minimums are, and whether they require accreditation or are available to all investors. After selecting a crowdfunding platform, create an account, link a bank account, and select your investments. The crowdfunding investment portal must be registered with the Securities and Exchange Commission (SEC) and be a member of the Financial Industry Regulatory Authority (FINRA). There are SEC rules that apply to real estate crowdfunding and vary based upon whether the investments are for accredited investors or all, and how much capital is raised. Crowdfunding laws include Regulation CF, Regulation D, Rule 506(C), and Rule 504. None of these regulations protect investors against investment losses. For more information about a crowdfunding company, visit FINRA’s BrokerCheck and the SEC’s EDGAR website. Investors who qualify as accredited investors have over $1 million in net worth (excluding the value of their primary residence), or have earned over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years and reasonably expect the same for the current year. Financial professionals with Series 7, 65, or 82 licenses also qualify. The accredited investor designation is meant to protect retail investors from losses that can come with unregulated investments. Unless owned within an IRA, real estate dividends, interest, and realized capital gains are considered taxable income. The specific real estate crowdfunding platform typically lists the tax treatment of earnings in the Frequently Asked Questions portion of the platform. In general, investors receive a K-1, 1099-DIV, or 1099-INT form for tax reporting. Consult with your tax professional for additional information. The amount needed to invest in real estate crowdfunding depends on several factors, such as accreditation status and the requirements set by the platform you decide to use. For instance, companies like Fundrise require both accredited and non-accredited investors to make a minimum investment of just $10. Companies like DLP Capital, which only serves accredited investors, require a significantly larger minimum investment of $200,000. Investors will need to conduct their research before deciding on which platform to use and consider important factors such as fees, required minimum investment, projected returns, and lock-up periods on the money they intend to invest. To evaluate and pick the best real estate crowdfunding platforms, Investopedia’s team of researchers, data collectors, and industry experts spent nearly two months conducting in-depth industry research, company survey data collection, and hands-on evaluations of 19 real estate crowdfunding platforms. We grouped the 38 criteria, including investment selection and minimums, holding periods, and curated portfolios, into eight categories. We then scored these criteria and weighted the categories to determine which real estate crowdfunding platforms are best for both accredited and non-accredited investors: Through this all-encompassing data collection and review process, Investopedia has provided you with an unbiased and thorough review of the top real estate crowdfunding companies. Read our full process for reviewing and selecting the best real estate crowdfunding platforms. Learn more about real estate crowdfunding: Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Fundrise. "What Are Fundrise's Fees?" Fundrise. "What Is the Minimum Initial Investment?" Fundrise. "Why Fundrise." Fundrise. "Real Estate." Fundrise. "Compare Investment Plans." Fundrise. "Take Control of Your Portfolio." Fundrise. "About Us." EquityMultiple. "Blog." Equity Multiple. "Frequently Asked Questions." EquityMultple. "An Elevated Path to Building Wealth." EquityMultiple. "About Us." EquityMultiple. "An Elevated Path to Building Wealth." Yieldstreet. "Investment Offerings." Yieldstreet. "Yieldstreet." Yieldstreet. "About Us." Yieldstreet. "Who Can Invest in Yieldstreet Offerings?" Yieldstreet. "How It Works." CrowdStreet. "Fees." CrowdStreet. "Investment Minimum." CrowdStreet. "What's the Process?" CrowdStreet. "Investment Thesis." CrowdStreet. "About." CrowdStreet. "CrowdStreet Announces the Next Phase in Its Evolution." The Wall Street Journal. "Missing Millions and a Rabbinical Arbitrator: Real-Estate Deal Gone Bad Hits Popular Crowd Funder." Bisnow. "DOJ, SEC Investigating Nightingale After $45m of Investor Cash Allegedly Diverted to CEO's Accounts." Crowdstreet.com. "CrowdStreet Announces the Next Phase in Its Evolution." RealtyMogul. "RealtyMogul Apartment Growth REIT." RealtyMogul. "RealtyMogul Income REIT." RealtyMogul. "Frequently Asked Questions." RealtyMogul. "Investments." Arrived. "How Does Arrived Make Money." Arrived. "What Is Arrived?" Arrived. "How Arrived Works: FAQ." Arrived. "Invest." DLP Capital. "Investment Funds Comparison." DLP Capital. "Solutions." DLP Capital. "Setting a New Standard for Real Estate Investing." DLP Capital. "Investment Funds." DLP Capital. "Impact Series." U.S. Securities and Exchange Commission. "Investor Alerts and Bulletins." Securities Lawyer 101. "The Securities Laws That Apply to Crowdfunding-Rules and Regulations."Best Real Estate Crowdfunding Platforms for April 2024
Best Overall, Best for Beginners, and Best for Low Fees : Fundrise
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Best for Accredited Investors and Best for Transparency : EquityMultiple
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Best for Alternative Investment Selection : YieldStreet
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Best for Expert Real Estate Investors : CrowdStreet
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Best for Commercial Real Estate : RealtyMogul
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Best for Rental Properties : Arrived
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Best for Real Estate Investment Selection : DLP Capital
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The Bottom Line
Compare the Best Real Estate Crowdfunding Sites
Company Fees Minimum Investment Accredited Investors Only? Investment Selection Fundrise 0.15% and 1.85% $10 (brokerage) or $1,000 (IRA) No Equity, debt, and funds EquityMultiple 0.50%-1.5% + origination fee $5,000 Yes Equity, debt, and funds YieldStreet 0.00%-2.00% $10,000 No Equity, debt, and funds Arrived Homes Long Term Rentals: 3.5% Sourcing Fee, 0.15% AUM fee. Vacation rentals: 5% Sourcing fee, 5% Gross rents fee, property management fees (third party-pass-through fees): vary $100 No Equity, fund RealtyMogul Vary per deal; Income REIT caps fees at 4.5%, Apartment Growth REIT caps fees at 4.75% Varies per project, from $5,000 and up No Equity, debt, and funds CrowdStreet Vary per investment and are paid to the sponsor Typically $25,000, but varies per investment Yes Debt, equity, funds DPL Capital 2% (fee rebates for investments greater than $1 million) $200,000 Yes Debt, equity, funds How to Invest in Real Estate Online
Why You Should Trust Us
Frequently Asked Questions
What Is Real Estate Crowdfunding?
How Do I Invest in Real Estate?
How Does Crowdfunding Work in Real Estate?
How Can You Start With Real Estate Crowdfunding?
How Does the SEC Regulate Real Estate Crowdfunding?
What Is an Accredited Investor?
How Are Earnings From Crowdfunding Sites Taxed?
How Much Money Do You Need To Invest in Real Estate Crowdfunding?
How We Choose the Best Real Estate Crowdfunding Platforms
Guide to Real Estate Crowdfunding
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RealtyMogul Review 2024 Fundrise vs. CrowdStreet: Which Is Best for You in 2024? Fundrise vs. Yieldstreet: Which Is Best for You? HappyNest Review 2024 DLP Capital Review 2024 Fundrise Review 2024
FAQs
What is the number 1 crowdfunding platform? ›
Best Overall Crowdfunding Site: GoFundMe.
What is the average return on real estate crowdfunding? ›Real Estate Crowdfunding Returns
I'm regularly seeing deals return 12% – 16%, although such drastic outperformance may narrow with more capital flooding to the sector. Here's a great chart from Fundrise on one of their income eREITs where non-accredited investors can invest for as little as $1,000.
Republic has a 90% success rate for companies that have raised on our platform.
What is the future of real estate crowdfunding? ›The future of real estate crowdfunding is shaping up to be an exciting and transformative domain in the investment landscape. This method of investment has seen substantial growth, and its potential continues to expand.
What is better than GoFundMe for individuals? ›BetterWorld. BetterWorld tops the list of GoFundMe alternatives for several reasons. The first reason is its flexibility. In addition to hosting a crowdfunding campaign, you can also do a variety of other fundraisers, including online auctions, giveaways, peer-to-peer fundraising events, and monthly giving arrangements ...
What is the disadvantage of real estate crowdfunding? ›Lack of control
Real estate crowdfunding is a hands-off investment reliant upon a third party to manage the property. If you're unhappy with the performance of an investment there is little that you can do about it other than, if the option exists, sell your shares on the secondary market.
The Bottom Line
While real estate crowdfunding and investing may not be for everyone, it can be a great way for you to start investing in real estate without needing to spend a substantial amount of money. Placing less money into the investment means that the risk will often be lower.
Depending on the type of crowdfunding, you could potentially earn returns on your investment via equity (growth in share value) or interest (if using P2P lending), or you might simply receive other perks or benefits.
What is the failure rate of crowdfunding? ›Do you know how many crowdfunding campaigns fail? Out of all the crowdfunding platforms out there, the average rate of success for campaigns is only about 22%. That means nearly 80% of crowdfunding ventures fail to raise their desired capital.
How long does it take to get money from crowdfunding? ›Crowdfunding can raise money quickly, usually within a month, but the amounts you will receive from crowdfunding are typically lower than what you could earn through series funding or a loan.
Can I use crowdfunding to buy a house? ›
Real estate crowdfunding is a way to raise money online for real estate acquisitions from a large group of investors. Individuals and businesses can use crowdfunding to access capital from a large group of potential investors on internet platforms and social media sites.
How do you make money from real estate crowdfunding? ›On equity-based real estate crowdfunding platforms, accredited investors collect an equity stake when they finance a project in residential or commercial properties. Returns are a share of the rental income generated by the property or of their capital gains. Investors typically receive payouts once every quarter.
What is the world's largest crowdfunding? ›Thus, the biggest crowdfunding drive of the world—the Shri Ram Janmabhoomi Mandir Nidhi Samarpan Abhiyan—was launched. Initially, the estimated cost for constructing the magnificent Ram Temple in Ayodhya was approximated to be ₹1,800 crore.
What is the most popular type of crowdfunding? ›Rewards Crowdfunding
Rewards-based crowdfunding is the most common type of crowdfunding option available.