Real estate investing used to be only for the wealthy, but that’s no longer the case. With the advent of real estate crowdfunding platforms, you can now invest in properties with as little as $500. These platforms allow investors to pool their money together and invest in real estate projects they might not be able to afford on their own.
But with so many real estate crowdfunding platforms out there, it can be overwhelming to choose the right one. But don’t worry, we have you covered.
In this article, we’ll review the top real estate crowdfunding platforms, including their fees, investment minimums, and types of properties available. Whether you’re a seasoned investor or just getting started, we’ll help you find the best platform to grow your real estate portfolio.
In this article, we will only cover the 4 best in the industry, for a more comprehensive list check out this best real estate crowdfunding platforms article.
Best Real Estate Crowdfunding Platforms: The Top 4
Fundrise is a popular real estate crowdfunding platform that offers investment portfolios for both income and growth investors. With a minimum investment of only $10, it’s accessible to non-accredited investors as well.
Fundrise uses a value investment strategy, which means it buys properties below market value and then increases their equity through improvements. One of the reasons Fundrise is at the top of our list is its long operating history, having been around since 2010.
Its fee structure is simple, with only a 1% annual fee. Fundrise has a diversified portfolio model that has consistently delivered positive returns across all account levels, making it a less risky investment.
Fundrise offers five account levels, including Starter, Basic, Core, Advanced, and Premium. Each has its own varying investment strategies and potential returns. It has a well-rated mobile app and offers share redemption at any time.
Like with everything, it also has some cons such as non-qualified dividends and illiquid investments. This means investors cannot easily cash out or sell their investments. With that being said, since its launch, Fundrise has invested in over $7 billion worth of real estate across the U.S.
They manage over $4 billion worth of real estate as of January 2023, and boast total investor distributions of over $224 million. Its annual returns from 2017 through 2022 have ranged from 1.50% to 22.99%.
CrowdStreet is a leading commercial real estate marketplace that offers a broad range of investment opportunities. It’s a great option for experienced, accredited investors who want to be hands-on with their investments.
Investors can choose to invest in a managed portfolio or directly access individual commercial real estate investments that meet their own criteria. The minimum investment required for most offerings is $25,000, with the possibility of higher investment requirements depending on the project.
CrowdStreet’s average return on fully realized deals is an impressive 17.1%, with an average investment term of 2.3 years. The platform offers live webinars that allow investors to interact with the project sponsor directly. It also provides analytical data from past projects that investors can use to compare and evaluate potential investments.
Since its inception in 2013, CrowdStreet has published more than 737 commercial real estate investment offerings, attracting over 100,000 investors throughout the United States. It boasts average annual returns of 19.7% and total investor distributions of $220 million.
Investors can choose from a wide range of investment options, including funds, individual deals, and a professionally managed, tailored portfolio. It must be noted that CrowdStreet is only available to accredited investors.
The platform requires steep investment minimums, and early withdrawals are not permitted. However, its user friendly platform, helpful chatbot, and institutional quality offerings make it an excellent option for experienced investors looking to diversify their real estate portfolios.
EquityMultiple’s focus is on commercial and institutional real estate. Recently, the platform added tax-advantaged real estate investments and fund products to its lineup. Distribution schedules can vary, but typically are monthly or quarterly.
The investment selection is good and there are different hold periods to choose from. EquityMultiple is only available to accredited investors and the minimum investment is high. Another potential drawback is the complex fee structure that varies depending on the individual investment.
Despite these cons, EquityMultiple has delivered an average annual return of 15.2% as of 2022 and has distributed a total of $298 million to investors. Overall, the platform is user friendly and offers a diverse range of investment options for those interested in commercial real estate.
First National Realty Partners
First National Realty, or FNRP for short, provides investors with access to high quality commercial real estate properties anchored by nationally recognized tenants. The platform focuses primarily on grocery anchored properties located in necessity based markets. This makes it a reliable choice for those seeking stable and consistent returns.
FNRP has a clear and consistent acquisition criteria and offers both opportunity funds and individual properties for investment. The holding period for the Opportunity Fund ranges from three to seven years, giving investors options for both short term and long term investments.
The minimum investment for FNRP is relatively high and it is available only to accredited investors. However, the platform provides simple diversification of fund options, which is beneficial for investors looking to diversify their portfolios.
Some of the most recognizable companies on the planet are FNRP’s tenants including McDonald’s, Walmart, Kroger, Whole Foods, Lowe’s, and Starbucks. With its focus on necessity-based markets and long-standing, national tenants, FNRP is a reliable choice for accredited investors seeking to invest in stable and profitable commercial real estate properties.
If you are not very knowledgeable about real estate, you should consider reading some good articles about real estate investing for beginners. For non-accredited investors, fundrise is a great option for real estate crowdfunding.
For accredited investors, FNRP represents a fantastic opportunity with peace of mind knowing the anchor tenants are some of the most well established brands on the planet. Read this First National Realty Partners review to learn more. We hope this article was helpful to you. Good luck on your real estate crowdfunding journey!