Looking for the perfect real estate syndication company can feel overwhelming. With so many options available, from multifamily apartment buildings to offices and land, and from private equity to crowdfunded real estate, making the right choice can be challenging. But fear not! In this guide, we will help you navigate through the sea of possibilities and find the best real estate syndication platform that suits your needs!
The Quest for the Best Real Estate Syndication Companies and Platforms
The search for the ideal real estate syndication company can be simplified by examining key factors. Let's explore these factors that will assist you in making an informed decision:
- Access for non-accredited investors: It is crucial to determine if the platform offers accessibility to non-accredited investors.
- Minimum investment: Consider the minimum investment required to participate in the syndication.
- Types of real estate investments: Different platforms offer various types of real estate investments. Determine which types align with your investment goals.
- Fee structure: Understanding the fee structure is essential to evaluate the cost-effectiveness of the platform.
- Average annual returns: Take a look at the average annual returns to gauge the potential profitability of investing through the platform.
In addition to direct real estate investments, many platforms also offer real estate funds. These funds provide additional investment options. It's important to consider these offerings as well.
If you're new to real estate syndication and want to learn more about how it works, check out our resource on multifamily syndication.
1. Fundrise: Making Real Estate Investing Accessible to Everyone
Founded in 2012, Fundrise is on a mission to use technology to make high-quality, low-cost real estate investing available to everyone. With minimum investments as low as $10 and capped asset management fees at 0.85%, Fundrise is truly democratizing real estate investing.
Fundrise offers access to funds that invest in different real estate syndications and properties, providing a broad range of property types and varying levels of risk and reward. However, please note that direct investments in syndications through Fundrise are limited to accredited investors with a minimum investment of $100,000.
Image Source: Fundrise
Highlights:
- Minimum Investment: $10 for access to real estate funds, $100,000 for direct access to syndication deals.
- Average Annual Returns: Around 12%.
- Allows Non-Accredited Investors: Yes, for real estate fund investments. Access to syndication deals is available for accredited investors only.
- Fees: 0.15% annual investment advisory fee plus up to 0.85% annual asset management fees.
- Investment Strategy: Offers a range from low-risk fixed income to high-risk value-add and opportunistic investments.
- Number Of Active Investors: More than 330,000.
- Transaction Volume: $7 billion.
2. EquityMultiple: Unearthing the Best Real Estate Investments
EquityMultiple prides itself on finding the best real estate investments on the market. With a rigorous due-diligence process and an exclusive deal flow, their selection is highly curated.
From debt to equity in individual properties to fund investments, EquityMultiple offers various methods of investing in commercial real estate. They also provide a choice of preferred or common equity, allowing investors to focus on reliable cash flow or long-term appreciation, depending on their desired investment strategy and goals.
Image Source: EquityMultiple
Highlights:
- Minimum Investment: $5,000 for short-term debt investments, $10,000 for equity investments, and $20,000 for fund investments.
- Average Annual Returns: 18.7% IRR per the company's website.
- Allows Non-Accredited Investors: No.
- Fees: 0.5% to 1.5% for all types of investments.
- Investment Strategy: Focused on strong cash flow combined with long-term appreciation potential.
- Transaction Volume: $4.33 billion.
3. CrowdStreet: Diverse Array of Commercial Real Estate Projects
With the broadest selection of commercial real estate projects, CrowdStreet offers investors a wide range of investment options. From student housing to self-storage and medical offices, CrowdStreet covers multiple segments.
What sets CrowdStreet apart is its industry experience and marketplace technology. They thoroughly evaluate various segments in commercial real estate to identify the best investment opportunities for their clients before making them available through their marketplace.
Highlights:
- Minimum Investment: Generally $25,000, but varies per offering.
- Average Annual Returns: 18.7% per the company's website.
- Allows Non-Accredited Investors: No.
- Fees: Varies per offering, generally 0.5% to 2.5% management fees.
- Investment Strategy: Covers the full spectrum of commercial real estate offerings to provide unique risk/reward profiles.
- Transaction Volume: $3.7 billion.
4. RealtyMogul: Institutional Quality Investing for the Masses
RealtyMogul aims to bring institutional quality commercial real estate investments to the general public. The platform focuses on cash-flowing assets that provide stable income for investors, aligning with the preferences of high-net-worth individuals.
RealtyMogul offers exclusive individual offerings, allowing investors to build a diversified portfolio. Additionally, they offer REITs that focus on either regular passive income or growth, providing more investment options.
Image Source: RealtyMogul
Highlights:
- Minimum Investment: $5,000 for REITs or $25,000 for individual deals.
- Average Annual Returns: Varies per offering.
- Allows Non-Accredited Investors: Yes, through REITs.
- Fees: Varies per offering, generally 1% to 1.25% management fees.
- Investment Strategy: Provide access to institutional quality cash-flowing investments.
- Number Of Active Investors: Over 212,000.
- Transaction Volume: $5.7 billion.
5. YieldStreet: Bringing Alternative Investments to the Average Investor
YieldStreet aims to democratize alternative investments, including real estate, by making them accessible to ordinary investors. They offer a wide range of investment options, including real estate, art, transportation, venture capital, and even cryptocurrency.
Although YieldStreet excels in catering to alternative investments, most of their real estate equity offerings are in the form of funds rather than individual deals. However, they offer the Prism Fund, which includes portions of all their investment alternatives, providing unparalleled diversification.
Image Source: YieldStreet
Highlights:
- Minimum Investment: $5,000.
- Average Annual Returns: 9.61%.
- Allows Non-Accredited Investors: Yes, but only for REITs and the YieldStreet Prism Fund.
- Fees: Up to 2.5%.
- Investment Strategy: Bring access to alternative investments to the public.
- Number Of Active Investors: Over 400,000.
- Transaction Volume: $4 billion.
6. Cadre: Where Institutional Quality Meets Individual Investors
Backed by prominent names in the financial industry, Cadre offers access to some of the best commercial real estate syndication deals. The platform's focus on clients is evident through its meticulous selection process and commitment to delivering exceptional investment opportunities.
Cadre offers a range of products, from individual real estate syndication deals to funds. All their offerings prioritize long-term appreciation and cash flow, providing stability for investors. Additionally, Cadre distinguishes itself by providing access to the secondary market, offering limited liquidity for investors.
Image Source: Cadre
Highlights:
- Minimum Investment: $25,000.
- Average Annual Returns: 27.5%.
- Allows Non-Accredited Investors: No.
- Fees: 1.5% annual asset management fee plus 0.5% initial administration fee.
- Investment Strategy: Bring institutional-class real estate investments focusing on asset appreciation and cash flow generation to everyday investors.
- Transaction Volume: $5.02 billion.
7. Cardone Capital: From Rags to Real Estate Riches
Cardone Capital, founded by Grant Cardone, offers a unique opportunity for non-accredited investors to invest in individual deals. Grant Cardone's inspiring journey from a struggling individual to a successful entrepreneur fuels his belief in making real estate investments accessible to everyone.
Cardone Capital keeps its operations simple and focuses on the four key points of real estate investing: finding deals, purchasing deals, operating deals, and selling deals. By prioritizing long-term ownership in stabilized properties that produce appreciation and cash flow, Cardone Capital aims to create wealth for investors.
Image Source: Cardone Capital
Highlights:
- Minimum Investment: Generally $5,000 for non-accredited investors and up to $100,000 for accredited investors.
- Average Annual Returns: Around 15%.
- Allows Non-Accredited Investors: Yes.
- Fees: 1% annual asset management fee plus 1% transaction fee for the purchase and sale of the property.
- Investment Strategy: Long-term real estate ownership in stabilized properties that produce both appreciation and cash flow.
- Number Of Active Investors: Over 11,800.
- Transaction Volume: $4 billion.
Conclusion
When it comes to finding the best real estate syndication company for your investment needs, careful consideration is essential. Each platform has its unique investment strategy and fee structure, and it's crucial to do your research before making any investment decisions.
Real estate syndications offer numerous advantages, including cash flow, diversification, and protection against inflation. These investment opportunities are no longer exclusive to the wealthy, with some platforms allowing non-accredited investors to start with as little as $10.
So, whether you're a seasoned real estate investor or just starting your investment journey, a real estate syndication might be the right path for you. Explore these platforms, weigh the pros and cons, and embark on your real estate investment adventure!
Note: The information provided in this article is based on publicly available data and should not be considered financial advice. Always conduct thorough research and consult with a professional before making any investment decisions.
