Ninety percent of millionaires build their wealth through real estate, or at least that’s what billionaire Andrew Carnegie once famously said. And it’s no wonder why owning a home is such a staple of the American Dream. However, rising real estate prices and financial barriers have made it difficult for many to enter the market. But fear not! You don’t need a hefty down payment or a low debt-to-income ratio to invest in real estate. Thanks to real estate crowdfunding platforms, establishing a real estate portfolio has never been easier.
Best Real Estate Crowdfunding Platforms for Accredited Investors
If you’re an accredited investor, with high net worth or income, you can take advantage of these top real estate crowdfunding platforms:
1. Yieldstreet (Real estate investments and alternatives)
- Minimum Investment to Start: $2,500
- Type of Real Estate Investment: Broad real estate (also includes alternatives)
- Type of Investor: All investors
- Available: Sign up here
Alternative investments, such as those offered by Yieldstreet, have gained popularity among retail investors. Yieldstreet provides access to income-generating assets across different classes, including real estate, art finance, commercial finance, and legal finance. With annual returns ranging from 3% to 18%, Yieldstreet offers predefined payment schedules and investment opportunities starting as low as $2,500.
2. EquityMultiple (Commercial real estate crowdfunding)
- Minimum Investment to Start: $5,000
- Type of Real Estate Investment: Commercial real estate
- Type of Investor: Accredited investors only
- Available: Sign up here
EquityMultiple offers investors the opportunity to invest in commercial real estate, including individual properties. With a minimum investment of $5,000, accredited investors can access commercial real estate deals, funds, and diversified short-term notes. By signing up for an account and going through the qualification process, you can learn more about EquityMultiple and its investment offerings.
3. CrowdStreet (Commercial real estate crowdfunding platform)
- Minimum Investment to Start: $25,000
- Type of Real Estate Investment: Commercial real estate
- Type of Investor: Accredited investors only
- Available: Sign up here
CrowdStreet is a real estate investment platform focused on commercial real estate for long-term investments. While its investments have performed well, they carry a higher minimum investment of $25,000 and are more illiquid, with hold periods ranging from 3 to 10 years. Accredited investors interested in commercial real estate can visit CrowdStreet to learn more about investment opportunities.
4. AcreTrader (Farmland real estate investments)
- Minimum Investment to Start: $10,000
- Type of Real Estate Investment: Farmland
- Type of Investor: Accredited investors only
- Available: Sign up here
AcreTrader offers a unique opportunity for accredited investors to invest in farmland real estate. With a minimum investment of $10,000 over three years or more, investors can earn annual rent payments from farmers and benefit from land value appreciation. AcreTrader's rigorous underwriting and due diligence process ensure that investors have access to high-quality investment opportunities in the farmland sector.
Best Platforms for Private Equity Real Estate
For accredited investors looking to invest in private placements (individual properties), the following platforms offer a range of options:
5. First National Realty Partners (Grocery-anchored commercial real estate)
- Minimum Investment to Start: $50,000
- Type of Real Estate Investment: Grocery-anchored commercial real estate
- Type of Investor: Accredited investors only
- Available: Sign up here
First National Realty Partners specializes in grocery-anchored commercial real estate investments. Accredited investors gain access to institutional-quality deals with top-tier national-brand tenants. With a focus on providing steady cash flow and diversification, First National Realty Partners offers a unique investment opportunity to accredited investors.
Best Real Estate Crowdfunding Platforms for Non-Accredited Investors
If you're a non-accredited investor, there are still excellent real estate crowdfunding options available to you. Here are the top picks:
6. Fundrise (Debt + equity real estate investing portfolios)
- Minimum Investment to Start: $10
- Type of Real Estate Investment: Residential and commercial real estate
- Type of Investor: All investors
- Available: Sign up here
Fundrise offers diversification through various funds, each holding multiple properties. Starting with as little as $10, investors can access Fundrise's different account tiers. From the Starter and Basic accounts to the Core, Advanced, and Premium accounts, Fundrise provides options for investors with different investment needs and risk appetites.
7. RealtyMogul (CRE + residential real estate for non-accredited + accredited investors)
- Minimum Investment to Start: $5,000
- Type of Real Estate Investment: Commercial and residential real estate
- Type of Investor: All investors
- Available: Sign up here
RealtyMogul is a real estate crowdfunding marketplace offering opportunities in commercial and residential properties. Accredited and non-accredited investors can participate in private REITs or private placements on the platform. Investors can choose to invest through fractional ownership or REITs, providing flexibility and access to institutional-quality real estate investments.
8. Groundfloor ("Fix-and-flips")
- Minimum Investment to Start: $1,000
- Type of Real Estate Investment: Residential real estate
- Type of Investor: All investors
- Available: Sign up here
Groundfloor offers short-term, high-yield real estate debt investments to the general public. Investors can participate in loans secured by properties undergoing "fix-and-flip" renovations. With an average annual return of 10%, Groundfloor provides an opportunity to invest in real estate without the need for hands-on property management.
9. DiversyFund (Multifamily units)
- Minimum Investment to Start: $500
- Type of Real Estate Investment: Commercial and multifamily residential real estate
- Type of Investor: All investors
- Available: Sign up here
DiversyFund focuses on multifamily residential units, such as apartment buildings. With a medium-term investment horizon of around 5 years, DiversyFund renovates properties for appreciation and cash flow. Investors can start with as little as $500 and benefit from both cash returns and capital gains upon sale.
Real Estate Crowdfunding: Making Your Money Work for You
Real estate crowdfunding platforms provide opportunities for both accredited and non-accredited investors to participate in real estate investments at various levels. Whether you're looking for steady cash flow or long-term appreciation, there's a platform and investment option that can suit your needs.
Remember, crowdfunding investments carry risks, so it's important to conduct your due diligence and diversify your investments. Real estate crowdfunding can be a valuable addition to your investment portfolio, helping you build wealth and achieve your financial goals.