global real estate crowdfunding marketplace $10.78 billion (USD) in 2021, and forecasts suggest that it will grow at a compound annual growth rate (CAGR) of 45.6% from 2022–2030.
By pooling money with other investors, you can participate in large real estate projects that were previously beyond your reach. The abundance of real estate crowdfunding apps is making investing even easier, allowing investors to browse and get involved with projects from the convenience of their mobile devices.
Here are the 10 best crowdfunding real estate platforms and the features that make them unique,
arrived
arrived Purchases single-family rentals and then offers fractional shares in them to investors. You can get started with as little as $100 on Arrived and enjoy appreciation returns and quarterly rental income. The company also has a straightforward fee structure: an annual 1% asset management fee.
With the advent of companies like Airbnb and VRBO, the vacation rental industry is hot at the moment. expected to hit $20 billion by 2025, Plus, these properties typically generate 130% more revenue than their traditional long-term counterparts.
When using Arrived, you can benefit from favorable real estate tax rules and invest between $100 and $20,000 per home. We recommend diversifying your portfolio to determine which markets are working best for you.
crowdstreet
crowdstreet An online marketplace for Accredited Investors*, giving you access to investment opportunities across all types of asset classes and risk profiles. Each investment opportunity is thoroughly screened and investors are provided with a wealth of important information about the property before investing.
To date, CrowdStreet has funded over 752 deals, totaling $4+ billion in investments. They are also renowned for consistently providing strong returns to their investors. 19.2% in Actual IRR And the average hold period is 3-5 years. The downside: You usually need at least $25,000 to buy into most CrowdStreet deals and real estate investment trusts (REITs).
*Accredited investors are investors who meet one of the following two criteria: 1) have a net worth of more than $1 million (does not include personal residence equity), or 2) have $200,000+ for each of their final annual income for two years ($300,000 if you’re married and filing jointly), and again up to that limit.
citywest
citywest Offers accredited investors the opportunity to invest in institutional real estate deals starting with a minimum of $25,000. Investor minimums for these types of investment funds are usually $1 million or more. By lowering the barrier to entry, CitiVest is allowing many more investors to enjoy the steady returns (typically around 15% or more) provided by these investments.
CitiVest works exclusively with institutional funds that employ administrators and auditors. Each offering undergoes due diligence by a third party to verify the information of the investment manager and make the investment as safe as possible.
raise fund
If you don’t have $25,000 to crowdfund with CrowdStreet or CityVest, don’t worry! Together raise fund, you can start investing with as little as $10. Fundrise is “the US’s largest direct-to-consumer private market manager” with over 1,769,000 registered investors by the end of 2022.
Fundraise allows real estate investors to choose from a wide variety of investment opportunities, including single-family units, multifamily complexes, industrial properties, and more. They also have a transparent fee structure: 0.85% annual asset management fee.
Plus, signing up on Fundrise is really easy. All you have to do is answer a few simple questions, and then the app will suggest an investment strategy that best aligns with your goals.
ground floor
One disadvantage of crowdfunding is its liquidity. It is common for an investment to take five years or more to deplete your assets. Together ground floorAverage investment is paid back in 4-12 months.
Instead of crowdfunding to invest in properties, Groundfloor invests in high-yielding real estate-secured loans. ground floor is a hard moneylender that issues fix-and-flip loans to other real estate investors. Once the borrower finances the property or sells it, you recoup your investment with interest, generating returns of over 10% consistently over the past six years. Of course, it’s always possible that an investor will default on his loan, so minimize your risk by investing smaller amounts in a pool of loans.
Your investment limit starts with a minimum of $10, so if you have $100 to spare, you can invest $10 in ten different loans if you want!
Solid
Solid Also specializes in short-term real estate-secured loans. Due to the short tenure of their loans, Concrete has abundant liquidity and allows you to withdraw your money at any time. However, there are three reasons why you might not want to do this:
- Concrete pays a fixed annual dividend yield of 6.2%, but you receive it in weekly payments, so your money adds up quickly.
- If you withdraw your money within the first year, you will be penalized 20% of your dividend payment (there is no withdrawal penalty on your principal).
- It can take 30-60 days to receive your funds, so if you need emergency funds, your hard earned money may not reach your bank in time.
You can start investing with Concrete for as little as $1.
realtymogul
realtymogul Pool REITs that buy and manage a variety of commercial real estate investment opportunities, including retail, multifamily, office and ground-up development. Since their inception, they have grown to over 274,000 members, made 35,300 investments and received $5.9+ billion in investments nationwide. They also have access to dozens of markets across the US
They have two REITs For non-accredited investors: Income REITs and Apartment Growth REITs.
| Income REIT | Apartment Growth REIT | |
|---|---|---|
| Center: | high dividend | long term appreciation |
| Minimum Investment: | $5,000 | $5,000 |
| annual rate: | 6% | 4.5% |
| Delivery Frequency: | Monthly | quarterly |
streetwise
streetwise Operates a “professionally managed, tax-advantaged portfolio of real estate assets” with an emphasis on transparency. The company’s founders have invested more than $5 million in the company, and the REIT provides investors with a diversified portfolio of “stable institutional-quality commercial builders”. His distribution average in 2022 was 7.8%.
StreetWise is available to accredited and non-accredited investors with a minimum required investment of $4,400. Like many of the other crowdfunding real estate apps on this list, this is a long-term investment, so be prepared to leave your money in the pool for five years or more.
yieldstreet
yieldstreet Gives you the flexibility to invest in a wide range of highly screened investment opportunities. They specialize in alternative investments, so you can invest not only in real estate, but also:
- Art
- legal finance
- consumer loans
- commercial credit
- vehicle loan
- NFT and crypto
While more of their opportunities are open only to accredited investors, YieldStreet Prism Fund Available to everyone. The Fund comprises a combination of the investments listed above. However, you need a minimum of $5,000 to invest.
YieldStreet also has a growth and income REIT, which is also open to non-accredited investors. It includes three multifamily properties in Atlanta, Tucson and Dallas-Fort Worth.
diversification fund
Diversified fund’s Minimum purchase is $500. They hold full ownership of their assets, which means you don’t have to worry about the hefty commission fees you’ll find on other crowdfunding apps.
Diversified funds aim for growth, so they reinvest their profits into new assets to rapidly expand their portfolio. They estimate that they can make returns of 10%-20% per annum, which is impressive if they can achieve that.
Unfortunately, investors won’t be receiving dividends from DiversyFund anytime soon. Instead, you have to rely on appreciation and growth to deliver long-term returns over five years or more.
conclusion
While we’ve highlighted the ten best crowdfunding real estate apps, there are many more apps to consider depending on your interests and investment strategy. For example, if you are interested in agricultural land, acre trader Examined properties from the Carolinas to California and delivered an average annual return of 11%. If you’re looking for a company that combines traditional real estate and crowdfunding strategies, check out equity multiple,
And, of course, you can always turn to bigpockets forum for help. Our platforms give you access to the largest real estate investing community around, and there is no shortage of active real estate crowdfunding investors looking for help.
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