Crowdfunding real estate reviews: What you must know
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Are you interested in expanding your investment portfolio beyond the stock market but not sure where to start? Real estate crowdfunding is a great way to accomplish this.
This alternative investment has opened up opportunities for many investors who were once excluded from the real estate market. They have made it easier than ever to invest in real estate by offering low account minimums, simple fee structures, and user friendly apps.
In this crowdfunding real estate reviews article, we’ve compiled reviews of top crowdfunding real estate platforms that you should consider. Don’t let the competitive real estate market discourage you, real estate crowdfunding is a viable option for both accredited and non-accredited investors. So read on to start building your portfolio of properties!
What Is Crowdfunding Real Estate?
If you are wondering to yourself, what is crowdfunding real estate, we will do our best to clearly explain it. Crowdfunding real estate is a new way to invest in real estate that allows multiple investors to fund a project without relying on traditional financing options, such as bank loans. Real estate crowdfunding platforms typically offer two types of investments: equity investments and debt investments.
Equity investments give investors partial ownership of the project or property, entitling them to a share of the profits. Debt investments allow investors to serve as lenders, earning interest on their investment over time. While equity investments are tied to project performance and can be harder to predict, debt investments offer more predictable annual returns.
Compared to publicly traded real estate investment trusts (REITs) that can be bought through a brokerage, crowdfunding platforms pool funds to allow average investors to participate in private REITs and individual property investments.
The higher the return, the greater the risk and Real Estate crowdfunding may offer higher returns, they also carry higher risk. To help you get started with real estate crowdfunding, we’ve rounded up the best platforms and explored some of their top features.
The Top Rated Crowdfunding Real Estate Reviews
Fundrise
Fundrise is a platform that makes real estate investing accessible to both accredited and non-accredited investors. With a low investment minimum of just $500, Fundrise allows you to pool your assets with others to buy into private commercial and residential properties.
Fundrise has a very user friendly website. That along with the availability of IRA accounts may make it an attractive option for investors who want to diversify their portfolio beyond the stock market. Another bonus is that the company charges a relatively low annual management fee of 1% on its eREITs (real estate investment trusts), which are not publicly traded.
All in all, Fundrise offers an innovative approach to real estate investing that may appeal to both seasoned and first-time investors looking to make their money grow over time. It’s a reputable choice in the crowded field of real estate crowdfunding platforms.
RealtyMogul
RealtyMogul is an A + rated BBB-accredited investment platform that offers commercial property investments to both accredited and nonaccredited investors. If you’re keen on investing in multifamily properties or apartment buildings, this platform is definitely worth checking out!
One of the things that sets RealtyMogul apart from other investment platforms is its buyback program, which makes it a safer and more liquid option for investors. It’s important to note that there are certain limitations and time restrictions to be aware of.
Although average returns vary widely, RealtyMogul has high targeted rates of return for more experienced investors who are willing to put in the time and effort to do their due diligence. The main drawback is that the investment minimums are quite high and the fee structures can be complex and vary by investment.
Overall, if you’re looking for an investment platform that offers commercial real estate investments and is open to both accredited and nonaccredited investors, RealtyMogul is definitely worth considering.
CrowdStreet
CrowdStreet is a real estate investment platform that offers accredited investors direct access to a wide range of institutional quality real estate investment opportunities. The platform includes a helpful chatbot to assist investors in their decision making process.
Investment details are easy to find, making it simple to choose between individual deals or investing in a fund.Since its founding in 2013, CrowdStreet has published over 737 commercial real estate investment offerings, and more than 100,000 investors have invested on the platform. With average annual returns of 19.7% and total investor distributions of $220 million, it’s easy to see why it’s a trusted choice among accredited investors.
Investment options include funds, individual deals, and a professionally managed, tailored portfolio. The minimum investment for most of their products is $25,000. CrowdStreet is worth considering for long-term investors who want to see significant returns on their commercial investments.
With completely transparent offerings and educational resources for newer investors, each offer on the platform has already been vetted by the CrowdStreet team, making it a safe choice for those who want to build their real estate investment portfolio.
Which Crowdfunding Real Estate Platform Is Right For Me?
Ultimately which crowdfunding real estate platform is best for you will come down to your individual investment strategy, your risk tolerance, and whether you are an accredited investor or not. Hopefully after reading our best real estate crowdfunding reviews, you have a better idea of some of the advantages and disadvantages of the top platforms in this space. Happy investing!
