Online property investment has been made easier through the creation of real estate crowdfunding platforms, wherein investors combine their money to finance property projects. These platforms offer an opportunity for diversification of financial instruments without obligatorily large capital. Here is a list of the best real estate crowdfunding platforms that everyone can use regardless of their experience.
1. Fundrise
Fundrise is arguably the best real estate crowdfunding site due to its simplicity and relatively low entry fee. New investors can invest as little as $10 in a property, attracting and being suitable for small investors. Fundrise is well diversified by investment type and opportunities to include residential property, commercial property, and other opportunities. It is a good entry point for anyone who wants to venture into real estate investment but needs help to invest a considerable sum of money.
2. RealtyMogul
For investors who want more of a real estate portfolio, then RealtyMogul is best suited for you. The key features are that it provides access to commercial properties, single-family rentals, and, in some cases, REITs (Real Estate Investment Trusts). Real estate is available in two forms: a single asset for those who prefer stability and diversified portfolios for those who can take more risks. Being more accessible to a diverse group of investors, RealtyMogul is one of the more open options in the real estate crowdfunding market.
3. CrowdStreet
CrowdStreet earned its reputation for specializing in commercial real estate and offering access to institutional-grade opportunities. It primarily targets self-directed accredited investors and provides them opportunities to invest in office buildings, apartment complexes, and retail. This crowdfunding platform is open with project descriptions and, in many cases, performance data for investors to decide. Thus, this platform is ideal for investors who want to major in more complicated and massive real estate offers.
4. PeerStreet
Unlike typical real estate crowdfunding platforms, PeerStreet works differently since the company invests in real estate debts instead of equities. Lenders on PeerStreet invest in loans toward real estate ventures to reap the interest that accumulates from the loans. This makes this platform less risky than equity investment since loan repayments are more predictable. For instance, PeerStreet allows investors to invest in many loans at once and receive a regular income through interest receipts.
5. DiversyFund
Multi-family Real Estate Investing That Non-Accredited Investors Can Participate in Through DiversyFund's Private REIT. It has no management charges, and you can start investing by buying even a single share for a minimum of $500. DiversyFund depends on growth by reinvested dividends, thus enabling more compounding of gains. For investors seeking a stake in real estate for long-term growth, DiversyFund provides an easy means of Investment.
6. Groundfloor
It will be ideal for those who need real estate for a short-term loan. On this capitalist platform, investors can fund fix and flip projects, with profits earned when the house is sold or refinanced. The minimum Investment on Groundfloor is $10, which requires that the project be appropriate for as many people as possible. Projects developed by Groundfloor have shorter time horizons. Thus, receiving the money back faster is possible compared to other real estate crowdfunding platforms carrying out long-term actions.
7. EquityMultiple
EquityMultiple targets somewhat more experienced investors because it offers multiple types of Investment, including equity, preferred equity, and debt. It makes institutional quality investment available in the global commercial real estate market and has a comparatively higher minimum investment threshold than most of its counterparts. EquityMultiple is most appropriate for accredited investors seeking investment opportunities in quality real estate offerings within a diversified investment portfolio.
Conclusion
Purchasing properties through crowdfunding has emerged as a solution for people who want to diversify their portfolios without committing much money. There are plenty of opportunities available in the market for every rental seeker or those doing business with properties, and some of the recommended ones are Fundrise, RealtyMogul, and CrowdStreet. However, when properly structured, real estate crowdfunding is among the best options for accumulating wealth.
