If you’re an experienced real estate investor, you know that there are many ways to invest in real estate. You can buy a commercial property outright, get involved in a joint venture with another investor, or invest through a real estate crowdfunding website. Real estate crowdfunding websites have been growing in popularity in recent years, and for a good reason – they offer investors many advantages over other types of investments. Here are just four reasons why real estate crowdfunding websites are so great:
- You can pool your resources with other investors to get involved in bigger deals.
- You have access to a broader range of investment opportunities.
- The administrative burden is taken care of by the website operator.
- Most websites offer 24/7 access to your investment portfolio and detailed investment reporting.
If you’re looking for a more efficient way to invest in real estate, then real estate crowdfunding websites are worth checking out!
SecondRE – The Marketplace for Secondary Real Estate Investors
SecondRE allows investors to purchase and sell fractions of cash-generating residential and commercial real estate assets on their terms and with the sponsors’ approval. SecondRE collaborates with sponsors to choose qualifying assets for trade on the marketplace. Asset and performance data is accessible on the SecondRE Marketplace.
SecondRE provides liquidity for investors in real estate. Existing investors in qualified assets offer their holdings for trade on the marketplace at their chosen price. Accredited investors submit bids for investment opportunities. Then the matching process starts. If a match is found, the sponsor then gets to authorize the transaction and when he does, it is completed.
Investors get regular updates and dividends from cash-generating deals. Additionally, they may sell their holdings at any moment or get visibility to new deals.
“My sponsor introduced me to SecondRE, as a means to get liquidity for my investment. I think it’s a great service, which brings real estate investment forward. I didn’t offer my holdings for sale yet, but instead I joined as a buyer. There are many interesting investment opportunities to choose from! I’m very satisfied with SecondRE Marketplace.4“
— Jonathan Elbert, Investor
Sign Up here to experience the SecondRE Marketplace!
Groundfloor – Investing Backed by Real Assets
Groundfloor accepts non-accredited investors. This corporation invests in debt, not stock.
The investments of Groundfloor are backed by first-lien real estate. You may invest in individual refurbishment projects or use its automated investment tools to invest continually in projects that suit your requirements.
On average, assets mature every 4-12 months; thus, if you invest every month, you will always have investments maturing every month after four months.
Potential investments are ranked for risk from A through G, so investors can choose the risk level that suits them. Groundfloor requires a minimum of $10 to invest and doesn’t charge fees.
“Excellent service! Extremely pleased with the success of my portfolio.”– Google Reviewer Adrian, Jan 2022
“They make it simple to invest and automatically reinvest in real estate loans at a level of capitalization that suits you!” – Google Reviewer Tom, 2021.
Related: Best Real Estate Investment Options for Accredited Investors
Fundrise – Building a Better Financial System by Empowering the Individual
Fundrise is a real estate focused technology-driven crowdfunding platform. They provide access to real estate investment through eREITs and eFunds, which are basically diversified portfolios of private real estate assets across the United States. Some of the postings on the website have a minimum investment amount of as little as $500.
Fundrise offers a questionnaire to assist you in selecting the most suitable investments and programs based on your financial requirements and available resources.
“Fundrise is the most open and clear way to invest in REITs you will ever find. They care about their investors, are easy to get in touch with, and give them regular updates and reasons for their investments as if each investor were a member of the board. It has a lot of people and teaches a lot. Before buying a piece of property, they do a lot of research on the market.” – Zach Wilson, Investor.
DiversyFund – Offering the Benefits of a Wealth-Building Diversified Portfolio to the Everyday Investor
DiversyFund is another crowdfunding site for real estate that all investors can use. It has private growth and income REITs which can both be invested in.
The California-based DiversyFund team invests in commercial real estate. They have a $500 minimum investment for investing in their REITs. Individual property investments demand a more significant initial investment.
“Easy-to-use investment platform that gives you a good way to spread your money around.”– Investor
CrowdStreet – Making the Markets Work Better for Everyone
CrowdStreet focuses on providing investors with direct access to commercial real estate (CRE) projects of institutional grade. The website focuses primarily on commercial developments such as shops, office buildings, and condos with several units.
The platform provides you with all the necessary web tools for real estate investing. Their intuitive portal makes it simple to examine all current deals, estimated returns, and other relevant papers. Simply e-sign the necessary paperwork and submit your money when ready to invest.
Currently, the website has a variety of services, each with its own minimum investment. According to their site, the lowest minimum investment is $5,000, and the largest is $50,000, oriented at professional investors.
Historically, CrowdStreet was exclusive to accredited investors, but in August 2017, the platform launched its first offering for non-accredited investors.
“Being on CrowdStreet has also given me a lot more confidence and knowledge as an investor in real estate. “ – Robert J (Investor)
Related: 5 Things Experienced Real Estate Investors Might Not Know About Commercial Real Estate
RealtyMogul – Building the Future that You Want
RealtyMogul provides a way for all investors to invest in commercial assets. One of their types of investments would be mobile home parks.
Their income REIT has a focus on debt assets that pay fixed monthly dividends. Each REIT needs at least $5,000 as a first investment. Each investment after the first one must be at least $1,000. You will have a great mix of business and residential buildings.
“Through an online dashboard, RealtyMogul lets investors browse, do research, invest, and keep track of how their investments are doing.” – The WSJ
Roofstock – Making Real Estate Investment Accessible, Cost-Effective and Simple
Roofstock, founded in 2014, is the first online marketplace for people interested in investing in single-family rental houses.
Roofstock has managed over $1 billion in transactions so far. The firm is aware that the real estate investment industry can be highly complicated, therefore they have developed an online-only platform to simplify the process. This allows real estate investors to feel at ease.
“For real estate investors, Roofstock’s online marketplace is like a dream come true.” – Linda D., Roofstock buyer
YieldStreet – Exclusive Access to Private Market Investments
YieldStreet is another platform for people who have been trained to invest in real estate. One exception is the Prism Fund, which is open for investment by people who are not accredited investors.
All projects take between 1-3 years to finish. Their website says that the expected return on investments is between 8% and 20%. You can make your portfolio more diverse by investing in different assets other than commercial and residential real estate, such as legal assets and marine cargo vessels.
“I really like how easy it is to use the platform and how clear everything is.” – Australia H, YieldStreet Investor
Streitwise
The 1st Street Office REIT is open to anyone, and it aims for an 8% to 9% dividend yield. To open a position in this real estate market, you need about $5,000 and all investors can use it.
Your money is locked up for a year and you have to keep it locked up for at least five years to get the full redemption value. So, think of the money you put into Streitwise as a CD with a five-year term – with no liquidity. But the dividend yield is now much higher than the average rate on a 5-year bank CD, which is around 1%.
So, this platform is a great way to make more money by putting your money to work for a long time. Streitwise’s prices are often lower than those of other organizations that raise money through crowdsourcing. But 2% of dividend income is taken out every year to pay for asset management.
“Streitwise is a great way for investors with a lot of money to spread out their investments.“ – Modest Money.
Which Real Estate Crowdfunding Website is Right for You?
Crowdfunding may be the right choice for you if you are looking for a more hands-off investment option. Real estate crowdfunding offers investors access to pre-vetted investment opportunities and can provide portfolio diversification.
However, it is essential to remember that the potential for greater returns and losses comes with increased risk. Before investing in any real estate crowdfunding opportunity, it is essential to consider your investment strategy and risk appetite.
Related: Top Ways Experienced Real Estate Investors Can Grow Their Net Worth
