Best Real Estate Crowdfunding Platforms for 2024

Investing with real estate crowdfunding platforms can be an attractive alternative to buying property the traditional way. It lets you pool your money with other investors to go in on deals you couldn’t access otherwise—sometimes for as little as $10. It also makes diversifying your real estate portfolio across multiple properties easy.

However, real estate crowdfunding sites vary in their minimum investment requirements, fees, investment structures, and more. For example, some let you buy shares of individual properties, while others let you invest in funds that hold multiple properties (aka real estate investment trusts or REITs). 

We researched and ranked the top sites to help you choose which real estate crowdfunding platform(s) to try. Below you’ll find a review of each, its pros and cons, unique features, and more. 

Arrived

As with most real estate, Arrived considers its properties long-term investments. So holding periods are generally 5-7 years for long-term rentals and 5-15 for vacation rentals. The platform doesn’t allow users to exit their investments before the holding period is over. 

Arrived handles selecting, purchasing, renovating, marketing, and managing the rental properties. Accredited and non-accredited investors can then buy shares of properties for as little as $100.

The company aims for 12- to 24-month long-term leases and uses major booking sites like Airbnb and VRBO for short-term rentals.

To make money, Arrived includes a one-time sourcing fee in the share price (3.5% of the property purchase price for long-term rentals and 5% for vacation rentals). It also takes out a quarterly asset management fee from each property’s rental income (0.15% of the property purchase price quarterly for long-term rentals and 5% of gross revenue for vacation rentals). 

In addition, some properties are leveraged with a mortgage (usually 60-70%), while others are bought with cash. However, all mortgages are non-recourse, meaning investors aren’t responsible for the debt and don’t need to qualify for credit.

Furthermore, each property is housed in a Series LLC to protect investors against personal liability and the off chance that Arrived ever goes out of business. 

In 2023, the company added a private real estate investment fund (REIT) that holds 8 single-family properties. It lets investors diversify across multiple properties and redeem all or part of their shares every quarter after six months (for a 2% fee between 6 months and 1 year, a 1% fee between 1 and 5 years, and for free after 5 years). 

Investors can also invest via Checkbook IRA or Solo 401(k) for added tax benefits. 

Regardless of the investment, Arrived lets you track its performance on an online dashboard, which shows estimated rental earnings, appreciation, and processed cash flow distributions. You can also access your account via an Apple app (currently, there’s no Android app, but the company plans to release one in 2024). 

The company website has a chatbot for asking FAQs and sending messages, which it typically replies to within a day. The site also lists a support email address but no phone number. 

On its website, the company boasts having paid over 3.5 million in dividends across 518K registered investors, who collectively own $125 million in property. The company is also backed by Amazon founder Jeff Bezos and former Zillow CEO Spencer Rascoff.

Overall, Arrived is a great option if you want to get exposure to single-family rentals across the U.S. Hand-pick properties that match your investment criteria or invest in the SFR fund to diversify across 8 properties at once.

CrowdStreet

CrowdStreet offers all types of commercial real estate investments: multifamily, retail, office, medical building, self-storage, industrial, and land opportunities. In addition, the marketplace offers equity, debt, and hybrid investments. 

According to the company, equity investors typically earn quarterly dividends as a share of profits, while debt investors earn quarterly dividends at an agreed-upon interest. However, distributions aren’t guaranteed, and sometimes returns aren’t realized until the property sells. 

Furthermore, there is almost no option to redeem your capital or exit your investment before the hold period ends. Hold periods vary by investment but often last “multiple years” and are “not guaranteed,” the company website says.

Crowdstreet charges real estate sponsors fees for using the platform. Those fees reduce investor distributions. Additionally, sponsors also take fees as part of the deal, which can vary by deal, but typically include an acquisition fee and management fee, among others. Each investment’s fee structure is disclosed on the website, and users can log in to track their investment’s performance. CrowdStreet does not have a mobile app. 

Compared to other platforms, CrowdStreet has a high barrier to entry. It’s only available to accredited investors, and the minimum investment for most deals (including the private REIT) is $25,000.

Users can make offers, track their investment performance, and communicate directly with sponsors through an online portal, but no mobile app. Depending on the sponsor, investors may also be able to invest through a self-directed IRA. 

The company website has a chatbot for asking FAQs or sending messages as well as a contact email address. It also has a contact form that allows you to rank the urgency of your inquiry. However, there is no phone number.

CrowdStreet was founded in 2013. According to the company website, as of 20 October 2023, CrowdStreet inventors have invested $4.2 billion across over 798 deals, of which 168 have been realized. 

Ultimately, CrowdStreet has a long track record of successful commercial property deals. Between the marketplace offerings and the in-house “C-REIT,” there’s something for every commercial real estate investor.

Fundrise

Since then, the company has moved to a private REIT model. Users can choose between investment plans that favor long-term appreciation, supplemental income, or a mix of both. Each plan has a stake in multiple private REITs involving equity and debt investments in residential and commercial properties. 

For $10/month or $99/year, Fundrise Pro members can also customize their investment plan by choosing REITs directly for a more hands-on approach. That’s on top of a 0.85% annual asset management fee and a 0.15% annual investment advisory fee charged to all users. 

Investors can earn returns through quarterly dividends, which can be received as cash or reinvested, and the appreciation of shares, which can be liquidated quarterly (but may be subject to a 1% withdrawal fee if held for less than 5 years). 

Fundrise also reserves the right to suspend or delay redemptions during periods of extreme economic uncertainty, as it did at the start of the COVID-19 pandemic.

That said, you can invest on Fundrise with as little as $10, the smallest minimum investment of any crowdfunding platform, and you don’t need to be an accredited investor. The platform also lets you automate recurring investments and save for retirement through its built-in Roth and Traditional IRA offerings. 

Fundrise has an attractive and user-friendly interface with an online dashboard that lets you quickly see your account value, net contribution, net return, and portfolio breakdown. If you like to invest on the go, Fundrise also offers Apple and Android mobile apps. 

The Fundrise website has a contact form and chatbot for asking FAQs or sending messages. The company can also be contacted via email. On the downside, Fundrise only responds Monday through Friday from 9:00 AM to 5:00 PM ET, excluding holidays, and doesn’t have a phone support line.

According to its website, Fundrise has a $7+ billion real estate investment portfolio with 8,962 multifamily residential units, over 2.3 million square feet of industrial property for lease, and 3,471 single-family homes across 30 U.S. markets.

We recommend Fundrise if you want a truly passive investing experience. Choose an investment plan that fits your goals, set up auto-investing, and you’re all set.

RealtyMogul

Otherwise, deals on RealtyMogul’s marketplace are sponsored by outside real estate companies. Investments must pass a thorough vetting process, which includes (among other things) a RealtyMogul representative visiting the relevant investment properties.

From there, accredited investors can help fund deals with minimum contributions typically ranging from $25,000 to $35,000. So far, RealtyMogul has facilitated 362 deals across multifamily, office, retail, industrial, and other commercial property types and funds, including equity and debt investments. Currently, there are 11 open opportunities. 

Depending on the deal, investors can generally expect holding periods of 3 to 7 years. Exiting your investment before the end of the hold period or reselling it isn’t possible. For cash-flowing properties, quarterly distributions are common but not guaranteed.

RealtyMogul charges real estate sponsors fees for using the platform. Those fees reduce investor distributions. Additionally, sponsors also take fees as part of the deal, which can vary by deal, but typically include an acquisition fee and management fee, among others. Each investment’s fee structure is disclosed on the website, and users can log in to track their investment’s performance. RealtyMogul does not have a mobile app. 

In addition, RealtyMogul lets users invest in its REITs with a self-directed IRA, and some sponsors allow investing with a Checkbook IRA.

The company website has a contact form as well as a dedicated phone number and email address for general inquiries and investor relations, respectively. 

According to its website, RealtyMogul has offered $7 billion of property value on its platform since its inception in 2012. It’s also realized over $216 million in investments across 228 deals for an overall realized IRR of 20.7%. 

RealtyMogul is best for those who want the option of investing in diversified commercial REITs as well as individual commercial properties. 

DiversyFund

Because DiversyFund focuses exclusively on long-term growth, holding periods are usually 5-7 years and can be extended for another 2-3 years if the company chooses (as was done with its REIT I). In other words, investors tie up their money indefinitely and aren’t guaranteed an exit timeline.

In addition, DiversyFund typically reinvests dividends into the property, which means you won’t realize any returns until after the property sells. 

That said, investors get a 7% preferred return, which means they’re paid out a 7% return, and their principal before other distributions are made. 

DiversyFund also takes a share of the net profit on property sales and a 2% management fee (other fees may also apply).

Users can track their investment performance with an online dashboard, monthly email updates, quarterly conference calls, and forum announcements. The company also offers a mobile app on Apple and Android. 

Investors (and prospective users) can contact DiversyFund via the contact form on its website. The company claims to get back to you within 2 business days typically. 

According to its website, the platform has over 28,000 investors and 12 multifamily assets valued at $175 million. You can also schedule a 30-minute phone call with a customer support representative on Tuesdays through Thursdays via Calendly. 

DiversyFund is best for long-term investors who don’t mind tying up their money for 5-10 years. It’s also great if you want a preferred return on your investment.

First National Realty Partners (FNRP)

Unlike other platforms, FNRP doesn’t offer any REITs. Instead, it lets users buy shares of individual properties. Investors can benefit from their investments’ capital appreciation and quarterly cash dividends (though dividends aren’t guaranteed). Holding periods vary by deal but are typically 2-5 years, before which investors can’t exit the investment. 

Fees vary by deal but generally include a 0.5-1.5% asset management fee (other fees may also apply).

Like many other crowdfunding sites, FNRP hosts a live webinar before each deal launch. In them, a company committee walks through the deal details and answers any questions to help investors better understand the investment. 

From there, investors get access to asset performance reports, lease updates, and other asset-specific information, including on mobile apps for Android and Apple. 

A self-directed IRA option is available for those who want to invest for retirement. The company also helps investors perform 1031 exchanges to defer paying capital gains taxes.

Users can contact FNRP via an online contact form or a website-listed phone number.

On its website, FNRP says it’s distributed $100 million to investors since 2015, earning a net IRR of 15%. It also states that it has over $2 billion in assets under management. As of 19 December 2023, the platform has over 60 open projects. 

FNRP considers grocery and retail chains “necessity-based” commercial properties because people rely on them to live, shop, and work. If you want to increase your exposure to an essential commercial property type, FNRP may be a good option. 

EquityMultiple

They bucket their investments into three pillars: Earn (focusing on near-term income), Grow (focused on long-term growth and upside potential), and Keep (flexible cash management tool with compelling rates). 

Investments listed on the platform are typically focused on strong cash flow, and all asset management is centrally managed and administered by the EquityMultiple team.

Investment minimums start as low as $5,000 but typically range between $10,000 – $30,000. Target hold periods vary by deal, with the Alpine Notes (cash management funds) advertising the shortest hold periods (3-9 months).

Each investment on the EquityMultiple platform has its own fee structure. Like other crowdfunding sites, the sponsor fees are ultimately passed onto the investor through reduced distributions.EquityMultiple’s Alpine Notes (short-term cash management) are fee-free for investors.

EquityMultiple boasts a strong deal and sponsor diligence process where they vet lenders and sponsors and perform deal-specific diligence on each investment. They also provide vigilant asset management services throughout the lifetime of each investment to protect an investor’s interest.

The company website has a chatbot for asking FAQs or sending messages and a contact email address and phone number. Customer service is available from 9 am – 6 pm ET.

EquityMultiple boasts a breadth of offerings among 167 distinct markets and 123 sponsor/operator partners. The company has deployed over $570M in investor capital and $379M in total distributions.

EquityMultiple is a great option for investors seeking access to equity, preferred equity, and senior debt across many CRE property types. With its strong due diligence process and vigilant asset management services, EquityMultiple is a solid option for investors looking to add commercial real estate to their portfolios.

Yieldstreet

Yieldstreet launched its first offering in 2015 centered on litigation finance, connecting investors with plaintiffs seeking funds to cover expenses ahead of anticipated lawsuit settlements. Expanding its scope, Yieldstreet has diversified into multiple investment avenues, encompassing financing for industrial and residential property transactions, commercial loans like merchant cash advances, procurement of oil tankers, and investment in fine art. Investors receive interest payments and the return of their principal investment throughout the loan duration.

Many opportunities have investment minimums between $10,000 and $20,000, with target hold periods varying by offering. Like many other crowdfunding platforms, fees vary by deal and can be viewed in full on each offering page. 

While most investments are available only to accredited investors, the Growth & Income REIT and the Yieldstreet Alternative Income Fund are also available to non-accredited investors, with both having an investment minimum of $10,000.

The Yieldstreet Alternative Income Fund invests in numerous alternative asset classes with a single investment, while the REIT provides access to a diversified mix of real estate investments.

While Yieldstreet offers IRA investing options, they are limited to Yieldstreet branded funds.

One unique feature of Yieldstreet is its Wallet product, an FDIC-insured checking account that earns 3.25% annual interest on funds held. Investors can pre-fund their account before investing, and the funds will be held within this interest-bearing checking account.

The company website has a chatbot for asking FAQs or sending messages, a contact email address, and a Help Center. However, there is no phone number.

Today, Yieldstreet has over 420,000 members. These investors have contributed more than $3.9 billion to Yieldstreet offerings. Yieldstreet has a track record of over $2.4 billion of total dollars returned to investors, with 85% of offerings having achieved within 0.5% of their target. Yieldstreet claims to be the largest platform for private market investing.

Yieldstreet is an excellent option for investors looking to diversify their portfolios with alternative investments beyond the traditional private placement real estate offerings listed on other crowdfunding platforms.

1031 Crowdfunding

Founded in 2014, 1031 Crowdfunding is an online marketplace for commercial real estate investments specializing in 1031 exchanges, a capital gains tax deferral strategy. The platform offers attractive tax benefits for real estate investors, and also offers IRA investing options.

Its website states the platform has sold over $2.1B in securities across more than 1.5K exchange transactions. As of this writing, the platform also has over 70 active investment opportunities listed.

Unlike other crowdfunding platforms that use LLCs, most 1031 Crowdfunding deals are housed within a Delaware Statutory Trust (DST), which allows fractional ownership in properties and the deferment of capital gains taxes after property sales.

Additionally, 1031 Crowdfunding offers REITs, Opportunity Zone Funds, Bridge Funds, and other alternative investment vehicles across multifamily, senior housing, self-storage, medical office, industrial, and student housing property types.

Projected cash flows and distribution frequency vary by investment. However, the company’s website states that distributions are typically conservative and not guaranteed with the “potential for reduction or suspension of cash flow distributions.” 

While it’s free to invest and use the 1031 Crowdfunding platform, fees are built into the returns of each deal and can vary by investment. Meanwhile, the minimum investment ranges from $25K to $100K. Most deals are open to accredited investors only. However, some REITs and general real estate funds are open to non-accredited investors.

Registered users can log into the online 1031 Crowdfunding portal to track key performance metrics and access important investment documents such as property PPMs, tax opinions, financial forecasts, appraisals, and loan information. No mobile app is available.

For help, users can fill out a contact form on the company’s website or call the listed phone number.

Overall, 1031 Crowdfunding is a great option for investors who want to minimize their tax burden with 1031 exchanges and DSTs.

Conclusion

There’s no one-size-fits-all real estate crowdfunding platform. The right choice will depend on the types of assets, investments, returns, and income frequency you want. Fortunately, there’s something for everyone in the top six platforms listed above.

Furthermore, real estate crowdfunding is here to say. According to Vantage Market Research, the global real estate crowdfunding market was valued at $11.5 billion in 2022 and is projected to reach a value of $161 billion by 2030, registering a compound annual growth rate (CAGR) of 45.9% between 2023 and 2030.

Methodology 

To choose the best real estate crowdfunding platforms, we evaluated companies based on the following criteria: 

• Availability. We considered whether the platform’s investments are open to non-accredited investors. 
• Investment type. We evaluated the type of investment, including property type, holding periods, and withdrawal terms.
• Minimum investment amount. We verified the minimum amount required to invest on the platform. 
• Fees. We weighed what fees are associated with investing on the platform, including sourcing, management, and other fees.
• Investment tracking. We investigated how easy it is to track an investment’s performance on the platform.
• App availability. We checked to see if the platform was available to use on a mobile app. 

Summary

• Arrived: Best for single-family rentals
• CrowdStreet: Best for diversity among CRE property types
• Fundrise: Best for residential and commercial REITs
• RealtyMogul: Best for diversity among CRE property types and REITs
• DiversyFund: Best for long-term multifamily REITs
• FNRP: Best for grocery-anchored and retail properties
• EquityMultiple: Best for income options and cash management
• YieldStreet: Best for alternative investments
• 1031 Crowdfunding: Best for 1031 exchanges

Disclaimer

This page may contain affiliate links. If you make a purchase or investment through these links, CRE Daily LLC may receive a commission at no extra cost to you. These recommendations are based on our direct experience with these companies and are suggested for their usefulness and effectiveness. We advise only purchasing products that you believe will assist in reaching your business objectives and investment goals. Nothing in this message should be regarded as investment advice, either on behalf of a particular security or regarding an overall investment strategy, a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised, and we recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any real estate investment. For any questions or assistance with these resources, feel free to contact [email protected]. We’re here to help!