Well known real estate crowdfunding blogger Joe Stampone has written a new eBook breaking down what he believes are the top seven crowdfunding sites that every investor needs to know about.
In a blog post to accompany the launch of his new eBook, Stampone writes that there are literally hundreds of crowdfunding platforms out there, but warns that many are poorly run and support risky deals. Worse, it’s often impossible for amateur investors to separate the good from the bad. As such, Stampone has identified the top seven crowdfunding sites as “established players, well-funded, operated by experienced real estate professionals, and sites I’d trust with my own money.”
Here’s a brief look at Stampone’s top seven crowdfunding platforms:
Billed as a marketplace for investing in real estate-backed loans, PeerStreet is ranked at number one because it does one thing well – it solves the issue of investors having to analyze investments opportunities themselves, review deal structures and underwrite sponsors thanks to its special algorithms.
Stampone’s second pick is Acquire Real Estate, which is unique in that it invests in each project it approves with its own money, alongside its investors. That alone should give investors confidence that the project they decided to back is financially sound and viable.
Stampone describes RealtyShares as a platform that provides investors with access to small balance real estate deals in secondary and tertiary markets. RealtyShares offers direct equity and debt deals as well as a marketplace equity fund. Stampone backs the platform because it’s “one of the early entrants into real estate crowdfunding and providers investors access across the capital stack on a deal-by-deal and fund basis.
Fundrise claims to offer lower fees than other well-known platforms, which means investors can get more return on their investments. Stampone adds that Fundrise is one of the most beautifully designed crowdfunding platforms around, and is backed by an impressive team with solid funding behind them. Fundrise’s special eREITs offer access to a portfolio of income-producing properties available at a very low price.
RealCrowd charges zero fees and gives investors a shot at investing in “quality commercial real estate” directly with professional real estate sponsors. Stampone says RealCrowd is one of the few crowdfunding sites that views itself as a technology platform first, with a focus on connecting quality real estate professionals with accredited investors. Sponsors, which are usually institutions, are charged a fixed fee to connect with investors.
Another platform that’s focused on commercial real estate investment opportunities, CrowdStreet also portrays itself as a technology platform first. Like RealCrowd, CrowdStreet focuses on connecting quality real estate operators with accredited investors, charging a fixed fee to sponsors.
Last but not least is AlphaFlow, a platform that aims to help investors build and manager their real estate portfolios across the emerging crowdfunding industry. AlphaFlow bills itself as the “Schwab for real estate”, and provides investors with access to a fund with a greater pool of opportunities across multiple platforms. Stampone says this access lets AlphaFlow offer a more diversified and less risky pool of investment opportunities.