Which are the top crowdfunding sites for real estate investing?



Before the recent trend of crowdfunding in real estate came along, most investors were unable to access real estate-related debt investments and equity. However that all changed back in April 2012 when President Obama enacted new legislation called the JOBs Act. With these new laws, real estate crowdfunding has evolved dramatically, and these days such deals are commonplace.

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Still, crowdfunding is still a relatively new concept, and for any investors the numerous platforms, deals and structures of such investments can be overwhelming. In order to get to grips with the real estate crowdfunding marketplace, you need to know which platforms are the most reliable. After that, you can research the opportunities that are best suited to meet your investment objectives.

The top real estate crowdfunding sites

Acquire Real Estate: A real estate crowdfunding platform for accredited investors who’re interested in co-investing and pre-funding quality deals. Acquire Real Estate’s interests align with a certain level of comfort that’s impossible to find on other platforms. However, due to limited liquidity, investors will need to exercise patience.

PeerStreet: For anyone into real estate-backed loans, PeerStreet is one of the best platforms for investing. The site gives investors the chance to carefully advertise opportunities, review deal structures, underwrite sponsors, and even use its own algorithms for proprietary understanding to automatically allocate them into loans fitting specific parameters. Investors who follow PeerStreet’s automated approach will find they have a safer, fixed rate of return as an investor.

Fundrise: This platform relies on cutting-edge technology to provide its real estate investment opportunities. Using the platform, investors gain direct access to numerous investment opportunities while paying lower fees than most others. The end result is that investors can seek better returns on their investments. Additionally, investors can access a portfolio of properties producing low income at a low price.

RealtyShares: This platform offers access to small balance deals in both secondary and tertiary real estate markets. RealtyShares is one of the oldest real estate crowdfunding sites around, and provides users with access across capital stock on a deal-by-deal and fund basis. For those with a high level of knowledge about real estate, who want access to debt, equity or preferred investments in sub-institutional deals, RealtyShares is well worth a look.

CrowdStreet: A comprehensive investor acquisition and management platform, CrowdStreet focuses on the commercial real estate market. It also offers a technology platform that allows it to bring accredited investors and quality operators together.

RealCrowd: Another commercial real estate focused site, RealCrowd makes it possible to invest in high-quality properties by working directly with expert sponsors.

For anyone looking to invest in real estate via crowdfunding, be sure to find the right model to suit your needs. Also, be sure you have the knowledge necessary to weigh up the advantages and disadvantages of each deal on offer. Make sure the sponsor is trustworthy and know your own risk tolerance.

About Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

Comments

  1. AJ Gonzalez says:

    I’ve invested w/most of the websites you mention but I find myself allocating more capital towards FundThatFlip. The value proposition at FundThatFlip is very compelling given its double digit returns and short term exposure (i.e. <9mo.). Best risk/reward I've been able to find online in the US real estate market!

  2. I’d like to add that CrowdStreet is unique on this list – investors on CrowdStreet pay NO investing fees. Combine this with our 100% focus on institutional-quality commercial real estate and you’ll see why we’ve become the #1 commercial real estate investing marketplace with over $1.5 billion in projects listed.

  3. private citizen says:

    For FundRise you might have mentioned that they are now only offering an ‘eREIT’ vehicle, and no longer offer investments in individual deals.

  4. private citizen says:

    So where’s RealtyMogul? What methodology (if any) did you use to come up with your list?