Best Real Estate Crowdfunding Sites

In the age of internet, real estate investors have begun using crowdfunding sites to raise money for investments. This allows accredited and non-accredited investors to invest small amounts of money into real estate for a proportional stake in a property. The return for investors usually comes from interest income or rental profits.

Accredited vs. Non-Accredited Real Estate Investors

Real estate crowdfunding sites can be geared towards accredited or non-accredited investors. Accredited investors, who are qualified by the Securities & Exchange Commission (SEC), must meet the following criteria:

  • Individual income above $200,000 or joint income above $300,000 for the past 2 years
  • Individual or joint net worth of $1 million or more, excluding the value of a primary residence
  • General partner, director, or executive officer for the issuer of non-regulated securities

A non-accredited investor is one that does not meet the previous financial qualifications. Some crowdfunding sites only accept non-accredited investors, while others only accept accredited investors.

According to attorney Mark Roderick, “It’s always easier to raise money from accredited investors. That’s not only because accredited investors have more money, but also because the law assumes that accredited investors are smart and sophisticated enough to protect themselves, while non-accredited investors need the paternalistic arm of the government. With non-accredited investors come additional legal rules and requirements.”

The following is a list of top best real estate crowdfunding sites for non-accredited investors, accredited investors, or both:

Fundrise

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $500

Fundrise, founded in 2012, has 18 assets worth $1.4 billion. They traditionally invest in multifamily developments, office buildings, new construction homes, acquisition loans and construction loans and will spread your contribution across their portfolio. Fees usually range from 0.15% to 1% per year, depending on the investment.

Fundrise investors generally receive quarterly dividends and are entitled to additional payouts if a property is sold. Dividend yields average 8.0% for new investors. Affiliated real estate companies assess property values.

Fundrise accepts both accredited and non-accredited investors interested in investing in a diverse portfolio with significant assets.

RealtyMogul

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $1,000

RealtyMogul, founded in 2012, allows investors to select a specific property or to diversify across several properties. The company has a portfolio worth over $1 billion and has financed over 350 properties. RealtyMogul investments include real estate loans, shopping centers, self-storage facilities and apartment buildings.

Account fees range from 0.30% – 0.50% annually, depending on the type of investment. Dividends vary but are generally paid quarterly. Each deal is assessed according to available data and technology by an experienced investment committee that may conduct site visits as well.

RealtyMogul is ideal for investors who want to choose their investment project.

GroundFloor

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $100

GroundFloor, founded in 2013, has funded over $10 million in investments in residential real estate projects. Investors can participate in a Limited Recourse Obligation (LRO), which entails the repurchase of delinquent loans. Investors can select the property and loan details they want to invest in.

Fees average 1-2% in annual fees and annual returns average 10%. Dividends are paid each month after the loan is funded. GroundFloor has over 100 years of combined mortgage experience, uses local professionals to assess each transaction, and adheres to strict underwriting standards.

GroundFloor is ideal for investors who are interested in investing in LROs.

Rich Uncles

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $500

Rich Uncles, founded in 2006, offers investment opportunities in retail and office commercial and industrial real estate projects. Investors cannot select the projects they participate in.

Fees include a 0.1% monthly fee, a 3% acquisition fee, as well as various lender fees. Average returns on investments are 7% or more and dividends are paid each month. Rich Uncles only buys completed properties with long term triple net leases that have qualified tenants.

Rich Uncles is ideal for cautious investors who want to participate in existing commercial real estate.

Holdfolio

Type of Investor: Accredited and non accredited

Minimum Investment Amount: $10,000

Holdfolio, founded in 2014, offers single family homes and apartment buildings. Investors can choose their investment properties and their participation is diversified across a portfolio of properties. Investors, however, will receive information on the properties they have invested in. Holdfolio represents $6.6 million in property investments valued at over $13 million.

Fees vary per deal, however, there are generally no acquisition fees. Dividends are paid quarterly and annual return on investment averages 10% or more. Each property is assessed based on its potential price appreciation and the neighborhood where it is located.

Holdfolio, which owns all its projects, is ideal for investors who want to work directly with the real estate sponsor.

MinnowCFunding

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $1,000

MinnowCFunding, founded in 2017, offers include residential, commercial and industrial real estate. Fees vary, however, they do charge a 7% fundraising fee.

Dividends average 5% annually. Also, investors are entitled to additional payouts if a property is sold. MinnowCFunding has a team of real estate experts with over 50 years of collective underwriting and management experience, and employs strict assessment procedures for investments.

MinnowCFunding is ideal right for investors who want to diversify across commercial, industrial and residential properties.

American Homeowner Preservation

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $100

American Homeowner Preservation, founded in 2008, helps distressed homeowners remain in their homes. Investments are diversified through a pool of distressed mortgages which converted to loan modifications, deeds in lieu of foreclosure, or a foreclosures.

Investor fees average 2% annually. Most AHP properties are single family homes with a maximum return on investment of 12% annually. Dividends are paid each month.

American Homeowner Preservation is ideal for socially conscious investors.

Small Change

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $500

Small Change, founded in 2014, allows investors to select individual projects. Some projects are open to all investors, while others only accept accredited investors. Small Change offers residential, commercial and mixed-use properties. Most properties are geared towards socially conscious investors interested in participating in the use of green building materials or providing centrally located, affordable housing.

Small Change has no fees and profits, which average 8% returns annually, are shared with sponsors. Projects are assessed according to profitability and social responsibility.

Like American Homeowner Preservation, Small Change is ideal for socially conscious investors.

LendingHome

Type of Investor: Accredited

Minimum Investment Amount: $1,000, $5,000 or $50,000

LendingHome, founded in 2013, is a hard money lender, which only accepts investments of $1,000 or more. To participate in the auto-invest program, participants must invest a minimum of $5,000, and to select a program, participants must invest a minimum of $50,000. LendingHome does not invest in traditional real estate, but rather in fractional notes that comprise a mortgage.

Fees vary, and dividends are paid each month. Also, the initial investment is paid back within a year. LendingHome mainly provides loans, therefore properties and homeowners are assessed thoroughly.

LendingHome is ideal for investors who want to diversify their investments in fractional notes.

Patch of Land

Type of Investor: Accredited

Minimum Investment Amount: $1,000

Patch of Land, founded in 2013, is a hard money lender that offers short-term and long-term investments opportunities. Most projects are residential properties, though some commercial properties are available. Patch of Land has funded over $370,000,000 in loans. Fees average 1% of the interest earned, and returns average 9-11% annually.

Payments are distributed monthly, and the remaining balance is paid at the end of the loan. Properties are thoroughly assessed and appraised.

Patch of Land is ideal for investors who want to choose their own short-term or long-term investment strategy.

RealtyShares

Type of Investor: Accredited

Minimum Investment Amount: $5,000

RealtyShares, founded in 2013, offers smaller commercial properties and residential properties, which include single family homes. Investors can select a specific property or a group of properties. They can also choose the location. RealtyShares has received over $500 million in investments.

Participants can invest in equity or debt. Fees are 1% on equity and up to a 2% interest rate spread on debt. Returns average between 9% and 11% annually and are paid monthly or quarterly depending on the investment. RealtyShares assesses each borrower, sponsor, and property, as well as full title reports.

RealtyShares is ideal for accredited investors who want to chooses a specific investment project.

Prodigy Network

Type of Investor: Accredited

Minimum Investment Amount: $10,000

Prodigy Network, founded in 2003, has a portfolio valued at $800 million. Investors can select a NYC project to participate in. Prodigy Network invests in multifamily, office, retail and hospitality properties.

Fees vary but average 3% of the total investment for development projects plus an asset management fee of 2% and a 1% financing fee. Fees are lower for other projects. Average returns on investment are 7 – 12% annually. Prodigy Network assesses projects using data and research.

Prodigy Network is ideal for investors who want to invest substantial amounts in the NYC area.

RealCrowd

Type of Investor: Accredited

Minimum Investment Amount: $25,000 – $50,000

RealCrowd, founded in 2013, connects investors and real estate investment companies. They offer commercial real estate equity investments from leading real estate firms, including office, multifamily, and retail properties.

Real Crowd has 13 available investments and over $1.6 million in venture capital. Although they don’t charge fees, the investment companies may charge fees depending on the deal. Dividend amounts and payouts vary depending on the transaction. They work only with high income producing commercial buildings.

RealCrowd is ideal for investors with significant capital who are looking for a diverse selection of real estate companies to invest in.

EquityMultiple

Type of Investor: Accredited

Minimum Investment Amount: $5,000

EquityMultiple, founded in 2015, offers commercial real estate debt and equity. The company co-invests in every transaction and fees avergae 0.5% annually. Annual returns range from 10% – 17% and payments are made monthly or quarterly, depending on the transaction.

EquityMultiple relies upon experienced real estate companies to perform due diligence on every transaction before they are offered to investors, and only 5% of transactions are approved.

EquityMultiple is ideal for investors who expect a strict assessment process.

InstaLend

Type of Investor: Accredited

Minimum Investment Amount: $5,000

InstaLend, founded in 2016, allows participants to select their investment projects. Investments are designated for loans for 1 – 4 family income producing residential real estate properties.

InstaLend has no investor fees, however they do charge a spread on some investments, which is deducted from the interest accrued. Average annual returns range from 10% – 14% and dividends are paid each month until the loan is repaid. Each transaction is assessed thoroughly before investments are authorized.

InstaLend is ideal for investors interested in selecting specific residential real estate projects.

According to Charles Clinton, founder of EquityMultiple, “Private commercial real estate investing has numerous benefits as a portion of an investor’s overall portfolio. Despite its advantages, individuals are substantially under-allocated into real estate compared to institutional investors, primarily because real estate has lagged behind other asset classes in terms of transparency and accessibility. By moving real estate syndication online, real estate crowdfunding has begun to change that old paradigm. Individual investors can now invest in private market real estate transactions at low minimums (our investment minimum at is typically $10,000 per offering) and start allocating a portion of their portfolio into real estate without taking on the burdens of direct ownership.”

CrowdStreet

Type of Investor: Accredited

Minimum Investment Amount: $10,000

CrowdStreet, founded in 2014, is geared towards commercial real estate investments, such as apartment complexes and office buildings. CrowdStreet’s Marketplace allows accredited and non-accredited investors to directly access more than $5 billion in CRE property value and has raised over $250 million from its more than 35,000 investors.

CrowdStreet has no direct fees, though the funds do have variable underlying fees. Annual investment distributions are generally 10% and deliver an average of 22.6% return on investment. The assessment process is strict, and only 2% of investments are authorized.

CrowdStreet is ideal for commercial investors who want to participate in a large investment pool with a stringent assessment process.

1031 Crowdfunding

Type of Investor: Accredited

Minimum Investment Amount: $25,000

1031 Crowdfunding, founded in 2014, is geared towards commercial real estate investors who want to sell properties without being taxed. They offer commercial real estate equity investments approved for 1031 exchanges, and have completed over $2 billion in total real estate deals.

1031 Crowdfunding fees average 5 – 7% up front. Their investments include retail, industrial and apartment buildings. Properties are assessed according to their potential to complete a 1031 exchange for commercial real estate.

1031 Crowdfunding is ideal for commercial real estate investors looking to sell property and defer capital gains.

AlphaFlow

Type of Investor: Accredited

Minimum Investment Amount: $10,000

AlphaFlow, founded in 2015, offers a portfolio of auto-balanced real estate loans and diversified throughout 70 – 100 notes. The notes are derived from residential real estate debt or hard money loans. Investors cannot select their investments and are afforded no information on current assets.

Fees vary and include platform fees and a 1% diversification fee. Investors will receive dividends ranging from an 8 – 10% annual return on investment each month. Properties and borrowers are thoroughly assessed.

AlphaFlow is ideal for investors that want to invest in strictly scrutinized loans.

PeerStreet

Type of Investor: Accredited

Minimum Investment Amount: $1,000

PeerStreet, founded in 2013, offers residential debt, multifamily and commercial property investments. Investors can select their investments by selecting custom parameters or choosing the auto portfolio. PeerStreet has funded more than $500 million in loan. Fees average 1% annually.

Returns on investment range from 6 – 12% annually and dividends are paid monthly. The company has a stringent loan evaluation process, and only high-quality loans qualify. Investors will have access to prior performance history.  

PeerStreet, which claims zero losses to investors so far, is ideal for investors who to select their investment parameters.

Real estate crowdfunding, which reached $3.5 billion in 2016, is a continually evolving investment field. By 2025, the crowdfunding industry is expected to be valued at more than $300 billion and online real estate sites are positioned to benefit from that remarkable growth.

According to Clinton, the benefits of real estate crowdfunding include, “Strong yield—after years of near-zero interest rates, investors have been forced to look for yield in new places. Less volatility—these investments are illiquid and non-traded, as opposed to public stocks, traded REITs or cryptocurrencies. It also reduces market correlation, making direct real estate investing less subject to market swings and, in aggregate, exhibit less volatility.

“Potential for outsized returns—because private real estate markets are inefficient, there is potential for market-beating returns by investing in markets and submarkets that are underserved by traditional sources of capital, and in properties with untapped potential.

And tax advantages, “Real estate investing platforms allow individual investors to share in the same unique tax advantages as institutional real estate investors—namely write-offs for depreciation, and a new 20 percent deduction for investments made through an LLC, courtesy of the recently-signed tax bill.”

 

Best Real Estate Crowdfunding Sites

In the age of internet, real estate investors have begun using crowdfunding sites to raise money for investments. This allows accredited and non-accredited investors to invest small amounts of money into real estate for a proportional stake in a property. The return for investors usually comes from interest income or rental profits.

Accredited vs. Non-Accredited Real Estate Investors

Real estate crowdfunding sites can be geared towards accredited or non-accredited investors. Accredited investors, who are qualified by the Securities & Exchange Commission (SEC), must meet the following criteria:

  • Individual income above $200,000 or joint income above $300,000 for the past 2 years
  • Individual or joint net worth of $1 million or more, excluding the value of a primary residence
  • General partner, director, or executive officer for the issuer of non-regulated securities

A non-accredited investor is one that does not meet the previous financial qualifications. Some crowdfunding sites only accept non-accredited investors, while others only accept accredited investors.

According to attorney Mark Roderick, “It’s always easier to raise money from accredited investors. That’s not only because accredited investors have more money, but also because the law assumes that accredited investors are smart and sophisticated enough to protect themselves, while non-accredited investors need the paternalistic arm of the government. With non-accredited investors come additional legal rules and requirements.”

The following is a list of top best real estate crowdfunding sites for non-accredited investors, accredited investors, or both:

Fundrise

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $500

Fundrise, founded in 2012, has 18 assets worth $1.4 billion. They traditionally invest in multifamily developments, office buildings, new construction homes, acquisition loans and construction loans and will spread your contribution across their portfolio. Fees usually range from 0.15% to 1% per year, depending on the investment.

Fundrise investors generally receive quarterly dividends and are entitled to additional payouts if a property is sold. Dividend yields average 8.0% for new investors. Affiliated real estate companies assess property values.

Fundrise accepts both accredited and non-accredited investors interested in investing in a diverse portfolio with significant assets.

RealtyMogul

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $1,000

RealtyMogul, founded in 2012, allows investors to select a specific property or to diversify across several properties. The company has a portfolio worth over $1 billion and has financed over 350 properties. RealtyMogul investments include real estate loans, shopping centers, self-storage facilities and apartment buildings.

Account fees range from 0.30% – 0.50% annually, depending on the type of investment. Dividends vary but are generally paid quarterly. Each deal is assessed according to available data and technology by an experienced investment committee that may conduct site visits as well.

RealtyMogul is ideal for investors who want to choose their investment project.

GroundFloor

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $100

GroundFloor, founded in 2013, has funded over $10 million in investments in residential real estate projects. Investors can participate in a Limited Recourse Obligation (LRO), which entails the repurchase of delinquent loans. Investors can select the property and loan details they want to invest in.

Fees average 1-2% in annual fees and annual returns average 10%. Dividends are paid each month after the loan is funded. GroundFloor has over 100 years of combined mortgage experience, uses local professionals to assess each transaction, and adheres to strict underwriting standards.

GroundFloor is ideal for investors who are interested in investing in LROs.

Rich Uncles

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $500

Rich Uncles, founded in 2006, offers investment opportunities in retail and office commercial and industrial real estate projects. Investors cannot select the projects they participate in.

Fees include a 0.1% monthly fee, a 3% acquisition fee, as well as various lender fees. Average returns on investments are 7% or more and dividends are paid each month. Rich Uncles only buys completed properties with long term triple net leases that have qualified tenants.

Rich Uncles is ideal for cautious investors who want to participate in existing commercial real estate.

Holdfolio

Type of Investor: Accredited and non accredited

Minimum Investment Amount: $10,000

Holdfolio, founded in 2014, offers single family homes and apartment buildings. Investors can choose their investment properties and their participation is diversified across a portfolio of properties. Investors, however, will receive information on the properties they have invested in. Holdfolio represents $6.6 million in property investments valued at over $13 million.

Fees vary per deal, however, there are generally no acquisition fees. Dividends are paid quarterly and annual return on investment averages 10% or more. Each property is assessed based on its potential price appreciation and the neighborhood where it is located.

Holdfolio, which owns all its projects, is ideal for investors who want to work directly with the real estate sponsor.

MinnowCFunding

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $1,000

MinnowCFunding, founded in 2017, offers include residential, commercial and industrial real estate. Fees vary, however, they do charge a 7% fundraising fee.

Dividends average 5% annually. Also, investors are entitled to additional payouts if a property is sold. MinnowCFunding has a team of real estate experts with over 50 years of collective underwriting and management experience, and employs strict assessment procedures for investments.

MinnowCFunding is ideal right for investors who want to diversify across commercial, industrial and residential properties.

American Homeowner Preservation

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $100

American Homeowner Preservation, founded in 2008, helps distressed homeowners remain in their homes. Investments are diversified through a pool of distressed mortgages which converted to loan modifications, deeds in lieu of foreclosure, or a foreclosures.

Investor fees average 2% annually. Most AHP properties are single family homes with a maximum return on investment of 12% annually. Dividends are paid each month.

American Homeowner Preservation is ideal for socially conscious investors.

Small Change

Type of Investor: Accredited and non-accredited

Minimum Investment Amount: $500

Small Change, founded in 2014, allows investors to select individual projects. Some projects are open to all investors, while others only accept accredited investors. Small Change offers residential, commercial and mixed-use properties. Most properties are geared towards socially conscious investors interested in participating in the use of green building materials or providing centrally located, affordable housing.

Small Change has no fees and profits, which average 8% returns annually, are shared with sponsors. Projects are assessed according to profitability and social responsibility.

Like American Homeowner Preservation, Small Change is ideal for socially conscious investors.

LendingHome

Type of Investor: Accredited

Minimum Investment Amount: $1,000, $5,000 or $50,000

LendingHome, founded in 2013, is a hard money lender, which only accepts investments of $1,000 or more. To participate in the auto-invest program, participants must invest a minimum of $5,000, and to select a program, participants must invest a minimum of $50,000. LendingHome does not invest in traditional real estate, but rather in fractional notes that comprise a mortgage.

Fees vary, and dividends are paid each month. Also, the initial investment is paid back within a year. LendingHome mainly provides loans, therefore properties and homeowners are assessed thoroughly.

LendingHome is ideal for investors who want to diversify their investments in fractional notes.

Patch of Land

Type of Investor: Accredited

Minimum Investment Amount: $1,000

Patch of Land, founded in 2013, is a hard money lender that offers short-term and long-term investments opportunities. Most projects are residential properties, though some commercial properties are available. Patch of Land has funded over $370,000,000 in loans. Fees average 1% of the interest earned, and returns average 9-11% annually.

Payments are distributed monthly, and the remaining balance is paid at the end of the loan. Properties are thoroughly assessed and appraised.

Patch of Land is ideal for investors who want to choose their own short-term or long-term investment strategy.

RealtyShares

Type of Investor: Accredited

Minimum Investment Amount: $5,000

RealtyShares, founded in 2013, offers smaller commercial properties and residential properties, which include single family homes. Investors can select a specific property or a group of properties. They can also choose the location. RealtyShares has received over $500 million in investments.

Participants can invest in equity or debt. Fees are 1% on equity and up to a 2% interest rate spread on debt. Returns average between 9% and 11% annually and are paid monthly or quarterly depending on the investment. RealtyShares assesses each borrower, sponsor, and property, as well as full title reports.

RealtyShares is ideal for accredited investors who want to chooses a specific investment project.

Prodigy Network

Type of Investor: Accredited

Minimum Investment Amount: $10,000

Prodigy Network, founded in 2003, has a portfolio valued at $800 million. Investors can select a NYC project to participate in. Prodigy Network invests in multifamily, office, retail and hospitality properties.

Fees vary but average 3% of the total investment for development projects plus an asset management fee of 2% and a 1% financing fee. Fees are lower for other projects. Average returns on investment are 7 – 12% annually. Prodigy Network assesses projects using data and research.

Prodigy Network is ideal for investors who want to invest substantial amounts in the NYC area.

RealCrowd

Type of Investor: Accredited

Minimum Investment Amount: $25,000 – $50,000

RealCrowd, founded in 2013, connects investors and real estate investment companies. They offer commercial real estate equity investments from leading real estate firms, including office, multifamily, and retail properties.

Real Crowd has 13 available investments and over $1.6 million in venture capital. Although they don’t charge fees, the investment companies may charge fees depending on the deal. Dividend amounts and payouts vary depending on the transaction. They work only with high income producing commercial buildings.

RealCrowd is ideal for investors with significant capital who are looking for a diverse selection of real estate companies to invest in.

EquityMultiple

Type of Investor: Accredited

Minimum Investment Amount: $5,000

EquityMultiple, founded in 2015, offers commercial real estate debt and equity. The company co-invests in every transaction and fees avergae 0.5% annually. Annual returns range from 10% – 17% and payments are made monthly or quarterly, depending on the transaction.

EquityMultiple relies upon experienced real estate companies to perform due diligence on every transaction before they are offered to investors, and only 5% of transactions are approved.

EquityMultiple is ideal for investors who expect a strict assessment process.

InstaLend

Type of Investor: Accredited

Minimum Investment Amount: $5,000

InstaLend, founded in 2016, allows participants to select their investment projects. Investments are designated for loans for 1 – 4 family income producing residential real estate properties.

InstaLend has no investor fees, however they do charge a spread on some investments, which is deducted from the interest accrued. Average annual returns range from 10% – 14% and dividends are paid each month until the loan is repaid. Each transaction is assessed thoroughly before investments are authorized.

InstaLend is ideal for investors interested in selecting specific residential real estate projects.

According to Charles Clinton, founder of EquityMultiple, “Private commercial real estate investing has numerous benefits as a portion of an investor’s overall portfolio. Despite its advantages, individuals are substantially under-allocated into real estate compared to institutional investors, primarily because real estate has lagged behind other asset classes in terms of transparency and accessibility. By moving real estate syndication online, real estate crowdfunding has begun to change that old paradigm. Individual investors can now invest in private market real estate transactions at low minimums (our investment minimum at is typically $10,000 per offering) and start allocating a portion of their portfolio into real estate without taking on the burdens of direct ownership.”

CrowdStreet

Type of Investor: Accredited

Minimum Investment Amount: $10,000

CrowdStreet, founded in 2014, is geared towards commercial real estate investments, such as apartment complexes and office buildings. CrowdStreet’s Marketplace allows accredited and non-accredited investors to directly access more than $5 billion in CRE property value and has raised over $250 million from its more than 35,000 investors.

CrowdStreet has no direct fees, though the funds do have variable underlying fees. Annual investment distributions are generally 10% and deliver an average of 22.6% return on investment. The assessment process is strict, and only 2% of investments are authorized.

CrowdStreet is ideal for commercial investors who want to participate in a large investment pool with a stringent assessment process.

1031 Crowdfunding

Type of Investor: Accredited

Minimum Investment Amount: $25,000

1031 Crowdfunding, founded in 2014, is geared towards commercial real estate investors who want to sell properties without being taxed. They offer commercial real estate equity investments approved for 1031 exchanges, and have completed over $2 billion in total real estate deals.

1031 Crowdfunding fees average 5 – 7% up front. Their investments include retail, industrial and apartment buildings. Properties are assessed according to their potential to complete a 1031 exchange for commercial real estate.

1031 Crowdfunding is ideal for commercial real estate investors looking to sell property and defer capital gains.

AlphaFlow

Type of Investor: Accredited

Minimum Investment Amount: $10,000

AlphaFlow, founded in 2015, offers a portfolio of auto-balanced real estate loans and diversified throughout 70 – 100 notes. The notes are derived from residential real estate debt or hard money loans. Investors cannot select their investments and are afforded no information on current assets.

Fees vary and include platform fees and a 1% diversification fee. Investors will receive dividends ranging from an 8 – 10% annual return on investment each month. Properties and borrowers are thoroughly assessed.

AlphaFlow is ideal for investors that want to invest in strictly scrutinized loans.

PeerStreet

Type of Investor: Accredited

Minimum Investment Amount: $1,000

PeerStreet, founded in 2013, offers residential debt, multifamily and commercial property investments. Investors can select their investments by selecting custom parameters or choosing the auto portfolio. PeerStreet has funded more than $500 million in loan. Fees average 1% annually.

Returns on investment range from 6 – 12% annually and dividends are paid monthly. The company has a stringent loan evaluation process, and only high-quality loans qualify. Investors will have access to prior performance history.  

PeerStreet, which claims zero losses to investors so far, is ideal for investors who to select their investment parameters.

Real estate crowdfunding, which reached $3.5 billion in 2016, is a continually evolving investment field. By 2025, the crowdfunding industry is expected to be valued at more than $300 billion and online real estate sites are positioned to benefit from that remarkable growth.

According to Clinton, the benefits of real estate crowdfunding include, “Strong yield—after years of near-zero interest rates, investors have been forced to look for yield in new places. Less volatility—these investments are illiquid and non-traded, as opposed to public stocks, traded REITs or cryptocurrencies. It also reduces market correlation, making direct real estate investing less subject to market swings and, in aggregate, exhibit less volatility.

“Potential for outsized returns—because private real estate markets are inefficient, there is potential for market-beating returns by investing in markets and submarkets that are underserved by traditional sources of capital, and in properties with untapped potential.

And tax advantages, “Real estate investing platforms allow individual investors to share in the same unique tax advantages as institutional real estate investors—namely write-offs for depreciation, and a new 20 percent deduction for investments made through an LLC, courtesy of the recently-signed tax bill.”

 

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