The best real estate crowdfunding investment platforms

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The best real estate investment platforms of 2021

Real estate investing can sound intimidating, but it doesn’t have to be. Real estate crowdfunding platforms make it easier to add commercial properties and other real estate investments to your portfolio at low costs.

Some of the most common investments these platforms offer are real estate investment trusts (REITs), electronic real estate funds, and non-traded REITs. A

REIT
is a company that owns and operates income-producing real estate assets. Most REITs are available on stock exchanges, but you can only buy non-traded REITs (REITs that don’t trade on stock exchanges) through brokers or financial advisors. Real estate funds are mutual funds that invest in different types of real estate securities provided by real estate companies. 

But account minimums, management fees, and investment options vary for each platform. And while some real estate

investing apps
serve all investors, regardless of their net worth, others may only accept accredited investors (individuals who’ve got a net worth of at least $1 million).

To help you narrow down your decision, we’ve compiled a list of the top real estate investing apps. Keep reading to find the best fit for you.

The best real estate crowdfunding platforms of 2021

Why it stands out: Fundrise lets you start investing in real estate with as little as $500, and the app offers two primary investment options: eREITs and electronic real estate funds. The $500 minimum investment grants you access to the company’s Starter Portfolio, which invests your money in a range of US real estate projects. 

Fundrise also offers a higher account level, Core portfolios, with even more features. If you can afford to invest at least $1,000, you’ll be able choose between additional investment strategies and account perks. Core portfolios offer three investment plans — Supplemental Income, Balanced Investing, and Long-term growth. Each plan offers a different mix of investments that are designed to meet various growth and income-focused savings goals.

With a minimum investment of $10,000 to $100,000, you can also take advantage of Fundrise’s advanced and premium account levels. These function as add-ons to the Core plan and allow you to utilize more complex real estate strategies and investments.

What to look out for: Real estate investments are highly illiquid, meaning you won’t be able to readily convert your investment (s) into cash like you would with a stock. Fundrise realizes this. That’s why it has a minimum investment term requirement of five years.

If you can’t afford to let your money sit for at least five years, Fundrise probably isn’t the best option for you.

Visit Fundrise’s website »

Why it stands out: Like Fundrise, DiversyFund offers a low $500 account minimum. Similarly, the company manages your real estate investments for you, and it offers its services to both non-accredited and accredited investors (an accredited investor is an individual whose net worth is at least $1 million). But, unlike Fundrise, this investment app costs you absolutely nothing in management fees. This means you’ll pay 0% for your investments.

DiversyFund solely offers its own Growth REIT which invests in multifamily properties. This means that the

robo-advisor
owns and manages all of the real estate assets you’ll be investing in. 

What to look out for: You cannot withdraw or cash out your investments until your minimum five-year investment term ends. This is because DiversyFund reinvests the dividends and earnings your investment generates until the real estate asset is sold.

If you’re considering DiversyFund, you should also note that the platform only offers REITs as investments. This means you won’t be able to invest your money in any other investment options or account types.

Visit DiversyFund’s website »

Why it stands out: Roofstock is another unique real estate app. This company actually lets you invest in single-family rental properties. Once you purchase a property, you don’t have to worry about being left out to fend for yourself — Roofstock assigns a property manager to each rental.

Properties are usually tenant-occupied, and property managers are there to assist you as you earn monthly rental income. 

Roofstock also offers self-directed IRAs, and you can invest in fractional or full property interests with Roofstock One if you’re an accredited investor. (An individual with a minimum networth of $1 million or annual income of $200,000, or $300,000 for couples).

What to look out for: The downside is that this could be more expensive than investing in a REIT or other real estate fund, since you’re actually purchasing and making down payments on properties.

Visit Roofstock’s website »

Why it stands out: RealtyMogul makes real estate investing accessible to everyone. You can even invest if you aren’t an accredited investor, but you’ll need a minimum of $5,000 to begin. And as for your investment options, RealtyMogul lets you purchase stake in commercial real estate through three ways: REITs, single properties, or 1031 private placement investments. 

As for cost, single properties (also known as private placements) are only available to accredited investors. For these properties, RealtyMogul requires investment minimums ranging between $15,000 and $50,000. Both accredited and non-accredited investors can purchase the company’s REITs with as little as $5,000. But for 1031 exchange investments, you’ll need between $25,000 and $50 million to get started (a 1031 exchange is a tax loophole that allows you to avoid capital gains taxes when you sell an investment property and reinvest any earnings into a similar property).

The real estate app also offers automated investment management through its auto-invest feature. But this is only available if you invest in one of the company’s REITs (MogulREIT I or MogulREIT II). In addition, you can use funds from your IRA to invest in REITs. 

What to look out for: You’ll need at least $5,000 to invest in REITs, but other investments — such as individual properties and 1031 exchange investments — have minimums ranging from $15,000 to $50 million.

Visit RealtyMogul’s website »

Why it stands out: EquityMultiple is best for accredited investors who’ve got at least $10,000 to invest (minimums can also be as high as $20,000). This platform lets you invest in institutional commercial real estate, equity, preferred equity, and senior debt.

EquityMultiple also gives you the choice between the following three investment approaches: Fund Investing, Direct Investing, and Tax-Deferred Investing. Each approach utilizes different investment strategies, time horizons, and minimum investment requirements. For instance, Direct Investing accounts feature a target duration of six months to five years, while Tax-Deferred accounts have a time horizon ranging from five to 10 years.

When it comes to the real estate investments, EquityMultiple offers a range of property types, including: multifamily, office, industrial, storage, car wash, cannabis facilities, retail, mixed-use, opportunity zones, senior living facilities, student housing, and data centers. 

You can also open and invest with self-directed IRAs.

What to look out for: EquityMultiple only accepts accredited investors, so this isn’t a good option if your net worth is less than $1 million. In addition, investment minimums are on the high side, so be prepared to spend between $10,000 and $20,000 to invest in real estate.

Visit EquityMultiple’s website »

Why it stands out: Yieldstreet offers real estate and other alternative investments to accredited investors who have at least $1,000 to invest. You can currently invest in the following…

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