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The best real estate crowdfunding platforms for2024.

The best real estate crowdfunding platforms for2024.

The best real estate crowdfunding platforms for2024.

...

Fondryz is the best crowdfunding platform in real estate overall due to its high level of transparency, low costs, excellent account management services, and other advantages. We evaluated19 real estate crowdfunding platforms based on38 criteria, including fees, ease of use, account management services, investment choices, and additional features..

The best crowdfunding platforms in the real estate sector for 2024.

The best platform overall, the best for beginners, and the best with low fees: Fondryz.

Ratings

The best platform for accredited investors and the best for transparency: Equitimult

The best platform for alternative investment choices: YieldStreet

The best platform for experienced real estate investors: CrowdStreet

The best platform for commercial real estate: RealtyMogul

The best platform for rental properties: Arrived

The best platform for choosing real estate investments: KapitalDLP

The best platform overall, the best for beginners, and the best with low fees: Fondryz.

Commissions: a consultation fee of 0.15% for all Fundryz assets plus 0.85% for real estate investment funds, 1.85% for the innovation fund, and $10 per month or $99 per year for FundryzPro.

Minimum investment: $10 (for brokerage accounts), $1,000 (for IRAs)

Only for accredited investors: No

Why did we choose this?

Overall, Fundryz offers access to a wide range of investments in debt and real estate stocks online with a small initial investment. Those who support Fundryz can also become owners through an initial public offering (IPO). Unlike competitors with long capital lock-up periods, Fundryz provides quarterly redemption windows.

The best for beginners. New investors looking for crowdfunding opportunities in real estate will appreciate the minimum investment amount of $10 for brokerage accounts and $1,000 for individual retirement accounts (IRAs).

The best for reducing fees. The commissions of Fondryz are transparent and reasonable compared to competing platforms.

Advantages and disadvantages

Pros

  • The minimum investment amount is only $10.
  • Wide diversification among investment plans
  • Transparent platform
  • Quarterly stock buyback opportunities

Disadvantages

  • Sanctions may apply in the event of early liquidation.
  • Quarterly liquidity is not guaranteed.
  • Complex investments require analysis of information from the investor's side.
  • Customer service over the phone requires a request for a callback via email.

Overview

At Fondryz, beginner investors can invest in alternative assets for just $10, which is a rare low minimum investment amount. The platform's structure provides broad diversification for small investment amounts. The quarterly investment option complements Fondryz's consideration as the best platform for real estate investments. The expanded portfolio of underlying investments is both a positive and a negative aspect. There is significant asset diversification and complex information about the underlying holders. Fondryz investors choose an investment plan from four options: Income from Additional Investments, Balanced Strategy, Long-Term Growth, and Venture Capital. Each plan has its own goal - from generating income to investing in startups or venture capital. The assets within the plan are distributed between income-generating and growth-oriented real estate and debt assets. Venture capital investments offer the opportunity to invest in startups. Each plan includes a variety of investments from different parts of the USA. Debt investments finance commercial real estate projects or startups (in the venture capital plan). Those who want to have greater control over their investments can sign up for Fondryz Pro for a reasonable fee of $10 per month. This plan offers more customization, which is suitable for more experienced investors.

Founded in 2010, Fondryz has its headquarters in Washington and serves over 393,000 investors. Read the full Fondryz review for 2024.

The best for accredited investors and the best for transparency: Equitimult

Commissions: they depend on the investment, approximately from 0.5% to 1.5% plus a commission based on the initial rate.

Minimum investment: $5,000, investments typically range from $10,000 to $30,000.

Only for accredited investors: Yes

Why did we choose this?

EquityMult, the best option for accredited investors, combines a wide range of real estate investments, from short-term to income-generating and value appreciation assets, with various expected return rates. While the minimum investment requirements typically range from $10,000 to $30,000, most offerings have minimum requirements closer to the lower end of that range. Investors will find opportunities with a minimum investment of $5,000, allowing them to diversify their investments on the platform.

The best for transparency. Real estate offers are clearly explained with a complete set of relevant information, easily accessible on one page, including tax analysis and individual investment features. Links to additional documentation are readily available at the bottom of the page with detailed information.

Advantages and disadvantages

Pros

  • A wide range of investments in alternative assets
  • Highly vetted investment managers
  • A reasonable commission structure, starting from 0.00% for notes.
  • Various types of accounts are available.

Disadvantages

  • Not available in Nebraska and North Dakota
  • Entry requires proof of accreditation.
  • The number and types of investments vary.

Overview

YieldStreet may be for you if you're looking for a supermarket of alternative investments. Founded in 2015, YieldStreet collaborates with global alternative investment managers. The company claims to have over 450,000 participants who have invested $3.9 billion and achieved an average annual return of 9.7% since 2015. The official website lists current and past offerings in equity, structured notes, real estate, art, legal financing, and transportation investments. The platform is open to both accredited and non-accredited investors, with a minimum investment amount of $10,000. However, some offerings require higher initial minimums. Non-accredited investors can invest in the YieldStreet Alternative Income Fund (formerly known as the YieldStreet Prism Fund). However, the $10,000 minimum may be a barrier for non-accredited investors. Accredited investors can access all offerings on the platform. The number of available investments will vary, but the YieldStreet Alternative Income Fund is expected to be continuously open to new investors. Features such as high investment vetting, live customer service, detailed educational content, and targeted personal market recommendations justify the award for best alternative investment choice. Founded in 2015, YieldStreet has its headquarters in New York. According to YieldStreet, they serve over 450,000 participants. Read the full YieldStreet review for 2024.

The best for experienced real estate investors: CrowdStreet

Commissions: depend on the deal and are paid to the sponsor.

Minimum investment: usually $25,000, but it varies depending on the investment.

Only for accredited investors: Yes

Why did we choose this?

Experienced commercial real estate investors can invest in debt and equity deals provided by seasoned real estate professionals. Experienced real estate investors receive detailed documentation on commercial properties.

Advantages and disadvantages

Pros

  • Direct access to sponsors of commercial real estate projects
  • Thorough review of projects, including the assessment of many factors, such as the economic environment.
  • A complete platform for investing in commercial real estate with extensive experience from the manager.

Disadvantages

  • The small number of commercial projects being offered at the moment may indicate strict scrutiny and control.
  • The REIT I Crowdstreet (C-REIT) is closed to new investors as of December 21, 2023.
  • High minimum investment threshold

Overview

CrowdStreet collaborates with companies in the real estate sector to work together and market a wide range of real estate projects funded through crowdfunding. The core principles of CrowdStreet's investments include protecting the principal capital, providing opportunities for high market interest rates, conservative property valuation, and undervalued commercial real estate opportunities.

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Experienced real estate investors can explore deals through videos and detailed documentation.

CrowdStreet takes on the verification of potential real estate projects, and only those that have passed a strict selection process are included on the platform. As of October 20, 2023, thousands of investors have invested over $4.2 billion in more than 798 projects. According to a company representative, CrowdStreet is extremely selective in this economic environment, which has led to a decrease in the number of available offerings on the platform. Currently, there is only one offering available, a real estate liquidity fund. The company also notes that a significant influx of investment opportunities is expected in 2024. Like the stock market, the real estate sector is dynamic. Because of this, real estate crowdfunding platforms often adjust the number of available investments in response to changes in demand, economic factors, or market trends. The decision to increase or decrease the number of offered projects is usually made after a thorough analysis of key industry factors, such as project cost, operating expenses, capitalization rates, interest rate movements, and overall industry demand. Founded in 2013, CrowdStreet has an office in Austin, Texas, and serves over 319,900 clients. Read the full CrowdStreet review for 2024.

The best for commercial real estate: RealtyMogul

Commissions: vary depending on the investments, LLC Income REIT charges a maximum fee of 4.5%, while LLC Apartment Growth REIT has set a maximum annual fee of 4.75%.

Minimum investment: depends on the investment. For REITs, it requires $5,000. The minimum requirements for individual projects range from $25,000 to $35,000.

Only for accredited investors: No

Why did we choose this?

RealtyMogul is available for both non-accredited and accredited investors and offers real estate funds and individual investments in commercial real estate. Currently, 10 individual projects and two REIT funds provide investors with access to a variety of investments in commercial real estate.

Advantages and disadvantages

Pros

  • REIT funds offer non-accredited investors a diversified investment portfolio in private real estate projects.
  • A wide selection of individual projects
  • Projected high rates of return

Disadvantages

  • It can be difficult to invest through an IRA.
  • The website is unclear and difficult to navigate.
  • The fees are relatively high.

Overview

RealtyMogul is a platform for coordinating commercial real estate investments offered by several companies in the real estate sector. The RealtyMogul website currently displays 10 listings with details of each project, which are accessible after creating a login and password. The number of individual listings may vary, while the funds are always available. Registered users can invest in both private market offerings and in two RealtyMogul REIT investment funds. All information about the projects and funds is available online, although users need to dig through several pages to find the details of each listing. The descriptions of individual listings are densely packed, which is suitable for those looking for specifics about the project. The lock-up periods for individual projects range from two to five years or more. While REIT funds can be redeemed after 12 months, the investor will receive the full redemption value only if the fund is held for at least three years.

Founded in 2012, RealtyMogul has its headquarters in Los Angeles, California, and serves over 280,000 members. Read the full review of RealtyMogul for 2024.

The best for rental properties: Arrived

Commissions: long-term rentals: 3.5% for management fees and 0.15% for renewal fees. Short-term house rentals: 5% management fee, 5% of gross rental income, property management fee (through third-party providers) - varies.

Minimum account: $100

Only for accredited investors: No

Why did we choose this?

Arrived offers small investors the opportunity to invest in rental residential and vacation homes through a shared ownership model. Members of Arrived can invest in individual properties starting at just $100 per property or choose a fund with single-family homes that includes multiple houses.

Advantages and disadvantages

Pros

  • Quarterly liquidation is available for the structure of commercial single-story buildings (SFR) LLC, which gives investors a share in the ownership of the property.
  • The buyout cost every quarter after a six-month holding period and full liquidation after a five-year holding period.

Disadvantages

  • It's difficult to assess the commissions.
  • A brief history
  • Cash revenues, projected revenues are lower than the current cash equivalent, such as CDs or money market funds.

Overview

Arrived investors are considering equity investment in rental residential properties, vacation real estate, or funds that include multiple properties. Investors have direct ownership in proportion to the LLC that owns the property. They earn profits from rental payments minus expenses. There is also the potential for realizing increased value upon the sale of the property.

Founded in 2019, Arrived is located in Seattle, Washington, and serves over 467,000 investors. Read the full Arrived review for 2024.

The best choice for real estate investment: CapitalDLP

CapitalDLP Commissions: 2% (commission reimbursement for investments over $1 million)

Minimum investment: $200,000

Only for accredited investors: Yes

Why did we choose this?

DLP Capital offers professional investors a wide range of opportunities through five funds, which include shares in preferred equity real estate, common equity, preferred real estate debt, a secured mortgage pool, and a real estate credit fund.

Advantages and disadvantages

Pros

  • Clear information about funds
  • Easy access to key debt and equity finances
  • Estate planning and additional services for high-income clients
  • Annual buyback opportunity for several funds

Disadvantages

  • A high minimum of $200,000
  • It's hard to find details about specific fund owners.
  • Payment of the split is made after achieving the target yield.

Overview

DLP is a private financial service and investment company that serves affluent clients and property managers with real estate and debt funds, access to capital, consulting for real estate firms, and legacy planning. DLP has over 2,600 active investors and owns more than 18,000 residential units with assets totaling $5 billion. With 18 years of experience, DLP continues to prove its reliability.

Investment options in real estate include five debt and equity real estate funds. The Building Communities and DLP Housing (REIT) funds include ownership stakes in the development and construction of various types of rental communities and single-family homes. The three debt funds offer investors different types of fixed-income real estate investments. The company aims for investment goals that combine profit with creating greater benefits for society.

Although the minimum investment threshold of $200,000 is quite high, investors who can afford it will appreciate the transparency of the 2.00% fee structure. Founded in 2006, DLP Capital is located in St. Augustine, Florida, and serves approximately 2,600 investors. Read the full review of DLP Capital for 2024.

In short, Fundrise offers the best combination of advantages to look for in a real estate crowdfunding platform, such as low fees, quick funding times, and high customer ratings. YieldStreet, RealtyMogul, and Arrived Homes provide crowdfunding investment opportunities in real estate for both non-accredited and wealthy investors. Accredited investors will find excellent transparency and reasonable fees at EquityMultiple, while wealthy investors can choose from elite investment funds at DLP Capital.

CapitalDLP

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