Best real estate crowdfunding platforms

• Minimum investment: $100
• Fees: 1% annual management fee
• Accreditation requirement: None

Why we chose Arrived: Arrived, although a relative newcomer to the realm of real estate crowdfunding, has quickly established itself as a go-to platform. Its appeal lies in offering an entry point for investing in income-producing residential properties with an initial investment as low as $100, all while offering a hands-off approach for investors. Arrived coordinates with contractors and property management teams to oversee the rentals, ensuring a passive investment experience.

What sets Arrived apart is its innovative approach that enables renters to invest in the properties they live in, effectively becoming co-owners. This model not only encourages tenants to take better care of the property, potentially reducing repair expenses, but also fosters a community of invested caretakers. Since its inception in 2019, Arrived has offered annual dividends ranging from 3.2% to 7.2%, not accounting for the additional value that may come from property appreciation.

Fees: Investors in Arrived are subject to a 1% annual management fee. Additionally, there's a one-time sourcing fee for acquiring the properties, the specifics of which are detailed in the property listings.

• Minimum investment: $50,000
• Fees: Fees depend on property involved
• Accreditation requirement: Yes

Why we chose FNRP: Commercial real estate is celebrated for its portfolio stability and historical outperformance of the S&P 500 over the last quarter century, yet it has traditionally been accessible only to elite investors. First National Realty Partners (FNRP) is trying to change that by providing accredited investors the chance to invest in grocery-anchored commercial properties leased to renowned national, high-traffic brands such as Whole Foods, CVS, Kroger, and Walmart.

FNRP simplifies the investment process by managing every aspect, from due diligence to property management, ensuring a hands-off experience for investors. Leveraging proprietary technology for meticulous deal evaluation and in-house management, FNRP guarantees the quality of investments, allowing investors to receive quarterly distributions, worry-free.

Fees: FNRP operates without a fixed fee structure, as charges fluctuate based on the specific property involved. Commonly, for commercial real estate transactions of this nature, sponsors levy an annual asset management fee ranging between 1-2%. Additionally, investors may encounter other costs, such as fees for acquiring the property, fees assessed at the sale (disposition fees), and fees for continuous property management.

• Minimum investment: $10
• Fees: 1% annual management fee
• Accreditation requirement: None

Why we chose Fundrise: Boasting a minimal initial investment of just $10 and modest yearly charges, Fundrise stands out as a top contender among real estate crowdfunding platforms. It offers investors the opportunity to put their money into revenue-producing properties, providing quarterly dividend payouts.

Fundrise presents four distinct portfolio options, each with its own set of minimum investment requirements, allowing you greater influence over the specific funds in which your money is placed.

Regardless of the portfolio you choose, Fundrise channels your investment into a diverse mix of eREITs and eFunds, which are composed of private real estate assets spread throughout the United States. Your investment allocation is then customized by Fundrise to suit your individual investment objectives.

More than 300,000 investors are leveraging this platform for their investment needs. Additionally, Fundrise features a secondary market for shares, a benefit not commonly found in other crowdfunding platforms. However, investors should note that shares must be held for a minimum of five years to sidestep penalties for early sales.

Fees: Investors pay a total of 1% in annual management fees.

• Minimum investment: $5,000
• Fees: 0.5% or $500
• Accreditation requirement: None

Why we chose Roofstock: Unlike many crowdfunding platforms that concentrate on commercial real estate or multi-family residences, Roofstock specializes in single-family rental properties. This platform enables you to invest in properties that generate rental income, with the option for Roofstock to oversee the management through its network of property managers and maintain a passive investment experience.

Roofstock stands out for not having any minimum investment or accreditation criteria. However, it's important to note that obtaining financing typically necessitates a substantial down payment, often between 20% to 30%, so prospective investors should consider this when planning their investment strategy.

Fees: Roofstock charges $500 or 0.5% for investors, whichever is higher.

• Minimum investment: $5,000
• Fees: 1% annual management fee
• Accreditation requirement: None

Why we chose RealtyMogul: RealtyMogul offers a straightforward path to investing in both specific real estate projects and a range of REITs. With a comparatively low investment minimum of $5,000, it's accessible to a broader audience, including non-accredited investors, for its REIT options.

The platform's standout features include its Income REIT and Apartment Growth REIT, providing investors with diverse opportunities to engage in the real estate market.

Fees: RealtyMogul charges annual management fees that generally fall between 1% and 1.25% across different deals, along with additional fees associated with its REIT investments.

• Minimum investment: $20
• Fees: One-time 3% sourcing fee; 8% to 15% of rental income in exchange for managing the property
• Accreditation requirement: No

Why we chose Ark7: Much like Arrived’s platform, Ark7 enables you to purchase shares in rental properties that generate income. Ark7 stands out by offering investments in single properties rather than pooling resources into funds of properties, which is common among many crowdfunding sites. This approach allows for a more focused, deal-by-deal investment strategy. Initiating investments with Ark7 is designed to be straightforward and user-friendly.

Investing in an Ark7 property means embracing a hands-off investment strategy. Ark7 takes the lead on managing tenants directly or through collaboration with third-party property management firms. Occasionally, Ark7 allocates a portion of the funds it gathers towards property renovations and enhancements to justify higher rental charges. However, as an investor, these actions do not require your involvement - your role remains passive.

A notable benefit of Ark7 is the affordability of its shares, starting at just $20 each, making real estate investment accessible even with limited funds.

Fees: Ark7 charges a one-time 3% sourcing fee in exchange for acquiring and listing properties on its platform. It also takes 8% to 15% of rental income in exchange for managing the property and tenants.

• Minimum investment: $50,000
• Fees: Management fees of 1% to 2% plus administrative and acquisition fees
• Accreditation requirement: yes

Why we chose Origin Investments: For those interested in allocating $50,000 or more to private real estate funds, Origin Investments emerges as a top choice. Tailored for accredited investors, this crowdfunding platform offers an array of funds, encompassing growth-oriented funds, funds focused on generating income, and those based on debt.

Origin Investments boasts a notable average gross internal rate of return (IRR) of 24%, according to its website. Accredited investors in search of diverse, tax-advantaged real estate funds may find Origin Investments an attractive option to explore.

Fees: Origin Investments applies a one-time administrative fee of up to 2%, a management fee ranging from 1% to 2%, and a one-time acquisition fee of 0.50%. The exact amount of administrative fees you incur will vary depending on your investment amount.

• Minimum investment: $5,000
• Fees: 2% annual management fee
• Accreditation requirement: None

Why we chose Streitwise: For those aiming to earn dividend income through real estate, Streitwise emerges as a top choice among crowdfunding platforms. It provides access to private REITs with a starting investment threshold of $5,000 and has consistently delivered an average annual dividend of 9.2% since launching in 2017.

A notable feature of Streitwise is its accessibility to non-accredited investors, broadening its appeal. Investors receive dividends on a quarterly basis, making Streitwise an attractive option for those seeking to counteract inflation while securing regular income streams.

Fees: You pay 2% in annual management fees with Streitwise

• Minimum investment: $5,000
• Fees: Typically 0.5% to 1.5% in annual fees
• Accreditation requirement: Yes

Why we chose EquityMultiple: EquityMultiple has gained attention in the real estate crowdfunding arena for its comprehensive selection of investment opportunities, including equity, preferred equity, and debt offerings. The platform focuses on high-yield, professionally managed projects, boasting an impressive historical net return rate of nearly 19% as reported on its site.

With a minimum investment threshold of $5,000, EquityMultiple caters exclusively to accredited investors. It also offers investments with relatively short target hold periods, making it an attractive option for those seeking short-term real estate investment opportunities, which are generally less common.

Fees: Investors engaging with EquityMultiple's equity deals are subject to annual fees ranging from 0.5% to 1.5%, while debt investments come with a roughly 1% annual fee. Additionally, the platform claims 10% of all profits generated. When investors do well, so does EquityMultiple.

• Minimum investment: Starting at $2,500
• Fees: Up to 2.5 percent annual management fee
• Accreditation requirement: No

Why we chose Yieldstreet: Yieldstreet serves as a bridge, connecting investors to a diverse range of alternative investment opportunities, including art, cryptocurrency, litigation finance, real estate, and consumer finance, since its launch in 2014. The platform has successfully facilitated over $3 billion in funding and achieved a 9.71% net annualized return (IRR).

Aiming to democratize access to alternative investments, Yieldstreet offers the chance to participate in various individual deals or through its Prism Fund, which grants investors access to multiple asset classes in a single investment.

Additionally, Yieldstreet provides the option for investors to tailor their portfolios based on specific financial objectives, offering models focused on income generation or growth. This feature enables investors to align their investment choices with their personal financial goals.

Fees: Yieldstreet charges an annual management fee of up to 2.5% on investment opportunities.