We reviewed numerous crowdfunded real estate platforms to find the best options. Our rankings are based on factors including accreditation requirements, fees, minimum investments, historical returns and potential liquidity.
- Best for beginners: Fundrise.
- Best for accredited investors: Cadre
- Best for real estate experts: CrowdStreet
- Best for generating cash flow: Arrived
- Best for investing in farmland: AcreTrader
Best for Beginners: Fundrise
| Our rating: | 4.5/5 |
| Minimum investment: | $10 |
| Minimum holding period: | None, but there’s a 1% fee if you sell your position within the first five years. |
| Open to non-accredited investors? | Yes. |
| Fees: | 0.15% annual advisory fee, 0.85% management fee. |
Fundrise is a great platform for beginners thanks to the platform’s simplicity and its low $10 account minimum. Additionally, it’s one of the few options available to non-accredited investors.
The platform’s investment offerings include eREITs, which provide exposure to different types of real estate assets and strategies. This allows someone without a lot of money to diversify their portfolio while learning about different aspects of real estate investing.
It also avoids the complexity of having to dive into individual offerings, which requires a more advanced understanding of real estate investment.
Fundrise Pros:
- The minimum investment required is only $10.
- Anyone can invest, regardless of accreditation status.
- It’s possible to invest through an individual retirement account (IRA).
Fundrise Cons:
- The liquidity of the investment may be restricted.
- Early withdrawals may come with redemption fees.
Learn more: Visit Fundrise or see our in-depth Fundrise review for more information.
Best for Accredited Investors: Cadre
| Our rating: | 4.5/5 |
| Minimum investment: | $25,000 |
| Minimum holding period: | 3 to 8 years. |
| Open to non-accredited investors? | No. |
| Fees: | 1.5% asset management fee, 0.25-0.5% administration fee, 1% transaction fee, and up to a 3.5% commitment fee. |
Cadre is a reputable real estate platform that allows accredited investors to invest in high-quality commercial real estate deals, including hotels, warehouses and office buildings. Investment offerings include funds and direct ownership in properties.
What’s unique about Cadre is that they offer investment opportunities in designated “opportunity zones,” which can provide significant tax incentives for those in a high tax bracket. This includes capital gains deferrals and tax abatement of post-investment appreciation.
Cadre Pros:
- Strong historical performance.
- Very selective vetting process.
- Opportunity for liquidity through the Cadre Secondary Market.
Cadre Cons:
- Minimum $25,000 investment.
- For accredited investors only.
- Doesn’t guarantee liquidity.
Learn more: Visit Cadre or check out our in-depth Cadre review.
Best for Expert Real Estate Investors: CrowdStreet
| Our rating: | 4.2/5 |
| Minimum investment: | $25,000 |
| Minimum holding period: | 3+ years. |
| Open to non-accredited investors? | No. |
| Fees: | Fees vary by project. |
CrowdStreet offers a wide range of commercial properties and residential real estate investment opportunities, with deals for the entire spectrum of risk tolerance — from low-maintenance apartments in major cities to projects that are still in the planning stage.
Beyond diversification in types of properties, CrowdStreet also has investment structures available. The platform offers debt instruments, such as liens and second-position notes.
You can invest directly into opportunities or through their C-REIT, a diversified fund of real estate investments.
The range of options available for direct deals makes it a great choice for real estate investing experts who are comfortable evaluating the pros and cons of individual properties.
CrowdStreet Pros:
- Long-running company with a strong historical performance.
- Opportunity to invest in either individual properties or real estate funds.
- Supports both residential and commercial real estate investments.
- Option for a professionally-managed real estate investment portfolio.
CrowdStreet Cons:
- Must be an accredited investor to use the platform.
- Fees can vary widely between real estate projects.
- Highly illiquid assets with no secondary market available.
- Most opportunities have a $25,000 minimum investment.
- CrowdStreet itself doesn’t have skin in the game on most deals.
Learn more: Visit CrowdStreet or check out our in-depth CrowdStreet review.
Best for Cash Flow: Arrived
| Our rating: | 4.0/5 |
| Minimum investment: | $100 |
| Minimum holding period: | 5 to 7 years. |
| Open to Non-Accredited Investors? | Yes. |
| Fees: | Varies depending on property type. |
Arrived allows you to invest in high-quality residential real estate rentals. The platform allows for investment in both short-term vacation homes and long-term rentals in some of the most desirable markets in the country, with a minimum investment of only $100.
What’s most unique about Arrived is that it provides access to the lucrative short-term rental market, which has seen significant growth in recent years due to the popularity of platforms like Airbnb and VRBO.
There are no fund options currently available on Arrived. The only option available is to invest directly in individual properties.
Arrive Pros:
- No need for accredited investor status.
- Minimum investment as low as $100.
Arrived Cons:
- Limited track record of the platform.
- Limited properties available for investment.
- No diversified funds.
Learn more: Visit Arrived or check out our in-depth Arrived review.
Best for Investing in Agriculture: AcreTrader
| Our rating: | 4.2/5 |
| Minimum investment: | $8,000+ |
| Minimum holding period: | 1 year. |
| Open to non-accredited investors? | No. |
| Fees: | ~2% closing costs with a 0.75% annual servicing fee. |
AcreTrader is a real estate crowdfunding platform that allows accredited investors to invest in farmland throughout the United States. Minimums for the platform start at around $8,000, but vary depending on the particular offering.
With AcreTrader you’re investing directly into a single piece of farmland.
These properties are managed by experienced farm operators who are responsible for the day-to-day operations, including planting and harvesting crops, maintaining the land, and managing any livestock.
Investors can expect to receive regular updates on the performance of their investments. The platform provides detailed information and due diligence on the properties and the farm operator, which investors can review before making a decision to invest.
AcreTrader Pros:
- Simple way to invest in income-generating farmland.
- Earn from annual cash distributions and potential land appreciation.
- Self-directed IRAs and solo 401(k)s are eligible.
AcreTrader Cons:
- Not a lot of deals on the platform.
- No fund options for a way to diversify.
- Relatively high minimum investments.
Learn more: Visit AcreTrader.
Other Reputable Platforms to Consider
Although we’ve outlined our five favorite platforms, there are still other great platforms out there. Below are a couple of platforms that deserve an honorable mention:
- Yieldstreet: A platform that allows investors to invest in a wide variety of alternative assets. In addition to real estate, you can invest in notes, private credit, private equity, art, legal finance and venture capital. Their real estate holdings cover a wide breadth, spanning the entire industry, from ready-to-build homes to apartments, offices, industrial buildings and more. Yieldstreet is a great option for investors who are looking to pair their real estate investments with investments in another alternative asset class. Learn more in our Yieldstreet review.
- RealtyMogul: A real estate crowdfunding platform that helps match prospective investors with real estate deals of their choosing, similar to CrowdStreet. Investors have an array of investments to choose from, including new developments, value-add purchases, REITs and more. Unlike CrowdStreet, there are investments available for non-accredited investors on the platform.
- Trion Properties. Trion Properties is a real estate investment platform that should be on the radar of high net-worth accredited investors. What sets them apart from other platforms is that they handle everything in-house, from underwriting to buying to renovating and managing rentals. Investors can invest directly in single or multiple properties through a fund. However, their fee and distribution structure is complex and may be better suited for experienced real estate investors. See our Trion Properties review to learn more.
- DiversyFund. Offers a solid investment approach with the added benefit of being open to non-accredited investors. The platform’s $500 minimum investment is on the low end, making it accessible to a wider range of investors. However, funds are locked up for a minimum of five years and no dividends are paid during this period, making the platform most valuable to investors without the need for short-term liquidity or cash. See our DiversyFund review to learn more.
FAQs About Crowdfunded Real Estate Sites
Start with your investing goals. Don’t just invest in crowdsourced real estate because it’s an alternative investment that’s now more readily available. Make sure the investment itself aligns with your goals, and that the investment you’re looking at falls within your range of risk tolerance.
While not an exhaustive list, other major factors to consider are:
Investment options: Evaluate the investment options offered by the platform. Are they flexible, and do they cater to your goals and objectives?
Fees and charges: Understand the fees and charges associated with investing in the platform.
Exit strategy: Understand the platform’s exit strategy and how they plan to return capital to investors. This will help you plan for the eventual return of your investment.
It varies widely by platform. In some cases, you’re investing directly in pieces of property, where an LLC is formed and you’re a limited partner in that LLC. When investing in a fund, you’re typically owning a share in a holding company that owns the real estate.
As we all know, past performance is not indicative of future returns. However, looking at past performance is key. After all, you probably won’t want to invest in a fund that has underperformed the broader real estate market or the stock market over the past couple years.
Below is a list with each of the five companies from above, as well as their historical returns.
– Cadre: 18.6%
– CrowdStreet: 18.3%
– AcreTrader: 11%
– Fundrise: 8.74%
– Arrived: 4.7% – 12.8% (property dependent)
When you invest in crowdfunded real estate, you’re buying into a fund that is very illiquid. Often, it can take weeks or even months to sell out of your stake in the company, and during that time there could be substantial price drops. Additionally, you may be required to pay a fee to liquidate your position. With publicly traded REITs (real estate investment trusts), there is near-infinite liquidity and typically no transaction cost when you want to sell out of your position.
There are a few disadvantages associated with investing in crowdfunded real estate. One of the main drawbacks of investing in crowdfunded real estate is that most crowdfunding companies haven’t seen a real downturn in real estate, so there is no telling how they will perform in a prolonged 2008-style downturn. In contrast, there are countless publicly traded REITs that have been around for decades.
There’s also a potential liquidity issue. While you can buy and sell REITs on public markets, there’s no guarantee you can liquidate shares within crowdsourced real estate investments. While some companies do offer options to liquidate — for example, Fundrise allows you to sell prior to five years for a 1% fee — there are some stipulations involved and Fundrise itself paused liquidations during the height of the pandemic.
Although most real estate crowdfunding platforms focus on investing within the United States, some do have holdings abroad. For instance, the UK-based Bricksave has had holdings in Austria, Argentina, and Spain. It’s important to keep in mind that investing abroad comes with added risk. We didn’t evaluate these platforms for the purposes of this review.
Crowdsourced real estate is considered a passive income source. While you’re doing the legwork upfront to choose a property or fund to invest in, it’s a very hands-off approach after the investment has been made. Compared to other types of investments (such as stocks), real estate investing platforms pay a higher dividend rate, which is a great source of passive income.
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Best Real Estate Crowdfunding Platforms: Summary & Final Thoughts
Crowdfunded real estate is a rapidly growing industry, and for good reason. The industry has given investors access to unique private real estate investments that would have been virtually impossible to leverage just a decade or two ago. There are a handful of great companies carving their own niches within the industry, and have seen some pretty great performance within the short term. These platforms can provide valuable portfolio diversification.
However, you should always remember that past performance isn’t indicative of future returns, and it’s relatively easy to have a great track record over a short time period during a bull market. Most of the companies in this industry have not lived through a significant economic downturn, or a real estate crash. Your investments in these companies are not liquid, so in the event things go awry, you will not be able to easily access your money.
Disclosure: I am a paid partner of Yieldstreet, a company that operates an online investment platform, and have been compensated for referring investors to Yieldstreet investments. This financial relationship may influence the content, topics or posts made on this platform. The views and opinions expressed on this platform are purely my own. This content is not intended to provide investment advice. Investing involves risk, including loss of principal. Please carefully review Yieldstreet’s Offering Circular before making any investment.
