Top 13 Real Estate Crowdfunding Sites

By Susan Lassiter-Lyons | Real Estate

Recently I shared a blog post about crowdfunding in real estate investing. In case you missed it, you can read it here. Top RatedCrowdfunding is popping up all over the place, and in just about every industry imaginable. So I wanted to take a look at some of the top real estate crowdfunding sites out there right now.

Below are the top 13 sites (anyone can do a Top 10!) I’ve found, in no particular order.

1. Fundrise – This is one I mentioned in my last blog post. The focus is on commercial properties, offering both public and private offerings. Fundrise offers equity and debt participation and generally yields returns between 12%-14%. Not just for accredited investors, but open to anyone willing to put in at least $100 into a deal.

2. GroundBreaker – Is a SaaS (software as a service) white label solution for real estate capital raising, reporting and investor relations management. Their software was built specifically for the real estate industry and connects investors with deal sponsors.

3. CrowdStreet – Connecting investors and investment opportunities in retail, multifamily, commercial, industrial and land properties. Offers both debt and equity-based investing. Not yet available for the general public, but to accredited investors only for now.

4. Realty Mogul – Open to accredited investors who want to put in as little as $5,000 into a property – whether it’s a cash-flowing equity investment or real estate loan. There is a fee associated with each investment.

5. RealtyShares – Have some spare bitcoins laying around? Then RealtyShares might be the place for you (don’t know what a bitcoin is? Google it). Similar to Realty Mogul in that this is for accredited investors who can get in on residential, commercial, retail, and mixed use opportunities with a minimum $5,000 investment. The difference is there are no up front fees for first position loan offerings.

6. iFunding – Their minimum threshold for investing is five grand for accredited investors. They offer a selection of projects in all asset classes, and specialize in preferred equity investments. They are one of the largest and longest-running real estate crowdfunding platforms. They even have an app that lets participants do everything right from their mobile device.

7. Collaperty – This is not quite the full-service site that the others on the list are, but it does fill the need of connecting interested investors with property owners. Again open only to accredited investors, they can browse investment opportunities online and then register their interest by making a pledge. Once an investment goal is reached, the owner gets the list of those who pledged and then are left to complete the deal offline.

8. CrowdBaron – This is an international gig, not yet open to US investors, but know it’s out there and may be available to us here someday soon. Right now it’s international and includes the UK and Hong Kong.

9. Patch Of Land – This one’s interesting. The executive team personally funds many of the projects available. They then allow investors to purchase portions of the pre-filled investment. $5,000 minimum investment from accredited investors.

10. Prodigy Network – Minimum REP investment here is high – ranging from $100K – $250K. But that gives you access to large scale commercial investments (class-A) in the neighborhood of $40 million and up in the US and Latin America. Not for the feint of heart.

11. RealCrowd – No fees for accredited investors to use this platform. The real estate companies pay RealCrowd to use their services and technology. A full range of risk and return investment opportunities are offered.

12. Tycoon – The investment minimum here is lower for accredited investors – $1,000. This allows investors to diversify and take advantage of hot trends.

13. Emition – This one features public offerings (local investors) and private offerings to accredited investors – offering a turnkey approach to commercial real estate investing. Both equity and debt investment opportunities in the $500K – $5 million range. Focuses on Net Lease investing.

My prediction is we’re going to see more real estate crowdfunding sites come up, and it could very well change the face of investing.

Are there any sites you know of that I missed on this list? What are your thoughts on crowdfunding as a trend in real estate investing? Share your thoughts in the comments below.

Want to learn how you can get involved in crowdfunding? Check out my core training in the Investor Insights Elite members area. Click here to

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(8) comments

Thanks for the information! I have had a positive experience with several platforms discussed. I also like EquityMuitiple. It will be interesting as I expect many more sites to pop up. Time will tell how successful real estate crowdfunding will ultimately prove to be. I’m fairly optimistic at this stage.

Reply
Candace Edmonds

I believe that not allowing folks who are not ‘accredited’ get involved is just keeping the ‘poor, poor’ and keeping the ‘rich, rich.’ I don’t believe for one minute that it is to ‘protect’ anyone. There are MANY people who could invest through funds that they have rolled over into self directed IRA’s just to be able to invest in realestate deals. It is clear ‘nose in the air’ discrimination in my opinion!

Reply
belliottsf

Susan, Having worked in the investment banking group at several regional broker/dealers where we looked at hundreds of CRE deals over the years, there are many bad deals being promoted as well as deals being promoted by under-qualified and/or sketchy sponsors who are seeking capital. Now combine the bad deal factor with no liquidity for this type of investment and it is not unreasonable to believe that investments of this type should be restricted to those who can actually afford to lose their entire investment and/or those who can afford to wait until the investment pays off with the return of their investment capital (which in many cases is years). I understand your comment about govt protecting us from ourselves, but in this case, as with food inspection, there is an actual case for a govt agency riding shotgun to help protect investors.

Reply
    Susan Lassiter-Lyons

    Thanks for your comment. I think the government has done its job as the new rules DO protect the consumer. The max they can invest if they are not an accredited investor is the greater of $2,000 and 5% of income if < $100k annually; 10% of lesser of annual income or net worth; if > or equal to $100k annually up to $100k total. There is inherent risk in any investment. I personally know the founders of Fundrise and RealtyMogul and only about 1% of the deals submitted to the platform are accepted. Broker/dealers have been analyzing and promoting private offerings for many years. Not sure why these offerings are any different.

    Reply
Dawn Baker

Bitcoin, Private $, Crowdfunding, Love it all! Take back our country from the Banksters! People helping People: Private lenders make money, investors make money, people get homes – a win-win-win for all involved.

Reply

I need private lenders to buy Multi-Family Apartments for ATLC CORP a Non-Profit 501 (C)(3) Faith-Based Organization that provides Housing & Supportive Services to Homeless Veterans and to .myself personally..

Thank you for your assistance with this matter.

sincerely Yours,

Fran Bonner

Reply
Eileen

How are informed people supposed to grow their wealth if everything is only available to ‘accredited’ investors? Who accreditates them and based upon what?

When are we going to let people take responsibility for their decisions? just because a person has a big bank account does NOT mean that the person knows more than one who isn’t so fortunate!

Reply
    Susan Lassiter-Lyons

    The accredited investor criteria is set by the Securities and Exchange commission (SEC). It’s basically 1) a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person;
    OR 2) a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.

    That’s your government at work protecting the poor consumers from the sharks who are out to take their money. 🙂

    Reply
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