Recently I shared a blog post about crowdfunding in real estate investing. In case you missed it, you can read it here. Crowdfunding 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.
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