5 Best Real Estate Crowdfunding Sites
$10
Residential and commercial properties
0.85% annual management fee (other fees may apply)
Any investor
$100
Single-family and vacation rentals
8% - 25% property management fee (other fees apply)
Any investor
$500
Real estate investment trusts (REITs)
2% management fee (other fees may apply)
Any investor
$5,000
Residential and Commercial real estate projects, non-traded REITs
1% to 1.25% asset management fee
Any investor
$3,505 (may vary per quarter)
Non-traded REIT
2% annual fee (other fees may apply)
Any investor
Real estate crowdfunding sites offer an accessible way to invest in real estate properties across different sectors without the responsibilities of sole ownership. This type of investment typically pays generous dividends, making them especially appealing for investors looking for high-yield opportunities.
Whether you’re a beginner or seasoned in equity investments, these platforms offer a chance to earn passive income in private real estate investing through funds that feature diversified portfolios of real estate assets or shares in individual rental properties.
Although many crowdfunded real estate marketplaces are limited to accredited investors and have high minimum investment requirements, there are a few platforms that are open to all investors and that let you start investing with as little as $10.
Below we review the best real estate crowdfunding sites available to both accredited and non-accredited investors.
Our Top Picks for Best Real Estate Crowdfunding Sites
- Arrived Homes: Best for Investing in Rental Properties
- Fundrise: Best for Non-Accredited Investors
- DiversyFund: Best for Investing in REITs
- RealtyMogul: Best for Commercial Real Estate Investments
- Streitwise: Best for Retirement Accounts
Best Real Estate Crowdfunding Sites Reviews
- Low minimum investment of $100
- Open to any type of investor, no accreditation required
- Completely manages properties and tenants
- Relatively new to the market, began in 2019
- Doesn't offer REIT or commercial real estate
- Not available in U.S. territories
- Fees
- 8%–25% property management fee (other fees may apply)
- Minimum Investment
- $100
- Investment Types
- Rental properties (single-family homes and vacation rentals)
- Only Accredited Investors?
- No
Why we chose this company: Arrived Homes is our pick for the best real estate crowdfunding site for rental properties because it lets you invest in both single-family and vacation rentals with a low minimum initial amount.
Founded in 2019, Arrived is a relatively new real estate investing platform that offers an easy way to buy shares in rental properties and earn income in the form of quarterly dividends or appreciation over time. The company features 299 properties in 54 markets and over $111 million invested since its inception.
The process for investing is relatively simple. Once you create an account, you can browse the available single-family homes and rental properties, choose the amount you want to invest and submit a signed contract.
Information on the properties is openly available on the investing portal. Each listing includes pictures and description of the property, location, purchase price, status updates and other relevant market data.
Each property has a price per share of $10; however, Arrived requires a $100 minimum investment to get started. Additionally, property offerings have an estimated hold period between five to 15 years, depending on whether it’s a long-term or a vacation rental home. Dividends are paid out to shareholders on a quarterly basis.
As of this writing, Arrived doesn’t offer a secondary market where you can sell your shares to other investors, meaning that you’re expected to hold your shares for the full investment period or until the property is sold. Once Arrived sells the property, you’ll receive proceeds proportional to your initial investment.
There are some fees to keep in mind before investing in Arrived. The platform charges a one-time sourcing fee, which is included in the listed share price of the property). Additionally, it also charges fees for property management and keeping assets under management, which are deducted from the property’s gross revenue before distributing any dividends to shareholders.
- Low minimum investment
- Offers goal-based automated investing
- Lengthy track record
- Mobile app for both Android and iPhone
- Somewhat complex fee structure
- Funds have an expected five-year hold period
- Fees
- 0.85% annual management fee (other fees may apply)
- Minimum Investment
- $10
- Investment Types
- Residential and commercial properties
- Only Accredited Investors?
- No
Why we chose this company: Fundrise is our pick as the best real estate crowdfunding site for non-accredited investors because it offers hands-off investing and goal-oriented real estate portfolios.
Fundrise is one of the few crowdfunding platforms in this list that features automated investing tools. Similar to investment apps like Acorns, it offers ready-made real estate portfolios based on goals and risk tolerance. The company features 8,962 properties in 11 markets, including multifamily apartments, industrial properties and single-family rentals.
With Fundrise, you can automatically invest in electronic real estate investment trusts (eREITs) and choose three main portfolio options: Supplemental Income, Balanced Investing and Long-Term Growth.
Each portfolio offers a different level of diversification, growth and income. For instance, Supplemental Income is meant to produce a steady source of passive income early on, whereas Long-Term Growth is more focused on creating higher potential returns in the long term.
Fundrise’s investments are designed to have a minimum time horizon of five years. However, you might be able to liquidate your shares every quarter depending on the type of fund, but may have to pay a 1% early liquidation penalty. Fundrise also warns that redemption isn’t guaranteed, especially in times of economic uncertainty.
Fundrise is the real estate crowdfunding platform with the lowest minimum investment requirement in our list. You can start investing with just $10, although you’ll need a balance of $1,000 if you want access to Fundrise’s core portfolios or invest through a self-directed IRA.
While Fundrise has a relatively low cost, there are a few fees to consider. For starters, Fundrise charges 0.85% annual management fee and a 0.15% advisory fee. There’s also a $10 monthly fee for Pro memberships, which lets you directly invest in specific funds and have more control over your portfolio.
- $500 minimum investment
- Accepts both accredited and non-accredited investors
- Offers a 7% preferred return
- Some offerings are only available to accredited investors
- Only offers REITs
- Earnings are paid only after the property is sold
- Fees
- 2% management fee (other fees may apply)
- Minimum Investment
- $500
- Investment Types
- Real estate investment trusts (REITs)
- Only Accredited Investors?
- No
Why we chose this company: DiversyFund is our pick as the best real estate crowdfunding site for investing in REITs because it allows both accredited and non-accredited investors to invest in its own REITs with a minimum investment.
DiversyFund is one of the few companies in our list that owns and manages properties directly, instead of acting as an intermediary between investors and project sponsors. The company mainly invests in multifamily properties across the U.S., which are offered to real estate investors as public, non-listed REITs. The platform features over 300,000 investors and properties in eight markets.
DiversyFund’s Growth REITs are open to all investors regardless of accreditation status and have a $500 minimum investment. Premier offerings, however, are only available to accredited investors and have minimums of $25,000 and $50,000.
As with most real estate investments, DiversyFund’s REITs are illiquid, with limited to no options for redeeming your shares before the investment term is complete. The estimated hold period for all of its REITs is between five and seven years, although the company may choose to extend the term if deemed necessary.
According to DiversyFund’s offering circular, once properties are sold, investors receive a 7% preferred return and their principal. However, during the investment term, dividends are reinvested, meaning you won’t see returns until the company sells the properties. This can be a significant drawback if you’re looking for steady cash flow.
- REITs are available to all investors
- Offers auto-investing
- Accepts self-directed IRAs
- High minimum investment
- Individual property investing is only open to accredited investors
- Fees
- 1%–1.25% asset management fee
- Minimum Investment
- $5,000
- Investment Types
- Residential and commercial real estate projects, non-traded REITs
- Only Accredited Investors?
- No
Why we chose this company: RealtyMogul is our choice for the best real estate crowdfunding platform for commercial real estate investments because it offers different opportunities to invest in individual commercial deals or REITs.
RealtyMogul’s platform gives investors access to institutional-level real estate investments throughout the U.S. The company’s offering includes a wide variety of commercial and multifamily properties, such as apartment buildings, offices, self storage, mixed-use properties and mobile home parks.
Investors can also choose between two non-traded REITs that invest in a mix of apartment buildings and commercial properties. Its Income REIT boasts $377 million in assets and has distributed $30.8 million to investors via monthly distributions, while its Apartment Growth REIT has $260 million in assets and has distributed $10.7 million to investors via quarterly distributions. Both REITs have a minimum investment of $5,000 and annualized distribution rates between 4.5% and 6%.
RealtyMogul’s REITs are open to all investors; however, to invest in its individual property offerings, you must be an accredited investor.
Although RealtyMogul’s REITs are illiquid, the company has a more lenient redemption policy than other crowdfunding platforms. Its Share Repurchase Program allows investors to request selling up to 25% of their shares on a quarterly basis after the first year.
However, as is generally the case with crowdfunding platforms, RealtyMogul recommends holding onto investments for at least five years or until the underlying properties are sold. The company also encourages investors to see real estate investing as a long term investment and not to invest with the expectation of reselling their shares earlier, since redemption isn’t always guaranteed.
- Open to any investor, including non-U.S. residents
- Shares can be sold after a year
- Self-directed and trust accounts available
- Only offers one REIT
- Short historical performance
- High minimum investment
- Fees
- 2% annual fee (other fees may apply)
- Minimum Investment
- $3,505 (500 shares)
- Investment Types
- Non-traded REITs
- Only Accredited Investors?
- No
Why we chose this company: Streitwise supports a variety of accounts, including self-directed IRAs and trust accounts, which makes it one of the best real estate crowdfunding sites for retirement accounts.
Streitwise is a straightforward real estate investment platform that offers access to a non-traded REIT made of commercial properties. The platform is open to all investors including non-U.S. citizens and supports self-directed IRA, trust and LLC accounts.
Streitwise works with over a dozen self-directed IRA custodians, including Millennium Trust Company, Equity Trust, Goldstar Trust, Community National Bank and American IRA. Your options are not limited to these custodians, though. According to Streitwise, you may be able to invest in its non-traded REIT as long as your self-directed IRA custodian allows investing in this type of asset. However, note that the company doesn’t currently work with renowned brokerages like Charles Schwab, Fidelity and Vanguard.
Streitwise offers a flexible redemption program that allows you to sell your shares after a one-year lockout period. However, the company charges a fee between 2.5% and 10% — discounted from the selling share price — if you redeem within the first five years. Redemptions after five years or more aren’t penalized. Other fees include a 2% annual fee, which is deducted annually from your dividend payments.
Other companies we considered
The following real estate crowdfunding platforms didn’t make our final cut mainly because they have higher investment minimums or are not available to non-accredited investors. However, they might be a good option if you meet the necessary requirements to invest through them.
Yieldstreet
- Offers a wide range of alternative investment options
- Open to both accredited and non-accredited investors
- IRA eligibility
- High minimum investment
- Comparatively high annual management fee
- Most offerings are for accredited investors
Yieldstreet is an alternative investment platform that provides access to individual offerings across different asset classes, such as real estate, art, private equity, private credit, venture capital, crypto and short-term notes.
While any investor can open an account, only the Yieldstreet Prism Fund is available to non-accredited investors. The Prism Fund is an income-generating portfolio designed to seek asset-backed opportunities and deliver quarterly distributions. The fund’s top holdings are allocated across real estate, preferred equity and private credit. However, it has a relatively high investment minimum of $10,000 and a 1.5% annual management fee.
Why we didn’t choose it: Yieldstreet offers a variety of alternative asset deals; however, most offerings are only available to accredited investors and come with high minimum investment requirements.
PeerStreet
- Low $1,000 minimum investment
- Hold period from six to 36 months
- Features automated investing
- Only for accredited investors
- Only offers investment opportunities in real estate debt
PeerStreet is a crowdsourcing marketplace where accredited investors can invest in a variety of real estate debt and loans. Basically, your investment funds pre-vetted real estate loans which are then lent to borrowers by PeerStreet’s approved lender partners. The platform then works as an intermediary between its private money servicing companies and investors, handling monthly payments from borrowers and distributing interest and principal to investors.
PeerSteet’s loans are generally short-term, ranging from six to 36 months. A minimum of $1,000 is required to start investing. The asset management fee is typically 1% of net proceeds, although other fees may apply.
Why we didn’t choose it: PeerStreet is not available to all investors and only lets you invest in real estate debts.
HoneyBricks
- No fees for investors
- Offers institutional-quality multifamily deals
- Supports self-directed IRAs
- Only for accredited investors
- Short track record, founded in 2022
HoneyBricks real estate offerings include residential, commercial and mixed-use properties. As with most crowdfunding platforms, HoneyBricks allows you to pool money with other investors to collectively invest in pre-vetted real estate deals. Investing, however, is limited to accredited investors in the U.S. If you live outside the US, accreditation is not required.
HoneyBricks’ typical minimum investment is $5,000, which is relatively low compared to other platforms tailored for accredited investors. However, the platform has only been around since 2022, which might be a drawback if you’re looking for a company with a longer track record.
Why we didn’t choose it: HoneyBricks has a short track record history and it’s only available to accredited investors.
EquityMultiple
- Multiple investment options
- Supports self-directed IRAs
- Accessible customer support
- Only for accredited investors
- Limited withdrawal terms
- Fees vary by investment type
EquityMultiple gives accredited investors access to different commercial real estate investments, including senior debt, notes, equity, preferred equity and yield-focused real estate funds. Its minimum investment requirement is $5,000 and the platform offers target hold periods ranging from nine to 37 months with average rates of return between 6% and 24%, depending on the investment offering.
However, EquityMultiple has a somewhat complex fee structure which varies greatly by asset. This includes annual monitoring and reporting fees, servicing fees and an upfront origination fee.
Why we didn’t choose it: EquityMultiple has a somewhat complicated fee structure and limited redemption options due to the lack of a secondary market.
CrowdStreet
- Access to private REITs and industrial developments
- Solid historical performance
- Features educational resources for investors
- High minimum investment requirement
- Only for accredited investors
CrowdStreet’s marketplace offers access to institutional-quality equity and debt real estate investment, including growth REITs, multifamily, retail, storage developments, hospitality, commercial and industrial opportunities.
Why we didn’t choose it: Despite its solid historical performance, CrowdStreet didn’t make the cut because of its high minimum investment requirement of $25,000 in most offerings and it’s only available to accredited investors.
Real Estate Crowdfunding Sites Guide
The following guide covers key information about crowdfunding, including how it works, typical fees and the factors to consider when choosing a crowdfunding platform.
What are real estate crowdfunding sites?
Real estate crowdfunding sites are platforms that raise money from accredited or non-accredited investors to finance different types of investment opportunities from pre-vetted sponsors and developers.
Typically, these platforms let you invest in a wide range of real estate projects, including residential, commercial, industrial and farmland properties. You can also invest in non-traded real estate investment trusts (REITs). Some crowdfunding sites may also offer access to real estate debt investments in the form of notes, equity and preferred equity.
To learn about other ways to invest in real estate, check out our guide on how to invest in real estate.
How do real estate crowdfunding sites work?
Most real estate crowdfunding sites work as intermediaries between developers who need funding for real estate projects and investors.
Although the exact process will vary depending on the platform, it typically goes as follows:
1. Real estate developers apply to the crowdfunding company and must pass a thorough vetting process to ensure their proposed project meets the company’s criteria.
2. The crowdfunding company conducts its due diligence before listing any project. This entails reviewing title reports, zoning and land use restrictions and performing site inspections, among other factors. The company will typically also study local market conditions to determine growth potential and the project’s affordability.
3. If the developer’s project is approved, it is listed on the company’s platform along with other offerings. Each listing generally includes the project details, such as the amount needed from investors, the minimum investment period, minimum investment amounts, associated fees and other relevant market data.
4. Investors can then evaluate the risks, terms and potential returns of each investment opportunity and decide how much they want to invest.
5. Once the funding goal is met, the platform transfers the funds to the developer and manages dividend payments. The frequency of payment distribution to investors depends on the particular platform.
Real estate crowdfunding platforms that offer REITs also implement a comprehensive vetting process before purchasing the properties that make up their portfolio. With crowdfunded REITs, the difference is that instead of buying shares in an individual property, investors buy into a fund at a share price that depends on the properties’ appraisals and performance.
What are the average fees for real estate crowdfunding sites?
Real estate crowdfunding sites have different fee structures, which largely depend on the platform, investment type and mandatory holding periods in addition to other factors. Some common fees include:
- Annual advisory fees
- Management fees
- Early redemption fees
- Origination fees
- Sourcing fees
- Property management fees
Management and advisory fees typically range anywhere from 0.15% to 3% of the invested amount or net proceeds. Some platforms may also charge flat fees which investors pay upfront. It’s important to read all offerings and fee disclosures for each project before deciding if the investment is the right fit for you.
How to invest in crowdfunding real estate
The process of investing in crowdfunded real estate can vary depending on the platform. However, here are some general steps you can take to start investing in crowdfunded real estate.
Choose a crowdfunding platform that aligns with goals
Start by learning about real estate crowdfunding, its risks and the different types of investment opportunities available to investors. Since real estate investing platforms offer access to various investments, it’s important you understand how they work and whether it aligns with your objectives.
Before committing to a specific platform, determine your risk tolerance, desired investment time horizon and your goals. Are you seeking consistent income from rental properties or long-term capital appreciation? Are you looking for tax-efficient investments or to diversify your investment portfolio and gain exposure in the real estate market?
Having a clear idea of what it is you want to accomplish can help you narrow down your options. As always, it’s a good idea to consult with an expert to help you determine the best investment strategy for you.
Create an account
Once you’ve selected a crowdfunding site, sign up and create an account. You’ll likely need to provide some personal information, including your name, citizenship and experience investing in real estate, and choose the type of account you want.
If the platform is for accredited investors only, you will typically need to provide a letter verifying your accredited status. You can qualify as an accredited investor if you have had an annual income exceeding $200,000 for the past two years, a net worth of more than $1 million or are a finance professional with a Series 7, 65 or 82 license in good standing.
Read the prospectus or summary
Make sure you understand the terms of the available investment options and carefully review the risk factors associated with any real estate crowdfunding opportunity. Read the investment fact sheet, summary and prospectus report if available, and consider key details such as the holding period, annualized returns, distribution frequency, track record, the raise amount, price per share and fees.
Make an investment
After carefully reviewing the offering’s fact sheet, summary and prospectus report and weighing the risk factors, select the investment vehicle that best aligns with your goals and decide how much you want to invest.
At this point, you might need to link a bank account if you haven’t done so already, and then follow the platform’s instructions to complete the investment process. In most cases, you’ll need to review the terms and sign an online contract.
How to choose a real estate crowdfunding site
The following are some key factors to consider when choosing a real estate crowdfunding platform:
Evaluate the platform’s features
Evaluate the platform’s ease of use and transparency. Is it easy to navigate? Is the information on how it works, fees and its offering easily available?
User-friendly platforms generally offer a seamless navigation and provide an enhanced overall user experience. They also feature tools that might help you track your investment performance and calculate expected returns. Access to educational resources can also be useful, especially if you’re a beginner.
Asses the types of investment opportunities
Crowdfunding platforms offer different real estate investments. Some let you invest in commercial and residential properties directly, or strictly in non-traded REITs. Others may offer access to alternatives such as real estate debts, notes, preferred equity, private equity and real estate ventures.
Take the time to assess how offerings work and whether they align with your investment goals. Each investment opportunity has its own set of risks and considerations, which you should evaluate carefully. Consider factors like financial projections, average returns and holding periods.
If you’re buying membership interest or a share in a particular property, evaluate the information about the property, the location’s market, expected appreciation and how dividends are paid.
Check minimum investment requirements
Crowdfunding sites have minimum investment requirements. Platforms for accredited investors typically have higher minimums than those open to all investors. In most cases, they require upwards of $5,000.
However, some platforms offer much lower minimums, which are more accessible if you want to start with a smaller amount. For instance, Fundrise and Arrived Homes require $10 and $100, respectively. You may also find other companies with minimums of $500 to $1,000.
Understand the fee structure
Real estate investing platforms charge various fees, including management fees, annual advisory fees, property management fees, one-time fees and early withdrawal penalties.
Some platforms might also charge other fees associated with particular investments, which are generally included in the investment summary or prospectus. Make sure to understand how these fees are calculated and how they can impact your returns.
Check regulatory compliance
Look for platforms that comply with applicable crowdfunding regulations. Depending on the type of crowdfunding, platforms may need to be registered with the Financial Industry Regulatory Agency (FINRA) or the U.S. Securities and Exchange Commission (SEC), which offers its Regulation Crowdfunding guidance. These regulatory agencies ensure that investment companies, including crowdfunding platforms, adhere to specific rules and reporting requirements.
Reputable companies generally provide information on their website about their regulatory status and any license they hold. However, if this information isn’t easily available, you can use third-party tools like FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure to search for the firm’s summary and registration status.
Yes, you can potentially earn money by investing through a real estate crowdfunding site. Many of these platforms boast market-beating returns, and real estate in general offers strong upside potential. The average annual return on investment in the U.S. real estate market is 9.5% for commercial properties, 10.6% for residential properties and 11.8% for REITs.
However, your earnings will depend on the type of real estate projects you invest in and the particular platform's average rate of return. These sites generally offer different investment opportunities than those which would generate you money via rental income, appreciation or dividend distributions.
Whether investing in REITs is better than investing via crowdfunding sites depends on your goals, risk tolerance and specific circumstances.
Publicly traded REITs are often safer and more liquid than many of the assets found on crowdfunding sites. They're also an excellent option for income investors since, by law, REITs are required to pay 90% of their taxable income to shareholders in the form of dividends. They can, however, be more volatile because they're closely aligned with the performance of the stock market itself.
On the other hand, private REITs often have fewer regulatory requirements, longer investment horizons and tend to be harder to liquidate. It can also be difficult to track their performance. While riskier, private REITs can offer higher returns over time than publicly traded REITs.
Earnings from crowdfunding sites are generally taxable as ordinary income. However, the tax treatment may vary depending on your tax bracket, local laws, regulations and the type of earnings. For instance, rental income may not be taxed the same way as capital gains or dividend distributions.
Check the specifics of how proceeds will be taxed with each real estate crowdfunding company. Most platforms provide taxation information, but that's not always the case. They might also specify the tax forms and earning reports you will receive every year. Consider consulting a trusted tax professional or accountant who is familiar with the tax implications of investing in real estate crowdfunding.
How We Chose the Best Real Estate Crowdfunding Sites
In order to choose the best real estate crowdfunding platforms, we vetted each company based on the following criteria:
- Investment minimum: We looked for real estate crowdfunding platforms offering competitive or low initial minimum investment requirements. Many of our top picks have minimums of $1,000 or less.
- Fees: We preferred platforms that openly disclose fees and other costs, including informational documents like investment summaries or offering circulars.
- Availability: We only considered platforms that are available to all investors, regardless of their accreditation status. All of our top picks are open to both accredited and non-accredited investors.
- Types of investments: We evaluated the types of real estate investments each platform offered, their expected holding periods and associated withdrawal terms. The crowdfunding platforms we chose let you invest in a variety of properties, non-traded REITs, real estate debts and alternative asset classes.
- Licensing: We checked each platform’s accreditation or licensing status with regulatory agencies, such as FINRA and the SEC, and we also looked into whether they were members of the Securities Investor Protection Corporation (SIPC).
Summary of Money’s Best Real Estate Crowdfunding Sites of 2023
- Arrived Homes: Best for Investing in Rental Properties
- Fundrise: Best for Non-Accredited Investors
- DiversyFund: Best for Investing in REITs
- RealtyMogul: Best for Commercial Real Estate Investments
- Streitwise: Best for Retirement Accounts