Best Real Estate Crowdfunding Platforms

The post Best Real Estate Crowdfunding Platforms by Kaitlyn Wolf appeared first on Benzinga. Visit Benzinga to get more great content like this.

If you’re interested in getting started with real estate investing but don’t want to deal with the headache of being a landlord or coming up with tens of thousands of dollars for a down payment, you’re not alone. 

Over the past few years, real estate crowdfunding platforms have changed the game, opening the door for ordinary investors to get a piece of the action in rental homes, multifamily complexes, and even commercial buildings, all with just a few clicks and modest minimums. 

But with so many options out there, how do you decide which platform is the right fit? Below, we break down the best real estate crowdfunding sites, covering the details you actually care about: fees, minimums, and what sets each platform apart.

Lightstone

Best For

Direct-to-Manager Access

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Best For

Direct-to-Manager Access

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1 Minute Review

Lightstone is a leader in the real estate crowdfunding sector. With $12 billion in assets, investors gain access to exclusive multifamily and industrial real estate investments. With four decades of success to draw on, Lightstone uses a direct-to-manager approach to cut out the middle man to provide institutional-grade access to investors.

Best For

• Working with well-established real estate firms
• Massive portfolio of opportunities
• Puts 20% of equity into every deal

Pros

• Coinvests regularly
• Direct-to-manager access
• Long track record of success

Cons

• Minimum investment may be too high for some investors

Lightstone is revolutionizing the real estate investment market by offering a $12 billion portfolio that contains a wide swath of opportunities for crowdfunding. With four decades of success to draw upon, Lightstone helps investors reach the best properties without buying directly, making crowdfunding accessible for those who haven’t found an entry point in the market.

Investors with Lightstone also enjoy benefits that are built into every new investment:

• Institutional-grade access
• No middle man
• Regular coinvesting
• Multifamily and industrial deals

Arrived Homes

Best For

$100 Minimum Investment

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Best For

$100 Minimum Investment

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Arrived is a real estate investment platform that allows individuals to invest in rental properties with low capital. Founded in 2019 and backed by notable investors, Arrived enables fractional ownership of single-family rental homes, making real estate investing more accessible. With a fully managed approach, investors earn passive income without the responsibilities of property management. This review explores Arrived’s investment process, returns, fees, and overall suitability for different types of investors.

Best For

• Small- to medium-sized investors
• Investors interested in rental income
• Investors looking to diversify

Pros

• Buy-ins as low as $100
• Open to non-accredited investors
• Offers ownership shares in real property (and all the tax benefits)
• Multiple ways to earn dividends (rental income and property appreciation)
• Great way to diversify portfolio
• Open to self-directed individual retirement accounts (IRAs)
• Detailed analytics and data to help investors make informed decisions and maximize their returns

Cons

• Long hold periods
• No secondary market to liquidate shares

Arrived is one of the newest—and fastest-growing—real estate crowdfunding platforms on the internet. It’s designed specifically for those who want a straightforward way to invest in single-family homes and vacation rentals, and it’s open to non-accredited investors, which means you don’t need to be a high-net-worth individual to participate. 

The platform stands out for its incredibly low minimum investment of just $100, making it accessible for beginners or anyone looking to diversify across multiple properties without overcommitting. Investors receive quarterly dividends from rental income while waiting for the asset to appreciate over time. Projected returns are typically in the 6% to 10% annual range, making Arrived a compelling choice for those seeking passive income with a simple, user-friendly platform.

Fundrise

Best For

Beginner Real Estate Investors

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Disclosure: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on Benzinga.com. All opinions are our own.

Best For

Beginner Real Estate Investors

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1 Minute Review

Fundrise is an online real estate investment platform that allows individuals to invest in a diversified portfolio of commercial real estate properties. The platform pools investor funds and uses them to acquire, manage, and sell various types of real estate assets, such as apartment buildings, office spaces, and retail centers.

One of the key advantages of Fundrise is its accessibility to individual investors who may not have the capital or expertise to invest directly in real estate. By pooling funds together with other investors, Fundrise allows individuals to access a diversified portfolio of real estate assets without having to purchase properties on their own.

Fundrise also offers transparency to its investors. The platform provides regular updates on the performance of the portfolio, allowing investors to track their investments in real time. Additionally, Fundrise offers a user-friendly interface that makes it easy for individuals to invest and manage their portfolios online.

Best For

• New real estate investors looking to get their feet wet
• Non-accredited investors
• Real estate investors who want a “set-it and forget it”-oriented option
• Investors looking for low-to-moderate cost buy-ins

Pros

• Multiple offerings available to non-accredited investors
• Simple menu of investment options
• Can use for IRA contributions
• Incredibly affordable buy-ins
• Low, easy-to-understand investor fee schedule

Cons

• Extended hold periods
• Limited secondary market

Fundrise is a heavyweight in the real estate crowdfunding space, and for good reason. With a minimum investment as low as $10, it offers a highly accessible entry point into diversified real estate portfolios. 

The platform provides a range of account levels, catering to both non-accredited and accredited investors, with a selection of 14 different funds to choose from. Fundrise charges a modest annual advisory fee, plus additional fees for certain funds. 

What makes Fundrise so appealing is its track record: It has consistently delivered strong, positive returns across all risk levels, with annual results ranging from 3% to an impressive 22%. The diversified model not only lowers risk but also gives investors exposure to a wide mix of real estate projects, from rental apartments to commercial ventures, making it an excellent pick for anyone wanting steady performance and flexible options.

Yieldstreet

Best For

Diverse Range of Alternative Investments

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Best For

Diverse Range of Alternative Investments

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Yieldstreet is an alternative investment platform that provides access to asset classes typically reserved for institutional investors. Founded in 2015, it offers opportunities in real estate, art, marine finance, legal finance, and more. By focusing on income-generating investments with varying risk levels, Yieldstreet aims to help individual investors diversify their portfolios and potentially achieve higher returns. This review explores Yieldstreet’s offerings, fees, returns, and overall suitability for different types of investors.

Best For

• Accredited investors looking to diversify
• Alternative investments to stocks and bonds
• Investors looking for passive income

Pros

• Easy-to-use platform
• Carefully selected offerings
• Excellent mobile app
• Full spectrum of alternative offerings
• Options for non-accredited investors

Cons

• Majority of investments only open to accredited investors

Yieldstreet takes a broader approach, letting investors diversify not just into real estate, but across an entire spectrum of alternative assets—including art, commercial ventures, and even legal settlements. 

Its real estate crowdfunding arm is just one piece of the puzzle, but it’s a robust one, with opportunities to invest in debt offerings, REITs, and institutional-quality real estate notes. Minimum investments start at $10,000, and fees depend on the specific investment, ranging from 0% for short-term notes to 2% on other offerings. 

What really makes Yieldstreet unique is the variety. You can access deals you won’t see on other platforms, and many come with shorter time horizons or fixed income streams. The platform’s net annual return before fees averages around 9.6%. While the higher minimum means it’s not for everyone, Yieldstreet is ideal for investors looking to branch out beyond just real estate and explore a broader world of alternative investments.

EquityMultiple

Best For

Diverse Range of Offerings

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Best For

Diverse Range of Offerings

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1 Minute Review

EquityMultiple is an online real estate investment platform that connects accredited investors with commercial real estate opportunities. Offering a range of investment options, from equity investments to debt offerings, EquityMultiple allows investors to diversify their portfolios by investing in high-quality real estate projects.

The platform provides access to detailed investment opportunities, real-time reporting, and a transparent fee structure. With a focus on institutional-grade properties and a commitment to thorough due diligence, EquityMultiple aims to simplify real estate investing, making it accessible for investors seeking passive income and potential capital appreciation.

Best For

• Accredited investors
• Hands-on investors
• Investors looking for quick returns
• Investors looking for low buy-in offerings

Pros

• Many investments with low buy-ins less than $10,000
• Numerous offerings with pay-outs in less than 12 months
• High-functioning website
• Incredible client support

Cons

• Only available to accredited investors

EquityMultiple brings a more traditional real estate investment flavor to the crowdfunding world, blending modern technology with the kinds of deals institutional investors have accessed for decades. 

Its platform is geared toward accredited investors, requiring a minimum investment of $5,000, and offers both debt and equity investments in commercial properties. Fees are investment-dependent but generally fall in the 0.5% to 1.5% range, plus an origination fee on select deals. 

What sets EquityMultiple apart is its commitment to education and support, making it easier for investors to choose the right deals for their risk tolerance and investment timeline. The platform features both short-term and long-term opportunities, and you can easily track your portfolio and returns online. For those who qualify, EquityMultiple offers a sophisticated way to tap into high-yield real estate deals with greater transparency and control.

RealtyMogul

Best For

Newer Accredited Investors

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Best For

Newer Accredited Investors

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RealtyMogul is a popular online real estate investing platform designed to make commercial real estate accessible to both accredited and non-accredited investors. By offering investments in professionally managed REITs, individual properties, and private placements, RealtyMogul aims to provide a passive way to diversify your portfolio with tangible assets.

Whether you’re interested in generating passive income from rental properties or seeking long-term growth through property appreciation, RealtyMogul offers a range of opportunities. In this review, we’ll explore its key features, investment options, fees, and potential returns to help you determine if it’s the right platform for your financial goals.

Best For

• Newer accredited investors who want access to pre-vetted properties
• Non-accredited investors seeking consistent cash flow from well-managed REITs
• Experienced real estate investors who want access to deal-specific information that allows them to perform their own due diligence more easily.

Pros

• Do everything from finding the investment property to signing the legal documents and monitoring your portfolio, all in one platform.
• All properties are pre-vetted through RealtyMogul’s transparent and rigorous due diligence process.
• Investment minimums as low as $5,000
• Keep track of investments with regular updates posted directly to your dashboard
• Automated investing

Cons

• Individual property marketplace is only open to accredited investors
• Does not offer portfolio management

RealtyMogul offers a strong, institutional-quality experience and is open to both accredited and non-accredited investors. The platform’s standout feature is its focus on multifamily real estate—some of the hottest and most resilient markets across the country. 

The minimum investment is $5,000, and RealtyMogul’s fees vary based on the specific product: its Income REIT charges up to 4.5% and its Apartment Growth REIT charges up to 4.75% annually. Direct investments in specific properties are reserved for accredited investors, but non-accredited investors have access to two non-traded REITs, each with a diversified portfolio of apartment communities and commercial assets. 

Investors have seen average returns of 12% over the past five years, making RealtyMogul a strong pick for those looking for consistent performance, institutional access, and a hands-off approach to real estate investing.

Choosing the Best Real Estate Crowdfunding Site for You

Real estate crowdfunding was once the domain of the ultra-wealthy, but since 2016, regulatory changes have opened the doors for everyday investors. Now you can build a real estate portfolio with just a few hundred dollars and a smartphone, gaining access to vetted deals, transparent reporting, and—most importantly—the chance to earn passive income from rental and commercial properties without the day-to-day headaches. 

As with any investment, it’s important to do your research, understand the fees, and make sure the platform matches your financial goals and risk tolerance. Whether you want to get started for as little as $10 or you’re looking to build a diversified portfolio across multiple asset classes, there’s a real estate crowdfunding site that fits your needs. Happy investing!

Frequently Asked Questions

The post Best Real Estate Crowdfunding Platforms by Kaitlyn Wolf appeared first on Benzinga. Visit Benzinga to get more great content like this.