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Real estate has long been considered one of the best assets for building long-term wealth. However, investing in physical real estate requires large amounts of capital, which puts it out of reach for many Americans. Fortunately, real estate crowdfunding now allows both accredited and non-accredited investors to earn passive income from real estate with much lower minimum investment amounts.
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Read on to discover 11 top-rated platforms that give you easy access to vetted real estate investments.
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Fundraising activities
Founded in 2010, Fundrise has financed over $7 billion in commercial real estate assets and has over 150,000 users. Investors can start with as little as $10 and earn dividend income from his Fundrise portfolio of apartments, hotels, and commercial buildings across the country. The platform predicts long-term returns of 7-12%.
real estate tycoon
With over 300,000 members, RealtyMogul offers one of the most popular real estate crowdfunding platforms. Investors can choose from listed, non-traded REITs and private real estate funds, with minimum amounts starting at $5,000. RealtyMogul thoroughly scrutinizes each deal and achieves an average realized return of 12-20% per year.
1st floor
Groundfloor offers investments in short-term real estate loans with regular monthly interest payments. Ground Floor funds modification projects, new construction, and more across 43 states. Investors can start investing with as little as $10, and historical returns have averaged 9-12% per year.
multiple stocks
EquityMultiple focuses exclusively on commercial real estate equity transactions available to accredited investors. We provide institutional quality office, retail, industrial and multifamily real estate for veterans in the nation’s top markets. The minimum investment amount he starts from $5,000. The EquityMultiple project targets annual returns of 7-15% for its products.
diversity fund
DiversyFund facilitates commercial real estate ownership through a diversified private REIT (DF Growth REIT) available to accredited and non-accredited investors. Its portfolio includes multifamily, industrial, and retail properties, and the minimum investment is just $500. DF Growth REIT’s 5-year CAGR is 18.42% net of fees and it pays a stable dividend.
Acre Trader
AcreTrader offers farmland investments to both accredited and non-accredited investors. The company’s farmland portfolio is diversified across crop types and geographic regions to reduce risk. Starting prices range from $15,000 to $50,000. AcreTrader projects annual returns to investors of 6-11% over a holding period of 5-10 years.
farm together
Similarly, FarmTogether allows individuals to invest in sustainable farmland. Each deal is thoroughly scrutinized and aims to provide investors with annual returns in the range of 6-11% over 5-10 years. The offer requires accredited investor status with a minimum investment of $15,000 for her to $50,000 for him.
real cloud
RealCrowd scours and selects the highest quality commercial real estate across real estate types including industrial, multifamily, self-storage, and more. Investors can expect expected returns of 8-16% or more by locking in fixed assets and converting them into long-term holdings. Investments start at $25,000 and are open to accredited investors only.
crowd street
CrowdStreet is one of the largest real estate crowdfunding platforms, with more than $4 billion invested in approximately 800 projects. Offerings include equity and debt investments in commercial real estate and real estate companies, with minimum amounts starting at $25,000. To date, realized CrowdStreet trades have achieved annualized returns of 17-20% or more.
arbor crowd
ArborCrowd focuses specifically on investing in multifamily properties in many of the fastest growing U.S. housing markets. Their services require accredited investor status with a minimum of $25,000 to $50,000. Target annual returns range from 7% to 12% from real estate value appreciation over a 5-10 year holding period.
straightwise
Streitwise allows non-accredited investors to invest in commercial real estate through public non-traded REITS. The minimum investment amount for the offering is set as low as $1,000. Streitwise thoroughly scrutinizes each real estate purchase, focusing on valuing assets that are expected to deliver an average annual return of 8-12%.
conclusion
Real estate crowdfunding has made it possible for retail investors to earn passive income from an asset class that was previously only accessible to the ultra-wealthy. By pooling money with others to invest in vetted real estate projects, Americans can build greater long-term wealth through increased cash flow and value. Be sure to only risk what you can afford to lose.
GOBankingRates Details
This article originally appeared on GOBankingRates.com: 11 Best Real Estate Crowdfunding Platforms: Here’s How Investors Can Earn Passive Income
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