What is the best real estate crowdfunding? in the last two centuries, 90% of the world’s millionaires have been created by investing in real estate. For many decades, buying real estate has been one of the best investments. Owning property has a lot of benefits so let’s talk about real estate crowdfunding reviews at theBooMoney.

Getting started in the best real estate crowdfunding investing can be hard because of high entry barriers. You can expect to pay 20% or more in most cases if you’re investing in rental properties.

College Investor says 90% of millionaires in the last two centuries have been made by investing in real estate. The best investment you can make has been buying property for many decades. You can get a lot of benefits from owning property and investing in it.

Crowdfunding platforms for real estate have created a unique solution. Thanks to crowdfunding, you can pool your money with investors around the world. Every little bit helps.

There are a lot of different types of investments, but one thing you need to know is that many of them are only for accredited investors.

That means you have to meet certain income or net worth requirements. Non-accredited investors can’t invest in private placements, since they’re riskier.

You need to have a net worth of over $1 million, which includes your primary residence, to qualify for this type of investment. Here’s another way.

$10 is all you need to start investing. We like Fundraise best for beginners because they have a portfolio for growth and income investors, and one that blends the two.

At just $1 a year, the fee structure is very straightforward and transparent. That’s why we recommend Fundraise to beginners!

Income Investors’ #1 Pick: RealtyMogul

Dividends and distributions are what investors want from their investments. REITs like RealtyMogul pay monthly dividends or distributions to investors.

Reinvest them in the REIT or deposit them directly into a bank account. There’s a $5,000 minimum.

Accredited Investors’ #1 Pick: Crowd Street

Investors can invest on a deal-by-deal basis or through funds, which gives investors more choice. Crowd Street manages the investments for them.

Crowd Street is known for transparency. Not only do all the deals listed on the site come with extensive details for investors, but they also provide webinars so you can get all the details.

Before investing, investors can sign up for a free account and browse deals.

#1 Pick for Low Minimum: Groundfloor

For a low investment, $10 is hard to beat. It sounds crazy, but that’s the minimum amount you have to invest in a Groundfloor loan portfolio.

Real estate developers can borrow money from Groundfloor investors. Investors get paid interest on the money lent by borrowers.

The #1 pick for alternative investments: AcreTrader

It’s not common to invest in farmland. Acre-Trader lets accredited investors buy shares in working farms. Renting out the land to farmers or selling it for a higher price makes money. You need at least $5,000 to start, so what is the best real estate crowdfunding ?

1. Fundraise

best real estate crowdfunding

We placed Fundraise at the top of our list as the best real estate crowdfunding because it was founded in 2010 and has the longest operating history compared to other platforms. Fundraise offers a bunch of different investment portfolios, starting at $10.

A minimum balance of $1,000 is required for advanced plans. Compared to many other platforms that only offer certain investment portfolios, Fundraiser’s selection is diverse and wide-ranging.

Fundraise has something for everyone, we think. Fund rise’s real estate investment strategy is based on value investing. They buy under market value and then improve them to build equity.

Over their careers, the Fundraise property acquisition team has bought over $7 billion in real estate. Check out our Fundraise review.

Also read: opportunity cost economics definition 2022

Fundraise Account Levels

There are five different Fundraise plans, which differ in terms of features and the minimum amount required to open an account. There is Starter, Basic, Core, Advanced, and Premium. As you add funds, you’ll be able to unlock more advanced features.

Fundraise Starter Investment Options

considering one of the best real estate crowdfunding via All investors on the Fundraise platform can invest in the Starter Portfolio. Investing your money in the Starter Portfolio is not an option. You can only invest in the Starter Portfolio.

fundraise starter portfolio

best real estate crowdfunding

best real estate crowdfunding

fundraise starter portfolio

Fundraise Starter Portfolio is designed for new investors who want to try out the platform without investing all their money. You can open an account for as little as $10. The portfolio is split 50/50 between growth and income stocks. Upgrading your account to a core or advanced plan is free and you can do so at any time.

Fundraise Core Investment Options

Investments over $1,000 on Fundraise are eligible for the Core Plan. Reaching the Core Plan offers three different portfolios: income, balanced investing, and long-term growth. These portfolios provide different types of returns and have different structures.

Supplemental Income

The next portfolio is Fundraise Supplemental Income Portfolio. It includes income-producing properties. Dividends from cash flow-producing properties give investors returns. Fundraise pays dividends based on your share of the fund.

Dividends can be reinvested for free or deposited into your bank account. I hope these examples help you figure out how you want to rephrase what your student is reading when he asks you what it means.

Balanced Investing

Fundraise Balanced Investing Portfolio invests 50% in growth and 50% in income. The fundraiser’s portfolio is full of eREITs and eFunds.

The goal is to have a balance of income-generating real estate and appreciating real estate.

Growth Over Long Term

Last but not least, we have the Fundraise Long Term Growth Portfolio. It makes its money mostly through asset appreciation. We’re trying to buy real estate with high growth potential and sell it later for a profit.

Fundraise Advanced Investment Options

The Advanced Plan is available to investors who have at least $10,000 on Fundraise. When you upgrade to the Advanced Plan, you get the “Plus” level of Fundraiser’s core plans and consider as best real estate crowdfunding way.

This type of fund gives you more flexibility in your investing and lets you use more specialized strategies to get better returns.

Instead of being restricted to the Core Plan, you’ll get to allocate funds directly between Fund rise’s funds. It’s up to you which funds you want exposure to and how much exposure you want.

A few of the biggest funds are the Washington D.C. E-fund, Los Angeles E-fund, and the National E-fund.

Also read: What is real estate crowdfunding?

Washington DC eFund


Investors can invest in one of America’s fastest-growing real estate markets and best real estate crowdfunding with the eFund.

Founded in May of last year, the fund has 25 active projects. They do a lot of single-family home renovations as part of their appreciation strategy.

As the fund is focused on appreciation, it doesn’t pay dividends. The idea is that investors invest now, and when the fund’s projects are renovated and sold, they will get a share of the gains.

There are a lot of projects in this fund that have an estimated return of 5% – 15% and have a moderate level of risk.

Los Angeles eFund

In a similar way to the Washington DC eFund, the Los Angeles eFund focuses on appreciation over time.

Since 2017, this fund has grown to include 31 different projects, mostly single-family homes and new home construction.

There’s a similar level of risk with this fund, but it has lower returns, usually in the 5% – 12% range.

Long-term, it’s hard to know how the fund’s estimates will do given its short history. As the fund looks for appreciation rather than growth, it’s best for long-term investors.

National eFund

eFund was created in May 2018 and has a longer track record than either of the other two Advanced Plan funds. Mostly houses in LA and Atlanta. The primary strategies for this fund are long-term rentals and renovations. Rental-to-sale is when you buy a house that needs some work. Then fix it up and rent it out.

Because of the fund’s strategies, it’s a good match for investors with a time horizon of at least 7-10 years. In other words, if you sell out sooner than that, you’re going to miss most of the upside and also considering the best real estate crowdfunding

Fundraise Premium Investment Options

Investors with $100,000 or more on the Fundraise platform are eligible for the Premium Plan. There are no funds available only for Premium Plan investors at the moment. All Core and Advanced plans will be available to you, but that’s it.

Fundraise offers priority support by allowing you to schedule calls with their team to ask questions and set up an investment strategy. It’s likely that fundraising will continue to add more features to the Premium Plan as time goes on, but for now, the benefits of moving from Advanced to Premium are limited.

Fundraise Returns

Crowdfunding platforms for real estate investing are relatively new. Due to this, there aren’t many historical data to draw from. Even so, fundraising has done well. Remember, these returns do not include fees.

Fundraise Fees

Fees for fundraising are 1% per year. Fundraise charges no other hidden fees, nor is there a front-load fee. Our top choice is Fundraise due to its straightforward, transparent fee structure.

2. Crowd Street (Accredited Only)

Crowd Street is an online platform for investing in commercial real estate that was launched in 2014. Since its launch, over $2 billion has been raised through 500 deals. According to the site, they claim to have had projects that have generated returns exceeding 22 percent for investors and sponsors. Unlike the others mentioned here, you can invest on this platform in three different ways:

Make individual real estate investments Contribute to an investment portfolio of 30 to 50 properties, each with its own team of professionals who are experts in creating a portfolio that meets your goals and objectives Invest directly into individual real estate deals, which is the only way to profit from the business of investing.

Investors can choose specific projects to invest in on CrowdStreet. It’s all about commercial real estate, so there’s no residential stuff. Around 400 investment opportunities are reviewed each month, they claim. After CrowdStCrowdStreet analyzes them and only accepts a small percentage.

We carefully vet deals to make sure they’re of high potential. CrowdStreet vetting includes checking out the deal as well as the sponsor bringing it to Crowd Street. Curious about CrowdStreet? Check out our full review!

Crowd Street Investment Options

Direct Investing

Direct investing allows you to choose the properties you want to invest in. The active investor with a significant amount of capital to deploy will benefit from this option. Investors can use CrowdStreet’s research tools, which are very transparent.

Fund Investing

Investing in real estate is a great idea. These investments have been researched by CrowdStreet, and each portfolio has anywhere from 30 to 50 commercial properties.

Managed Investing

Then there’s managed to invest. CrowdStreet will take care of your portfolio so you can reach your goals. Do whatever you want, or do nothing at all. CrowdStreet builds you a portfolio and invests on your behalf.

CrowdStreet Returns

CrowdStreet has certainly had impressive results since it launched. So far, 54 of the 521 fully funded deals have matured. CrowdStreet has a 17.1% IRR on completed deals and an average holding period of 2.3 years. Investors should review the risk profile of each deal before committing. Since its inception, CrowdStreet has had a total return of 17.1% IRR

CrowdStreet Fees

Crowdfunding real estate has a unique fee structure. All the fees are paid by the sponsors, so there are no fees for investors. Every deal on CrowdStreet has a sponsor. This is one of the best parts. The CrowdStreet funds charge 0.5 to 2.5%. They go towards platform costs, acquisition costs, and administrative costs.

3. Arrived Homes

best real estate crowdfunding

best real estate crowdfunding

We are an investment platform that offers investors a hassle-free way to invest in real estate. It’s like all the others, but they offer a few things that are unique.

We’re sponsored by Arrived Homes. We specialize in single-family real estate nationwide. The company vet’s real estate markets to find the ones with the best income potential.

They then look for the best neighborhoods within those markets and buy properties that fit their criteria. Investors can buy shares of each property in a Series LLC.

Arrived is taxed as a REIT, or real estate investment trust.

Investors can buy shares of properties once they’re listed on Arrived Homes’ website. Buying 10% of the shares means owning 10% of the home and earning 10% of the rental income and appreciation.

Real estate in New York City can be tough, but arrival makes it easy for investors like us. Arrived finds tenants and handles repairs, maintenance, and moving costs so investors don’t have to.

Investors aren’t responsible for repairs or future costs. As shareholders, they’ll get quarterly dividends based on their investment.

Arrived is a unique property because every tenant owns the property and they all have common interests.

What are the Returns, Fees, and Minimum Investment?

Shares of Arrived can be purchased easily. You can reserve shares and fund your account by linking your bank account when you browse properties; with this investment, there are some key points to know:

There’s a $100 minimum investment with this company. The average holding period is 5-7 years, but you can sell early if you need cash. Dividends range from 0.13 cents to 0.16 cents per share, or 5.21% to 6.42% annually, and appreciation after the sale of the property should be more than 100%.

If you are interested in investing with Arrived Homes, be sure to check out their website. Sign up for an account today and begin browsing their deals! Creating an account can be done in under 2 minutes with your name and email only. And you can browse the deals before ever committing funds.


Read also: Successful crowdfunding campaigns examples