Crowdfunding platforms for real estate investment are relatively new but are already changing the way investors of all income levels can approach real estate investment. They provide opportunities for the average investors to become involved in large commercial real estate projects or other investments that would normally require a massive amount of capital. Here are the different types of crowdfunding platforms:
- Debt equity investment platforms offer limited liquidity and longer-term hold periods
- Auto-investors automatically match a set of underwriting parameters with available investments
- eREITs are an innovative model that offers fixed rate of return, low fees, and quarterly distribution
- Some platforms allow investors to take advantage of each different type of fund
Here are Joe Stampone’s top 7 crowdfunding sites for real estate investment:
PeerStreet – a marketplace for investing in real estate backed loans. Minimum investment: $5,000
Acquire Real Estate – a real estate crowdfunding platform for Accredited Investors. They pre-fund and co-invest solely in institutional-quality deals. Minimum investment: $1,000.
RealtyShares – an online marketplace for real estate providing investors with access to small balance real estate deals in secondary and tertiary markets. Minimum investment: $5,000 with selected investments as low as $1,000.
Fundrise – uses technology to offer real estate investment opportunities directly, online, and with lower fees – which means you can earn better returns. Minimum investment: $1,000.
RealCrowd – provides its users the ability to invest in quality commercial real estate direct with expert real estate sponsors, fee free, and with full transparency. Minimum investment: varies, but typically $25,000.
CrowdStreet – a comprehensive investor acquisition and management solution designed specifically for commercial real estate. Minimum investment: Varies, but typically $25,000.
AlphaFlow – helps investors easily build and manage real estate portfolios across the crowdfunding industry. Minimum investment: $25,000.
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