Top 7 Real Estate Crowdfunding Sites for Investors

Joe Stampone Featured, Innovation/Technology, Invest Passively 22 Comments

A few months ago I provided an overview of the various opportunities for real estate crowdfunding investors, however I didn’t dig into the specific platforms. In my latest eBook, I break down what I view as the top 7 real estate crowdfunding sites for investors. While there are 100’s of sites out there, the 7 I chose are established players, well-funded, operated by experienced real estate professionals, and sites I’d trust with my own money. This is by no means exhaustive, but a good starting point for any potential real estate investor.

Direct investing in cash flowing real estate should be part of any investors’ portfolio. However, a millennial who is an unaccredited investor with a few thousand dollars to invest has a much different investment objective than a high-net-worth individual who recently retired and has $1mm to invest.

Why I wrote this guide:

  1. There are a lot of poorly run platforms funding risky deals and it’s impossible for the amateur real estate investor to identify the good ones.
  2. There are several investment models and it’s challenging to determine which is right for you based on your investment objectives.
  3. The space is evolving rapidly and there are new investment models that investors should be aware of.

In the guide, I break down each platform outlining what I like, my concerns, fees to investors, their underwriting process, and even fun facts.

There are 5 core investment models to choose from:

crowdfunding models chart

Here are some fun facts about each platform highlighted in the guide:

PeerStreet is co-founded by Brett Crosby, who previously was a Director of Marketing at Google for 10 years.

Acquire Real Estate: Even though Acquire was started in 2014, the majority of their team has worked together for years. Most of their team worked together in different areas of the commercial real estate world at CB Richard Ellis and Katz Properties.

RealtyShares has funded over 1,600 properties across the U.S. and they have an office dog named Prince.

Fundrise has at least 2 dogs in the office every day, sometimes more! Their CEO and COO both bring their dogs in every day. Their names are Zappa and Kona — both essential members of the Fundrise team.

RealCrowd is somewhat renowned around Palo Alto for its Friday afternoon BBQ’s where you will regularly find 20+lbs of meat on the smoker! Investors and sponsors are always welcome!

CrowdStreet is based in Portland, Oregon, a hipster city back dropped by the volcanic Cascade Mountains. The CrowdStreet team is a vibrant band of professionals with an eclectic taste for adventure, in business and life.

Alphaflow: Investors can connect their other accounts to AlphaFlow in order to manage their portfolios, and today almost $100M of real estate investments are being managed on the site only 7 months after launching. AlphaFlow also launched the industry’s first multi-platform fund, letting investors make one investment and passively get a portfolio of 75-100 deals across the industry.

Fill out the form below to download the Top 7 Real Estate Crowdfunding Sites for Investors

Click Here to Download

If you have any feedback or suggestions, I’d love to hear from you.

  • brian penn

    To be honest I never new what real estate crowdfunding was thanks to you I do now, also thank you for your review about the 7 sites. As you stated in your paragraph above direct cash flow investing should be apart of any investors portfolio, but not everybody has hit the million dollar mark in investing especially if your just starting to invest. So I could totally relate to you and want to thank you for taking the time to put this information in front of me.

  • @brian_penn:disqus that’s great to hear. There are great opportunities for investors of all sizes/risk profiles. If you have any specific questions, don’t hesitate to reach out.

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  • Acutulus

    How did you miss http://www.FundThatFlip.com ?!?! For short term, yield hungry investors seeking monthly cashflow (rather than balloon p&i payments) with only 6 month exposure for double digit returns, these guys are by far the best. And yes, of course, I invest in their loans but am NOT a shareholder.

  • @acutulus:disqus I’ve heard really good things about Fun that Flip, however I have no direct experience. As I mentioned, the guide is by no means exhaustive. Every 6 months or so I’ll revise/expand the guide as the real estate crowdfunding space evolves and I learn more about other emerging platforms. Thanks for the suggestion!

  • Fortunate One

    What concerns me and every other list I’ve seen on real estate crowdfunding is that every actual crowdfunding site, like Reality Shares, Fundrise, Real Crowd or Crowd Street or the 100s of other sites on crowdfunding, they all look basically the exact same… like they are all using the exact same template for their web sites. I cannot tell if they all just one company with different names or for some odd reason every crowdfunding company has the exact same web page design.

  • @disqus_Qxbt0MV6Va:disqus the software looks similar because they’re likely all mimicking each other and building software for an identical purpose. What’s important to understand is that the companies are all very different; the employ different strategies, have different teams, have different funding, are doing different deals, have different underwriting standards etc. etc.

  • You have provided an excellent information on the subject. I want to add one more new site and it is redgage.com. They are dealing with Real Estate Crowdfund, Debt crowdfund and equity crowdfund.

  • JD Fagan

    You should consider Patch of Land for membership in your high quality set of real estate crowdfunding sites.

  • Hi @jdfagan:disqus – I’ve been tracking Patch of Land. Keep innovating.

  • Mark Kennedy

    Here is the problem with crowdfunding and Joe can probably better elaborate from his experience: I recently had an entitlement-add deal fall into my lap. It was a CBD, transit oriented development deal, the flavor of the month for institutional owners, so therefore the best course for our group was to package it with the impending new entitlements and sell it to a big player.
    All cash, 60 day study, boom. Well, I was approached by one of the more prolific crowdfunders and they offered what amounted to an almost 10% premium over the all cash buyer.

    Moral of the story: If you’re selling a deal the only way you would entertain the crowdfunders if:
    1) It’s a marginal deal with hair on it;
    2)you have no TMV concern and you can wait for a buyer who will over pay; or
    3)the capital market is frozen.

    All crowdfunding sites are touting their great returns over the past 5 years…uhh duh, check your stocks over that period – are you quitting your job to sell them stock advice.

    As always keep the good work Joe. BTW I gave Michael Beckerman the biz for not putting you on the Top 30 RE Tech List.

  • Samuel Sitar

    what crowd funding has a $1000 minimum?

  • Hi @samuelsitar:disqus several do including Fundrise and Groundfloor. Check out this post – http://astudentoftherealestategame.com/passive-real-estate-investment-opportunities-for-non-accredited-investors/

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  • Bhanu Garg

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  • Bruno Ferreira

    Can I find one that works in European Union?

  • @disqus_Jjmkt5LAji:disqus I’m not familiar with the real estate investing landscape / regulation in the EU. Best of luck.

  • Sharestates also has $1000 minimum for the first $5000 (or 5 investments) then goes up to $5000 minimum per investment thereafter

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