Best Real Estate Crowdfunding Platforms
Real estate crowdfunding can be an exciting way to make money by investing in real estate. There are a few things to consider before you sign up. It’s important to have a clear vision of your goals before you dive into the world of real estate crowdfunding. One reason many investors choose this type of investment is to diversify their portfolio. This is possible by utilizing multiple real estate crowdfunding sites.
In general, best crowdfunding platforms for real estate is the process of financing a real estate project by pooling the funds of a number of individual investors. Some platforms allow both accredited and non-accredited investors, but most of the real estate crowdfunding websites cater to one or the other. Many of these websites offer apps to simplify the experience. Most of these sites also do not charge a fee for creating an account.
Real estate crowdfunding is a relatively new concept. The idea behind it is that a group of individuals can invest in a project in exchange for a proportional stake in the property. Usually, the investors are given a percentage of the profits before the interest is paid. These projects are typically expensive, so it’s easy to see why people are hesitant to jump in.
The Best Real Estate Crowdfunding Platforms
The best real estate crowdfunding website is Crowdstreet. Unlike other sites, it offers a plethora of vetted institutional-quality real estate investments. Not only do investors get to pick from a wide range of options, but they also get access to exclusive deals.
Another reputable platform is EvoEstate. They offer an interesting twist on traditional real estate crowdfunding. Rather than offering a single opportunity, they offer a suite of different types of real estate asset classes, from condos to office buildings to industrial properties.
As of April 2022, there are 155 loans owned by Concreit. Their loans are primarily located in the Pacific Northwest, although they are diversified across other regions. Their mobile app allows for bank account integration, automated transfers, and dividend selection. Additionally, the company touts a remarkably higher interest rate than other similar offerings. While most of these offerings can take eight weeks to withdraw, the money is available much faster at Concreit.
DiversyFund is another best crowdfunding platforms for real estate website with an impressive track record. According to the company, they have returned over 17% on their funds in 2017. Furthermore, they do not charge any fees to investors.
Aside from their stellar track record, they also have a well-designed mobile app. However, they do not offer an early redemption option.
Real estate crowdfunding is a great option for many investors, but there are risks involved. There is no guarantee of high returns. You might not even be able to sell your share in the property. And, since most crowdfunding sites are in Europe, you may have to deal with currency risk. If you’re unsure about whether or not you’ll be able to make your withdrawals, it’s best to consult a real estate attorney.