The Internet is connecting more buyers and sellers globally in this decade. This growth has also benefited investors who seek investments or who want to raise the cash needed to build wealth. The topic of crowdfunding has entered the housing industry although there are some drawbacks to this investing approach. This list of the best crowdfunding sites for real estate should satisfy investors and the borrowers.
The list provided is publicly available on the web and no companies are endorsed by JWB. A person who is examining the real estate industry for investments other than direct REITs or turnkey rental homes could find this list useful.
Crowdfunding Websites for Real Estate Investing
As one of the first international platforms, investors across the globe can find projects to invest in or raise capital for industry investments. A 4% fee is payable on each invested project.
2. Patch of Land
While investments start at 5K, there are no direct fees to investors. Loans can be purchased to fund residential and commercial real estate in the U.S.
Small investments of $1000 or more can be used on this platform. Single family homes and commercial investments can be invested into and all investment types are pre-vetted.
Only an investor who is already accredited can use the services of this website. Dollars are pledged and not directly invested until an acceptance process is complete.
5. Realty Shares
Portfolio diversification is the goal behind this national venture. Investments begin at 5K and there are multiple real estate purchases that are available. Zero fees are offered to investors and passed on to each borrower.
One of the only crowdfunding portals that offer equity and debt based financing for investors. There are mixtures of raw land, retail and residential real estate investments that are available.
7. Realty Mogul
Any person who is eager to invest can seek out the various housing industry investments at Realty Mogul online. There are fees involved with each type of investment although equity, loan and shares of investments are offered.
Few crowdfunding sites for real estate allow commercial real estate investments online. The Fundrise company offers ways to buy into developer projects nationally. A fee of up to 3% is charged to investors for each share that is purchased.
9. American Homeowner Preservation
Investors can buy distressed mortgages from across the country that are secured by real property. Discounted homes could be found through this process although investments are not as low as 5K like similar platforms.
Micro investments in real estate are offered by this company. Payouts range between 6% and 26% and most returns on investment are distributed within a year. New construction and existing renovation projects can be invested into using GroundFloor.
This free service is offered to investors who want to invest with private companies in the housing industry. A list of current projects can be browsed and compared for rates of return and risk of investments.
Money can be pledged for new projects and investors can sign a deal execution form. The documents can be reviewed and the invested funds can be returned on a set schedule through each sponsor.
Investors can buy into commercial projects that are in process around the globe. Dollars are raised through groups of investors to help each project get off the ground.
Property listings are provided through development groups and adults can pursue various investment types that are available. There are regional and national projects listed through this portal.
One of the only crowdfunding sites in the UK that allows investors globally to tap into the rental industry. Around $1200 is the smallest investment type that is accepted through this new company.
Investors who are interested in midwest or central U.S. investment projects could find this portal useful. All investors must be accredited prior to signing up to earn returns in real estate.
A private investment group owned by CCFG that now allows clients to invest smaller sums of cash into different housing projects. A managed team helps provide support to investors.