Top 10 Real Estate Crowdfunding Websites

Published by Salvador Briggman. Find him on Twitter.

Join the online Real Estate Crowdfunding Conference here and learn from some of the top platforms and professionals in the industry.

Fundrise

Fundrise is an online investment platform that gives you the ability to invest directly in commercial real estate. It features both public offerings available to local investors and private offerings available to accredited investors. Fundrise offerings provide shares of equity ownership in specific properties. Fee: 0-3%.

“Developers have used the platform to close investments for more than a dozen projects totaling more than $10 million. Money is currently being raised for four projects, in Austin, Texas; San Francisco; Philadelphia and Brooklyn, N.Y. When those projects close, the total raised through Fundrise could top $12 million” – Washington Post

Realty Mogul

“Invest with as little as $5,000.” Realty Mogul is crowdfunding for real estate, a marketplace for accredited investors to pool money online and buy shares of pre-screened real estate investments. The platform offers the opportunity to browse cash-flowing equity investments and real estate loans. Should you chose to invest, there is a fee associated with each investment. The fees depend on the type of investment (loan purchase or equity purchase) and the nature of the transaction.

RealtyShares

RealtyShares is an online investment platform that uses crowdfunding to pool investors into private real estate investments. Accredited Investor members have access to extensive information on a variety of investment properties and can invest as little as $5000 into each such property. Some of the real estate asset classes, including: Residential, Commercial, Retail and Mixed-Use.

“There are absolutely no fees to investors for our current first position loan offerings. Rather, we charge the borrower listing and related fees to cover our costs.”

Fun fact: They accept Bitcoins!

CrowdStreet

CrowdStreet is a fundraising platform connecting accredited investors with professionally-managed real estate investments. CrowdStreet features both equity and debt investment opportunities, including multifamily, retail, office, industrial and land opportunities. In addition to traditional direct investments,

“No. There are no investor fees for joining CrowdStreet and accessing the investment opportunities.”

Collaperty

Because of current regulations, only accredited investors are able to view and invest in deals posted on Collaperty. At this time, when Investors invest on a deal they are showing their interest by pledging a dollar amount. No actual dollars are transferred through the site. However, this may change in the future as Collaperty is continuing to look into ways to make the investment process much simpler while keeping it secure for our members.

If you reached your investment goal, you will receive a list of Investor’s info with the pledged amount. You will then be able to contact these Investors who showed interest and take the next steps to raise the actual capital for your deal. Collaperty is looking into ways to incorporate these next steps as integrated services. Until then, the Sponsor and Investors will need to complete the investment transaction offline.

GroundBreaker

GroundBreaker provides technology for deal sponsors and developers. “Connect with your investor network and grow it organically. When ready, raise capital directly from your investors and close your deals online. Post-closing we give you a toolset so you can manage your investor reporting and distributions.” GroundBreaker charges sponsors a flat monthly fee for the use of its platform. Investors pay nothing.

CrowdBaron

Crowdbaron has developed an international platform and accepts members from different countries around the world. Today, interested members from the US can sign up to the newsletter, though currently are not able to invest in any project.

“We are happy to accept members from other countries, including the UK as well as Hong Kong. In these cases, crowdbaron presents projects to members who can demonstrate:

– They are “Professional”, “Sophisticated” investors, according to the Hong Kong SFC, or the UK’s FCA.

We charge a 4% set up fee which is paid only when a project is fully funded. In addition, there is a 1% fee per project year to cover our costs, which is paid only when the property is sold.”

iFunding

“Invest as little as $1,000.” iFunding is a real estate crowdfunding platform that allows individual investors to select and make direct investments in pre-vetted institutional real estate assets.

“For our investors, we select commercial retail and single family residential projects after careful scrutiny only. Using the search tool, users can select the exact type of investment property they are looking for.”

Prodigy Network

Prodigy Network is known for raising $171 million in $20,000 increments for a mixed-use skyscraper development under way in Bogotá, Colombia. Last year, the company raised $24.5 million in equity from 48 investors—who had to put in a minimum of $250,000—to buy another downtown Manhattan building, 84 William St., that it plans to turn into a hotel.

Currently, Prodigy salesmen deal by phone, email or in person with potential investors, but they envision a day when vetted investors will be able to make commitments with the click of a mouse.

The minimum REP investment will vary depending on the project but usually ranges between $100K – $250K. If you are an investor looking to invest in real estate in the United States, you can make your investments by acquiring REPs. REPs are tailored for Non-US investors outside the United States, or Accredited Investors inside the United States. Buying a REP will give you access to large-scale commercial real estate investments that cost upwards of $40 million to buy individually.

Patch of Land

“$5,000 minimum and no investor fees.” Patch of Land facilitates crowdfunding for real estate, also known as online syndication. They allow accredited investors to invest in real estate opportunities online. I’ve included a few types of their investment opportunities below.

Loan Purchase for Residential Fix and Flip: “In this investment, investors pool their money to buy a loan. The loan is tied to a residential property that is being rehabilitated and the property is intended to be sold directly after rehabilitation. The loan is secured by the property until the borrower repays the loan in full. Investors earn monthly interest on their money with a balloon payment at the end. The average hold for a loan like this is 6-9 months. These loans are also sometimes called “First Trust Deed Investments” because the investor’s interest is secured by the property in 1st position.”

Equity Purchase for Commercial Buy and Hold: In this investment, investors pool their money to purchase a piece of a specific commercial property. That property is acquired and managed by a professional investment company with a track record of success. Investors are entitled to a share of the cash-flow from rents as well as a share of the proceeds when the property is eventually sold. The average hold for an investment like this is 3-5 years. These investments are sometimes called “syndications” because the real estate company is syndicating some of the investment from other investors.

Which real estate crowdfunding platforms should be the top 3?

Leave a comment below letting me know which real estate crowdfunding platforms you think should be considered the “top 3.” If I haven’t included a platform on the list, leave a comment below letting me know which website I missed out on.

Brian Jun

It’s going to be interesting to see which one of these platforms emerges as the king. What’s also more interesting is how crowd-funding real estate “tax” will affect certain entities that already have a real estate portfolio.
- CrowdCrux
  
  Yea, I completely agree. I’m eager to see what will emerge as the distinguishing factors for investors and the property owners/managers.
http://www.lihtec.com Lihtec

Since all of the platforms look very similar, the differentiation will come from access to a quality pipeline of product. Each one claims to have a process by which they screen deals, but ultimately the investor is relying on their ability to source and underwrite transactions on their behalf.

Whether its on-line or off-line, a broker needs to build a relationship for pitching quality product.
- CrowdCrux
  
  It will be interesting to see how platforms distinguish themselves from one-another over time. Also, whether local platforms (with a more intimate knowledge of the local real estate game) will prosper more than one overall large platform that lists opportunities around the US or world.
  - http://www.katipult.com Katipult
    
    This is exactly my thoughts on the industry. Real Estate is too big of a market for a handful of platforms to dominate. I think each City could easily have 5 quality platforms as the market matures. I guess if Fundrise can get big enough then could segment. They did just raise $31 million
Blaine Vortman

Thank you, CrowdCrux for the run down on Crowdfunding sites for Real Estate projects. I lead a development team that does 6 to 20-unit nice Modern residential projects in Austin, TX. We sell units (or homes) for between $300K to $600K. I like the idea of a few large investors rather than many smaller investors however, I’m open to either set-up. Given you knowledge of these sites, which one or two might you recommend?
- http://www.katipult.com Katipult
  
  Fundrise and Prodigy Network are well received. You should sign up for a few and have a look at the tools. Some have better tools for investors than the offering groups. Consider your own platform in the future
- CrowdCrux
  
  ” I like the idea of a few large investors rather than many smaller investors however, I’m open to either set-up” – Well, crowdfunding is kind of based on the concept of many small investors, rather than several large investors (traditional model). The top 3 in the list are what I consider to be most popular, but I would reach out to several platforms and do some research to figure out which platform might be the best fit.
http://www.katipult.com Katipult

What is your opinion regarding
real estate firms (developers, brokerages, investment firms) with
established investor networks and deal flow solely relying on an
intermediary platform. I realize the needs are unique for each company
but based on my discussions with industry, most groups are interested in
growing their high net worth clients and potentially accessing
unaccredited investors at some point (depending on the region where
regulation permits). Private equity partners will still participate in
privy deals.

While I agree participating on these third party platforms has
obvious benefits, I think these real estate groups should be running
their own platform as well i.e., get exposure/experience on the large
third party platforms to recruit new investors. Without their own
platform, they are creating a middleman to their investors, while
allowing their new intermediary to build credibility on their track
records. I’ve spoke to a number of firms with year-over-year declines in their
investor networks already and think launching their own platform could
reverse this trend.
- CrowdCrux
  
  Yes – I think we’ll see some of these firms with established networks and deal flow set up their own self-hosted (possibly private) deals/platform as long as the regulations aren’t too burdensome to do so.
  
  We will also likely see some of these larger platforms working with real estate firms looking to have their own private platform or projects (like the way CrowdTilt offers Crowdtilt Open).
Todd L Corenson

Another platform that was not mentioned is RealCrowd. They allow investors to invest directly in deals instead of through an intermediary LLC.
- CrowdCrux
  
  Thanks for sharing!
Amelia Chantarotwong

Tycoon https://www.tycoonre.com/ was also unmentioned
- CrowdCrux
  
  Thanks for sharing. Sorry I missed it.
Kevin

I am doing everything I can to provide a better future for
my daughter, thank you!

Please read and share the following link:

http://www.gofundme.com/a1sw8o
Charles R. Williamson Jr.

This is closer to what I need, but not quite.

Here’s my situation:
Using my VA to finance the first $50,000, because that’s the max house payment I can afford, with my family of four, on my military disability & retirement. Most houses are around $65,000. So I’d appreciate a way to crowd fund $20,000 for the difference & closing cost. If anything is left over I plan to put it on the principle & maybe knock down the per month payment. Please help?

Sincerely & Respectfully,

Charles R. Williamson Jr.
EW1(SW/MTS) USN(Ret.)

[email protected]
- CrowdCrux
  
  You could also try p2p lending?
  - Paul Merriwether
    
    You can buy a home on VA with $0 down!!! You only need the closing cost and the seller can do that!!! No crowd funding needed! On a $65,000 home the payment with be about $350/mth. Get with a real estate agent!
http://selfstairway.com/about/ Vincent Nguyen

Hey Salvador,

I got turned onto Real Estate Crowdfunding very recently. Pretty close model to where we’re hoping to take our business except we deal with virtual real estate (online businesses.) Right now, we’re only brokering these deals but we’re planning for an investment program for these online businesses.

Wanted your thoughts:

Our idea is a similar model to some of these RE Crowdfunding businesses. We could have a minimum investment that people can pool together to buy/fund a website together and we’ll build the website out for them and they get a share of the monthly earnings.

It’s a passive investment with the same risks/benefits you’d expect from any sort of investing.

Do you think it could work?
- CrowdCrux
  
  I would test it in a small way in the marketplace and follow the results. Sounds to me a bit like quirky but for software startups. The main issue as an investor I would see is the execution part. Who would be managing the website and making decisions? I think it’s hard to have solid leadership if you have so many opinions (who also have ownership) during the startup phase.
  
  Buying a website might be a little more viable – kind of like a flippa crowdfunding platform.
Net Lease Invest

There is a new online investment platform and marketplace for the Commercial Real Estate and Net Lease industry called Emition.com, that uses digital technology to make commercial real estate investing simple and more affordable. Focus on large audience of smaller accredited investors in the US and international investors in South Africa, Europe and China looking to earn US$ and hedge against inflation.
- CrowdCrux
  
  Thanks for sharing!
http://www.cairnstranscription.com Mandy Cairns

Can one get crowdfunding for real estate in New Zealand or it is pretty much confined to the USA and/or UK?
Michael Ramin

Check out Sharestates.com. They offer private and public projects.
- CrowdCrux
  
  Thanks for sharing!
Shailash Sanghrajka

There is a new UK crowdfunding platform looking at Prime London property. http://www.apieceoflondon.co.uk is probably worth a look for those wanting to invest in the London property scene which has statistically offered great returns to investors
- CrowdCrux
  
  Thanks for sharing
jrudolph

Thanks a lot for sharing this great and useful stuff with us, I really appreciate your post!!!

Keep Sharing…

lee arnold
Billy Nguyen

Here is another real estate crowdfunding, peer to peer lending site that has a lot of great buzz around the web about them as well.

They just had an article released about them in the Wall Street Journal

http://blogs.wsj.com/venturecapital/2014/09/12/assetavenue-raises-3-million-to-crowdfund-real-estate-debt/

https://www.assetavenue.com
- CrowdCrux
  
  Thx for sharing
brian ross

http://www.publicworx.me is a new platform that lets people invest in public infrastructure like toll roads, bridges, schools, etc. Not exactly commercial real estate, but equity investment in infrastructure through Public-Private Partnership developments can yield high risk/return ratios, low market correlation, and social impact.
- CrowdCrux
  
  Cool! Thanks for sharing.
winthy

Does anyone know of crowdfunding sites that cater to international real estate development?
Bryan Smith

http://www.RealtyWealth.com the online investment platform and marketplace that offers accredited and foreign investors the opportunity to invest in commercial Single Tenant Net Leases (STNL) across the US.

The following video provides an excellent overview and highlights their differentiation from other real estate crowdfunding portals http://www.realtywealth.com/video-page
cases advisors

Really very nice information and very helpful to get in touch with top real estate sites and market.visit: https://www.casasadvisors.com/
- CrowdCrux
  
  How do you guys relate to real estate crowdfunding?
Jhon Lemar

I think Prodigy Network is the best real estate crowdfunding site. http://www.prodigynetwork.com
- CrowdCrux
  
  Thanks for sharing your thoughts! Out of curiosity, why do you say that?
http://macrocrowd.com/ Real Estate

Invest in real estate with as little as 1k using our Crowd Funding Platform
http://macrocrowd.com/
- CrowdCrux
  
  Thanks for sharing
Serdar Dagistan

Does anybody know of any crowdfunding site with student housing investment offerings?
- CrowdCrux
  
  Hmm… I think you’d have to look through the investment opportunity listings on each site. I don’t know of a niche site that specializes in student housing investment offerings at the moment.
  - Serdar Dagistan
    
    Thanx for the reply. I searched and searched and searched but could not find any
Steven Lewis

New things to come, keep an eye on us at http://www.ichatit.com and crowdvaultit.com No Investment Required “We Are Your Sponsors”
Terry Lewis

We at Seller Finance Consultants are looking to fund seller financed DFA compliant notes into a large pool, season them, sell them for a spread and reload. Any ideas which site is best to crow source debt secured by residential owner occupied first trust deeds?