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|Crowdfunded Real Estate Deals||Traditional Real Estate Investing (Owning Cash-Flowing Rentals)||REITs (Real Estate Investment Trusts)|
|Stock market correlation||Some||Very little||Some|
|Cash flow frequency||Quarterly distributions||Monthly rental income||Payout varies; REITS must payout 90% of profits to shareholders|
|Investment costs||1–3% transaction cost plus annual management fee||No annual broker fee||Varies on the type of REIT|
|Ability to take advantage of market anomalies||Limited||High||Low|
|Access to deals||Due to low minimum investments, you can invest in many types of deals in many different markets||The number of deals you can invest in is limited by the amount of capital you have to invest||Investor has no control over deal selection or accessibility|
|Investment complexity||Easy to invest in (set up account, fund it, and choose deals)||"Know-how" required. Lots of moving parts that need to be skillfully managed||Easy to invest in (trade on stock exchanges)|
|Minimum investment||As low as $1,000, typically $5,000–$10,000||$15,000–$25,000; depends on locality. Typically need 20% down payment||Single share prices can be low ( less than$10), but brokerage fees means you should buy several shares at once.|
|Entry knowledge needed||Deals are often pre-vetted, but due diligence is important and not easy||Self-directed; investor must do extensive due diligence||Very little; due diligence done for you by fund managers|
|Liquidity||Mostly illiquid||Very illiquid||Very liquid|
|Diversification||Can be very diversified with limited funds||Limited; need substantial capital to diversify widely||Already diversified|
|Control of investment||Investor has no control over profitability||Investor has control over many aspects and can steer project toward profitability||Investor has no control over profitability|
|Risks||Poor management, local market risk, industry/concept of crowdfunding is untested||Management and market risks are more easily managed and mitigated||Poor management, local market risk|
|Capital needed to invest||Affordable minimums||Requires significant capital or leverage||Affordable minimums|
|Ability to leverage or scale investment||New deals across platforms readily available||Tremendous. With systems in place, you can scale efficiently using debt leverage||You can invest more, but you can't scale your investments|
Got $1,000? The 10 Top Investments We’d Make Right Now
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