Best for conservative exposure: Streitwise
Streitwise stands out as one of the more conservative crowdfunding platforms. The company’s first offering, 1stREIT Office, is a conservatively managed REIT. It aims to fund acquisitions with 50% to 60% debt, a reasonably low rate compared to many of its peers. What's more, the properties it has on the books are office properties with large business tenants like Panera Bread and New Balance, each funded with a conserative 55% loan to cost. Management’s conservatism led them to opt to return less cash to investors before the pandemic began in 2020 to better position their balance sheet for growth. That was a smart move in hindsight because it enabled the REIT to easily weather the pandemic’s impact on its tenants.
It's a small fund, but the way management intends to oversee and grow this business appears to be the conservative business plan we like to see for those targeting lower-risk investments.
Read our complete review of Streitwise.
Best for first-time investors: Fundrise
Fundrise takes a unique approach to crowdfunded real estate investments. While most platforms act as a marketplace connecting sponsors and investors, Fundrise instead builds diversified funds with low investment minimums. These significantly lower the barrier to entry for many individuals. Three main benefits to this approach include:
- Low minimums empower non-accredited investors
- Easy diversification
- The creation of investment objective funds (Income, Balanced, and Growth), much like popular target-date funds for retirement.
Fundrise also tends to focus on lower-risk investments like residential rental properties. It invests in stabilized multifamily communities and single-family rentals in fast-growing markets like those in the Sun Belt region.
Overall, Fundrise is a great place for beginners to test the private real estate market. Its combination of low minimums and conservative investing approach will put any investor on a solid path to growing their wealth through real estate.
Read our complete review of Fundrise
Best one-stop shop: RealtyMogul
RealtyMogul is one of the original real estate crowdfunding platforms. It has something for everyone, making it a great all-around platform.
It offers non-accredited investors the opportunity to invest in one of its two public non-traded REITs, MogulREIT I and MogulREIT II, with the first aiming for attractive and consistent cash distributions while the latter strives to deliver a steady capital appreciation and income. Realty Mogul also offers accredited investors the opportunity to participate in private placements and 1031 exchanges. That combination of offerings should enable it to meet the needs of most real estate investors
Read our complete review of RealtyMogul.
Best for opportunity zone investing: Cadre
Cadre is a polished, lower-volume real estate crowdfunding platform that's best suited for accredited investors seeking the tax advantages of opportunity zones. While Cadre does offer non-opportunity zone investments, its expertise in this area stands out as a particular strength.
Slightly higher fees buy investors a platform with exceptional due diligence and project alignment. Management takes a stake in every deal -- which is great for alignment. Volume is lower and minimums are higher than average, making Cadre a best fit for concentrated placements by high-net-worth individuals.
Read our complete review of Cadre.
Best for 1031 exchanges: 1031 Crowdfunding
1031 Crowdfunding's platform helps facilitate one of the more complicated real estate transactions out there. One of the largest hurdles for real estate owners trying to execute a 1031 exchange is to identify a "like-kind" property and close on a purchase within the timeframe the IRS allows.
1031 Crowdfunding helps investors eliminate the risk of not completing the process in time by offering investors the ability to invest in pre-approved, 1031 exchange-eligible properties. This platform serves a specific niche that may not be applicable for a wide array of investors, but for those accredited investors looking to complete a 1031 exchange in a short amount of time, 1031 Crowdfunding is a great option.
Read our complete review of 1031 Crowdfunding.
Best for accredited investors: Equity Multiple
Equity Multiple has a lot to offer accredited investors. For starters, it has some of the lowest minimum investments for stand-alone real estate deals we have seen at around $10,000. The platform also offers a wide variety of deals -- debt, preferred equity, and equity -- across many commercial real estate property types. In addition to single-asset syndications, Equity Multiple offers fund options, opportunity zone investments, and 1031 exchanges.
That wide variety at a relatively low entry level is only part of the draw. More importantly, the platform has an excellent track record. Overall, investors on Equity Multiple have earned a 14.5% IRR. Add it all up, and Equity Multiple stands out as the top option for accredited investors.
Read our complete review of Equity Multiple.
Check out all of our reviews