top crowdfunding platforms

Top Real Estate Crowdfunding Platforms

Crowdfunding has seen some amazing growth since the word was first coined by Michael Sullivan in 2006. Yahoo Finance reported that the global crowdfunding market is expected to grow by $196B at a rate of 13.86% year-on-year (2021). While real estate is just one among many markets in the crowdfunding industry, its estimated value has reached $8.3 B in 2020, with the United States and Canada as leading players.

With the growth in the real estate crowdfunding market, it's no surprise that more and more platforms are becoming available to help project sponsors get the funding they need. Here’s a list of crowdfunding platforms that are specifically geared toward funding real estate projects.

CrowdStreet

 

real estate crowdfunding The company was founded by Tore Steen and Darren Powderly in 2012. Their primary goal is to become a catalyst to radically improve people's access to commercial real estate investments. The founders believed that technology could be harnessed to provide investors with more access to deals, as well as make it easier for brokers to find investors and reach institutional-level funding.

Pros

  • Easy to navigate platform
  • Chatbot
  • Access to investment details

Cons

  • $25,000 minimum investment
  • No early withdrawal
  • For accredited investors only

 

EquityDoor

 

real estate crowdfunding EquityDoor was founded by Clint Anderson with a vision to create a platform that will allow anyone to invest in income-based properties at an affordable level.  By eliminating the traditional cost, complexity, and reliance on big banks and real estate insiders, the resultant outcome was greater opportunities for its investors.

Pros

  • Affordable minimum investment of $1000
  • Access to issuers information and investment details
  • Open to all investors

Cons

  • No chatbots
  • Documentary requirements
  • Mostly active via emails 

 

Fundrise

 

real estate crowdfunding Fundrise was founded in 2010 by brothers Ben and Dan Miller before the passage of the JOBS Act. It is credited as the first company to successfully fund real estate projects via crowdfunding.

Pros

  • Affordable minimum investment
  • Open to both accredited and non-accredited investors
  • User-friendly website

Cons

  • Fees
  • Investor due diligence
  • Illiquid investment

 

EquityMultiple

 

real estate crowdfunding EquityMultiple was founded by Marious Sjulsen and Charles Clinton. Their vision is to make real estate investing simple, accessible, and transparent.

Pros

  • User-friendly website
  • Commercial real estate investment opportunities

Cons

  • For accredited investors only
  • Minimum investment is $5000

 

DiversyFund

 

real estate crowdfunding DiversyFund was founded by Craig Cecilio and Alan Lewis in 2016. They're looking to open up wealth-building opportunities to all Americans, no matter their status in life.

Pros

  • Open to non-accredited investors
  • Affordable minimum investment
  • Commercial real estate opportunities

Cons

  • Limited options
  • No early withdrawals

 

*Source: Nerd Wallet

How to Invest in Real Estate through EquityDoor

 

EquityDoor is a real estate crowdfunding platform that helps real estate start-ups access funding from investors. It is also a one-stop information hub for investors in order to make educated decisions. The simplified signup process should guide investors through the entire investment process from start to finish.

 

  1. Browse - Explore EquityDoor’s marketplace of real estate investment opportunities. 
  1. Select - Choose investments that match your objectives and risk tolerance. 
  1. Sign Up - Create an investor account on EquityDoor.
  1. Invest - Login and start investing in a simple, secure & efficient way.