BEST OF

7 Best Real Estate Crowdfunding Investment Platforms of August 2021

Chris DavisFeb 22, 2021
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

Real estate crowdfunding has transformed the real estate investing landscape. Once reserved for only the most affluent investors, many crowdfunding platforms have significantly lowered the barrier to entry for this type of alternative investment.

Low account minimums, simple fee structures and clean user interfaces make it easier than ever to include real estate in a well-diversified portfolio. It’s important to note that some real estate crowdfunding platforms, including three of our picks below, are open only to accredited investors.

What's the difference between these platforms and REITs?

Real estate investments trusts are companies that own real estate, like hotels, malls, shopping centers or rental properties. Publicly traded REITs can be purchased through a brokerage just like individual stocks or mutual funds.

Real estate crowdfunding platforms, on the other hand, pool funds together to let average investors participate in the real estate market through private REITs — which aren’t available through traditional brokerages — as well as private market real estate investments, like individual properties. These could potentially provide higher returns than the REITs available through traditional brokerages, but they may also carry higher risk.

Ready to get started? Below are our top picks for the best real estate crowdfunding platforms based on several factors, including account minimums, customer support, redemption options, fees and more.

Summary of Best Real Estate Crowdfunding Investment Platforms of August 2021

Our pick for

Nonaccredited investors

Fundrise
Learn more

on Fundrise's website

Fundrise

5.0

NerdWallet rating 
Fundrise

Fees

1%

other fees may apply

Account Minimum

$500

Promotion

Advisory fee waiver

for 12 months

Learn more

on Fundrise's website


Promotion

Advisory fee waiver

for 12 months

Why we like it

Fundrise is an online real estate company that lets average investors buy into private commercial and residential properties by pooling their assets through an investment platform. The company offers eREITS, or real estate funds that don't trade on a public exchange.

Pros

  • Low minimum investment.

  • Open to all investors.

  • Easy-to-use website.

  • IRA accounts available.

Cons

  • Highly illiquid investment.

  • Fees can be difficult to understand.

  • Complex investments that require investor due diligence.

Read Full Review

Our pick for

Accredited investors

CrowdStreet
Learn more

on CrowdStreet's website

CrowdStreet

4.0

NerdWallet rating 
CrowdStreet

Fees

0.50% to 2.5%

for funds; project fees vary

Account Minimum

$25,000

Promotion

None

no promotion available at this time

Learn more

on CrowdStreet's website


Promotion

None

no promotion available at this time

Why we like it

CrowdStreet provides a convenient platform for accredited investors to add commercial real estate projects to their portfolio. But investors should do their own due diligence and be prepared to leave their money locked up for years at a time.

Pros

  • Access to commercial real estate deals.

  • Potential for high returns.

  • Easy-to-use website.

Cons

  • Highly illiquid investments.

  • Steep minimum investment.

  • Available only to accredited investors.

Read Full Review

Our pick for

Nonaccredited investors

DiversyFund
Learn more

on DiversyFund's website

DiversyFund

4.0

NerdWallet rating 
DiversyFund

Fees

$0

management fee

Account Minimum

$500

Promotion

None

no promotion available at this time

Learn more

on DiversyFund's website


Promotion

None

no promotion available at this time

Why we like it

With a $500 minimum investment and no management fees, DiversyFund gives a low-cost entree into the often high-roller world of real estate investing. Still, don’t count on seeing any immediate income from the investment, as all distributions are reinvested into properties. Investors should also be aware of the special risks of non-traded real estate investment trusts, or REITs.

Pros

  • Access to commercial real estate deals.

  • No management fees.

  • Accepts nonaccredited investors.

  • $500 minimum to begin investing.

Cons

  • Highly illiquid investments.

  • Unable to choose among commercial projects.

  • Limited investment choices.

Read Full Review

Our picks for

Accredited investors

EquityMultiple
Learn more

on EquityMultiple's website

EquityMultiple

4.5

NerdWallet rating 
EquityMultiple

Fees

0.5% - 1.5%

other fees apply

Account Minimum

$5,000

Promotion

None

no promotion available at this time

Learn more

on EquityMultiple's website


Promotion

None

no promotion available at this time

Why we like it

EquityMultiple blends crowdfunding with a more traditional real estate investing approach that can lead to high returns. Unfortunately, it’s only available to accredited investors.

Pros

  • Access to commercial real estate investments.

  • Easy-to-use website.

  • Possible high rates of return.

Cons

  • Only open to accredited investors.

  • High investment minimum.

  • Complex fee structure that varies by investment.

Read Full Review
Yieldstreet
Learn more

on Yieldstreet's website

Yieldstreet

4.0

NerdWallet rating 
Yieldstreet

Fees

1% - 2.5%

management fees; other fees apply.

Account Minimum

$5,000

Promotion

None

no promotion available at this time

Learn more

on Yieldstreet's website


Promotion

None

no promotion available at this time

Why we like it

Yieldstreet allows investors to participate in crowdfunding for a wide array of alternative investments, including real estate, commercial, legal and art. The platform is open only to accredited investors.

Pros

  • Access to real estate, commercial, marine, legal and art investments.

  • Ability for individuals to invest in private structured credit deals.

  • Investments backed by assets, which may provide some protection in event of default.

Cons

  • Highly illiquid investments.

  • Most investments open only to accredited investors.

  • Limited offerings available.

Read Full Review

Want to compare more options? Here are our other top picks:

Last updated on February 22, 2021

You may also like these

People often identify opening a savings account as their next money move.

Marcus by Goldman Sachs Online Savings Account

4.5

NerdWallet rating 
Marcus by Goldman Sachs Online Savings Account

APY

0.50%

With $0 minimum balance

Bonus

N/A

at Marcus by Goldman Sachs, Member FDIC

American Express® High Yield Savings Account

4.5

NerdWallet rating 
American Express® High Yield Savings Account

APY

0.40%

With $0 minimum balance

Bonus

N/A

Axos Bank® High Yield Savings

4.0

NerdWallet rating 
Axos Bank® High Yield Savings

APY

0.61%

With $0 minimum balance

Bonus

N/A

at Axos Bank®, Member FDIC

Methodology

NerdWallet’s comprehensive review process evaluates and ranks established and emerging real estate crowdfunding platforms, using a multifaceted and iterative approach. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. 

DATA COLLECTION AND REVIEW PROCESS

We collect data directly from providers, and conduct first-hand testing and observation through provider demonstrations. Our process starts by sending detailed questionnaires to providers to complete. The questionnaires are structured to equally elicit both favorable and unfavorable responses from providers. They are not designed or prepared to produce any predetermined results. The questionnaire answers, combined with product demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across seven core areas. The final output produces star ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.

RATING FACTORS

Evaluations are based upon the weighted averages of factors that include but are not limited to: investment selection, management fees, account minimums, redemption options, transparency when it comes to investment options and information available on provider websites, and customer support.

FACTOR WEIGHTING

The weighting of each factor is based on our team’s assessment of which features are the most important to consumers and which ones impact the consumer experience in the most meaningful way.

INFORMATION UPDATES

Writers and editors conduct our real estate crowdfunding platform reviews on an annual basis but continually make updates throughout the year. We maintain frequent contact with providers and highlight any changes in offerings. 

THE REVIEW TEAM

The review team comprises seasoned writers, researchers and editors who cover real estate investments as well as other alternative investments and broader investing topics and strategies on a daily basis. In addition to NerdWallet, the work of our team members has been published in The New York Times, The Washington Post, Forbes, USA Today, Bloomberg News, Nasdaq, MSN, MarketWatch, Yahoo! Finance and other national and regional media outlets. 

The combined expertise of our Investing team is infused into our review process to ensure thoughtful evaluations of provider products and services from the customer perspective. Our writers and editors combine to have more than 70 years of deep experience in finance, ranging from a former Wall Street Journal reporter to a former senior financial advisor at Merrill Lynch.

CONFLICTS OF INTEREST

While NerdWallet does have partnerships with many of the reviewed providers, we manage potential conflicts of interest by maintaining a wall between our content and business operations. This wall is designed to prevent our writers and the review process from being influenced or impacted by our business partnerships. This way, all reviews can provide an unbiased review that serves the interests of our users. For more information, see NerdWallet’s editorial guidelines.

To recap our selections...

NerdWallet's Best Real Estate Crowdfunding Investment Platforms of August 2021

Frequently asked questions