Crowdfunding is the new way to go for real estate investments in the 21st Century. It is a way for business and property owners to raise capital. This happens by inviting a pool of investors to contribute their money towards an investment goal. This activity takes place online on websites, applications, and other social media platforms such as Facebook and Twitter.
Crowdfunding has several benefits which include:
- It increases funding options.
- It helps business personnel grow networks with investors.
- Enables business persons to gain feedback from the online community about their products.
- Crowdfunding is an excellent marketing tool.
- It builds loyalty between the clients and the business.
Top Real Estate Crowdfunding Platforms
Below are the top 10 crowdfunding platforms in real estate.
1. Realty Mogul
This investment platform, launched in 2013, which offers a variety of investment options. Only two of its portfolios are not subject to accredited investors, but they must have a minimum of $5000 for starters. Most investment options focus on growth and income, and their private placements are limited to investors who are accredited.
2. Rich Uncles
Launched in 2012, Rich Uncle requires a minimum investment of $5. This platform only offers two separate portfolio options. However, only 0.3% of their evaluated investments become part of an investment portfolio.
It is one of the oldest platforms in crowdfunding. Advanced investments in the platform require a minimum of $500, while start-ups require a minimum of $5000. It has the most diversified investment portfolios that can accommodate all types of investors.
4. Acre Trader (Accredited Only)
This platform enables business people to invest in farms. Investors earn through renting their land to farmers and receiving dividends or selling their land when its value goes up. The minimum investments range between $ 5000 to $ 10000, depending on the price on offer and the size of the farm.
5. Equity Multiple (Accredited Only)
This platform has sponsors and lenders who are proven to have a good track record. The minimum amount for investment is $5000.
6. Peer Street (Accredited Only)
Here, investors venture into real estate debt. It requires a minimum of $ 1000. This platform also charges for servicing loans ranging from 0.25% – 1%.
This platform is outstanding because it offers residential and single-family real estate. Here, buyers get homes with cash flow single families rent without any disruptions.
8. Patch of land (Accredited Only)
This platform is similar to the ones mentioned above but involves high risk- high return on investments. It focuses on solving inefficient private lending problems.
9. Crowd Street (Accredited Only)
This platform involves investments of 30-50 properties. The minimum investment ranges between $10000 and $25000.
The platform focuses on delivering value to investors through data technology. They mainly focus on enabling its operators to gain capital.
All these platforms are suitable for both small scale and large-scale investments.