Best Real Estate Crowdfunding Investment Sites

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If you have been looking to invest in real estate but do not find the traditional methods of getting capital useful, crowdfunding can be a great option. It may sound unreliable, but the following real estate crowdfunding investment sites are some of the best to do business with:

PeerStreet

PeerStreet is an open marketplace that brings you access to real estate loan investments of superior quality. On PeerStreet, you can create your own portfolio of real estate loan investments or allow the site to build a portfolio for you with its Automated Investing option. You only have to choose a few customer parameters and the algorithm will find the loans for you with that information.

There is a dedicated team of finance and real estate experts which underwrite the loans based on the information you provide them and all the data, analytics and algorithms the website has invested in. The platform also has a vetting process that ensures that only experienced private lenders with a clean track record are allowed to do business on the site. The originators also have their own process to vet the borrowers.

Most of the loans are short-term (6-24 months) and the LTVs are typically below 75%. PeerStreet has a range of investments, so investors can also build a diverse portfolio of loans.

The platform may charge a servicing fee on each loan. The fee is balanced between the interest rate payable on a loan and the interest rate you receive if you are an investor. This means that the platform gets paid only when the investors get paid. The fee generally ranges between 0.25-1.00% and it is always disclosed.

Crowd Street

Crowd Street is a platform for you to find an investment match. You can submit your offers in a safe and secure way and even monitor the performance from anywhere in the world. Through webinars and various events organized by Crowd Street, you can meet other like-minded individuals and make connections. Crowd Street is an opportunity for you to make your portfolio more diverse and vibrant by putting you in touch with the right people.

Crowd Street also has investment professionals who vet all investment offerings that come along the platform’s way. There is a “rigorous and objective” screening process, which includes screening the sponsor, screening the subsequent deal and finally reviewing the offering. In a month, the team of experts reviews about 400 offerings but only 3% get approved. The statistics show that the screening process is very thorough and you are paired with the best, most reliable in the marketplace. Each potential sponsor’s offering undergoes a 26-point review to ensure only the highest quality of offerings are published on the site.

The site’s user interface is also rather easy to navigate. You can see all the active offerings listed on the site and make your own decisions accordingly.

1031 Crowdfunding

If you are looking to invest or make an offering in the real estate market, a 1031 exchange is definitely something you may have considered. A 1031 exchange, to put it simply, is a section in the United States Internal Revenue Code which allows an investor to sell a property and then use the proceeds from the transaction in a new property while deferring all the capital gain taxes. But doing a 1031 exchange properly can seem complex at times.

1031 Crowdfunding is an online market designed especially for 1031 exchange investments. The platform is a way to get a 100% guarantee that the exchange funds are invested properly in a replacement property, rather than losing them to taxes for capital gains. By identifying the replacement property with the platform, you can defer taxes. The platform also promises to close in as few as three days.

The site is easy to navigate. All you have to do is join the site, go through the database for 1031 exchange properties, identify one or several replacement properties and then finally, complete the paperwork. Most investors on the site close with three to five days. You can register to see the deals the platform has to offer.

Fund That Flip

An online lender that offers fast loans at low rates, Fund That Flip is the perfect alternative to hard money lenders and unreliable personal networks. To begin with, you will need to add some information to the database to get the right match. This information includes name, contact number, the date of the funding needed, etc. Once you complete your profile, the algorithm that the platform follows throws up some matches and offerings that are the right fit for your portfolio.

Fund That Flip is the perfect platform for those who rehabilitate homes for a living. It can be quite daunting to go looking for loans to fund your rehabilitating projects. Most banks may find you an inappropriate candidate for a loan, hard lenders will charge high interests and hidden fees and friends and family may not always be reliable sources of capital. With Fund That Flip, you can match with reliable sponsors with market experience and have your projects funded in a matter of days. The application process takes about five minutes and you can know in no time at all whether you have found the funding for your next flip. You will not be left hanging or strung along just to be informed that the funding is not available.

Real Crowd

Real Crowd is a platform where you can not only fund your real estate projects but also learn about investing intelligently. Through the platform, you can build relations with commercial real estate companies and invest alongside them in their investment opportunities.

The site is easy to navigate and work with. The open offers are displayed on the home page and are filtered by geography. The site claims to connect you directly to real estate professionals and help you build real equations instead of simply acting as the middleman. The site is also a platform for commercial real estate investments and not for single-family homes or house flipping businesses. The deal-size for an average investment opportunity on the site is just under $30 million. The funds have ranged in size from $15 million to $150 million.

You can create your account for free and browse the site for offers. Once you are on the site, you can compare exclusive offers and see which work for you. Once you have decided, the platform will handle all your document signing, storage and communications with the new investment partner.

ArborCrowd

ArborCrowd is a platform for you to get proprietary deals with experienced sponsors. A family of the Arbor Family of companies, ArborCrowd allows you to tap into the robust network of real estate industry relationships built by the larger company over 30 years. The platform vets more than 500 deals in a year and weeds the ones that do not meet its standards. Only about seven deals make it through the screening process, so you know ArborCrowd does a thorough job.

The platform also carries out thorough negotiations with the sponsors to get investors the best possible deals. The company commits its own capital when a property is purchased before launching the deal to the investors. This ensures that the deal closes as promised and investors are offered accurate information about the property.

If you want to invest, the platform presents only one deal at a time. This means that there is no time spent guessing which property the investors will eventually own. Interested investors can submit offers for specific deals. You can go through the past deals the platform has been involved with to get a sense of how it works.

Sharestates

Sharestates is a platform for real estate investors and borrowers. As a borrower, you will need to submit your loan application and get pre-approved. The platform will vet your application to see if you are a good borrower. Once you are approved, you could get your funds in your bank account in as little as four days. Once approved and depending on how you fared in the assessment, you can get loans at rates as low as 7%. There are, however, some portfolio requirements you will need to meet in order to become an accredited borrower on Sharestates. The platform also welcomes brokers on behalf clients and those looking to become lenders.

The platform is also great for individual investors, institutional investors and NPL investors. Each can access the marketplace for a range of loans and also get direct access to real estate investments with the online marketplace. Through crowdfunding, you can build a diverse portfolio. The process also has a minimal risk as the platform has a thorough vetting process for the deals that come its way, which includes automated prequalification, property underwriting, risk profiling and a background check on the borrower.

There is also a Sharestates redemption program which also offers a liquidity option to investors on certain terms and conditions.

 

Roofstock

Roofstock is a trusted platform with over $1 billion worth of completed transactions. As a member of Roofstock, you can access 40 markets across the United States and find the property that is the right fit for you. The site is very easy to navigate. You can browse through all the options for investment properties, regardless of where you live. The properties are certified and come with a 30-day money back guarantee so you can browse and invest remotely without worrying.

The process of buying is quite simple. You can use the different filters to search for the right property. Once you find something you seem to like, you can also analyze details about the property, like pictures, floor plans, 3D plans, neighborhood rating, local school scores, etc. Once you have locked in on the property you like, you can make an offer for free. If your offer is accepted, the platform will charge you a marketplace fee worth 0.5% of the contract price or $500, whichever happens to be higher.

Your offer can be at full list price or you can negotiate for a lower price. At the time of closing the deal, the platform will connect you with partners for lending, insurance and property management. If you are paying cash, closing can take 15 days. If you are financing, closing can take up to 30 days.

Zeus Crowdfunding

Zeus Crowdfunding is a great platform for lending or borrowing for the real estate market. There is a simple pre-approval form which will take you only about three minutes to complete. Once you submit the form, a Crowdfunding Specialist will contact you. If your form is approved and all the logistics work out, you can get funding for your project in as little as four days. You can also submit the form and view the real estate properties listed on the site without making any commitment. You can also get 100% funding for your projects so you do not necessarily need to whip out cash to close the deals. The properties are also available for viewing for 24 hours.

With Zeus Crowdfunding, you can become both, a borrower or a lender. The steps for becoming either are very easy and take hardly any time or effort.

First RealFund

First RealFund is a great platform to identify properties, sponsors, property managers etc for your real estate dreams. For sponsors and borrowers, the platform first has a vetting process for the capital request. Once it is approved, the crowdfunding period is about 15-30 days.

The site also has a page which clearly lists the current offerings. The platform offers a desired experience by identifying reliable deals, having transparent processes, great management of the transaction and collaborating with capable owners. You only need to create your login ID to get started.

Final Thoughts

Dabbling in the real estate market can be daunting if you do not have the right kind of guidance. But when you have the support of trusted lenders and other people in the crowd like you, you can go forward with a lot more confidence. See what matches your criteria from the names provided above and get started!

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Join the conversation on Matt's case studies at CleverLeverage.com as he discovers and tests new ways to earn more income, learn alternative investment strategies to net >10%, maintain good health, and turn passions into online businesses.

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