Franchising, retail, business
20/02/2015
Real Estate Crowdfunding Platforms
It’s been a while since we last featured real estate crowdfunding. In that time, this section of the industry has truly bloomed. To learn more about this trend, revisit our article entitled Revolutionizing Real Estate through Crowdfunding, or peruse a few of our suggested real estate crowdfunding platforms below.
Fundrise
With only a $100 minimum, Fundrise gives people the chance to invest directly in their local communities. As a commercial real estate crowdfunding platform, it offers both public and private equity listings with terms of 1 to 5 years. Since the beginning of 2014, this portal has already garnered $10m from nearly 20,000 members, promoting a 12-14% return average.
Realty Mogul
Nearing the end of first quarter 2014, Realty Mogul pulled in over $14m. As a platform based in Los Angeles, projects primarily sprout up in the US. Interested investors may purchase shares of pre-vetted investment properties at a minimum of $5,000. Portal fees depend on the project type and offering.
CrowdBaron
For as little as 1%, you too can “become an international landlord.” CrowdBaron accepts projects and investors from all over the world, yielding a combined total of $2.06m in capital to date. Each listed project incurs a 4% start-up fee, plus an additional 1% annually. After closing, however, CrowdBaron does not take a portion of rental incomes.
Realty Shares
Like some of the above, investors can buy shares in residential, commercial, retail, and/or mixed-use real estate for as little as $5,000. To date, RealtyShares has “Underwritten and Diligenced over $3.6 Billion worth of Real Estate.” The site’s accredited members can access various types of listings including cash flow, equity, and debt. Active projects must reimburse the portal for “out-of-pocket” expenses such as legal, accounting, and compliance costs.
CrowdStreet
In addition to real estate, CrowdStreet also features equity and debt crowdfunding. In relation to the real estate, however, investors can get involved for as little as $5,000, no joining fees.
Prodigy Network
Branded as the “leader in real estate investing” in the US and Latin America, this portal has generated $8 billion since 2003. It is most famous for the Bogotá, Colombia skyscraper project, which closed at $171.8m. Minimum investments vary between $100,000 and $25,000. Non-US investors can purchases REPs to buy large-scale commercial developments as well.
IFunding
As one of America’s most popular real estate crowdfunding platforms, earning more than $25m to date, iFunding members can invest in multi-family, hospitality, office, and residential property projects for a minimum of $1,000. This real estate platform selects commercial listings for their investors after careful deliberation.