Top 5 Real Estate Crowdfunding Companies in the United States

Marko Leon
September 29, 2021
Crowdfunding Companies in the United States

Crowdfunding Companies in the United States is a brilliant way to get the requisite finances for projects.

This is what motivated us to create the Top 5 Real Estate Crowdfunding Companies in the United States. The concept is simple enough – create a project, garner interest in it, put it up for investment, and watch your idea blossom to life. Whether you offer a reward, equity, or debt crowdfunding, both investors and creators can profit immensely.

The beauty of crowdfunding is that anyone’s project can take off. Have you ever felt like your inventions and ideas can become wildly successful, but don’t know how to start? Well, crowdfunding has changed the way project financing functions. The process is no longer arduous and dotted with stumbling blocks. It will surprise you how many people invest in creative, outside-the-box ideas. Don’t believe us? Just look at the list of most successful crowdfunding projects. 

Why Real Estate Crowdfunding?

Society taught us that real estate is never a bad investment, so why not join the trend of crowdfunding? In essence, crowdfunding has been around in the world of real estate for decades. Conglomerates have risen and folded in that time, with some gaining sterling reputations. The world of crowdfunding isn’t without its risks. Therefore, it’s essential to keep on track with all the information about the Top Real Estate Crowdfunding Companies in the United States.

Top 5 Real Estate Crowdfunding Companies in the United States

List of the crowdfunding companies in the US we’ll be analyzing today:

1. CrowdStreet

2. Fundrise

3. Realty Mogul

4. Streitwise

5. Patch of Land

1. CrowdStreet

CrowdStreet Homepage

Description: With real estate being the third-biggest asset class in the United States, the founders of CrowdStreet saw an opportunity and seized it. Steen and Powderly realized the importance of diversification, stopped relying on public equities, and got into crowdfunding. Since then, they have developed one of the best crowdfunding companies in American markets, and given investors another avenue towards real-estate acquisition. Moreover, in our Top Real Estate Crowdfunding Companies in the United States Guide we examine:

Unique Features of Crowdfunding Companies in the United States

  • Offer a wide array of educational resources 
  • For accredited investors only 
  • Longer team investments only (3 to 7 years approximately)

Pros:

  • Emphasize diversification 
  • Operate in a transparent manner
  • Over 1.9 billion dollars USD invested with CrowdStreet
  • Promise a seamless combination of real estate expertise and technological assistance

Cons: 

  • Account minimums are higher than average 
  • No mobile app provided

2. Fundrise

Fundrise Homepage

Description: In brief, with almost a decade in the relatively young crowdfunding industry, Fundrise is an established player and can be easily added to the Top Real Estate Crowdfunding Companies in the United States. The company operates on the premise that, generally, private real estate brings greater profits to investment portfolios. Their strategies balance risk with reward to find ideal solutions for Fundrise’s users. Long-term trends in demographics have been used to invest more than 5 billion in real estate so far.      

Unique Features of Crowdfunding Companies in the United States

  • More than 362 projects completed or under development
  • As your investment grows, so will your account level, giving you more and more options 
  • Plans customized for each customer’s needs, desires, and budget 

Pros:

  • Great variety when it comes to strategies 
  • Educational material provided   

Cons:

  • Three types of hidden fees apply
  • Illiquid investments make withdrawals much harder than liquid assets 
  • Not the right choice for short-term investments (5 year average on returns) 

3. Realty Mogul

Realty Mogul Homepage

Description: Diversify, invest and gain – that’s the simple but effective motto that Realty Mogul operates by. Nevertheless, this company gets you into the world beyond stocks and bonds and shows you how creative and thrilling the world of crowdfunding investment can be. They offer exclusive access to a wide range of properties, transparency is what they strive towards, and none but the best of partners are brought into the fold. Are you one of them? Don’t wait, find out and see why they took a place in our Top Real Estate Crowdfunding Companies in the United States Guide.

Unique Features of Crowdfunding Companies in the United States: 

  • Have put in place an auto-invest feature 
  • Transparency is a priority at all levels 
  • Offer a wealth of passive income opportunities 

Pros:

  • Average minimal investments of $ 25,000 are well below the industry standard
  • Lower-risk investment options are prevalent 
  • Non-accredited investors can be involved 

Cons:

  • Fees aren’t aligned with REIT investors 
  • The 5,000 $ fee for REIT’s is on the higher side of the scale
  • Where part of a high-profile case when investors lost out because the development of a hotel went wrong

4. Streitwise

Streitwise Homepage

Description: Since 2017, Streitwise has been able to provide its clientele with alternative but profitable investment methods. Evidently, Crowdfunding is the future, and they’re riding its wave of popularity to the bank, hopefully along with you. Through the 17 quarters that Streitwise has been in business, they have posted an average return of 9.44% in terms of passive cash flow. These are impressive figures, and ones that say a lot about Streitwise as a crowdfunding investment opportunity. Top Real Estate Crowdfunding Companies in the United States Guide shows why Streitwise is such a great company to invest in.

Unique Features of Crowdfunding Companies in the United States

  • The location quality will permit the company to weather periods such as the Covid pandemic better than most, which they’ve already proven during 2020. 
  • In fact, higher dividends provided on REIT’s, ones not available on the public market 
  • The company has an ambitious plan in place to revitalize secondary urban and suburban markets post-pandemic

Pros:

  • Firstly, they are open to all kinds of investors, including foreign and non-accredited parties.
  • Secondly, they are relatively low minimum investments 
  • Tax advantages are numerous when using REIT’s 
  • Long-term investment is recommended, but leaving positions is more straightforward than with many rivals (you will be able to sell shares after 360 days)

Cons:

  • Their methodology may be too complex for some users 
  • In fact, they are currently offering only one REIT
  • Non-accredited investors may invest only 10% of either their own or joint net-worth
  • One-time fees are paid to the Sponsor at 3% of the total. 

5. Patch of Land 

Patch of Land Homepage

Description: In short, Patch of Land is a loan company that looks to help investors grow their investment portfolios. Finally, a simple 6 step process will get you started, and the returns could be fantastic. Of course, patience, like in most things, is required. For example, they use the latest tech to process data and more accurately assess risk and viability. Regardless they made it in our Top Real Estate Crowdfunding Companies in the United States Guide and this is why.

Unique Features of Crowdfunding Companies in the United States:

  • Their system more accurately assesses risk assignment and the viability of projects. 
  • In their words, the company “ originates, underwrites and services loans, offering these back to accredited investors through Crowdfunding exemptions of the JOBS Act and SEC regulations: Title II, Reg D 506(c).

Pros:

  • The Fritton brothers have noble aspirations to help those affected by the house market crash and improve homeowners’ rights. 
  • Transparency is a priority.
  • Ease of transaction and low minimums are guaranteed 
  • They are an alternative to traditional lending 

Cons:

  •  Multiple concerns were raised by clients 
  • Worries about not hearing back from agents after paying 2,200 initial fees about loans
  • A class-action lawsuit by Clients who raised multiple concerns is being considered if enough concerned clients come together

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