I am excited about real estate crowdfunding! That said, as someone who has been investing in commercial real estate for 15+ years, my eyes are wide open to the risks and potential rewards. What I see when surfing the glossy home pages of crowdfunding websites are phrases that accentuate the potential for high, hassle-free returns. What I’ve seen while making hands-on real estate investments has been anything but hassle-free and the returns have varied wildly from 300% annualized to total equity loss.
I’ve been following real estate crowdfunding for the past year have kept a running list of companies and worthwhile articles as I find them. Have you invested in a crowdfunded deal? Do you know about other real estate crowdfunding startups that are not on my list? I’d love to hear from you! Just comment or email me through the contact page here on our website.
Update December 2014: My first crowdfunding investment paid off: 10% annualized return, 6 month holding period. What is interesting about this exit (a residential remodel) is that the promoter did not sell the home. He just decided to pay off the loan out of personal funds rather than hit up his loan syndicate for a renewal.
Companies:
Fundrise
Focus: Condo, Residential, Hotel, Senior Housing, Affordable Housing, Office, Retail, Multi-Family and Mixed-Use.
Minimum investment: $100.
Market: California, Colorado, Connecticut, District of Columbia, Georgia, Illinois, Iowa, Maryland, Massachusetts, Michigan, Nebraska, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Washington.
RealtyShares
Focus: Residential, Commercial, Retail and Mixed use.
Minimum Investment: $5,000
Markets: Operates in California but likely National.
RealCrowd
Focus: All Commercial Real Estate.
Minimum Investment: $25,000
Markets: National
RealtyMogul
Focus: Multifamily, Office, Retail, Industrial, Self- Storage, Single-Family, Mobile Home Park, Hospitality and Ground-Up Development.
Minimum Investment: $10,000
Markets: National
CrowdStreet
Focus: Multifamily Apartments, Retail, Office, Industrial and Land Opportunities.
Minimum Investment: $10,000
Market: National
iFunding
Focus: Commercial Retail, Single- Family Residential.
Minimum Investment: Generally around 5,000 but the minimum investments are different for each investment and set by the company.
Market: National
Patch of Land
Focus: All Commercial Real Estate Projects.
Minimum Investment: $5,000
Market: Every State Except: Nevada, Arizona, San- Diego, Minnesota, Vermont.
GroundBreaker
Focus: Residential, Commercial, Mixed-Use, Acquisitions, Refinancing, Development.
Minimum Investment: $5,000
Market: National
OpenAvenue
Focus: Multi-Family.
Minimum Investment: $10,000
Market: Canada
GroundFloor
Focus: Single- Family, Multi-Family.
Minimum Investment: $10
Market: Georgia Residents Only
CrowdVested
Focus: Residential, Residential Renovation and Retail Revitalization.
Minimum Investment: $500
Market: Georgia Residents Only
ProdigyNetwork
Focus: Multi-Family, Hospitality.
Minimum Investment: $10,000
Market: New York City but possible expansions in near future
BlackHawk
Focus: Lends to Companies, Individuals, And Partnerships In Commercial Real Estate.
Minimum Investment: $25,000-50,000
Market: National
American Home Owner Preservation
Focus: Single-Family Homes.
Minimum Investment: $10,000
Market: National
Articles:
Should Crowdfunding Sites Do More to Vet Projects? – WSJ.
InvestGeorgia Update on Crowdfunding
