Best Real Estate Crowdfunding Platforms
Invest with one of the real estate crowdfunding platforms below:
What is real estate crowdfunding?
Real estate crowdfunding is used by real estate developers to raise money for projects. They typically do so by allowing a larger number of investors to each contribute a small amount of money to their project. This is typically made possible through big real estate crowdfunding platforms with thousands of investors.
Real estate crowdfunding platforms differ from other P2P platforms by not having focus on consumer loans, etc.
How does real estate crowdfunding work?
The crowdfunding process is usually ignited by a project owner that wants to get a project funded. They then go to a real estate crowdfunding platform and apply for a loan. If they are able to come up with enough collateral and are deemed as a serious project by the platform, the loan is then usually published for funding on their website.
From here, the investors on the platform will then be able to start reserving a part of the investment. This process can take anywhere from instantly to multiple months depending on the platform.
If the project is fully funded, the project owner will then receive the money funded by the investors. They can then go about completing their project according to their plan.
Investors will be paid back according to a payment plan. When a loan is paid back, the investor can then reinvest into other projects to make them a reality too. As a real estate crowdsourcing investor, you can play a big role in the development of the properties around the world.
Is real estate crowdfunding a good investment?
Real estate crowdfunding is a new form of investment that has only been around since the early 2010’s. When first introduced, this new investment opportunity sparked a lot of interest among investors:
According to Google Trends, real estate crowdfunding is especially popular in the United States, Canada, Malaysia, the United Kingdom, India, Italy, Vietnam, Argentina and Brazil.
Before this crowdfunding option became available, investors would have to buy properties directly, through stocks, or by investing REITs. But this is no longer the case, as real estate crowdfunding platforms have made it easier and more accessible than ever before to invest in property.
If you look at the return some of the top real estate crowdfunding platforms have been able to provide for investors, it has been quite significant and often over 10% annually.
Real estate crowdfunding returns
The return highly depends on which of the many real estate crowdfunding platforms you decide to use. This is due to the fact that all of the platforms have different approaches towards risk, market and many other factors. Some of the main factors that contribute to the return are:
- The loan-to-value of a project
- The geographical area the project is located in
- What type of project you are funding
- The overall risk of the project
A lot of European real estate crowdfunding platforms have consistently provided returns of around 15% and are typically also available for foreign investors. Oftentimes, these returns are really stable compared to stock investing as the project owners are paying back according to a payment plan. And even though there sometimes are defaults on platforms, the return doesn’t usually diminish due to the fact that real estate crowdsourcing most of the time includes a mortgage as collateral.
What are the best real estate crowdfunding platforms?
Where you are from plays a big role, if you are in the search of a real estate crowdfunding platform. Please refer to the the continent you are from in the following:
Europe is one of the areas where you will be able to find most options to invest in properties through crowdfunding. All the platforms found at the top of this page are available for European citizens. Most of them are actually also European real estate crowdfunding platforms.
The UK can sometimes differ a bit from the rest of Europe when it comes to the platforms that are available to investors. However, if you are from the UK, you can usually usually also invest on many of the real estate crowdfunding platforms in Europe.
North America is one of the areas with the most interest in real estate crowdsourcing.
If you are from the United States, it can sometimes be a bit difficult to invest in foreign real estate crowdfunding platforms due to heavy regulation. However, it is indeed possible to find a great real estate platform to invest on.
It is not in all South American countries where it is possible to invest on the platforms featured on our site. However, you might benefit from contacting the individual platform to hear if it is possible for you to invest.
If you are from Australia, you can also use most of the platforms featured on this website. A great starting point can be to take a look at Crowdestate.
Like in South America, is not in all Asian countries where it is possible to invest on the platforms featured on our site. However, you might benefit from contacting the individual platform to hear if it is possible for you to invest.
Only in some countries of Africa, it is possible to invest on real estate crowdfunding sites featured on our site. Try to reach out to the individual platform, if you are in doubt.