Best real estate crowdfunding sites for 2023

Why we chose Fundrise: With a $10 funding requirement and low annual fees, Fundrise is undeniably one of the best real estate crowdfunding sites. It lets you invest in income-generating real estate to earn quarterly dividends, and over 300,000 investors currently use this crowdfunding platform.

There's also a secondary marketplace for shares which isn't something you get with every crowdfunding site. However, you have to hold shares for at least five years if you want to avoid an early-sale penalty.

Fees: Investors pay a total of 1% in annual management fees.

Why we chose RealtyMogul: RealtyMogul provides another easy way to invest in individual real estate deals or in various REITs. And the $5,000 investing minimum is much lower, and its REITs are open to non-accredited investors as well.

RealtyMogul's REITs are one of its main selling points. It has an Income REIT as well as an Apartment Growth REIT that investors can explore.

Fees: Annual management fees typically range from 1% to 1.25% for various deals. You can also pay additional REIT fees.

Why we chose Streitwise: If you're looking for dividend income, Streitwise is one of the best real estate crowdfunding sites you can use. It offers private REITs starting at a $5,000 investing minimum and has paid out 9.2% in annual dividends on average since its inception in 2017.

Streitwise is open to non-accredited investors as well, which is an advantage. You get paid quarterly dividends, and overall, Streitwise is a popular inflation investment since you can potentially hedge against inflation while generating quarterly income.

Fees: You pay 2% in annual management fees with Streitwise

Why we chose EquityMultiple: Another leading company in the real estate crowdfunding space is EquityMultiple. As for why it's made our list, EquityMultiple has a range of equity, preferred equity, and debt-based deals you can choose from. It also targets high-yield projects that are professionally managed, and according to its website, it's seen a historical net rate of return of 18.7%.

There's a $5,000 investing minimum, and you have to be accredited. But many deals have short target hold periods as well, so it could be a viable short-term investment which isn't always viable in real estate.

Fees: You typically pay 0.5% to 1.5% annually for equity investments and around 1% for debt investments. It also takes 10% of all profits.

Why we chose Roofstock: If you've ever wanted to become a landlord, Roofstock could be the solution you're looking for. It lets you invest in single-family rental properties whereas most crowdfunding sites focus on commercial real estate or multi-family homes. This lets you invest in income-generating rentals, and you can even have Roofstock manage the property for you with its network of property managers to keep things passive.

There's no minimum investment or accreditation requirements. However, financing terms likely require a decently sized down payment in the 20% to 30% range, so keep this in mind.

Fees: Roofstock charges $500 or 0.5% for investors, whichever is higher.

Why we chose Origin Investments: If you want to invest $50,000 or more in private real estate funds, Origin Investments is one of your best options. This real estate crowdfunding platform is open to accredited investors and has a variety of funds, including growth funds, income-generating funds, and debt-based funds.

According to its website, Origin Investments has seen an average of 24% gross internal rate of return (IRR). If you're looking for various tax-advantaged real estate funds to invest in and are accredited, Origin Investments is worth considering.

Fees: Origin Investment charges a one-time administrative fee of up to 2%, management fee of 1% to 2%, and a 0.50% one-time acquisition fee. How much you pay in administrative fees depends on how much you invest.

Why we chose Arrived Homes: Despite being a newer player in the real estate crowdfunding world, Arrived Homes had to make our list of the top sites. That's because it lets anyone invest in income-generating residential real estate starting with just $100. It's also completely passive since Arrived Homes works with contractors and property managers to handle rental units.

We really like Arrived Homes since it also lets renters invest in their own homes to become co-owners. This means tenants often have a vested interest in maintaining properties, leading to fewer repair costs. To date, the platform has paid 3.2% to 7.2% in annual dividends. However, this doesn't factor in potential property appreciation since the company only began in 2019.

Fees: You pay 1% in annual management fees as an Arrived Homes investor. There's also a one-time sourcing fee that Arrived Homes charges, and listings outline what this fee is.