6 Best Real Estate Crowdfunding Platforms 2022
Want to invest in real estate? Here are the best European real estate crowdfunding platforms to invest with:
Find the best real estate crowdfunding platforms in Europe and the rest of the world
Do you want to find the best real estate crowdfunding platforms? Then you’ve come to the right place. At the top of this page, we have collected some of the very best real estate crowdfunding sites for investors from around the world.
We have found, invested in, and reviewed multiple platforms throughout the past years. So in the overview, you will be able to find what we think are the current top real estate crowdfunding platforms.
In the overview, you will be able to find a platform for nearly all jurisdictions. So whether you are looking for the best real estate crowdfunding platforms in Europe, the United States, Canada, Australia, Asia, or even Africa you will probably be able to find a platform that suits your investment goals.
In the following, you will find a platform guide that is divided by continent. Please refer to the continent you are currently living in:
If you are from Europe, you are in luck. Most of the platforms in the overview are in fact European crowdfunding platforms, and you will actually be able to invest in exactly the platform you desire. Most of the platforms also use the Euro as their main currency, which means that you won’t have to deal with currency risk.
If you are in doubt about which platform you want to invest in, we recommend that you compare the platforms in regards to their features, and what type of collateral they offer for investors. You will maybe benefit from reading the review we have made for each individual European real estate crowdfunding platform.
In order to find a decent real estate investment platform, simply go to the overview.
If you are from the US, investing in real estate crowdfunding can be a bit tricky as a lot of platforms do not allow investors from the United States. However, it is also possible for you to find a platform to invest in. Try for example to take a look at Bulkestate.
If you are from Canada, finding a platform to invest in should be fairly easy. Most of the platforms in the overview are available to you. To check them out, click here.
Investors from South America can also invest via many of the European real estate crowdfunding sites found in the overview. Try for example to take a look at EvoEstate.
Are you from down under and want to do real estate crowdfunding? No problem. Most of the platforms will be available to you. However, you must be aware, that most of the investments are dealt with in Euro as it is mostly platforms from Europe in the overview. This involves a currency risk which can both be an advantage and a disadvantage for you as an investor.
If you are interested in getting investing at one of the investment websites, you could for example take a closer look at Crowdestate.
People from Africa that are looking to invest in real estate crowdfunding can also do so. A good starting point could be to check out EvoEstate.
If you are from Asia, you can also invest in some of the best European real estate crowdfunding platforms you can find on this page. However, please be aware most investments are dealt with in Euro. If you are interested, a great starting point could be to take a closer look at EvoEstate.
What is real estate crowdfunding?
Real estate crowdfunding is a funding method used by real estate developers to raise money for projects. They do so by letting multiple investors contribute to the funding. Usually, this is made possible by large real estate crowdfunding websites with thousands of investors.
Opposed to normal P2P lending sites, most real estate crowdfunding platforms only focus on properties.
How does real estate crowdfunding work?
Usually, real estate crowdfunding starts with project owners looking to get funding for a project. The project owner then goes to a real estate crowdfunding platform and applies for funding. If he has a serious project that can benefit investors and he is able to come up with enough collateral, the project is then put up for funding on the investment site.
It is then possible for investors to invest in the project. Oftentimes investors will have to reserve a part of the investment and wait until the project is fully funded.
If the project gets fully funded, investors will be paid back according to a premade payment plan. When paid back, investors can then go ahead and invest in new projects.
Pros and cons of real estate crowdfunding
In the following we will go over some of the pros and cons of real estate crowdfunding:
- Historical high returns
- No management of properties
- Requires little capital to get started
- Easy to diversify
- Platform risk
- Highly correlated with real estate markets
- Uncertainty about how the investments will perform in a real estate crash
Is real estate crowdfunding a good investment?
Real estate crowdfunding first really started to gain traction in the early 2010s. Before this investors could only invest in properties directly, through REITs or other exchange-listed products.
In the first 10 years of real estate crowdfunding, most investors have gained massive returns and it has not been unusual to see returns of over 10% annually. However, as the type of crowdfunding is highly dependent on property values, it also involves some risks that are worth considering.