Real estate investing is no longer just for the ultra-wealthy. With digital platforms, anyone can invest in properties and loans for as little as $1.
In this 3200-word guide, we‘ll explore the top 11 digital real estate investing platforms helping everyday investors build wealth.
What is Digital Real Estate Investing?
Digital real estate investing platforms allow you to purchase "shares" of rental properties or invest in real estate loans. This gives you exposure to rental income and property appreciation without buying the entire asset.
Benefits include:
- Low minimums – Invest for as little as $1 on certain platforms
- Easy diversification – Invest small amounts into multiple properties
- Passive income – Collect rental dividends and interest from loans
- Professional management – Avoid landlord duties and hassles
- Fractional ownership – Pool money with others to buy top properties
Now let‘s examine the top real estate investing platforms available today.
1. Landa
Landa focuses on long-term residential and commercial real estate investments tailored to your risk tolerance.
Key features:
- Invest for as little as $5
- 8-12% average annual returns
- Monthly dividend payouts
- Liability protection from direct ownership
- Dedicated mobile app
Landa vets each property thoroughly, manages financing and maintenance, and lets you sell your shares online. While it targets modest but steady returns, real estate always brings some risk.
2. Lofty
Lofty.ai utilizes blockchain to offer fractional shares of rental properties for as low as $50.
What we like about Lofty:
- No lock-up periods to cash out
- 5-7% average annual returns
- New properties funded quickly
- Low fees, high transparency
Lofty focuses on long-term holds but lets you exit anytime. The blockchain backbone provides real-time transparency unparalleled in digital real estate investing. Just keep an eye on liquidity when selling.
3. Fundrise
Fundrise is one of the largest platforms with over $7 billion in assets.
Key details:
- Investments start at $10
- Historical returns of 7-11%
- Quarterly dividends and interest
- High fees for early withdrawals
- Excellent web and mobile apps
Fundrise offers strong returns through its diverse portfolio of debt and equity offerings focused on major metro markets. Just be prepared to hold for 5+ years.
4. Groundfloor
Groundfloor lets you invest in short-term real estate loans with terms from 6-24 months.
What Groundfloor provides:
- Loans start at $10
- Average 10%+ annual returns
- Automated investing tools
- Mix of risk/returns
- iOS and Android apps
Groundfloor focuses on fix-and-flip and new construction loans. The speed and automated tools help you fine-tune your portfolio‘s risk exposure. Historical returns are excellent but keep an eye on defaults.
5. Arrived Homes
Backed by Amazon‘s Jeff Bezos, Arrived acquires rental homes across the U.S. for investors to own fractionally.
Key features:
- Investments from $100-$20,000+ per home
- 300+ available properties
- 5-7% average annual returns
- Quarterly dividend payouts
- 5-year investment period
Arrived vets homes carefully then manages financing, tenants, and maintenance. The hands-off approach delivers stable returns but limits liquidity with multi-year holds.
6. CrowdStreet
CrowdStreet focuses on large-scale commercial properties and funds requiring $25K+ minimums.
What we like about CrowdStreet:
- High profile properties like malls and hotels
- 7-20% average annual returns
- Invest alongside experienced sponsors
- Low fees
- High transparency
CrowdStreet brings institutional-grade offerings to accredited investors. Expect multi-year holds and strong returns if you have ample capital to invest.
7. Roofstock
Roofstock allows you to buy individual rental properties or "shares" tracked via blockchain.
Key details:
- $5,000 minimum for fractional shares
- 25K minimum for whole properties
- Intelligent reporting and accounting
- 7-12% average annual returns
- Hands-off property management
Roofstock focuses on single-family rentals, vetting hundreds of properties across the U.S. Expect strong returns but less liquidity than peer-to-peer lending platforms.
8. PeerStreet
PeerStreet lets you invest in real estate debt, funding loans to other investors and builders.
What we like about PeerStreet:
- $1,000 minimum investment
- Historical returns of 6-12%
- Mix of loan terms
- Low fees
- Automated investing tools
PeerStreet focuses on short-term debt. This provides consistent income with less risk than equity plays. Just be prepared for borrower defaults based on market conditions.
9. Concreit
Concreit allows micro-investment in larger portfolios of real estate assets.
Key details:
- Investments start at $1
- 6.5%+ historical returns
- Weekly dividend payouts
- 0.85% annual fee
- Excellent mobile app
Concreit creates diversified funds of both debt and equity real estate holdings. The "set and forget" approach helps novice investors build long-term wealth. Just expect occasional underperformance.
10. DiversyFund
DiversyFund focuses on multi-family housing, utilizing technology to acquire and manage properties.
What we like about DiversyFund:
- $500 minimum investment
- 11%+ historical returns
- Dividend reinvestment programs
- Low 1.5% management fee
- Strong focus on wealth-building
DiversyFund doesn‘t offer a secondary market for liquidity. But the technology-focused approach should provide strong returns for buy-and-hold investors over time.
11. RealT
RealT utilizes blockchain to offer fractional shares of rental properties, providing global investment access.
Key details:
- Cryptocurrency-based platform
- Global property listings
- Historical returns around 2-5%
- Dividend payouts
- Excellent transparency features
As an early-stage crypto platform, returns currently lag traditional outlets. But innovation around fractional investing and blockchain accounting bodes well long term.
Choosing a Real Estate Investing Platform
Here are key factors to consider:
Minimum Investment – Match your starting budget to platform minimums, which range from $1 to $25K+.
Diversification – Opt for a platform offering a wide variety of investment types, locations, and risk profiles.
Transparency – Select transparent platforms revealing documents, fees, and track records upfront.
Fees – Pay attention to every fee – platform, transactional, early withdrawal, etc.
Track Record – Favor platforms with 5+ years of operating history and strong returns.
And as with any investment, consult a financial advisor and carefully consider risks before jumping in. While digital real estate investing opens the door to wealth-building, it carries risk like any other market.
Choose platforms matching your budget and goals. Stick to solid operators with history driving sustainable returns. And diversify across loans, equity plays, locations, and more to minimize risk.
Ready to Explore Digital Real Estate Investing?
As technology unlocks real estate investing for all, regular investors now have unprecedented access to wealth-building opportunities.
From just $1, you can now invest alongside billion-dollar funds and iconic properties previously available to only the ultra-rich.
Hopefully the platforms and tips above help you confidently wade into these powerful new waters. Just remember to invest deliberately, diversify thoughtfully, and never over-extend yourself financially.
Here‘s to profitable investing! Please leave your questions below or connect on Twitter @myhandle.
