8 Top Real Estate Investing Apps – August 2023
8 Top Real Estate Investing Apps - August 2023
Investing in Real Estate Made Easy: The Best Real Estate Investing Apps
Investing in real estate doesn’t have to be difficult. If you’re looking to avoid the legwork of conducting extensive property research, finding tenants, and regularly maintaining the assets, there are several easier alternatives. Real estate investment trusts (REITs), electronic real estate funds, and non-traded REITs offer a convenient way to invest in real estate without the hassle. Additionally, real estate crowdfunding platforms provide low-cost options to add residential and commercial properties to your investment portfolio.
The Best Real Estate Investing Apps
When it comes to real estate investing apps, there are several options to choose from. Each app offers its own unique features and benefits that cater to different investment preferences. Here are some of the best real estate investing apps as hand-picked by Insider’s editors:
- Fundrise: Best for non-accredited investors
- DiversyFund: Best robo-advisor for non-accredited investors
- Roofstock: Best for active real estate investing
- RealtyMogul: Best for commercial real estate
- EquityMultiple: Best for accredited investors
- CrowdStreet: Best for accredited investors runner-up
- Yieldstreet: Best for real estate and alternative investments
- Groundfloor: Best for short-term real estate investments
These apps vary in terms of account minimums, management fees, and investment options, so it’s important to choose one that aligns with your specific needs and goals. While some apps cater to all investors, others may only accept accredited investors with a net worth of at least $1 million.
How to Invest in Real Estate Online
Real estate investing can be done online through two main methods: real estate investment trusts (REITs) and crowdfunding platforms.
REITs are companies that own, operate, and finance real estate ventures. Similar to mutual funds and ETFs, REITs allow users to earn a share of the income from multiple properties. There are three main types of REITs: mortgage REITs, equity REITs, and hybrid REITs.
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On the other hand, crowdfunding platforms allow a group of individuals to pool funds online and invest in real estate. These funds are used to purchase properties or fund their development. While some platforms are only available to accredited investors, there are also options like Groundfloor and Fundrise that accept both accredited and non-accredited investors.
When investing in real estate through crowdfunding, it’s important to note that the investments may not be as liquid as other securities. Crowdfunding typically requires a longer time horizon, usually at least five years, before becoming profitable.
Real Estate Investing for Beginners
Real estate investments are a great way to diversify your investment portfolio. Whether you prefer a hands-on or hands-off approach, there are various strategies to consider. Here are some common methods for investing in real estate:
- Real estate investment trusts (REITs)
- Real estate limited partnerships (RELP)
- Crowdfunding platforms
- Flipping houses
- Becoming a landlord
- Investing in your own house
If you enjoy the process of buying and managing properties, flipping houses or becoming a landlord may be suitable options. However, for those who prefer a more passive approach, investing in REITs, limited partnerships, or crowdfunding platforms can provide exposure to real estate without the hassle of directly purchasing properties.
It’s important to remember that real estate investments are typically long-term commitments, so financial preparedness and conducting thorough research are key. Familiarize yourself with the location and history of the properties you’re considering to make informed investment decisions.
Frequently Asked Questions about Real Estate Investing Apps
Fundrise
Why it stands out: Fundrise is a real estate investing app that offers eREITs, venture funds, and Fundrise IPOs. It has a low minimum investment requirement of $10 and caters to both accredited and non-accredited investors. Fundrise also provides auto-investing features, dividend reinvesting, and referral discounts.
What to look out for: Real estate investments can be illiquid, and Fundrise requires a minimum investment term of five years. If you’re unable to leave your money invested for that duration, Fundrise may not be the best option for you.
DiversyFund
Why it stands out: DiversyFund is a robo-advisor that manages real estate investments. It accepts both accredited and non-accredited investors, although it has a higher minimum investment requirement of $500. DiversyFund exclusively offers its own Growth REIT, which focuses on multifamily properties.
What to look out for: Investments with DiversyFund have a minimum term of five years, and you won’t be able to withdraw or cash out until the investment term ends. DiversyFund only offers REITs as investment options, limiting diversification opportunities.
Roofstock
Why it stands out: Roofstock allows investors to buy, sell, and manage single-family rental properties. It assigns a property manager to each rental property, ensuring a hassle-free experience for investors. Roofstock’s minimum investment requirement varies, and it offers free financial management software.
What to look out for: Unlike REITs or other real estate funds, Roofstock involves purchasing and making down payments on actual properties, which can be more expensive. Roofstock also currently lacks mobile apps, limiting accessibility.
RealtyMogul
Why it stands out: RealtyMogul enables both accredited and non-accredited investors to invest in commercial real estate. It offers investment options in REITs as well as individual properties through private placements. RealtyMogul’s average annual returns range from 5.49% to 19.17%, depending on the investment duration.
What to look out for: RealtyMogul requires a minimum investment of $5,000 for REITs and higher minimums ranging from $25,000 to $50,000 for individual properties. While it offers automated investment management, it does not offer investment options beyond real estate.
EquityMultiple
Why it stands out: EquityMultiple caters to accredited investors and offers a wide variety of assets, including commercial real estate, equity, preferred equity, and senior debt. It provides different investment approaches with varying minimum investment requirements and time horizons.
What to look out for: EquityMultiple exclusively accepts accredited investors with a net worth of at least $1 million. Investment minimums can range from $5,000 to $30,000, so it may not be accessible for all investors.
CrowdStreet
Why it stands out: CrowdStreet is specifically designed for accredited investors, allowing them to invest in commercial real estate through diversified funds, individual deals, or tailored portfolios. It charges no fees for joining the platform or accessing real estate opportunities.
What to look out for: CrowdStreet is only available to accredited investors, and it requires a minimum investment ranging from $25,000 to $250,000. Investments typically have a minimum holding period of three to five years.
Yieldstreet
Why it stands out: Yieldstreet offers real estate and alternative investments to accredited investors, with a minimum investment requirement of $500. It provides access to various alternative asset types, including real estate, legal finance, marine finance, and more. Yieldstreet offers flexible investment terms ranging from six months to five years.
What to look out for: Yieldstreet primarily caters to accredited investors with a net worth of at least $1 million. Certain investment options, such as IRAs, come with additional fees ranging from $299 to $399 per year.
Groundfloor
Why it stands out: Groundfloor is a wealthtech platform that offers short-term real estate debt investments through SEC-qualified Limited Recourse Obligations (LROs) and notes. It accepts both accredited and non-accredited investors, with a minimum investment requirement of $1,000. Groundfloor provides self-directed and automatic investing features, as well as a proprietary loan-grading algorithm.
What to look out for: While Groundfloor doesn’t charge management fees, it does have service fees on loans. Additional costs include a $1,250 closing fee and a $495 loan application fee.
Conclusion
Investing in real estate has never been easier with the availability of real estate investing apps and crowdfunding platforms. These innovative solutions allow investors to diversify their portfolios and generate income through real estate without the traditional challenges of property ownership. Whether you’re a hands-on investor or prefer a more passive approach, there’s an app that suits your needs.
It’s important to carefully consider each app’s features, account minimums, and investment options before making a decision. By doing thorough research and choosing the right app, you can embark on your real estate investing journey with confidence.
At Personal Finance Insider, we’ve reviewed numerous real estate investing apps to help you make informed decisions about your money. Our rating methodology focuses on the benefits and limitations of each platform, ensuring that you have the necessary information to choose the best option for your financial goals. Investing in real estate is an exciting opportunity, and these apps can help you make the most of it.
