Real estate has long been regarded as one of the best assets for building long-term wealth. However, the high capital required to invest in physical properties puts this out of reach for many Americans. Fortunately, real estate crowdfunding now allows accredited and non-accredited investors to earn passive income from real estate with much lower investment minimums.
Founded in 2010, Fundrise has financed over $7 billion in commercial real estate assets and has over 150,000 users. Investors can start with just $10 and earn dividend income from Fundrise’s portfolio of apartments, hotels, and commercial buildings across the country. The platform projects long-term returns between 7-12%.
With over 300,000 members, RealtyMogul offers one of the most popular real estate crowdfunding platforms. Investors can choose from public, non-traded REITs and private real estate funds, with minimums starting at $5,000. RealtyMogul vets each deal thoroughly and has achieved realized returns averaging 12-20% annually.
Groundfloor offers investments in short-term real estate loans, providing regular monthly interest payments. Groundfloor finances fix-and-flip projects, new construction, and more across 43 states. Investors can start with minimum investments as low as $10, with historical returns averaging 9-12% annually.
Real estate crowdfunding has allowed ordinary investors to earn passive income from an asset class previously only accessible to the ultra-wealthy. By pooling money with others to invest in vetted real estate projects, Americans can build significant wealth over time through cash flow and appreciation. Just be sure to only risk what you can afford to lose.
