If you want exposure to property without fixing leaky faucets or managing tenants, real estate crowdfunding platforms can deliver truly passive access to debt and equity deals. In plain terms: a platform matches your capital to a diversified real estate fund or to specific projects; you collect distributions while the sponsor does the heavy lifting. This guide is educational, not advice; real estate is risky, illiquid, and tax-complex—consult a licensed financial or tax professional for decisions tailored to you.
Quick answer: real estate crowdfunding lets you invest small amounts into professionally managed properties or notes via online platforms. It can be more passive than owning rentals outright, but you trade control and liquidity for convenience.
Fast-start mini plan: pick your investor status (accredited or not), set a budget and holding period, shortlist platforms that match those constraints, compare minimums/fees/liquidity, read each offering circular, and diversify across sponsors and deal types.
What you’ll get here: an apples-to-apples look at 12 platforms, with minimums, investor eligibility, typical structures, liquidity, tax forms, and a realistic “numbers & guardrails” snapshot so you can choose with confidence.
1. Fundrise
Fundrise is built for accessibility and automation: you can start with a tiny minimum and funnel money into diversified eREITs and private real estate funds managed in-house. That setup suits passive investors who want to dollar-cost average and see a simple dashboard without having to underwrite individual properties. Importantly, it’s open to non-accredited investors and offers a range of plans aligned to income, balanced, or growth goals. The trade-offs are limited control over underlying assets and early redemption restrictions that can tighten when markets are stressed. Minimums are notably low for taxable accounts, with a higher bar for IRA accounts.
Why it’s attractive for passive investors
- Hands-off funds with auto-reinvest options.
- Goal-based portfolios (income/balanced/growth) and straightforward app UX.
- Accepts non-accredited investors; ideal for small recurring contributions.
Numbers & guardrails
- Minimums: $10 taxable; higher for IRAs.
- Eligibility: open to non-accredited.
- Liquidity: early redemption programs exist but can be limited; assume multi-year holding. (Program terms vary by fund.)
- Taxes: funds generally issue 1099-DIV if structured as REITs.
Mini case
If you allocate $2,500 and the fund yields 4% in distributions, you’d see about $100 annually before taxes and any fund-level fees. A small quarterly auto-invest of $100 can raise exposure while smoothing entry points.
Bottom line: Fundrise is a low-friction on-ramp to private real estate exposure with minimal setup and broad availability, best for long-term, small-to-medium allocations rather than tactical flips.
2. RealtyMogul
RealtyMogul offers two in-house MogulREITs open to all investors, plus individual private placements for accredited investors. The REITs carry a modest minimum and aim for either income or growth; direct deals typically require higher checks and deeper underwriting. For passive investors, the REITs are the draw: diversified pools, professional management, and predictable account onboarding. Expect multi-year horizons and remember that non-traded REIT shares are not listed on an exchange, so liquidity is limited to programmatic repurchase windows.
How it works for you
- Two REIT options: Income vs. Apartment Growth (growth-oriented).
- Minimums: REITs from $5,000; private deals often $25,000–$35,000+.
- Who can invest: REITs open to non-accredited; individual deals for accredited only.
Numbers & guardrails
- Liquidity: non-traded REIT with limited redemption programs; plan to hold multiple years.
- Fees: vary by product; private placements differ by sponsor. NerdWallet
- Taxes: REIT investors typically receive 1099-DIV.
Mini case
A $5,000 allocation to an income-oriented REIT targeting, say, mid-single-digit distributions could translate to roughly $250–$350 in annual cash flow before tax, assuming distributions occur as intended and fees are netted at the fund level.
Bottom line: If you want a professionally managed REIT with a modest minimum—and you’re okay with limited liquidity—the MogulREITs are a clean, passive option; accredited investors can layer direct deals if they want more control.
3. CrowdStreet
CrowdStreet is a marketplace designed primarily for accredited investors to invest in individual commercial real estate projects and curated funds. It offers deep deal rooms, sponsor webinars, and detailed underwriting materials. The minimums are higher than consumer-oriented apps, reflecting institutional-style private placements. While it isn’t “set-and-forget” in the way a REIT fund is, you can still be passive by selecting diversified funds or by allocating across several sponsors and letting them execute. Expect long hold periods and limited liquidity; this platform suits investors comfortable reading offering documents and tolerating illiquidity.
Keys for passive investors
- Access to sponsor-led deals and diversified funds with robust materials.
- Typical minimums around five figures, often near $25,000.
Numbers & guardrails
- Eligibility: accredited investors only.
- Minimums: frequently ~$25,000; can be higher per deal.
- Fees: depend on each sponsor/fund; read each PPM carefully.
- Taxes: many single-asset SPVs issue K-1s.
Mini case
Diversifying $100,000 across four deals at $25,000 each spreads manager and asset risk. If two deals pay current yield and two are back-ended, your overall cash flow may be lumpy—plan reserves accordingly.
Bottom line: Best for accredited investors seeking direct, institutional-style exposure and willing to shoulder underwriting and illiquidity in exchange for potentially higher, deal-specific outcomes.
4. EquityMultiple
EquityMultiple focuses on private-market commercial real estate for accredited investors, with product “tracks” that map to different goals: short-term notes for cash management, income-focused credit or preferred equity (“Earn”), and upside-oriented equity (“Grow”). Minimums often start in the low-to-mid five figures on many offerings, though the platform markets a headline minimum for some products. For passive investors, the ability to choose a track and let managers execute can be appealing, but note that underwriting remains deal-by-deal and that liquidity is limited outside of short-term notes.
Why consider it
- Clear product lanes (cash-like notes, income, growth) under one roof. EquityMultiple
- Accredited-only platform with professional sponsor network.
Numbers & guardrails
- Minimums: marketed “start with $5k,” but individual offerings commonly $10,000–$30,000+.
- Eligibility: accredited investors.
- Fees: vary by product; income/growth typically include servicing or monitoring fees. Business Insider
- Taxes: expect K-1s for partnership interests; notes may be 1099-INT.
Mini case
Parking $25,000 in short-term notes while legging $50,000 into three preferred-equity positions staggers liquidity and income—useful if you like steady coupons while waiting for equity exits.
Bottom line: A flexible, accredited-only menu for passive exposure across the capital stack—just be clear on fees, deal terms, and your liquidity ladder.
5. Groundfloor
Groundfloor lets you invest in short-term, property-backed real estate loans with very low per-loan minimums. It stands out by allowing non-accredited investors to pick individual notes or automate across many loans. For passive investors, that means you can build a diversified ladder of 6–12-month notes without managing properties. Risk centers on borrower performance and concentration—defaults happen—so broad diversification and a sensible allocation size are crucial. The platform also markets separate, higher-minimum note products; focus on the per-loan marketplace if you’re optimizing for low entry points.
How it fits
- Choose individual short-term notes or auto-invest; non-accredited participation allowed.
- Per-loan minimums are small, enabling wide spread across projects.
Numbers & guardrails
- Minimums: as low as $10 per loan in the LRO marketplace; separate corporate “Notes” products have higher minimums.
- Eligibility: open to accredited and non-accredited. Groundfloor
- Liquidity: loans run to maturity; no true secondary market.
- Taxes: interest income taxed as ordinary income (1099-INT).
Mini case
Put $1,000 across 100 loans at $10 each. If 92 repay on time at a stated coupon and 8 are delayed or default, outcomes can still be acceptable—but variance is real. Diversify aggressively and reinvest proceeds.
Bottom line: A practical way to build a passive, short-term real estate debt ladder with tiny increments—great for diversification discipline, but expect uneven outcomes and no liquidity before maturity.
6. Arrived
Arrived offers fractional ownership of rental homes and funds, with approachable minimums and a retail-friendly interface. Passive investors can buy shares in individual homes or a pooled fund and receive rental income distributions while property management is handled for you. The platform also provides limited liquidity avenues after a short initial hold via redemptions or secondary functionality, but treat these as not guaranteed. Minimums are low and well-suited to a “many small positions” approach across markets and home types.
What stands out
- Low minimums for fractional shares and property funds.
- Option to request redemptions or sell shares after a short minimum hold, subject to program terms.
- Open to non-accredited investors.
Numbers & guardrails
- Minimums: around $100 on offerings.
- Liquidity: redemption/secondary features after a minimum hold; always read the current circular for limits and discounts.
- Taxes: single-property SPVs often issue K-1s; fund structures may issue 1099-DIV—confirm per offering.
Mini case
Deploy $1,200 across 12 homes in different metros. Even if two assets underperform, the remaining ten can smooth cash flows. Reinvest small distributions to compound exposure.
Bottom line: Friendly entry point to SFR exposure with property-level choice—best used as many small slices rather than a single large bet.
7. Ark7
Ark7 enables share-by-share investing in rental properties with very low per-share minimums. It caters to passive investors who want recurring rental income without landlording responsibilities. Many offerings are filed under exemptions designed for broader retail access; however, some restricted areas of the site or certain offerings may require accredited status. Liquidity tools vary by offering (including a trading market for certain shares), so read each circular. The headline draw is the ultra-low minimum per share, which makes granular diversification easy.
Why it’s compelling
- Low per-share pricing promotes wide diversification across properties.
- Clear, app-based experience; monthly cashflow potential from stabilized rentals.
- Certain features may be limited to specific investor types per offering rules.
Numbers & guardrails
- Minimums: shares starting around $20.
- Eligibility: retail access for many offerings; confirm whether any given deal has accredited-only restrictions in the documents.
- Liquidity: may include secondary functionality on some shares; not guaranteed.
- Taxes: expect K-1 for pass-through entities; verify per deal.
Mini case
Buying 50 shares at $20 each across four properties ($1,000 total) can create early diversification. If one market undergoes a vacancy spike, the others help stabilize monthly cash yield.
Bottom line: A micro-minimum path to rental exposure—great for building position count; just verify each deal’s eligibility, fees, and liquidity mechanics.
8. Streitwise
Streitwise operates a non-traded commercial real estate REIT that accepts both accredited and non-accredited investors, with a relatively approachable minimum compared with traditional private real estate funds. The value prop for passive investors is straightforward: professional management, recurring dividends, and simple onboarding. As with most non-traded REITs, expect limited liquidity windows and multi-year horizons. The platform provides visibility into dividend history and positioning, but future results are uncertain.
How it helps passive investors
- Open to all investor types; no property management chores.
- Lower minimum than many private placements.
- Historical dividend record is prominently marketed (not a guarantee). Streitwise
Numbers & guardrails
- Minimum: around $1,000 (subject to current NAV and terms).
- Eligibility: accredited and non-accredited.
- Taxes: 1099-DIV reporting typical for REITs.
Mini case
A $3,000 allocation into a dividend-paying REIT could produce a few hundred dollars in estimated annual cash flow if distributions continue at similar rates—yet always plan for variability and potential suspensions in stressed markets.
Bottom line: A simple, income-focused way to own a slice of commercial real estate passively—appropriate for investors who prioritize dividends and straightforward onboarding over daily liquidity.
9. DiversyFund
DiversyFund targets multifamily growth through a consumer-friendly portal with a low starting minimum. It’s marketed to both accredited and non-accredited investors and emphasizes long-term value creation by reinvesting proceeds rather than paying ongoing dividends. That structure can be passive but is also very illiquid—expect multi-year hold periods and minimal interim cash flow. Carefully read fee disclosures and the offering circular.
Fit for passive investors
- Low entry point and simple onboarding for retail investors.
- Focus on multifamily value-add, with returns realized primarily at exit.
Numbers & guardrails
- Minimum: typically around $500.
- Eligibility: open to accredited and non-accredited.
- Liquidity: long holds; distributions often reinvested rather than paid out.
- Regulatory note: investment limits may apply under applicable exemptions; see issuer materials for specifics. DiversyFund – Invest
Mini case
If you invest $2,500 with no interim dividends, plan your cash needs as if the money is locked until a portfolio event. When the exit occurs, returns—if achieved—arrive in a lump sum rather than quarterly checks.
Bottom line: A “set it and forget it” growth bet on multifamily with small minimums; treat it as illiquid and back-weighted.
10. Cadre
Cadre provides institutionally sourced commercial deals and diversified funds for accredited investors. It’s built for those who want manager selection and data-rich underwriting but prefer a platform’s curation and operations. Minimums vary by product; single-asset allocations often require larger checks, while diversified funds may be comparatively lower. Liquidity is limited and usually periodic at best. For a passive investor, Cadre is more “choose the vehicle and let the sponsor run” than active property picking—but it still demands comfort with private-market documentation and long timelines.
Why it appeals
- Access to diversified funds and individual deals under one sponsor. cadre.com
- Data-driven diligence materials and sponsor oversight.
Numbers & guardrails
- Eligibility: accredited; certain funds may also entail qualified purchaser criteria.
- Minimums: examples shown include $25,000 for a diversified fund and $75,000 for certain offerings; individual deals may differ.
- Taxes: expect K-1s for partnership vehicles.
Mini case
Allocate $50,000 to a diversified fund rather than a single project to reduce idiosyncratic risk. If one city’s office thesis lags, industrial or multifamily exposure elsewhere can offset.
Bottom line: A fit for accredited investors who want institutional real estate exposure and are comfortable with higher minimums and limited liquidity in exchange for curated access.
11. Yieldstreet
Yieldstreet aggregates several alternative assets—real estate among them—on a single platform. Most private deals target accredited investors and carry five-figure minimums, though a multi-asset income fund is available to non-accredited investors at a higher entry point than typical consumer REITs. Passive investors get convenience and diversification in one account but should weigh fees, long hold periods, and the fact that real estate is only part of the platform’s broader alternatives menu.
What’s useful for passive investors
- All-in-one access to real estate and other alternatives without juggling multiple logins.
- Non-accredited investors can access an income fund at a comparatively high minimum.
Numbers & guardrails
- Minimums: many deals $10,000–$25,000; the income fund minimum around $10,000.
- Eligibility: most opportunities for accredited; the income fund open to all investors.
- Liquidity: typically limited; check fund-specific redemption terms.
Mini case
If you invest $10,000 in a multi-asset income fund, your real estate allocation is blended with other alternatives. That smooths any single-sector volatility but also dilutes pure property exposure.
Bottom line: A convenience layer for diversified alternatives; use it if you value one account for multiple asset sleeves and accept the higher minimums.
12. AcreTrader
AcreTrader focuses on farmland—real estate with different drivers than apartments or offices. It’s generally open to accredited investors and often requires mid-five-figure minimums per offering. Passive investors get professional farm management while capturing potential rent and appreciation tied to land quality and crop markets. Liquidity is limited to exit events or special circumstances; underwriting emphasizes water rights, soil, and operator quality. Consider AcreTrader if you want real asset diversification beyond buildings.
Why it’s compelling
- Exposure to farmland, a historically low-correlated real asset class.
- End-to-end management; you don’t run a farm.
Numbers & guardrails
- Eligibility: typically accredited investors. Benzinga
- Minimums: offerings commonly show minimums around the mid-five figures (examples at $15,000).
- Liquidity: long holds; plan for illiquidity.
Mini case
An investor allocates $15,000 to a row-crop farm and another $15,000 to a permanent-crop farm. Different cash-flow seasonality and risk vectors (yield variability, commodity prices) can balance the overall farmland sleeve.
Bottom line: A specialized, accredited-only path to real asset diversification; best used as a small sleeve in a broader alternatives mix.
FAQs
Do I need to be an accredited investor to use real estate crowdfunding platforms?
Not always. Platforms like Fundrise and many non-traded REIT offerings accept non-accredited investors with low minimums, whereas marketplaces such as CrowdStreet, EquityMultiple, Cadre, and most Yieldstreet deals require accredited status. Always verify your eligibility on the platform and within each offering circular before funding.
What’s the difference between a non-traded REIT and a private placement?
A non-traded REIT pools properties into a fund with programmatic share repurchases and issues 1099-DIV tax forms. Private placements are typically single-asset or small-portfolio SPVs that often issue K-1s. REITs tend to be more “hands-off,” while private placements offer deal specificity but increased complexity and illiquidity.
How long is my money locked up?
Expect multi-year horizons almost everywhere. Debt notes (e.g., Groundfloor loans) mature faster, while REITs and private placements often target multi-year holds. Redemption or secondary features may exist but are limited and can be paused. Plan as if you cannot exit early.
What taxes should I expect from these investments?
REITs generally report dividends on 1099-DIV; partnership interests in SPVs typically deliver K-1s. Both forms come with specific reporting rules; consult a tax professional to avoid surprises and confirm whether income qualifies for any deductions.
How much should I allocate to one platform or deal?
A common approach is to cap any single deal at a small percentage of your total portfolio and spread positions across sponsors, geographies, and capital stack (debt, preferred, common). Smaller per-deal minimums (e.g., Fundrise, Groundfloor, Arrived) make this easier.
Are these platforms regulated?
Yes—offerings must rely on specific exemptions or registrations. For example, Regulation Crowdfunding mandates use of registered intermediaries and imposes investment limits for non-accredited investors. Non-traded REITs file offering documents and periodic reports. Always read the latest filings linked in the offering page.
What are the biggest risks I should underwrite?
Illiquidity, platform/sponsor risk, project execution, and fee drag top the list. Real estate cycles can pressure valuations and distributions. Conduct due diligence on track record, leverage policies, and liquidity programs; regulators and investor education sites maintain helpful primers on crowdfunding risks.
Will I really be “passive” with these?
Operationally, yes—the manager handles tenants, renovations, leasing, and collections. Strategically, you’re still responsible for picking platforms, allocations, and rebalancing. Passive does not mean risk-free or maintenance-free; review updates and financials quarterly.
Do these platforms offer IRAs?
Many do, often via custodial partners. Note that some platforms set higher minimums for IRAs and that tax treatment of REIT dividends or UBTI varies by vehicle—double-check the platform’s IRA page and speak with your custodian.
Conclusion
For hands-off investors, real estate crowdfunding can unlock property exposure without the headaches of direct ownership. The right fit depends on three filters: eligibility (accredited vs. non-accredited), minimums (from micro-checks to five-figure tickets), and liquidity tolerance (programmatic redemptions vs. hold-to-maturity). If you want low effort and tiny commitments, Fundrise, Groundfloor, and Arrived are simple starting points. If you’re accredited and comfortable with higher minimums for potentially targeted exposures, CrowdStreet, EquityMultiple, Cadre, Yieldstreet, and AcreTrader widen your menu. REIT-style vehicles like RealtyMogul’s and Streitwise’s strike a middle ground with pooled diversification and dividend focus.
Your next step: pick two platforms that match your status and budget, read one offering circular on each carefully, start small, and diversify across at least five positions before sizing up. A measured, repeatable process beats chasing headline yields—especially with illiquid assets—so build your passive sleeve thoughtfully and review it periodically with a qualified advisor.
References
- What is the minimum initial investment? — Fundrise Help Center — date not stated — fundrise.com
- Fundrise Review: Pros, Cons and Features — NerdWallet — date not stated — NerdWallet
- RealtyMogul Income REIT — RealtyMogul — date not stated — RealtyMogul
- RealtyMogul Apartment Growth REIT — RealtyMogul — date not stated — RealtyMogul
- RealtyMogul FAQs (minimums and investor types) — RealtyMogul — date not stated — RealtyMogul
- CrowdStreet FAQs — CrowdStreet — date not stated — crowdstreet.com
- Our Journey in Private Market Investing (minimum example) — CrowdStreet — date not stated — crowdstreet.com
- EquityMultiple (overview; “start with $5k”) — EquityMultiple — date not stated — EquityMultiple
- EquityMultiple FAQs (typical minimums) — EquityMultiple — date not stated — EquityMultiple
- Groundfloor LRO marketplace (per-loan minimums) — Groundfloor — date not stated — Groundfloor
- Groundfloor overview (low account minimum) — Groundfloor — date not stated — Groundfloor
- Arrived homepage (minimums, approach) — Arrived — date not stated — arrived.com
- How Arrived Works (liquidity/redemption notes) — Arrived — date not stated — arrived.com
- Arrived Review (open to all; minimum example) — Investopedia — date not stated — Investopedia
- Ark7 homepage (per-share starting level) — Ark7 — date not stated — ark7.com
- Ark7 Terms & Conditions (accredited status may be required for restricted portions) — Ark7 — date not stated — ark7.com
- Streitwise (accredited and non-accredited allowed) — Streitwise — date not stated — Streitwise
- Streitwise overview (minimum example) — Benzinga — date not stated — Benzinga
- DiversyFund Review (minimum and eligibility) — Business Insider — date not stated — Business Insider
- Cadre FAQ & Support (eligibility) — Cadre — date not stated — cadre.com
- Browse Deals (minimum examples) — Cadre — date not stated — cadre.com
- Yieldstreet Alternative Investments (deal minimums) — Yieldstreet — date not stated — Yieldstreet
- Yieldstreet Support (non-accredited fund and minimum) — Yieldstreet — date not stated — Yieldstreet
- AcreTrader How It Works (management details) — AcreTrader — date not stated — acretrader.com
- AcreTrader Investment Offerings (example minimums) — AcreTrader — date not stated — acretrader.com
- SEC: Accredited Investors (definition overview) — U.S. SEC — date not stated — SEC
- SEC: Regulation Crowdfunding (rules and limits) — U.S. SEC — date not stated — SEC
- FINRA: Crowdfunding—What Investors Should Know — FINRA — date not stated — FINRA
- IRS: Instructions for Form 1099-DIV (REIT dividend reporting) — IRS — date not stated — IRS
- IRS: Partner’s Instructions for Schedule K-1 (Form 1065) — IRS — date not stated — IRS
