Top 10 Best Online Commercial Real Estate Investing Platforms for 2022
If you are interested in investing in commercial real estate but aren’t sure where to start, there are several platforms to choose from. CrowdStreet, Fundraise, RealtyMogul, LoopNet, and other platforms have different approaches. Naturally, you’ll want to choose one that best suits your needs, and keep these tips in mind before you invest.
CrowdStreet
CrowdStreet is an online investment marketplace that connects real estate sponsors with investors. Its platform eliminates the need for banks, resulting in lower interest rates for developers and higher returns for investors. With a large pool of carefully vetted investment opportunities, CrowdStreet is an excellent option for real estate investors of all levels.
CrowdStreet sources investments from top real estate teams and vets them thoroughly before listing them on the site. Before deciding to invest in a deal, potential investors are invited to participate in a webinar with the sponsor, who will answer any questions they may have. Because each investment opportunity has different details, it is essential to do thorough due diligence before investing. Each opportunity includes specifics such as target metrics, payout structures, and maximum allocation amounts.
Fundraise
While the Fundraise platform is a promising addition to the online real estate investing space, it has some drawbacks. For starters, it does not offer phone support. It also does not clearly label development and liquidation fees. Instead, investors must go through an offering circular to determine what fees they’ll need to pay. This can be a problem for some investors.
Fundraise allows investors to make a minimum investment of $10,000 to become an “Advanced” member. This level gives investors access to select individual REITs within Fundrise’s portfolio. They can also choose from several “Plus plans” that allow them to invest in properties with higher returns. Those who invest $100,000 or more are entitled to invest in private projects that allow them to own a share of a specific property. While it’s tempting to get rich overnight with real estate, it’s also important to remember that real estate is an investment that will need time and patience.
RealtyMogul
RealtyMogul is a platform that will help investors invest in commercial real estate. The platform lists a variety of properties and will help investors research each one before investing. The process involves filling out an application online and being vetted. In addition, investors will receive regular updates on their investments, including tax statements. They can also get in touch with the company for help during regular business hours.
Investment platform RealtyMogul allows accredited and non-accredited investors to invest in commercial real estate. Investors can either invest in a single property or a portfolio of many, which is perfect for those who want to diversify their portfolio. The platform only accepts investors with a net worth of at least $1 million and an annual income of more than $200,000.
LoopNet
LoopNet is a commercial real estate investing platform and one of the leading online platforms in the real estate market. It has an average monthly traffic of over eleven million users and is ranked No. 1 in the industry. In the first quarter of 2022, its traffic reached 31 million unique users. This makes it one of the top 10 best online commercial real-estate investing platforms for 2022.
LoopNet has a robust database of properties for sale, which enables users to find the perfect investment property. The service allows users to search by essential property characteristics, including price, square footage, and build date. The site also offers search filters that focus on specific property types.
PeerStreet
PeerStreet is an asset-based financing company that connects borrowers and accredited investors. Its business model involves buying loans from private lenders, aggregating them, and disseminating them to investors. The company is based in Los Angeles, California.
The platform makes money by selling loans on real estate properties. The loans are usually short-term, lasting six to 24 months, with loan-to-value ratios below 75%. The loans can be on various types of real estate, from single-family residences to commercial buildings. A team of finance experts underwrites them.
Groundfloor
If you’re looking for a commercial real estate investing platform that offers a low minimum investment, consider Groundfloor. This website allows non-accredited investors to invest in real estate projects for as little as $10. In addition, it has no accreditation requirements and doesn’t require monthly dividends. It also doesn’t require long-term appreciation, making it an attractive option for small investors. The platform also allows investors to invest in multifamily assets, and its app makes investing easy and convenient.
Groundfloor makes profits by lending money to investors who want to invest in real estate. The company then sells investors a piece of the loan and gives them a share of the profit. These investors usually invest in homes they hope to flip. The company charges an interest rate between two and four percent of the principal amount. Investors can also take advantage of a Savesting program, which lets them choose their investments.