Online real estate investing requires using an established platform that fits your investment profile

Avoid choosing the wrong platform and tying up your hard earned cash in the wrong real estate investment. Knowing how to diversify your portfolio with real estate through an investment platform can allow you into real estate faster with less capital invested. gathered the following information about real estate crowdfunding sites and how you can start diversifying your portfolio in the market.

What is Real Estate Crowdfunding?

Online real estate investing requires using a platform like crowdstreet

Real Estate crowdfunding is a relatively new concept that allows real estate developers and companies to obtain investments from an entirely new class of investors. Real estate crowdfunding allows you to pool your money on an online platform with others to purchase property (or a share of it) as a group. This investment method offers a compelling way to diversify your assets by tapping into real estate investments.

Is Real Estate Crowdfunding Legitimate?

Is real estate crowdfunding a legal activity? Yes. Pooling investor money to invest in real estate has legally existed for many decades. Before online investing platforms came along, it was called “syndication.”

Note: Before 2012, it was limited to friends and family and was not allowed to be online.

How Much Should I Invest in Real Estate Crowdfunding?

Online real estate investing requires using a platform like fundrise

When choosing from the many real estate crowdfunding platforms, one requirement to be carefully considered is their minimum investment amount. While some platforms require a minimum investment of $500, others may require minimum investments of up to $100,000.

Is Real Estate Crowdfunding Risky?

Yes and no. You will rarely find a “risk-free” investment. When it comes to real estate crowdfunding, there is a risk that the real estate crowdfunding platform could cease operation (most of these platforms are not cash flow positive). If the platform does shut down, your investments should be protected. The platform’s investors do not possess a lien on your investments in your real estate deals.

Real Estate Crowdfunding Platforms

Online real estate investing requires using a platform like diversyfund

The following comparison looks at the pros and cons of Crowdstreet, Fundrise, and DiversyFund for you to make informed decisions on where and how to invest your resources in real estate.





Years in Operation:

Launched in 2014

Launched in 2012

Launched in 2014



(202) 584-0550

(858) 430-8528

Minimum Initial Investment*:




Minimum Required Investment Time:

3 years

5 years

3-5 years

Service/Maintenance Fees:

0.50% to 2.5%



Offering Types:

Debt, Equity, Preferred Equity, Direct Ownership

Electronic Real Estate Funds, Fundrise IPOs, and Self-Directed IRAs


Best Investor Environment for:

Accredited investors

Nonaccredited Investors

Nonaccredited Investors


None (*check website for updates)

12 month Advisory fee waiver

None (*check website for updates)

*What is a minimum initial investment? A minimum investment is the smallest dollar or share quantity that an investor can purchase when investing in a specific security, fund, or opportunity.

**What is a REIT? Real Estate Investment Trusts (REITs) are companies that own or finance income-producing real estate in various property sectors. Most REITs trade on stock exchanges and offer a number of enticing benefits to investors.

What qualifies you as an accredited investor? 

The Securities and Exchange Commission (SEC) defines an accredited investor as either: an individual with a gross income exceeding $200,000 in the two most recent years or joint income (with a spouse or partner) exceeding $300,000 for those same years and a reasonable expectation of the same income in the current year. 

For more reading about accredited and non-accredited investors and their limitations, visit,

Real Estate Investing on Crowdfunding Platforms

In this article, you discovered investment information, details, and requirements for three of the best real estate crowdfunding platforms.

Investing on a real estate crowdfunding platform will help you diversify your financial portfolio without running the typical risks found on the stock market.

Ignoring the opportunity to invest in real estate on secure crowdfunding sites will leave your portfolio more vulnerable to market fluctuations and financial insecurity.