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Why Use a Real Estate Investing App?
Investing in real estate doesn’t have to be difficult. There are several easier alternatives to avoiding the legwork of conducting extensive property research, finding tenants, and regularly maintaining the asset(s). One of the easiest ways is through real estate investing apps and REITs.
Online real-estate investment platforms and apps offer convenience and increased accessibility for a wider audience of potential investors, allowing them to diversify their investment portfolios online without needing to set foot on a property.
Real estate investing is also an excellent way to generate passive income from rental properties or earn dividends from real estate investment trusts (REITs).
Compare the Best Real Estate Investing Apps
The best apps for real estate investors offers low fees, dividend payouts, pre-vetted properties, access to property managers, and investment opportunities for non-accredited investors.
Here is how to invest in real estate with the top online real-estate investment apps as picked by Business Insider’s editors in 2024.
RealtyMogul
Best for: All kinds of real estate investors
RealtyMogul is one of the top real estate crowdfunding platforms and REIT investing apps set out to make real estate investing accessible to everyone. It offers pre-vetted public, non-traded REITs and is available to all investors regardless of accreditation status.
As for your investment options, this REIT app lets you purchase stakes in commercial real estate, either as REITs or single properties.
Single properties (private placements) are only available to accredited investors, but accredited and non-accredited investors can purchase the company’s income and growth REITs. REITs provide quarterly or monthly dividend payouts and appreciation.
Cons: You’ll need at least $5,000 to invest in REITs, but other investments — such as individual properties — have minimums ranging from $25,000 to $50,000. While RealtyMogul isn’t the cheapest option, it’s also not the most expensive.
Fundrise
Best for: Non-accredited investors
Fundrise is an app for investing in real estate for a $10 minimum. It offers electronic real estate funds, venture capital funds, and Fundrise IPOs. It’s best for hands-off investors looking for low fees. Fundrise’s investments have a minimum term of five years.
You don’t need to be accredited to invest with Fundrise. Anyone can open an account if they meet the app’s minimum requirements. All Fundrise portfolios have auto-investing features, dividend reinvesting, and referral discounts.
Cons: If you can’t afford to leave your money for at least five years, Fundrise is probably not your best option.
Yieldstreet
Best for: Alternative asset classes
Yieldstreet offers real estate and other alternative investments to accredited investors. You can invest in the following alternative asset types with Yieldstreet: real estate, legal finance, marine finance, crypto, commercial and consumer finance, and art finance.
But don’t worry if you aren’t an accredited investor. You can still invest in the Yieldstreet Prism fund, which lets you invest in multiple alternative asset types simultaneously. Yieldstreet also has more lenient investment terms than some of the other real estate apps in this roundup. You can invest for as short as six months or up to five years.
Cons: Yieldstreet is primarily available to accredited investors or individuals with at least $1 million net worth. If you’re a non-accredited investor, you can still invest with Yieldstreet, but you’ll only have access to one fund: Yieldstreet’s Prism fund.
Groundfloor
Best for: Short-term real estate investments
Groundfloor is a wealth tech platform best for short-term real estate debt investments, including SEC-qualified Limited Recourse Obligations (LROs), notes, and the Flywheel Portfolio. There’s a minimum to get started. It’s available to both accredited and non-accredited investors.
Investment terms range from 30 days to 36 months. Accredited and nonaccredited investors can use Groundfloor’s self-directed and automatic investing features and a proprietary loan-grading algorithm. Investments have a history of a 10% annual return.
Groundfloor also offers IRAs (traditional, Roth, SEP, SIMPLE, and rollover) and a mobile investing called Stairs.
Cons: Although Groundfloor doesn’t charge management fees, keep in mind that there is a required $10 minimum investment, and you may have to pay additional service fees on loans.
EquityMultiple
Best for: Accredited investors
EquityMultiple is best for accredited investors looking to invest in a wide variety of assets and who have at least $5,000 (minimums can also range between $10,000 and $30,000) to invest. You can invest in institutional, commercial real estate, equity, preferred equity, and senior debt.
EquityMultiple offers various investment approaches, such as Fund Investing, Direct Investing, and Savings Alternative Investing. Each approach utilizes different investment strategies, time horizons, and minimum requirements.
The platform’s range of property types includes multifamily, office, industrial, storage, car wash, cannabis facilities, retail, mixed-use, opportunity zones, senior living facilities, student housing, and data centers. You can also open and invest with self-directed IRAs.
Cons: EquityMultiple only accepts accredited investors, so this isn’t a good option if your net worth is less than $1 million. In addition, investment minimums are on the high side, so be prepared to invest between $5,000 and $30,000 in real estate.
CrowdStreet
Best for: Runner-up for accredited investors
CrowdStreet is one of the largest online real estate marketplaces for accredited investors to diversify their portfolios with pre-vetted institutional-level commercial real estate investment opportunities. Investors can generate passive income streams from the platform’s income and growth-focused debt and equity opportunities.
CrowdStreet provides potential investors with in-depth information regarding underlying property’ details, investment strategy (including how the funds will be used), target markets, estimated hold period, fund manager, and investor return structure.
Cons: CrowdStreet is only for accredited investors, and you’ll need at least $25,000 to start investing. Investments are highly illiquid.
DiversyFund
Best for: Crowdfunding
DiversyFund is a real estate crowdfunding platform that invests in undervalued multifamily properties in the U.S. with high growth potential. It has a reasonable $500 minimum with investment opportunities for both accredited and non-accredited individuals.
DiversyFund stands out for its Auto Invest feature, which allows users to set recurring trades in the Multifamily Fund for long-term appreciation. The free feature is a great tool for novice real estate investors interested in the set-it-and-forget approach.
Cons: You cannot withdraw or cash out your investments until DiversyFund sells the invested properties (four to six years). Also, DiversyFund doesn’t pay out dividends. While the platform is well-suited for passive investing, it isn’t ideal for generating passive income.
Arrived
Best for: Flexible liquidity
Arrived (previously Arrived Homes) is a new real estate investing platform offering straightforward and affordable real estate property shares for accredited and non-accredited investors. Investors can hand-pick individual residential and vacation rental properties or invest in one of Arrived’s pre-built funds for instant diversification.
Dividend payouts and property appreciation can generate steady passive income. Retirement-focused individuals can use Arrived to diversify their retirement portfolios with real estate investments.
The Arrived Single Family Residential Fund and Private Credit Fund offer flexible quarterly liquidity. Moreover, after six months of investing with Arrived, you can request redemption to retrieve some or all of your shares ( a feature not offered by most real estate platforms).
Cons: Arrived has relatively high fees compared to other platforms on this list. Also, its residential property selection is limited.
How to Choose the Best Real Estate Investing App
The best real estate investing app for you depends on your investment goals, risk tolerance, time horizon, and how much you’re willing to invest. There are two main ways to invest in real estate online: REITs and crowdfunding platforms.
REITs are companies that own, operate, and finance real estate ventures. Like mutual funds and ETFs, REITs invest in multiple properties so users can earn a share of the income of multiple assets. The best apps for real estate investing can help diversify your investment portfolios and generate cash flow.
Most online real estate investing platforms allow traders to customize a portfolio based on their preferences. However, not all crowdfunding platforms are universally available, as many require you to be an accredited investor. Still, platforms like Groundfloor and Fundrise also accept nonaccredited investors.
FAQs
Yes, reputable real estate investing apps are safe and prioritize protecting users’ assets and personal information. Many public REITs are registered with the SEC. But before opening an account, make sure to look into a company’s background and the security measures it takes.
The main risk of investing in real estate through apps is the potential for quick, uninformed decision-making. Investing in real estate is not only risky but also expensive. The convenience of mobile real estate apps may cause some individuals to make bad investment decisions without proper research or risk assessment.
You don’t need to be an accredited investor to use a real estate investing app. There are plenty of real estate investing apps that cater to both accredited and non-accredited investors. However, some platforms require you to be accredited to use it, so make sure you qualify before attempting to sign up.
Why You Should Trust Us: Our Expert Panel For The Real Estate Investing Apps
Rebecca Zissar/Business insider
We interviewed the following investing experts to see what they had to say about the best real estate investing apps.
What are the advantages/disadvantages of investing in real estate?
Sandra Cho:
“Advantages include:
- It’s tangible. Some people like real estate because they can see, touch, and feel it.
- Rent. You can get a tenant and get income.
- DIY. You can fix it yourself and save money. If you are handy, you can do many things yourself.
- Depreciation. You can depreciate it as an asset.”
“Disadvantages:
- Maintenance. A property can be a money pit, with almost constant things to fix and clean and maintain, including a new roof, paint, floors, plumbing, and electricity. These are all do-able; just make sure you budget about 1% of the cost of the house for maintenance.
- Renter headaches. Renters can have more power than the landlord. They can pay late or not at all, damage the property, and, in general, cause more trouble than they are worth.
- Fees. Property tax, HOA fees if you own a condo, utilities,”
Tessa Campbell:
“Investing in real estate provides a series of advantages such as a long-term appreciation, increased asset control, portfolio diversification, a hedge against market volatility, and access to a passive cash flow. Investors may also be able to benefit from tax advantages like tax-free capital gains and deductions in interest.
“But just like with any investment, there’s no guarantee that your real-estate investments will be successful. This can be a significant disadvantage as investing in real estate is generally more expensive than other, more liquid assets like stocks or bonds. Other downsides of investing in real estate are the long-term commitment, extensive fees, high minimums, and overall illiquidity.”
Who should consider investing in real estate?
Sandra Cho:
“People who already have a diversified traditional investment account and have excess funds they would like to invest in an alternative asset class.”
Tessa Campbell:
“You should consider investing in real estate if you have the funds to meet the high minimums and are looking for long-term alternative investment options to gain passive cash flow, hedge against inflation, and diversify your investment portfolio.”
Is there any advice you’d offer someone investing in real estate?
Sandra Cho:
“Your primary residence is also real estate, so bear that in mind so you don’t put all your money in one asset class. Make sure you have stocks, bonds, and cash as well. Having these more liquid investments will be important when the property needs repair, doesn’t rent out immediately, or worse, the renters stop paying; and in the possible (but unlikely) event of a catastrophic event like a pipe burst or natural disaster,”
Tessa Campbell:
“Make sure to do your research before investing in real estate properties. For example, location is a huge aspect of successful real estate investing, as knowing the local community, market, and history of property prices can make a huge difference.”
How to Evaluate a Real-Estate Investing App
Our mission at Business Insider is to help smart people make the best decisions with their money. We know that “best” is often subjective, so we highlight a financial product’s clear benefits and any limitations with Business Insider’s rating methodology for investing platforms.
We spent hours comparing and contrasting real estate investing apps’ features and fine print so you don’t have to. We reviewed over a dozen real estate investing app crowdfunding platforms to determine the best options for low fees, liquidity, investment types, and account features.