It used to take a lot of time, a lot of money, and a lot of market knowledge to invest in real estate. On the other hand, technological advancements are changing the game and opening up real estate markets to investors of all stripes. Real estate investment trusts (REITs), property management apps, and crowdsourcing platforms have made it possible for anybody with a smartphone to become an investor. In-depth reviews of the top real estate investing applications are presented here.
Key Takeaways:
- Real estate investing apps have made it easier for investors at all levels to participate in real estate markets by providing access to various property investments, REITs, and crowdfunded projects.
- Fundrise, Roofstock, RealtyMogul, and Streitwise are notable apps offering diverse investment opportunities, from low-cost entry points to high-yield commercial real estate.
- YieldStreet, AcreTrader, HappyNest, and CrowdStreet provide specialized investment options, including alternative assets, farmland, low-cost commercial real estate, and institutional-quality projects.
- Each app caters to different investor needs, emphasizing the importance of understanding investment goals, risk tolerance, and platform-specific features and fees.
1. Fundrise
Overview
Fundrise is a popular real estate crowdfunding platform that allows individuals to invest in real estate projects across the United States. It offers various investment portfolios tailored to different risk appetites and investment goals.
Key Features
- Low Minimum Investment: Start investing with as little as $500.
- Diversified Portfolios: Access to multiple portfolios including starter, core, and advanced plans.
- User-Friendly Interface: Easy to navigate, making it suitable for beginners.
- Transparent Reporting: Regular updates on the performance of investments and quarterly dividends.
Pros
- Low barrier to entry.
- Diversification across multiple properties.
- Clear and transparent fee structure.
Cons
- Limited liquidity.
- Investment can be illiquid for a minimum of five years.
2. Roofstock
Overview
Roofstock specializes in single-family rental properties. It’s an excellent platform for those looking to buy and sell rental homes with tenants already in place.
Key Features
- Certified Properties: Each property goes through a rigorous certification process.
- Property Management: Options to hire property managers directly through the app.
- Market Research: Access to detailed property and market analytics.
Pros
- Focus on single-family rentals.
- Certified property listings.
- Robust market data and analytics.
Cons
- Requires higher initial investment.
- Limited to single-family homes.
3. RealtyMogul
Overview
RealtyMogul offers a mix of REITs and individual property investments, catering to both accredited and non-accredited investors. It focuses on commercial real estate opportunities.
Key Features
- Variety of Investments: From individual properties to diversified REITs.
- Due Diligence: Thorough vetting of investment opportunities.
- User-Friendly Platform: Easy navigation and detailed investment information.
Pros
- Access to high-quality commercial real estate.
- Detailed due diligence and vetting process.
- Options for both accredited and non-accredited investors.
Cons
- Higher minimum investments for certain deals.
- Limited liquidity.
4. Streitwise
Overview
Streitwise is known for offering high-yield commercial real estate investments through its public, non-traded REITs. It’s ideal for investors seeking consistent dividends.
Key Features
- High Dividend Yields: Targeted annualized dividends of 8-9%.
- Low Fees: Transparent fee structure with minimal fees.
- Open to Non-Accredited Investors: Low barriers to entry.
Pros
- Consistent high dividends.
- Low fees and transparent structure.
- Suitable for non-accredited investors.
Cons
- Limited investment options.
- Dividends are not guaranteed and may fluctuate.
5. YieldStreet
Overview
YieldStreet is a platform that offers alternative investments, including real estate, art, marine, and legal finance. It’s geared towards those looking to diversify beyond traditional asset classes.
Key Features
- Diverse Investment Options: Access to various alternative assets.
- Experienced Team: Managed by professionals with a strong track record.
- Educational Resources: Extensive resources to educate investors on alternative investments.
Pros
- Diverse range of investment options.
- Professional management.
- Educational content for investors.
Cons
- Higher minimum investment requirements.
- Investments may carry higher risks.
6. AcreTrader
Overview
AcreTrader focuses on farmland investments, providing a unique opportunity to invest in agricultural real estate. It’s an excellent choice for those interested in the agricultural sector.
Key Features
- Farm Evaluation: Comprehensive evaluation and due diligence of farmland.
- Professional Management: Managed by agricultural professionals.
- Transparent Fees: Clear fee structure and investment terms.
Pros
- Unique focus on farmland.
- Thorough due diligence process.
- Professional management.
Cons
- Limited to agricultural investments.
- Higher minimum investment requirements.
7. HappyNest
Overview
HappyNest offers an easy-to-use platform for investing in commercial real estate with a very low minimum investment. It’s particularly appealing to beginners.
Key Features
- Low Minimum Investment: Start with as little as $10.
- User-Friendly App: Simple and intuitive interface.
- Dividend Reinvestment: Automatically reinvest dividends for compound growth.
Pros
- Extremely low barrier to entry.
- User-friendly for beginners.
- Dividend reinvestment option.
Cons
- Limited to commercial real estate.
- Fewer investment options compared to larger platforms.
8. CrowdStreet
Overview
CrowdStreet provides access to institutional-quality real estate investments. It’s tailored for more experienced investors looking for high-quality, large-scale commercial projects.
Key Features
- Institutional Quality Deals: High-quality commercial real estate investments.
- Marketplace and Managed Accounts: Options for self-directed and managed investments.
- Detailed Investment Data: Extensive data and analytics on each deal.
Pros
- Access to high-quality investments.
- Extensive due diligence and transparency.
- Options for self-directed and managed investments.
Cons
- Higher minimum investments.
- Primarily for accredited investors.
Benefits of Incorporating for Best Real Estate Investing Apps
Incorporating your real estate investments can provide numerous advantages, especially when using real estate investing apps. Here are some key benefits:
1. Liability Protection
- Limited Liability: Incorporating as an LLC (Limited Liability Company) or corporation protects your personal assets from lawsuits or debts incurred by your real estate investments. This means that if your investment incurs liabilities, only the assets owned by the business are at risk, not your personal assets.
- Asset Separation: Keeping your investments under a corporate entity separates your personal and business assets, reducing personal exposure to legal actions.
2. Tax Benefits
- Tax Deductions: Corporations and LLCs can deduct expenses related to the business, such as maintenance, property management fees, and marketing costs, potentially reducing taxable income.
- Pass-Through Taxation: LLCs benefit from pass-through taxation, where profits are taxed only at the individual level, avoiding double taxation seen in corporations.
- Depreciation: Real estate owned by a corporation can be depreciated, providing significant tax savings over time.
3. Professionalism and Credibility
- Enhanced Credibility: Operating as a corporation or LLC can enhance your credibility with lenders, investors, and tenants, as it demonstrates a formal business structure and commitment to professionalism.
- Business Loans and Credit: Incorporated entities may find it easier to secure loans and lines of credit, as they are viewed as more stable and reliable by financial institutions.
4. Scalability and Growth
- Attracting Investors: A corporate structure can make it easier to attract investors, as it provides a clear framework for ownership and profit-sharing.
- Expansion: Incorporation allows for smoother expansion, as additional properties can be acquired under the same corporate entity, simplifying management and tax reporting.
5. Estate Planning and Succession
- Continuity: Corporations and LLCs can continue to operate even if the owner passes away, providing continuity and stability for heirs.
- Estate Planning: Incorporating your real estate investments can facilitate estate planning, allowing for smoother transitions and potential tax advantages when passing assets to heirs.
6. Access to Real Estate Investing Apps
- Ease of Management: Incorporation allows for streamlined management of properties through real estate investing apps, which offer tools for tracking expenses, managing tenants, and monitoring investment performance.
- Advanced Features: Some apps provide advanced features and analytics specifically designed for incorporated entities, enhancing decision-making and operational efficiency.
Frequently Asked Questions (FAQs)
What is the minimum investment required to start using these real estate investing apps?
The minimum investment varies by app, with some like Fundrise and HappyNest requiring as little as $10 to $500, while others like Roofstock and CrowdStreet may require higher initial investments.
Are these real estate investing apps suitable for beginners?
Yes, many of these apps, such as Fundrise and HappyNest, are designed with beginner-friendly interfaces and low minimum investments, making them accessible to those new to real estate investing.
Can I invest in real estate using these apps if I am not an accredited investor?
Yes, apps like Fundrise, Streitwise, and HappyNest allow non-accredited investors to participate, offering diversified portfolios and commercial real estate opportunities with lower entry barriers.
Conclusion
The proliferation of real estate investing apps has leveled the playing field for property market participation. Whether you are a newbie looking for a low-cost entry point or an experienced investor seeking high-quality commercial projects, there’s an app that caters to your demands. The most important thing is to know what you want to accomplish with your investments, how much risk you can take, and what benefits and costs each platform offers. You may diversify your holdings and increase your chances of making a killing in the real estate market by making use of these cutting-edge technologies.