RealtyMogul and Crowdstreet are two of the top online real estate investing platforms.
Both of these companies use crowdfunding to help investors get in on real estate without having to put huge sums down.
Let’s compare RealtyMogul vs Crowdstreet.
What is RealtyMogul?
RealtyMogul is a crowdfunded real estate investing platform. Their mission is to give “diverse, institutional-quality real estate opportunities.”
RealtyMogul offers several options for investing in real estate. Their two REITs, The Income REIT and The Apartment Growth REIT, provide an easy way to invest in a diversified mix of real estate.
For those looking to choose their own investments, RealtyMogul has an intuitive platform where you can search a variety of investment property options, from multi-family to office and retail.
One of the great benefits of RealtyMogul is its advanced search features, helping you find deals based on different criteria, like property type. You can browse and evaluate the investment offerings on your own, and find the deals that you are interested in.
RealtyMogul focuses on high returns, and some of its private offerings could receive up to 15%. Their REITs, however, receive rates in the 4-6% range.
RealtyMogul also offers IRAs, so you can invest in real estate and benefit from tax-deferred growth on the income from the properties.
What is Crowdstreet?
Crowdstreet’s online real estate investing platform focuses on commercial real estate for accredited investors.
They have one of the largest selections of real estate online, with offerings across the country. Their intuitive marketplace allows you to compare the projects, helping you find the best one for your portfolio.
Crowdstreet has three investing options: diversified funds, individual deals, and tailored portfolios.
One of their biggest advantages is Crowdstreet’s detailed vetting process. They examine every project in-depth, and they make a wealth of information available to the investor. Their website provides webinars, videos, and articles, and you can ask the sponsors questions about their investments.
RealtyMogul and Crowdstreet have several key differences. Here are some of the most important to consider:
Who can Invest?
Crowdstreet is for accredited investors only, while RealtyMogul has options for both accredited and non-accredited investors.
There are several ways to qualify as an accredited investor, including having an income greater than $200,000, a net worth of more than $1 million, or a professional certification, such as a series 7.
These companies differ quite a bit in their minimum investment. RealtyMogul has a minimum of $5,000, while Crowdstreet’s minimum is $25,000.
With RealtyMogul, while the minimum for the REITs is $5,000, they have higher minimums on their individual properties.
Both companies offer different kinds of real estate investments.
RealtyMogul has both REITs and individual investment properties, while Crowdstreet offers only commercial properties.
A REIT (Real Estate Investment Trust) is like a basket of investment properties. Multiple types of income-producing properties are combined into one portfolio, and then investors are able to buy shares of the basket. It’s kind of like a mutual fund for real estate.
If you want to invest in real estate without researching specific properties, then the REITs of RealtyMogul can be a great option.
Crowdstreet has a diverse selection of commercial properties. They have options for direct investing, where you select the properties yourself, as well as managed investing where the properties are selected for you.
Crowdstreet charges no fees to the investor. Instead, they charge their fees to the sponsors of their real estate holdings. The sponsor is the one who finds and manages the property. Crowdstreet acts as the middleman between the sponsor and the investor.
RealtyMogul charges between 1%-1.5% on most of its investments.
RealtyMogul vs Crowdstreet: Which is Better?
The better real estate platform depends on your situation and what you’re looking for.
RealtyMogul’s REIT options are better for more entry-level investors looking to diversify with real estate. The lower minimums, options for non-accredited investors, and pre-built portfolios of the REITs make the process more straightforward.
On the other hand, more experienced investors will find the individual property options of RealtyMogul enticing.
Crowdstreet, with its wide selection of commercial real estate, low fees, and high-level vetting process, is better for accredited investors with a little less experience investing in real estate. The extensive information they give on their properties, along with the managed options will make the investing process easy.
Real estate has provided great gains to investors throughout history, but it has traditionally been hard for the average investor to invest due to the high costs and the work involved.
RealtyMogul and Crowdstreet are changing the game by making real estate more accessible.
Each company has its own pros and cons, and you’ll want to make your own decision and check these programs out for yourself