The Best Online Commercial Real Estate Investing Platforms of 2022
Commercial real estate (CRE) investing has traditionally been reserved for institutional investors and the ultra-wealthy, but the rise of online platforms has democratized access to this lucrative asset class. These platforms enable individual investors to participate in large-scale commercial properties previously out of reach. With the surge of interest in real estate investments and the convenience of technology, online CRE platforms have become appealing to those looking to diversify their portfolios.
The year 2022 saw a significant shift in how investors approach real estate. Instead of traditional property management methods and direct ownership, these online platforms allow users to pool their money into commercial properties and reap the rewards of rental income and capital appreciation. With many of these platforms offering lower minimum investments, transparency, and professional management, investors have found a more accessible route into CRE.
CrowdStreet
CrowdStreet is one of the most well-known online commercial real estate investment platforms, offering a range of real estate investment opportunities in the U.S. Since its inception, it has specialized in institutional-quality commercial real estate deals that are typically only available to accredited investors. It offers many discounts, including office buildings, retail properties, industrial warehouses, and multifamily developments.
One of the platform’s most appealing features is its commitment to due diligence. CrowdStreet’s team thoroughly evaluates each potential investment, including an analysis of the local market, the asset’s performance, and the expertise of the project sponsors. Investors can browse the platform's offerings, view detailed investment summaries, and access educational resources to better understand the risks and rewards of each project. CrowdStreet also provides transparency regarding fees and expected returns, allowing investors to make informed decisions.
RealtyMogul
RealtyMogul is another prominent name in online commercial real estate investing. Founded in 2012, it has become a leading platform connecting investors with commercial real estate opportunities in equity and debt deals. The platform offers a variety of property types, including office buildings, retail spaces, and multifamily units. RealtyMogul has made it easier for investors to start with lower minimum investment thresholds and a wide selection of deals.
RealtyMogul offers investors who want to focus on income-generating properties access to private and public real estate investment trusts (REITs). Additionally, the platform provides investors with detailed property analysis, including financial reports, risk assessments, and insights from industry professionals. RealtyMogul’s extensive experience in the space helps investors navigate the complexities of real estate investing while offering transparency and professional management of their investments.
Fundraise
Fundrise is one of the most popular real estate crowdfunding platforms, offering users various options for commercial real estate investments. Unlike traditional commercial real estate investment avenues, Fundrise allows investors to access a diversified portfolio of properties starting at just $10. It appeals to non-accredited investors, allowing them to participate in a space that institutional investors once dominated.
The platform focuses on long-term investments and aims to provide a steady stream of passive income. Fundrise’s model is designed to minimize risk through its eREITs (electronic Real Estate Investment Trusts), which expose investors to diversified properties across multiple sectors. The platform also offers transparency in portfolio performance, reporting, and distributions. It is a good option for seasoned investors and beginners looking to get their feet wet in commercial real estate.
PeerStreet
PeerStreet stands out from the crowd as it focuses on real estate debt rather than equity. This platform allows investors to invest in real estate-backed loans, providing an alternative to traditional equity investments in commercial properties. The advantage of investing in real estate debt is the potential for a more stable and predictable income stream, as debt investments often prioritize repayment before equity holders.
Investors on PeerStreet can choose from a range of short-term, high-yield real estate debt deals primarily focused on residential properties and fix-and-flip projects. However, the platform has also expanded to include commercial real estate offerings. PeerStreet allows investors to earn returns through interest payments on loans, making it an ideal option for those seeking a more conservative approach to real estate investing. The platform’s due diligence process ensures that sound financial and real estate fundamentals back each loan.
RealtyShares
RealtyShares, once a leading player in the real estate crowdfunding space, was acquired by another platform in 2019. Before its acquisition, it offered individual investors the opportunity to invest in residential and commercial real estate deals. While its future as a standalone entity remains uncertain, RealtyShares set the stage for the proliferation of online commercial real estate platforms that cater to smaller investors.
Though it no longer operates under its brand, RealtyShares' legacy continues in the growing number of platforms that offer access to real estate investments with varying levels of risk and reward. RealtyShares provided a valuable blueprint for structuring online CRE platforms to be both user-friendly and highly professional, making it a pioneer in this evolving space.
The online commercial real estate investing landscape in 2022 is dynamic, offering investors access to opportunities that were once difficult to reach. Platforms like CrowdStreet, RealtyMogul, Fundrise, PeerStreet, and others provide users with the tools and resources needed to make informed investment decisions. Whether you're an accredited investor or a newcomer to real estate, these platforms allow you to diversify your portfolio and earn passive income through commercial real estate.
As the market continues to evolve, the variety and accessibility of investment opportunities will likely increase, making it an exciting time for those looking to enter the commercial real estate space. By choosing the right platform and understanding the risks involved, investors can tap into the potential of this lucrative asset class and build wealth over time.
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