Real estate investments are big business with the potential for lucrative returns on your investments. Whether you are investing in single-family or multi-family houses, real estate is a good investment.
The increasing popularity of real estate as an investment option means increased competition. And as an investor, you have to be prepared for the best possible brokerage of real estate investments.
Real estate agents manage real estate transactions, including entering into contracts and overseeing the buying and selling of real estate. But everyone offers slightly different services at different prices. In this article, I’ve rounded up some of the best real estate investment options from the top brokers to help you make your decision.
Overview of the best real estate investment opportunities
CrowdStreet allows you to compare multiple investment properties at the same time to find the best opportunity.
They provide advisory resources on funds and management, as well as information on a variety of properties. With the various options you can make the best investment for your individual criteria.
There are no starting or membership fees associated with CrowdStreet. The broker acts as a marketplace for investment options rather than a specific brokerage service.
However, you must be an accredited investor to advance your investments.
To qualify you will need:
- Net worth over $ 1 million.
- Annual income over $ 200,000 ($ 300,000 for married couples).
- Membership in a trust with total assets of $ 5 million.
If you use the Blended Portfolio Service, you will have to pay a 1% management fee and a 2% to 2.75% fee on assets under management for the first year. Once that first year is over, that percentage drops to 0.25%.
Three investment options are available via CrowdStreet:
- Direct investment – You can invest directly with sponsors and choose as many offers as you want.
- Invest funds – You make a single investment contribution to a mixed portfolio of 30 to 50 properties. The management fee is 1% and the minimum investment for fund investments is $ 25,000
- Managed Investing – CrowdStreet fully manages your investments – provided you have the money. You need $ 250,000 upfront to use this service. You also have to pay an administration fee of 2% to 2.25%, which reduces to 0.25% after one year.
Visit CrowdStreet to find out more or read our CrowdStreet review.
RoofStock is ideal for newcomers to real estate and offers a variety of user-friendly features. They enable an accessible introduction to the real estate market.
Signing up is completely free with Attic. The additional fees are much lower than most investment brokers because the service is technology based. Sellers can expect a 2.5% marketing fee. In addition, a 30-day guarantee applies to all investments. If you are not happy with your property, it will be listed again.
RoofStock’s main focus is on rental investments in single-family homes. Many of the properties listed on their website already have tenants. This feature is one of the many reasons RoofStock is so beginner friendly. As an investment, it can result in instant passive income.
It’s also worth noting that all RoofStock properties must be certified before listing. The determination increases the security of your investments. They keep their listed properties to high standards.
Visit Roofstock to learn more or read our Roofstock review.
The first thing that stands out on EquityMultiple’s website is its commitment to property standards. They accept less than 10% of the property submitted. When you invest in an EquityMultiple property, you know that it is quality assured.
There is a 0.5% annual fee as well as a 10% cut on an investor’s profits after recovering the original investment. Industry experts call this scheme profit-sharing.
You must be an accredited investor to use EquityMultiple’s services. The investment options available include:
- General market value.
- Preferred capital.
- Syndicated Debt Investments for Commercial Real Estate.
- Qualified Opportunity Zone Investments.
Visit EquityMultiple to find out more or read our EquityMultiple review.
Real estate mogul
Realty Mogul differs from many of its competitors in that it accepts both accredited and unaccredited investors. This flexibility allows more people to use their services, but leads to higher fees.
There is a 1% – 1.5% fee administration fee with additional fees depending on the services you use. You also need an account of at least $ 5,000.
Three types of systems are available through Realty Mogul:
- Joint venture equity.
- 1031 exchange.
- Non-traded REITs.
Only accredited investors can invest in joint venture stocks. Non-accredited investors can invest in non-traded REITs.
Visit Realty Mogul to learn more or read our Realty Mogul review.
Fundrise This option allows you to invest in real estate with a minimum account fund of just $ 500. This lower threshold opens up the service to investors who do not have the wealth required for many real estate agents.
There is an administration fee of 1%.
A variety of eREITs and eFunds are available across four investment portfolios, depending on your needs.
The required minimum account balance increases as follows depending on the account type:
- At least $ 500 for the basic account.
- At least $ 1,000 for core plans.
- At least $ 10,000 for an expanded account.
- At least $ 100,000 for a Premium Account.
This wide variety of funds allows investors flexibility, even on a tight budget.
Visit Fundrise to learn more or read our Fundrise report.
As the name suggests, Streitwise is more REIT-focused than other real estate agents. If you’re looking for REIT specificity, look no further.
There is a 3% investment fee with a 2% annual management fee.
Both accredited and non-accredited investors can use Dispute. They offer a full portfolio that consists primarily of office buildings as opposed to residential buildings.
Their primary focus is to provide commercial investment opportunities to low income investors.
Visit Streitwise to learn more or read our Streitwise review.
You Invest is a new investment platform from J.P. Morgan Chase. You can use You Invest Trade – a self-directed trading platform where you can invest in stocks, ETFs, options, fixed income stocks, and mutual funds. OR you can use You Invest Portfolios – premixed and managed portfolios.
When you open a You Invest Trade account to buy REIT ETFs, you get unlimited commission-free online trades for ETFs as well as individual stock and option trades. A fee is charged for some options contracts and minor fees are charged for others.
If you decide to open a You Invest Portfolios account, a flat administration fee of 0.35% will be charged.
With You Invest Trade you can open one of the following account types:
- Individual taxable brokerage account.
- Traditional IRA.
- Roth IRA.
And within each account type, you can invest in the following stocks:
- Exchange Traded Funds (ETFs).
- Fixed Income.
- Investment funds.
With You Invest Portfolios, you are matched to a premixed mix of investments based on your risk tolerance and other financial goals.
There is a minimum investment requirement of USD 0 for You Invest Trade and USD 500 for You Invest Portfolios.
Visit You Invest to learn more or read our You Invest review.
Summary of the best real estate investment opportunities
|Companies||Minimum investment||Plant types||fees|
|Crowdstreet||$ 10,000||Direct investment, fund investment, managed investing||Varies depending on the account|
|Attic||$ 5,000||Mostly single family homes||2.5% marketing fee|
|EquityMultiple||$ 5,000||Registered capital, preferred capital, syndicated commercial real estate debt, qualifying opportunity zone investments||0.5% annually + 10% of the investor’s return after the investment has recovered|
|RealtyMogul||$ 5,000||Joint Venture Equity, 1031 Exchange, non-traded REITs||1-1.5%|
|Fundrise||$ 500||eREITs, eFunds||1%|
|Dispute||$ 1,000||Non-traded REITs||3% in advance; 2% annually|
|You invest||$ 0 (for you Invest Trade)||Stocks, ETFs, options, mutual funds, fixed income securities||0 USD commissions on ETFs, stocks and options|
How I came up with this list
To make this list, there were a few things that I was dying to consider:
- Low entry barrier – W.While some of the options on this list cost more than $ 10,000, many are much lower. The goal here was to enable you to invest in real estate for a much less amount than you would by purchasing a full investment property.
- User friendliness – All of these platforms are easy to use, have a clear online interface and numerous supporting content for optimal use of the research results available to you.
- Investment opportunities – I Select companies that offer you various investment opportunities while you are in the real estate space. This includes things like REITs, funds, as well as actual investment properties.
- Reasonable Fees – Given the nature of the investment (real estate investments aren’t as cheap as stock investments), I looked for companies that a) had transparent pricing and b) had reasonable prices for what they were offering.
What is a real estate investment broker?
A real estate investment broker connects investors with available real estate. They present a wide variety of properties across specific portfolios and perform due diligence to ensure that the properties on offer are up to standard.
Realtors act like real estate agents in many ways, but they work with investors rather than homeowners. They provide security for your transactions and a wealth of advice that you would otherwise not have access to.
Fees associated with brokerage fees are deducted from your investment income so you are not cheated of your profits.
Why Should You Use A Real Estate Investment Broker?
There are numerous reasons why you should use a real estate investment broker. To make digestion easier, I have put together just a few of the most important:
As an investor, you may find it difficult to find a trusted developer or property owner who is worthy of your investment. It’s hard to know which options are worth exploring when you’re traveling alone. Real estate investment brokers close this gap and provide you with profitable real estate directly.
Most real estate investment brokers do background and security checks on both the properties they list and the developers / owners who list them. This examination minimizes the risks for you. It stops you from putting money into a property that won’t either go away or close down months later.
Immediate money back
Some investment brokers (such as RoofStock) offer investment properties that tenants already own. With these options, you can see ROI on your investments almost instantly.
Why You Shouldn’t Use a Real Estate Investment Broker
You don’t have the money
To make big bucks in the world of real estate investing, you need to spend big bucks. This game can be dangerous if you do not have the wealth to secure your investments. The vast majority of investment brokers require a minimum of thousands of dollars before considering annual management costs and other such fees.
You are under no obligation
Investing and real estate are two of the fastest moving markets in the financial world. Mix them up and you have a recipe for an extremely lucrative but complex business prospect. Granted, the purpose of brokers is to make all of this easier, but this is not a get-rich-quick program. Investing in real estate takes time and effort if you want to see real rewards.
What to look for in a real estate investment broker
In particular, you need to know how experienced your chosen broker is with your local market. Many of the newer brokers work entirely online so they are likely to source properties from across the country for your investments. However, it may still be possible to keep track of which locations are being advertised the most and whether that’s convenient for your needs.
Investing successfully is all about deep connections that will put you in the best position to seize a lucrative opportunity. By signing up with a broker, you can get the most out of these connections. Don’t waste your money on a service that doesn’t give you the best possible options.
This point may sound a little like Aesop’s fables at first, but trust us, it is crucial. If a broker has the opportunity to invest tens of thousands in your first month, avoid them.
Investing in any area is a marathon, not a sprint. This caution applies particularly to real estate. The more informed the reality, the expected results that an investment broker offers you, the more trustworthy a company will be that will turn out to be such.
Real estate investing can be a complicated business, but if done right it can be very rewarding. Above, I’ve listed and reviewed some great options for the best real estate investment platforms.
Deciding which one is right for you, however, will depend on your financial circumstances and goals. Whether you are looking for an easy-to-cash investment property or a long-term source of income, there is a broker for you.