Real Estate

The best online platforms make it easier than ever to invest in real estate without the hassle of directly owning and managing properties.
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Overview

Real estate is an asset class that includes property or land, along with any improvements made to the land such as buildings, structures, and other fixtures. This asset class is becoming increasingly popular among investors due to its potential for stable income streams, capital appreciation, diversification, tax benefits, and hedge against inflation.

Real estate investments can take many forms, including direct ownership of property, real estate investment trusts (REITs), real estate mutual funds, and online real estate platforms. Each of these investment types has its own advantages and disadvantages, and investors should carefully consider their investment goals, risk tolerance, and other factors before choosing an investment strategy.

The Alt Invest Guide is your source for up-to-date information on all of these types of investments. Read below for a breakdown of these as well as the pros/cons of each.

Types of real estate investments

  1. Direct ownership of property: We won’t be covering this much here as we’re more focused on reviewing online platforms that provide these investment options without the hassle of being a landlord.
  2. Real Estate Investment Trusts (REIT): REITs are diversified real-estate funds available on major stock exchanges. They typically include a set of well balanced properties such as office buildings, shopping centers, industrial facilities, residential complexes and sometimes even single family homes. REITs are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends, which makes them an attractive investment for income-oriented investors. Learn more about REITs here.
  3. Real estate mutual funds: These are investment vehicles that pool money from multiple investors to invest in a portfolio of publicly traded real estate companies, including REITs, homebuilders, and other real estate-related businesses. Real estate mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors in the fund.
  4. Online real estate platforms: This is the main focus of Alt Invest Guide as there are new platforms for taking advantage of the market in ways that were not available even 10 years ago. Online real estate platforms typically allow investors to invest directly in individual properties or portfolios of properties. Online real estate platforms offer deals that are not available through more traditional channels and investors can choose to invest in properties with higher potential for appreciation or rental income. There is often more upside potential than a REIT which usually consist of existing income-producing properties.

Real-estate investing has been gaining momentum

Online real estate platforms have been gaining momentum in recent years due to several factors:

Low-interest rates: Low-interest rates have made real estate investing more attractive, as investors can secure financing at lower costs.

Stable income: Real estate investments can provide stable income streams through rental income and potential appreciation in property values.

Diversification: Real estate investing can provide diversification to an investor’s portfolio, as it is a non-correlated asset class to stocks and bonds.

Urbanization: As more people move into cities, there is a growing demand for real estate investments, particularly in urban areas.

Inflation hedge: Real estate investments can serve as an inflation hedge, as property values and rents tend to increase during inflationary periods.

Tax benefits: Real estate investing offers tax benefits, such as deductions for mortgage interest, property taxes, depreciation, and other expenses.

Don’t forget about the risks

It’s important for investors to carefully evaluate the risks and benefits of any investment before making a decision. Investors should consider their investment objectives, risk tolerance, and financial situation when evaluating online real estate platforms or any other investment opportunity. While the platforms on this site are known to be reputable, there are new platforms that maybe have more limited transparency and a higher potential for fraud.

Investments

RealtyMogul Individual Properties

This includes overall investment averages of all individual properties such as office, multifamily, retail and industrial.
Min. Investment
$25000
ANN Fees
4
ANN Target Return
22.7%
term
3-7 yrs
Accredited
Yes

RealtyMogul Apartment Growth REIT

Non-traded growth focused REIT that invests in apartment buildings located in resilient markets.
Min. Investment
$5000
ANN Fees
2.5
ANN Target Return
8.08%
term
1-3+ yrs
Accredited
No

RealtyMogul Income REIT

Consistent cash distributions to preserve, protect, increase and return capital contributions through debt and equity investments.
Min. Investment
$5000
ANN Fees
2.5
ANN Target Return
8.66%
term
1-3+ yrs
Accredited
No

Individual Real-Estate Fund

An actively managed and customized fund with a personalized plan based on your financial goals.
Min. Investment
$10
ANN Fees
1%
ANN Target Return
4.54%
term
1+ yrs
Accredited
No

Diversified Multi-Asset Fund

Fund options include medical real estate, manufacturing facilities, and CrowdStreet advisor favorite growth-oriented projects.
Min. Investment
$25000
ANN Fees
0.5-2.5%
ANN Target Return
18%
term
2-6 yrs
Accredited
Yes

Single Commercial Property

Options include a luxury apartment high-rise in DC, storage facilities, distribution centers, and Marriott hotel.
Min. Investment
$25000
ANN Fees
0-2.5%
ANN Target Return
21.5%
term
2-7 yrs
Accredited
Yes

Types of real estate investments

  1. Direct ownership of property: We won’t be covering this much here as we’re more focused on reviewing online platforms that provide these investment options without the hassle of being a landlord.
  2. Real Estate Investment Trusts (REIT): REITs are diversified real-estate funds available on major stock exchanges. They typically include a set of well balanced properties such as office buildings, shopping centers, industrial facilities, residential complexes and sometimes even single family homes. REITs are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends, which makes them an attractive investment for income-oriented investors. Learn more about REITs here.
  3. Real estate mutual funds: These are investment vehicles that pool money from multiple investors to invest in a portfolio of publicly traded real estate companies, including REITs, homebuilders, and other real estate-related businesses. Real estate mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors in the fund.
  4. Online real estate platforms: This is the main focus of Alt Invest Guide as there are new platforms for taking advantage of the market in ways that were not available even 10 years ago. Online real estate platforms typically allow investors to invest directly in individual properties or portfolios of properties. Online real estate platforms offer deals that are not available through more traditional channels and investors can choose to invest in properties with higher potential for appreciation or rental income. There is often more upside potential than a REIT which usually consist of existing income-producing properties.

Real-estate investing has been gaining momentum

Online real estate platforms have been gaining momentum in recent years due to several factors:

Low-interest rates: Low-interest rates have made real estate investing more attractive, as investors can secure financing at lower costs.

Stable income: Real estate investments can provide stable income streams through rental income and potential appreciation in property values.

Diversification: Real estate investing can provide diversification to an investor’s portfolio, as it is a non-correlated asset class to stocks and bonds.

Urbanization: As more people move into cities, there is a growing demand for real estate investments, particularly in urban areas.

Inflation hedge: Real estate investments can serve as an inflation hedge, as property values and rents tend to increase during inflationary periods.

Tax benefits: Real estate investing offers tax benefits, such as deductions for mortgage interest, property taxes, depreciation, and other expenses.

Don’t forget about the risks

It’s important for investors to carefully evaluate the risks and benefits of any investment before making a decision. Investors should consider their investment objectives, risk tolerance, and financial situation when evaluating online real estate platforms or any other investment opportunity. While the platforms on this site are known to be reputable, there are new platforms that maybe have more limited transparency and a higher potential for fraud.

Real Estate Investment Platforms

Review

RealtyMogul

RealtyMogul lets investors browse, conduct due diligence, invest and track their investments through an online platform.
Review

CrowdStreet

An easy way into real estate investing including large-scale commercial projects without buying the entire building.
Review

Fundrise

Passive income through diversified real-estate crowdfunding