Real Estate Crowdfunding: 7 Steps to Start Investing Today

You Don’t Need to Be Rich to Invest in Real Estate

You might think real estate is only for the wealthy — people with six-figure bank accounts and vacation homes. That’s outdated thinking. In 2025, you can get into real estate investing without ever buying or managing a single property.

Thanks to real estate crowdfunding, you’re now able to join thousands of others in funding property deals that were once limited to the elite. And you can start with as little as $10. If you’ve been waiting for a way to invest without taking on a mortgage or becoming a landlord, this is it.

What Is Real Estate Crowdfunding?

How It Works

Online platforms connect investors with vetted real estate deals
You browse projects, choose one that fits your goals, and invest
Returns come through monthly dividends (from rent) or property appreciation over time

Why It Matters for You

No need to save a down payment or deal with tenants
Flexible entry with low minimum investment thresholds
Diversify your income without quitting your job

Types of Real Estate Crowdfunding Investments

Equity Crowdfunding

You acquire a portion of the property and generate revenue by:

Rent distributions
A cut of the profit when the property is sold

Pros: Higher returns potential Cons: Money is locked up for longer (3–7 years on average)

Debt Crowdfunding

You’re lending money to the project developer or borrower, and get paid back with interest.

Pros: Predictable, fixed returns (6–10% annual) Cons: Lower return upside, shorter terms (6–36 months)

Comparison Table

Type	Ownership	Return Type	Risk	Liquidity
Equity	Yes	Rental income + sale gains	Moderate to High	Low (long hold)
Debt	No	Fixed interest payments	Low to Moderate	Moderate

Best Real Estate Crowdfunding Platforms in 2025

Here are the top platforms trusted by investors:

Fundrise

Minimum: $10
Type: Mixed equity and debt
Best For: Beginners looking to get started with little money

RealtyMogul

Minimum: $5,000
Type: Equity and REITs
Best For: More experienced investors who want vetted commercial projects

CrowdStreet

Minimum: $25,000
Type: Institutional-grade real estate (accredited investors only)
Best For: High-net-worth individuals

Groundfloor

Minimum: $10
Type: Debt-based short-term loans
Best For: Investors who want short-term, fixed-income returns

Why People Choose Real Estate Crowdfunding

You might still be asking, “Why not just buy a house or duplex and rent it out?” Here’s why crowdfunding may make more sense for your situation:

No Landlord Headaches: No maintenance, no chasing rent, no evictions
Lower Risk Exposure: Spread your money across different projects and regions
Access to Commercial Properties: Office buildings, retail centers, apartments you couldn’t afford alone
Start Small: You don’t need to risk your savings or take out loans

Real Risks to Consider Before You Invest

Illiquidity

Most equity deals lock your money up for 3–7 years
Some platforms offer early redemption, but fees apply

Market Risk

Real estate values can drop
Rental income may not be guaranteed

Platform Risk

You’re trusting the platform to vet deals, manage payouts, and stay solvent
Always check reviews and SEC filings if available

Limited Control

You won’t get to choose tenants, set rents, or make improvement decisions

Tip: Diversify across multiple projects and platforms to manage your risk.

How to Make Your First Crowdfunding Investment in Real Estate

Set Your Budget – Decide how much you can invest without affecting your emergency fund.
Pick a Platform – Choose based on your budget, goals, and risk tolerance.
Select Your Investment Type – Debt for fixed income, equity for growth.
Browse Deals – Read the project details, estimated returns, and timeline.
Invest and Monitor – Track performance and reinvest your earnings.

Bonus Tip: Some platforms let you auto-invest based on your goals.

FAQ: Real Estate Crowdfunding Explained

Is real estate crowdfunding safe?

It’s relatively safe if you understand the risks. Like all investments, nothing is guaranteed.

How much can I make?

Average returns range from 6–12% annually depending on the platform and deal type.

Do I need to be accredited?

Not always. Numerous platforms have low minimum requirements for non-accredited investors.

Can I cash out anytime?

Usually no. You’ll need to wait for the investment term to end or pay early withdrawal fees.

Is This the Right Time for You to Start?

If you’ve been on the fence about getting into real estate, crowdfunding could be your first smart move. It’s low-commitment, affordable, and flexible. You can learn as you go and build a portfolio of assets that pays you while you sleep.

No tenants. No renovations. No 3 a.m. calls.

Just simple, smart investing.

Final Call to Action

If you’re ready to start investing, pick one of the platforms above and create a free account. Even if you just start with $10, you’re taking your first step into the world of real estate ownership.

Drop a comment below if you’ve tried any crowdfunding platforms or if you’re curious about where to begin.

Want to learn more? Read our next guide: “REITs vs Crowdfunding: Which Is Better in 2025?

Real Estate Crowdfunding Explained: How You Can Start Investing Without Buying Property

You Don’t Need to Be Rich to Invest in Real Estate