Fractional real estate investing has emerged as the best and popular way for individuals to enter in the real estate investment without any need for a large amount of capital. With the help of fractional real estate investing, you can buy a fractional share of a property, which will enable you to gather some exposure to the real estate market without having to invest in an entire property.
In this article, we will discuss the best fractional real estate investing companies, their pros and cons, and how they can help investors build wealth.
Fundrise
Today, one of the leading fractional real estate investing platforms in the market is Fundrise. With the help of Fundrise, you can purchase shares in Real Estate Investment Trusts(REITs) that invest in commercial and residential real estate. Through Fundrise you can start your investment with a minimum investing amount of $500, which make it accessible to a wide range of investors. Moreover, Fundrise has a well-diversified portfolio of real estate properties which are spread across different parts of the United States.
Pros:
- Low minimum investment amount
- Diversified portfolio of real estate properties
- Access to both commercial and residential real estate
Cons:
- Higher fees compared to other fractional real estate investing platforms
- Limited liquidity
Roofstock
If you are interested in purchasing individual rental properties then the best option for you would be Roofstock. With the help of Roofstock, you can buy properties that are already rented out, proving you a passive income stream. Roofstock too offers a wide range of properties that are located across different regions of the United States. The platform will also provide you the access to property management services, which can help you manage the rental properties.
Pros:
- Ability to purchase individual rental properties
- Access to property management services
- Wide range of properties available
Cons:
- Higher minimum investment amount compared to other fractional real estate investing platforms
- Limited liquidity
EquityMultiple
EquityMultiple is also a well known platform that allows you to invest in commercial real estate projects. With EquityMultiple, you can purchase equity in different commercial real estate projects, such as apartment buildings, office buildings and hotels. With a minimum investment amount of $5000, EquityMultiple making it accessible to a wide range of investors. Additionally, the platform will provide you the detailed information on each project, including financial projections, market analysis and risk assessments.
Pros:
- Low minimum investment amount
- Access to commercial real estate projects
- Detailed information on each project
Cons:
- Limited liquidity
- Higher fees compared to other fractional real estate investing platforms
RealtyMogul
Whether you want to invest in commercial or in residential real estate, RealtyMogul will allow you to invest in both.You can purchase shares in REITs or invest in individual properties. It offers a low minimum investment amount of $1000, which makes it accessible to a wide range of investors. Also, in RealtyMogul too you can find a well-diversified portfolio of real estate properties that are spread across different regions of the United States.
Pros:
- Low minimum investment amount
- Diversified portfolio of real estate properties
- Access to both commercial and residential real estate
Cons:
- Limited liquidity
- Higher fees compared to other fractional real estate investing platforms
DiversyFund
DiversyFund is a platform that allows investors to invest in residential real estate properties. With DiversyFund, investors can purchase shares in a private REIT that invests in residential real estate properties. The platform offers a low minimum investment amount of $500, making it accessible to a wide range of investors. Additionally, DiversyFund has a well-diversified portfolio of real estate properties that are spread across different regions of the United States.
Pros:
- Low minimum investment amount
- Diversified portfolio of real estate properties
- Access to residential real estate
Cons:
- Limited liquidity
- Higher fees compared to other fractional real estate investing platforms
- Limited access to commercial real estate
Also read: Fundrise Vs Crowdstreet 2023
Conclusion
Overall, fractional real estate investing can be a great way for individuals to gain exposure to real estate investments without needing a large amount of capital. Each of these platforms offers its own unique advantages and disadvantages, so investors should carefully consider their options before choosing a platform to invest with.
Factors such as minimum investment amounts, fees, liquidity, and the type of real estate properties available should all be taken into account when making a decision. By carefully selecting a platform and investing wisely, investors can use fractional real estate investing to build wealth over time.