1. SmartCrowd

WHO ARE THEY?

• Simply said, SmartCrowd is a real estate crowdfunding platform
• Users can earn rental profits by purchasing and owning shares in entire property units
• They buy and own real estate under a Special Purpose Vehicle (SPV) framework
• They are the Middle East’s first and largest regulated crowdfunding property investment platform

ELIGIBILITY:
Investors worldwide

MINIMUM INVESTMENT:
AED 500 or USD 140

INVESTMENT COSTS/FEES:

• 4% transaction fee (split as 1.5% during purchase + 2.5% during sale)
• 0.5% admin fee annual on whole portfolio amount

PRIMARY HANDLING CURRENCY:
AED and GBP

REGULATED BY:
Dubai Financial Services Authority (“DFSA”), United Arab Emirates

WHY THEM?

• High monthly dividend yields in comparison to the competition (usually 5%–8% per annum)
• The majority of listings are converted to vacation properties, boosting your dividend payouts
• You can deposit via wire transfer or by simply linking your bank account to your portal
• Building trust — the CEO and team are actively connected with the audience through webinars and seminars
• Statistical and analytical data, as well as any legal deeds and papers within the platform, are easily available after login for both current portfolio and classifieds

WHY NOT THEM?

• Credit/debit card deposits are not accepted
• When compared to the competitors, it takes longer than expected to obtain deeds and contracts
• Dividend payments are sometimes delayed
• The compliance process is a little more time-consuming

TRIED THEM OUT?
Invested, making dividends

Sign up for SmartCrowd to learn more

2. Stake

WHO ARE THEY?

• Stake is a new real estate crowdfunding player in the UAE’s expanding property fintech ecosystem
• They offer a highly competitive structure as well as incredible property listings with minimal minimums
• Dividends are paid out monthly, and the real estate is purchased and owned through a Special Purpose Vehicle (SPV) system

ELIGIBILITY:

• Investors worldwide. Age 18+

MINIMUM INVESTMENT:

• AED 500 or USD 140

INVESTMENT COSTS/FEES:

• 4% transaction fee (split as 1.5% during purchase + 2.5% during sale)
• 5% admin fee annual on the whole portfolio amount
• 15% of profit if the property is sold at a higher price than the total funding target (this is not a fee basically)

PRIMARY HANDLING CURRENCY: AED and USD

REGULATED BY:

• Dubai Financial Services Authority (“DFSA”), United Arab Emirates

WHY THEM?

• Property listings in high-profile areas (good for the hype and brags, not really for returns)
• Excellent low minimum bargains are periodically made available (e.g. 1 AED minimums)
• Simple onboarding yet stringent compliance
• Possibility of depositing through card and wire transfer

WHY NOT THEM?

• Dividend yields are lower than the rivals (usually 4%–6% per annum)
• Minimums differ between properties
• The platform is not very appealing or well-developed because users cannot quickly access the most relevant statistics, such as dividend yield, on the listings page itself
• It is not possible to compare numerous listing opportunities with a right-click

TRIED THEM OUT? (Level 1–5 scale)

• Level 5 — Invested, making returns/made a sale

Sign up for Stake to learn more

3. Fundrise

WHO ARE THEY?

• Fundrise is an online real estate company that allows ordinary individuals to participate in private commercial and residential buildings by pooling their assets through an investment platform
• Fundrise’s primary products are real estate investment trusts, or REITs, which invest in income-producing real estate by purchasing and managing properties or retaining mortgages

ELIGIBILITY:

• Only available to U.S. citizens (or permanent residents) currently residing in the U.S. who are over the age of 18

MINIMUM INVESTMENT:

• $10 to $100,000, depending on the account level

INVESTMENT COSTS/FEES:

• 0.15% Advisory fee; 0.85% Asset management fee

PRIMARY HANDLING CURRENCY: USD

REGULATED BY:

• Financial Industry Regulatory Authority, Inc (FINRA)

WHY THEM?

• There is no accreditation necessary
• App with a high rating
• You can redeem your shares at any time (possible fees and redemption not guaranteed)

WHY NOT THEM?

• Nonqualified dividends

Sign up for Fundrise to learn more

4. Yieldstreet

WHO ARE THEY?

• Yieldstreet makes alternative investments that were previously only available to a limited fraction of investors available to individual investors
• Investors can produce passive income and expand their wealth by diversifying their portfolio with alternative assets from several asset types, including real estate

ELIGIBILITY:

• Open to all investors, regardless of net worth or accreditation status.

MINIMUM INVESTMENT:

• $10,000

INVESTMENT COSTS/FEES:

• 0% — 2.5% management fees; other fees apply

PRIMARY HANDLING CURRENCY: USD

REGULATED BY:

• U.S. Securities and Exchange Commission (SEC).

WHY THEM?

• Real estate, commercial, marine, legal, and art investments are available so you can diversify within the real estate asset class
• Individuals’ ability to invest in private structured credit arrangements

WHY NOT THEM?

• Investing in highly illiquid assets
• Most investments are only available to accredited investors
• There are few options available

TRIED THEM OUT?

• Not yet, as the minimums are too high.

Sign up for Yieldstreet to learn more

5. RealtyMogul

WHO ARE THEY?

• More than 219,000 investors have joined RealtyMogul since its establishment in 2012 to have access to its REITs and private market products
• The organization is known for its exceptional due diligence, as it personally vets every possible property and scrutinizes each purchase using proprietary procedures and models
• Investors can pick between three goals: growth, diversity, and passive income

ELIGIBILITY:

• Users who are eighteen (18) years of age or older

MINIMUM INVESTMENT:

• $1,000

INVESTMENT COSTS/FEES:

• 1% to 1.5%

PRIMARY HANDLING CURRENCY: USD

REGULATED BY:

• Securities and Exchange Commission (SEC)

WHY THEM?

• Excellent investment selection
• Extensive research
• Monthly REIT auto-investment starts at $250 per month

WHY NOT THEM?

• Each investment comes with its own set of costs.
• Investments that are difficult to sell or trade
• Some lengthy hold times

Sign up for RealtyMogul to learn more

6. EquityMultiple

WHO ARE THEY?

• EquityMultiple invests nearly completely in institutional commercial real estate and also provides equity, preferred stock, and senior loans
• The company recently expanded its portfolio with tax-advantaged real estate investments (Opportunity Zone and 1031 exchange) and fund products
• The frequency of distribution varies by the deal, but it is frequently monthly or quarterly

ELIGIBILITY:

• Accredited investors only

MINIMUM INVESTMENT:

• $10,000

INVESTMENT COSTS/FEES:

• 1% on equity investments; additional fees vary depending on the product

PRIMARY HANDLING CURRENCY: USD

REGULATED BY:

• Securities and Exchange Commission.

WHY THEM?

• Excellent investment selection
• Various target hold times are available.
• Simple to use platform

WHY NOT THEM?

• Only accredited investors may participate.
• The minimum investment is steep.
• Options for redemption are limited.

Sign up for EquityMultiple to learn more

7. CrowdStreet
WHO ARE THEY?

• Crowdstreet has attracted over 100,000 investors from around the United States
• Its novel strategy provides direct access to a carefully vetted portfolio of institutional-quality real estate investments
• Accredited investors might choose to invest in a single property or a fund

ELIGIBILITY:

• Only U.S. citizens and green card holders. Can vary depending on offering, but generally $25,000

MINIMUM INVESTMENT:

• $25,000

INVESTMENT COSTS/FEES:

• 0.50% to 2.5% for CrowdStreet funds; other fees vary by offering

PRIMARY HANDLING CURRENCY: USD

REGULATED BY:

• Broker-dealer registered with FINRA and a member of SIPC

WHY THEM?

• An easy-to-use platform with a helpful chatbot
• Offerings of institutional calibre
• Easily accessible investment information (once you sign up for a free account)

WHY NOT THEM?

• Only accredited investors may participate
• Minimum investment amounts are steep
• There are no early withdrawals

Sign up for CrowdStreet to learn more

8. DiversyFund

WHO ARE THEY?

• DiversyFund’s model is unique in the realm of real estate crowdfunding
• DiversyFund acquires, develops, and manages a portfolio of properties, gathers cash flow, and distributes profits to its clients rather than acting as a broker who connects investors with projects
• It does not charge any administration or broker fees, unlike some crowdfunding services

ELIGIBILITY:

• Any US resident, unaccredited or accredited, over the age of 18 can currently invest.

MINIMUM INVESTMENT:

• $500 depending on account level

INVESTMENT COSTS/FEES:

• 2% to 8% developer fee

PRIMARY HANDLING CURRENCY: USD

REGULATED BY:

• U.S. Security and Exchange Commission and incorporated in the state of Delaware

WHY THEM?

• Investors pay no management fees
• One of the few platforms that have a mobile app
• The minimum investment is low

WHY NOT THEM?

• Investment options are limited
• There are no early withdrawals
• Payment will be made at the conclusion of the investment term.

Sign up for DiversyFund to learn more

9. Yielders

WHO ARE THEY?

• Finance Technology Platform — We use cutting-edge web technologies to make our property investment options available to you
• The FCA directly authorizes and regulates them
• Equity Crowd Investing is based on ethical and Sharia-compliant concepts
• Yielders aim to offer low-risk investing choices with comparably better returns

ELIGIBILITY:

• Open to investors worldwide

MINIMUM INVESTMENT: £100

INVESTMENT COSTS/FEES:

• Yielders charge a 2.5% structuring fee, a 10% management fee and a 15% profit share on exit

PRIMARY HANDLING CURRENCY:

• Main currency GBP (£)

REGULATED BY: FCA

WHY THEM?

• They have a mix of commercial and residential properties which helps you to diversify your investments
• The investment calculator is quite helpful in determining returns per property invested into

WHY NOT THEM?

• Client engagement and trust-building are low with lesser events and newsletters as compared to other sites
• Paying methods for transferring funds to the platform are restrictive with maximum limits and fees while direct debit is available for the UK only

Sign up for Yielders to learn more

DISCLOSURE:

None of these articles constitutes financial advice. Articles are highly summarised to make it easy for the reader and save your time, so please DYOR further before putting your hard-earned money into any product mentioned.

Please note that the tech industry evolves rapidly and this article's information is correct at the time of publishing. As Heraclitus said, “Change is the only constant”, so if anything sounds old or off please holler on the socials or comment here so everyone stays peeled.

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