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
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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