RealCrowd

RealCrowd

RealCrowd

RealCrowd

RealCrowd is a real estate crowdfunding platform that primarily acts as a marketplace to connect commercial real estate developers and potential investors.

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Highlights

+2.20%

Asset Class Return30d

#35 Rank

In Real Estate30d

avatars

Invest from

$5K

Overview

RealCrowd is real estate platform built for you. RealCrowd will teach you about the fundamentals of real estate investing via their industry leading podcast, or through their educational materials. Then you can confidently access direct real estate investments all across the country. Invest with professional real estate sponsors that will manage the property and execute the investment strategy as you sit back and relax. With passive real estate investing your investment is pooled together with the real estate sponsor and fellow investors allowing you to own more real estate while investing only a fraction of the total deal size. As an investor in passive real estate, you are able to enjoy the income generated from the properties as the real estate sponsor collects rents and, when the time is right, sells the property. With RealCrowd you can invest in all kinds of property types in locations across the country.

Things to Know

  • You make money on

    Value + Dividends

  • Fees

    0%

  • Min Investment

    $5,000

  • Payout frequency

    Quarterly

  • Term of investment

    60+ months

  • Target Return

    12% - 20%

  • Liquidity

    Hard

  • Open to

    Accredited Only

  • Mobile Application

    No

Top Perks

  • RealCrowd is for commercial real estate investments.

  • Both direct property investments and fund investments.

  • Fees are never charged to investors.

How you make money

Like a dividend-paying stock, RealCrowd provides steady monthly dividend income (under normal circumstances). Your divdends are automatically reinvested. You will also benefit from the increasing property value over time. This can result in higher dividend payments due to rent increases or if the property is sold.

How RealCrowd makes money

RealCrowd doesn’t handle any of the asset management aspects of the real estate projects featured on its platform. It doesn’t provide the diversified funds it manages, either. That means RealCrowd doesn’t charge fees directly to investors. Instead, the platform charges sponsors a listing fee to feature approved deals on its platform. Sponsors also pay a "per-investor processing fee" (ranging from $525–$3,500, depending on the minimum investment amount) when deals are funded. That doesn’t mean investing on RealCrowd is entirely without fees. Real estate development and management cost money, and investors pay sponsors numerous fees to develop, construct, run, and sell a property. RealCrowd makes it easy to identify these fees under the "Fees" tab on the "Financials" section of each deal page. Relevant legal documents can also be downloaded from the deal page

Is it safe?

Potential For Loss: With any investment, there is a potential for loss. There is less risk with real estate that your investment will go to $0, since it is still backed by real property (unless you invest in an unsecured investment). However, there are plenty of ways to lose money - from vacancies, to incomplete rehabs, poor selling markets, inability to refinance, and more. Lack of Liquidity: Real estate investments are not liquid. Once you invest, typically you can't get your money back until there is a liquidity event - refinancing or sale.​ Platform Risk: With any online platform, there is a risk of fraud and lack of due diligence. Many investors rely on the platform to help assess this, but as an investor, you need to do your own homework.

  • Established

    2013

  • Country Available

    US Only

  • Assets Managed

    n/a

How You’re Taxed

Capital Gains

Capital Gains

Short-term capital gains are from selling assets owned for one year or less, which are taxed at ordinary income tax rates. Long-term capital gains are for assets owned for more than a year, and are taxed at a lower rate than ordinary income, with rates ranging from 0% to 20% depending on your total taxable income.

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