Update: Real Estate Crowdfunding

I wanted to revisit the real estate crowdfunding options out there, seeing as I have my own at MoreGreenBuildings.net, and I want everyone to be monitoring the competition.

There still is no other specifically green building real estate crowdfunding site. But here are the big ones that people pay attention to:

Fundrise:

This group continues to make progress and evolve. According to their website, they have cumulative total returns at the end of 2018 of about $65M and last year their funds averaged 9.1%. An investor can put money (as low as $500) into different vehicles to focus on dividend income, asset appreciation, or a mix of both. Based in DC, they have about 80 people on staff and are growing.

This is for non-accredited investors, looks at both commercial and residential, but doesn’t have a particular screen for social responsibility or green features. A lot of their investments seem to be multi-family projects, both ground-up and repositionings. They now have put $2.5B in investments into property and are continuing to innovate their product mix. They have offered shares of Fundrise itself to user-investors which is sort of a social responsibility-aligned play.

I have enjoyed tracking them but I have not invested in them. The basics are they create a low threshold for investment, solicit funds from anyone and everyone, and put the money into a few different portfolios that invest in small real estate projects throughout the US. You can cash out by giving them notice (there is a 60-day waiting period and up to a 3% penalty), but it is supposed to be pretty liquid.

I’m impressed with their operations – they have managed the reporting and communications efficiencies they need, and seem to be choosing the right projects to go after. I’m not sure if it’s because of the access to capital from the crowd or the diminished feedback loop from the crowd (investors are not opposing any given investment) which makes Fundrise faster on the draw to pick up properties, or if there’s just a lot of junky property out there that this entity is just lucky enough to pick up and arbitrage to their favor.

A Patch of Land

Rich Uncles

Realty Mogul

Other crowdfunding sites with higher bars include:

  • CrowdStreet
  • Origin Investments
  • AlphaFlow
  • EquityMultiple

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