Crowdfunding

Quick Takeaways

Crowdfunding is a method for real estate investment, when investors pool money to fund a particular project and earn passive income from the property.
Platforms like Crowdstreet, Fundrise, and YieldStreet allow investors to engage in crowdfunding real estate investments.
Crowdfunding can take out the “legwork” of traditional real estate investment, allowing investors to build a real estate portfolio.

Best Real Estate Crowdfunding Platforms for 2026 (CRE Daily, Nov. 24, 2025)

Investment in real estate can take many forms. Crowdfunding is a relatively new idea in real estate financing: soliciting funding online. Crowdfunding could present an alternative funding stream for both residential and commercial buyers and sellers. Crowdfunding can be a way to invest in real estate by pooling money with many investors to diversify their investment portfolios and earn passive income on a property without the “legwork” of maintaining an investment. Investors can use a multitude of platforms, with the most popular being Crowdstreet, to invest in commercial real estate with a variety of investment strategies.

See References for more information.

Advocacy

What is the fundamental issue?

The Jumpstart Our Business Startups (JOBS) Act of 2012 eased various securities regulations to encourage more investment, including allowing non-accredited investors to engage in “crowdfunding” activities, and ultimately to increase opportunities for small businesses and startups.

"Crowdfunding" refers to the financing of an activity through the collective cooperation of people who pool their money or other resources, sometimes through a networking site on the internet. Crowdfunding has been in practice for some time before the JOBS Act was enacted, but now there are federal guidelines in place for many aspects of crowdfunding, including individual investment limits and controlling the way the funds are managed through a third-party platform. Crowdfunding is seen as a way to raise money for commercial real estate developments and many platforms have been created to allow accredited and non-accredited investors alike access to this.

I am a real estate professional. What does this mean for my business?

Crowdfunding could present an alternative funding stream to traditional lending sources for both residential and commercial buyers and sellers.

NAR Policy on Crowdfunding

NAR policy supports laws and regulations that ensure an adequate flow of capital for real estate purposes. NAR has no policy specific to crowdfunding at this time.

Opposition Arguments

Opponents of proposed rules to implement the JOBS Act are split between whether the regulations were too relaxed or too restrictive in the balance between protecting the individual investor and creating a positive regulatory environment for crowdfunding to occur. Some critics argue that there is not enough federal oversight of the crowdfunding platforms and that the scheme is ripe for fraud, while others are concerned that too tight registration will stymie the development of crowdfunding as a source of funding for real estate projects.

Legislative/Regulatory Status/Outlook

Regulation A+, or Title III of the JOBS Act took effect in 2015. It is designed to increase capital-raising opportunities for small businessesby making it easier for small businesses to raise capital by removing many of the regulatory compliance hurdles previously in place. The new rules allow companies to raise up to $50 million under Regulation A, which is a less-complicated route in terms of compliance and administration, as the previous limit was $5 million.

The rule exempts companies using Regulation A from registration with state securities administrations. It also establishes two tiers of fundraising:

Tier 1: up $20 million in a 12-month period, with not more than $6 million in offers by selling security-holders that are affiliates of the issuer.
Tier 2: $20-$50 million - for offerings of securities of up to $50 million in a 12-month period, with not more than $15 million in offers by selling security-holders that are affiliates of the issue. Also subject to ongoing review.

Title IV of the JOBS Act was finalized in October 2015, effective January 2016. The highlights of the rule for Title IV include:

1. Investor/Investment Limits

Permit a company to raise a maximum aggregate amount of $1 million through crowdfunding offerings in a 12-month period;
Permit individual investors, over a 12-month period, to invest in the aggregate across all crowdfunding offerings up to:
If either their annual income or net worth is less than $100,000, than the greater of: $2,000 or 5 percent of the lesser of their annual income or net worth.
If both their annual income and net worth are equal to or more than $100,000, 10 percent of the lesser of their annual income or net worth; and
During the 12-month period, the aggregate amount of securities sold to an investor through all crowdfunding offerings may not exceed $100,000.

2. Companies that use a crowdfunding platform – Companies that rely on the recommended rules to conduct a crowdfunding offering must file certain information with the Commission and provide information to investors and the intermediary facilitating the offering. The information required is defined in the rule and is similar to what would be necessary for an audit or other financial reporting. There are ongoing reporting requirements for companies that have used a crowdfunding platform to complete a capital raise.

3. Crowdfunding Platforms – A funding portal would be required to register with the Commission on new Form Funding Portal, and become a member of a national securities association (currently, FINRA). A company relying on the rules would be required to conduct its offering exclusively through one intermediary platform at a time.

NAR Committee

Commercial Federal Policy Committee

References

NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.

Crowdfunding Explained

Crowdfunding for Investors: Updated Investor Bulletin (U.S. Securities and Exchange Commission, Oct. 14, 2022)

“The SEC’s Office of Investor Education and Advocacy is issuing this Investor Bulletin to educate investors about securities-based crowdfunding.” In this bulletin find information about how to make a regulation crowdfunding investment and how to calculate net worth. The bulletin then details the risks you should consider before making a crowdfunding investment, as well as places to access educational materials regarding crowdfunding investments.

Crowdfunding Models: Keep-It-All vs. All-Or-Nothing (Financial Management, Jun. 2020) E

“Reward‐based crowdfunding campaigns are commonly offered in one of two models via fundraising goals set by an entrepreneur: "Keep‐It‐All" (KIA), where the entrepreneur keeps the entire amount raised regardless of achieving the goal, and "All‐Or‐Nothing" (AON), where the entrepreneur keeps nothing unless the goal is achieved. We hypothesize that AON forces the entrepreneur to bear greater risk and encourages crowd funders to pledge more capital enabling entrepreneurs to set larger goals. We further hypothesize that AON is a costly signal of commitment for entrepreneurs yielding a separate equilibrium with higher quality and more innovative projects with greater success rates.”

Real Estate Crowdfunding: Build Your Portfolio Through Property Investment (Nasdaq, May 26, 2025) E

“You no longer need a fortune to own real estate anymore. With real estate crowdfunding, you can now invest in a fraction of a property – yes, an actual building – without ever dealing with tenants. Research Nester said the global real estate crowdfunding market was valued at $16.24 billion in 2024. It’s only getting bigger with projections suggesting it could surge past $2 trillion by 2037. In 2025 alone, it’s expected to reach $22.1 billion, indicating a lot of appetite for this type of investment. When you look at this from an investor’s perspective, you see that real estate crowdfunding offers a strong combination of accessibility to smaller investors and diversification that was previously only available to institutional investors.”

REITs vs. Real Estate Crowdfunding: What You Need to Know (Forbes, Jun. 6, 2023)

“There is no clear answer to the question “which is better, REITs or real estate crowdfunding?” as both options have their pros and cons. REITs offer passive investment and professional management, while real estate crowdfunding provides the potential for higher returns and more control over investments. Ultimately, the best choice depends on an investor's individual goals and risk tolerance.”

Real Estate and Crowdfunding

The Best Real Estate Investing Apps (Business Insider, Apr. 28, 2025)

“Investing in real estate doesn't have to be difficult. If you're looking to avoid the legwork of conducting extensive property research, finding tenants, and regularly maintaining and attending to the investment, there are easier ways to add real estate to your portfolio. Real estate crowdfunding platforms make this possible. You can add residential properties, commercial properties, and other real estate investments to your portfolio at low costs. Some of the most common investments these platforms offer are real estate investment trusts (REITs), electronic real estate funds, and non-traded REITs.”

Regulation Crowdfunding: Closing CRE’s Racial Wealth Gap (Wealth Management Real Estate, Jan. 2, 2023) E

“A lack of diversity is evident in real estate investment, amplified by rules explicitly excluding many people from the market: Until recently, investment opportunities were only available to accredited investors, i.e., the very wealthy. Only 8.25 percent of the American adult population qualifies as an accredited investor, and of this group SEC estimates that only 1.3 percent are Black and only 2.8 percent Latino. But change is in the wind thanks to regulation crowdfunding. Launched by the SEC in 2016, it enables anyone 18 or older to participate in investment opportunities. It hasn’t been around long, but it is already starting to have a significant impact on diversity in development and investing.”

Real Estate Crowdfunding: What to Know Before You Invest (Boston Business Journal, Dec 8, 2021)

“Once the exclusive arena of only the savviest investors, real estate crowdfunding platforms like Crowd Lending, Inc. have broken down barriers to entry, allowing individuals to reap the benefits of alternative real estate investment assets…If you’re new to the world of real estate investing, it’s important to keep in mind that not all real estate investment platforms are created equal. Before investing, it’s critical you understand the structure of the investment platform and its specific advantages and disadvantages.”

When Online Lending Meets Real Estate: Examining Investment Decisions in Lending-Based Real Estate Crowdfunding (Information Systems Research, Sep. 2020) E

“Lending-based real estate crowdfunding, which involves the use of real estate to secure loans, has emerged as a promising alternative with lower risk than peer-to-peer lending. This study provides insights into understanding how lenders' investment behavior is shaped by various information in such an emerging market. Using a data set from a large platform over 17 months, the authors find that lenders as a whole prefer loans secured by a borrower's house to those secured by a mortgage, as reflected in quicker and larger lending transactions. Experienced lenders tend to invest more aggressively, in both time and amount, but exhibit a weaker preference for loans secured by a borrower's house.”

Real Estate and Crowdfunding: Solid Growth, But Challenges Remain (NAIOP, 2022)

“The real estate crowdfunding industry has been growing steadily for years, and with each turn of the calendar it becomes more firmly established as an attractive option to traditional property syndications or mainstream passive investments, such as stocks and bonds. After years of building solid track records, albeit in a conducive environment of rising real estate values, the only challenge to the real estate crowdfunding industry is itself — how does the industry continue to maintain growth at the explosive pace seen during the past few years?”

Real Estate Crowdfunding Platforms

Best Real Estate Crowdfunding Platforms for 2026 (CRE Daily, Nov. 24, 2025)

“Investing with real estate crowdfunding platforms can be an attractive alternative to buying property the traditional way. It lets you pool your money with other investors to go in on deals you couldn’t access otherwise—sometimes for as little as $10. It also makes diversifying your real estate portfolio across multiple properties easy. However, real estate crowdfunding sites vary in their minimum investment requirements, fees, investment structures, and more. For example, some let you buy shares of individual properties, while others let you invest in funds that hold multiple properties (aka real estate investment trusts or REITs). We researched and ranked the top sites to help you choose which real estate crowdfunding platform(s) to try. Below you’ll find a review of each, its pros and cons, unique features, and more.”

Crowdstreet

CrowdStreet is a software and services company disrupting the commercial real estate industry by enabling innovative real estate operators and developers to efficiently engage in online capital formation, communicate with investors, distribute investment documents and centralize ongoing investor relations.

EquityMultiple

“EquityMultiple is best for accredited investors who have at least $5,000 to invest (minimums can also be as high as $30,000). This platform lets you invest in institutional commercial real estate, equity, preferred equity, and senior debt. When it comes to real estate investments, EquityMultiple offers a range of property types, including: multifamily, office, industrial, storage, car wash, cannabis facilities, retail, mixed-use, opportunity zones, senior living facilities, student housing, and data centers.”

Fundrise

Fundrise is an online investment platform for commercial real estate, often times referred to as a crowdfunding platform or investment marketplace. Fundrise gives investors the ability to: Browse investment offerings based on investment preferences including location, asset type, risk and return profile; Transact entirely online, including digital legal documentation, funds transfer, and ownership recordation; Manage and track investments easily through an online portfolio; receive automated distributions and/or interest payments, and regular financial reporting.

RealtyMogul

RealtyMogul.com is an online marketplace for real estate investing. We are often referred to as a crowdfunding platform, marketplace lender, or peer-to-peer lender. Whatever term you choose to use, we are here to connect investors who want to invest in real estate with real estate companies that need real estate capital – either debt or equity - it’s that simple.

Willow Wealth

“Formerly YieldStreet, Willow Wealth’s alternative investment offerings can leverage numerous asset classes such as Real Estate, Legal Finance, and Art Finance as well as Commercial and Consumer Finance. Even better, you can tailor the nature of your Willow Wealth investment to your specific situation, whether you’re looking to generate income, grow your overall portfolio value, or some combination of both.”

eBooks & Other Resources

eBooks.realtor.org

The following eBooks and digital audiobooks are available to NAR members:

Crowdfunding: A Guide to Raising Capital on the Internet (Audiobook, eBook)

Crowdfunding: The Corporate Era (Audiobook, eBook)

The Crowdfunding Handbook (Audiobook, eBook)

Crowdfunding for Beginners (eBook)

Equity Crowdfunding for Investors (Audiobook, eBook)

The Everything Guide to Crowdfunding (Audiobook, eBook)

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The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.

Crowdfunding

Quick Takeaways

Advocacy

What is the fundamental issue?

I am a real estate professional. What does this mean for my business?

NAR Policy on Crowdfunding

Opposition Arguments

Legislative/Regulatory Status/Outlook

NAR Committee

Current Legislation/Regulation

In-Depth

Legislative Contact(s):

Regulatory Contact(s):

References

Crowdfunding Explained

Real Estate and Crowdfunding

Real Estate Crowdfunding Platforms

eBooks & Other Resources

eBooks.realtor.org

Crowdfunding

Quick Takeaways

Advocacy

What is the fundamental issue?

I am a real estate professional. What does this mean for my business?

NAR Policy on Crowdfunding

Opposition Arguments

Legislative/Regulatory Status/Outlook

NAR Committee

Current Legislation/Regulation

In-Depth

Legislative Contact(s):

Regulatory Contact(s):

References

Crowdfunding Explained

Real Estate and Crowdfunding

Real Estate Crowdfunding Platforms

eBooks & Other Resources

eBook​s.realtor.org

eBooks.realtor.org