With the development of technology, there are more and more real estate co-investment apps that allow people to invest in real estate projects with low capital. These apps open up opportunities for small investors to participate in larger real estate deals that were previously only accessible to institutions and high net worth individuals. By pooling funds from multiple investors, the capital and risk are shared. For new real estate investors with limited funds, these apps provide an easy and affordable way to get started in real estate investment.
Co-investing in real estate apps attract investors with low minimums
Many real estate co-investment apps like CrowdStreet, RealCrowd, and RealtyMogul allow investors to participate with as little as $5,000-10,000. This low minimum is appealing to first-time investors or those with limited investable assets. With a much lower capital requirement than investing outright in properties, co-invest apps enable smaller investors to diversify into real estate and gain exposure to assets and markets that would otherwise be out of reach.
The apps provide access to institutional-grade real estate deals
The real estate deals on these platforms tend to be larger, higher-quality properties that most individuals couldn’t source or underwrite on their own. The sponsors curating and managing the deals have extensive real estate expertise and conduct rigorous due diligence. Investors can piggyback on their experience and track record to invest in stabilized assets, value-add properties, development projects, real estate funds, and more.
Investors can choose their risk tolerance and return expectations
Co-investing apps cater to different risk appetites by offering a range of core to opportunistic real estate investments. Lower risk deals like stabilized multifamily properties in strong markets offer predictable cash flow at lower returns. Higher risk development projects or distressed turnarounds present the potential for equity multiple appreciation at higher risk. The choice allows investors to customize their real estate allocation.
The investment process is streamlined and automated
These platforms make real estate investing seamless by providing online account opening, digital paperwork, automated funding and distributions, and easy reporting. Investors can browse deals, complete due diligence, and manage their investments through a user-friendly interface. This simplifies real estate investing for both novice and experienced investors.
Co-investing in real estate apps like CrowdStreet provide an accessible pathway for investors to participate in institutional real estate deals with modest capital through online platforms. By pooling funds and streamlining the process, these apps open up commercial real estate to smaller investors seeking diversification, passive income, and long-term equity gains.