Real estate is still one of the most reliable ways to build wealth in America. It’s also a popular choice among investors, with 24 percent reporting that real estate was their preferred long-term investment, according to a 2025 Bankrate survey.
But in recent years, a wave of real estate investing apps have emerged, promising to make private real estate deals accessible to everyday investors. These platforms offer lower minimums and easy-to-use apps while offering a way to invest in real estate without buying property.
Before you hand over your money, it’s important to understand what you’re really investing in — and what could go wrong.
These are the best real estate investing apps widely used by retail investors. Each one comes with different structures, fees and strategies, so it’s crucial to pay attention to the details. And remember “best” doesn’t mean risk-free.
1. Fundrise — Best app for beginner real estate exposure
Fundrise is one of the largest names in real estate crowdfunding with more than 385,000 investors on the platform, according to the company’s website. Accessibility is a big part of Fundrise’s appeal. Instead of choosing individual properties, you pick a broad strategy (growth, income or balanced), and Fundrise allocates your capital across multiple projects. Returns come from a mix of long-term growth and passive income, with options to reinvest or withdraw dividends.
While Fundrise offers redemption options for most funds, these redemptions can be paused during times of economic crisis. Liquidity is not guaranteed, especially during volatile market conditions.
Why we like it:
- The $10 minimum makes it one of the lowest entry points in real estate.
- Offers both taxable accounts and IRAs for retirement investing.
- Portfolios are diversified across property types and geographic regions.
- No redemption fees.
- One of the longest-running platforms in the sector.
Who is it best for? You’re getting started and want easy, diversified real estate exposure without a large upfront investment.
Minimum balance required: $10 for standard accounts; $1,000 for retirement accounts
Fees: 0.15 percent advisory fee and 0.85 percent annual management fee. There’s a separate 1.85 percent management fee if you select the Innovation Fund.
2. RealtyMogul — Best app for long-standing REIT and private deal access
RealtyMogul is one of the earliest real estate crowdfunding platforms still standing. It connects investors with commercial real estate projects across the U.S., spanning apartments, offices, industrial, mixed-use and more. In addition to individual deals from sponsors, members can also invest in two non-traded REITs (real estate investment trusts) for diversified exposure and potential passive income.
Why we like it:
- Provides both REITs and private placement deals.
- Offers investment through IRAs.
- Access to 1031 exchange-eligible properties for tax-sensitive investors.
- Longer operating history than many competitors.
Who is it best for? You want access to both diversified REITs and private real estate deals on a more established platform.
Minimum balance required: $5,000 for REITs; $35,000+ for private placements
Fees: Fees vary for each investment. Organizational and offering costs capped at 3 percent.
3. Arrived — Best app for fractional rental property ownership
Arrived lets investors browse vetted rental properties, choose how much to invest and quickly build a custom portfolio for as little as $100. Beyond individual homes, it also offers several managed funds: a Single Family Residential Fund for instant diversification, City Funds for regional strategies and a Private Credit Fund for short-term real estate debt.
Arrived handles property management, rent collection and maintenance, so you’re not saddled with any of the hassles associated with being an actual landlord.
Why we like it:
- Lets you invest in individual properties instead of pooled funds.
- Low minimum starting point of $100.
- Offers both long-term rentals and vacation properties.
- Easy to find information on its website.
- Completely hands-off management for investors.
Who is it best for? You want the experience of owning a slice of a rental property without the hassle of being a landlord.
Minimum balance required: $100
Fees: Annual asset management fee of 0.4 to 1.2 percent. Also, 3.5 percent one-time sourcing fee for long-term rentals and private debt funds; 5 percent sourcing fee for vacation rentals. Beyond Arrived’s fees, investors may also pay third-party costs like closing and escrow fees upfront, plus ongoing expenses such as property management and taxes taken from rental income.
4. Groundfloor — Best app for short-term real estate lending
Groundfloor operates more like a lending marketplace than a traditional investing app. Investors earn returns by funding short-term, real estate-backed loans with as little as $100. Its Flywheel Portfolio pools investor funds into 200 to 400 diversified loans, typically six to 24 months in length and graded by risk. You earn a fixed rate of interest if the borrower repays.
Why we like it:
- No investor fees — borrowers pay origination and servicing costs.
- Low minimum (as little as $100).
- Transparent loan terms with risk grades to help you evaluate deals.
- Short loan durations mean your money turns over faster than most platforms.
Who is it best for? You’re chasing yield and don’t mind higher risk if it means potentially quick returns.
Minimum balance required: $100
Fees: Groundfloor’s Flywheel fees vary by investment date: Pre-2025 investments pay a 0.25 percent quarterly fee, January – June 2025 investments pay a 0.50 percent fee on each disbursement and July – December 2025 investments pay 1 percent per disbursement.
How real estate crowdfunding works
A real estate crowdfunding platform pools money from numerous investors to fund property deals — often debt-based (lending money to developers) or equity-based (owning a share of a property). These investments are typically private, meaning they aren’t traded on public stock exchanges.
Real estate crowdfunding took off after the JOBS Act of 2012 laid the legal foundation for crowdfunding, allowing small firms to raise capital. In 2016, a provision of the law was amended to allow non-accredited access to investment crowdfunding. Before this, only wealthy, accredited investors could legally participate. An accredited investor is someone who meets certain financial criteria — typically having a net worth over $1 million (excluding their primary home) or an annual income of at least $200,000 ($300,000 if married).
Follow-up regulatory updates in 2021 further expanded access. As a result, fractional investing in private real estate became more mainstream, and new platforms started catering to a broader investor base.
While most real estate crowdfunding deals fall into equity or debt categories, some platforms now offer more nuanced structures like preferred equity and short-term notes.
Crowdfunding platforms handle everything from sourcing deals to managing properties. In return, they charge fees. While this can democratize real estate investing, it also introduces a new set of risks.
The very real risks of real estate investing apps
Real estate crowdfunding apps have seen rapid growth in recent years, but they’ve also experienced major issues — everything from lawsuits and platform failures to total capital losses for investors. If you plan to invest, it’s imperative to understand the risks.
Platforms have failed — and investors lost money
Platforms like PeerStreet, Yieldstreet and CrowdStreet have seen projects fail in ways that left investors high and dry. PeerStreet, which focused on real estate debt, filed for bankruptcy in 2023. Many investors believed they were secured lenders, only to discover loan structures and protections weren’t as strong as they seemed.
Meanwhile, RealtyShares, once a leading real estate crowdfunding platform with over $870 million raised, collapsed after running out of capital and laying off most of its staff in 2018.
In May 2025, a real estate crowdfunding scandal involving Elie Schwartz and his firm Nightingale Properties led to over $60 million in investor losses and a seven-year prison sentence for Schwartz. Using the CrowdStreet platform, Schwartz misled more than 800 investors, promising to invest in major properties, only to use the money for personal purchases and unrelated ventures.
CrowdStreet failed to detect multiple red flags — including falsified track records and omitted defaults — in several deals it promoted. A 2023 Wall Street Journal investigation found that more than half of the platform’s completed deals from 2013 to August 2022 underperformed, with at least 12 resulting in nearly total losses for investors.
Yieldstreet, another popular crowdfunding platform, has also faced mounting criticism. Investors poured more than $370 million into 30 real estate deals, with at least $78 million already lost and several projects declared total failures, including developments in Nashville and New York, according to an August 2025 investigation by CNBC. Customers accuse the platform of downplaying risks, providing misleading performance data and locking up their money for years.
The trouble is likely far from over. As DiversyFund, a platform that focuses on multifamily apartment complexes, points out in a September 2023 SEC offering circular: “There is no guaranty that the Company will be able to make any distributions, or even to return capital to Investors.”
Liquidity is limited — or nonexistent
Unlike public stocks or REITs, you can’t sell your shares on a real estate crowdfunding platform whenever you want.
Crowdfunded real estate is an illiquid asset class, no matter how sleek the platform looks. Equity investments often require holding periods of five to 10 years, with no option to exit early unless the platform offers a secondary market (and most don’t).
Fundrise offers “quarterly liquidity,” but redemptions aren’t guaranteed. Groundfloor loans might turn over in six months, but defaults can stretch that timeline — and wipe out returns.
Some platforms, like Arrived, do offer a secondary market where investors can list shares, though sales depend on buyer demand, market conditions and may involve fees or losses. On top of that, liquidity is not guaranteed, prices can fluctuate and redemptions are capped to protect fund stability.
Fundrise makes it clear you should be comfortable committing your money for at least five years or “we don’t recommend investing with us.” Platforms can also extend the lock-up periods for your funds.
Fees are high — and not always transparent
Most platforms charge several layers of fees — annual management fees, sourcing or origination fees, servicing fees and sometimes even performance fees. For example, Arrived adds property sourcing fees of 3.5 to 5 percent before you ever see any rental income.
When you compare that to low-cost index funds or ETFs, which often charge less than 0.10 percent in annual fees, the difference is staggering. You could be paying over 10 to 20 times more for an investment that’s far less liquid and arguably much riskier for long-term investors.
As an investor, you bear all the downside risk on a real estate investing app. If a property loses money or a borrower defaults, you’re the one taking the hit. Meanwhile, the platform keeps collecting fees.
Another problem is transparency. Unlike index funds which clearly list their expense ratios, many crowdfunding platforms bury their fees in offering documents or structure them in ways that are difficult for the average investor to decipher.
For example, some sites, such as RealtyMogul, charge fees specific to each deal or property, making it almost impossible for an average person to estimate the potential costs involved unless they sign up for an account and conduct considerable due diligence for each investment opportunity or fund.
The “democratization” of private deals might not be a good thing
Letting everyday investors into private real estate deals sounds empowering. But it also means exposing people with limited experience and potentially less capital to high-risk, illiquid investments. Private real estate deals often involve complex legal structures, unpredictable timelines and high failure rates.
These deals were traditionally reserved for accredited investors for a reason. Removing that barrier doesn’t make the investments less risky — it simply expands that risk to more people who may have less to lose if the deal goes bust.
3 alternative ways to invest in real estate
If you’re interested in real estate but don’t want to deal with opaque platforms, there are more accessible ways to invest in this asset class. These methods often require more upfront capital, but they also offer more control, transparency, and in many cases, better long-term growth potential.
Buy a home
Owning a home is still one of the most reliable ways to build wealth. You build equity with each mortgage payment, benefit from potential appreciation and may qualify for tax breaks like the mortgage interest deduction. Even if you’re not ready to invest in a rental property, buying a primary residence can be a smart first step into real estate.
While your first home might not feel like an investment, it often functions as one. If you plan to stay in one place for several years, locking in a fixed monthly payment can be more affordable than renting. Owner-occupants also typically get better mortgage rates and lower down payment requirements.
That said, a home isn’t always a good investment — especially if you overpay or stretch your budget too thin. It also requires a sizable upfront investment, and you face the risk of foreclosure if you can’t keep up with payments.
Purchase REITs or a REIT ETF
If you want exposure to real estate without locking up your money in physical property, publicly traded REITs or real estate ETFs are a simple, flexible option.
A real estate investment trust (REIT) is a company that owns, operates or finances income-producing real estate. Instead of buying a property outright, investors can purchase shares in a REIT and gain exposure to a portfolio of real estate assets. Like mutual funds, REITs pool money from many investors and must pay out at least 90 percent of taxable income as dividends.
Publicly traded REITs are listed on stock exchanges, giving them the same liquidity as stocks while still offering long-term growth potential. This makes them one of the most accessible and liquid ways to invest in real estate.
REITs offer truly passive income. You get potential real estate returns without the hassle of managing property or coming up with a large down payment. You simply own shares, collect dividends and track performance like any other stock.
But REITs also come with risk. Their prices move with the stock market, so volatility is part of the deal. That’s manageable if you’re in it for the long haul, but short-term dips can sting if you need to sell fast.
Buying individual REITs requires research. You’ll need to dig into financials and market trends, just like any stock. A REIT ETF or mutual fund can make things easier by spreading your money across multiple companies, reducing the impact of any single one underperforming.
Buy a rental property
If you’re comfortable taking on the responsibilities of ownership, a residential rental property can generate steady income and long-term wealth. It requires more upfront capital and ongoing management, but you’ll have full control over the asset and how it’s operated.
Getting started with a single-family home or duplex is often more manageable than jumping into commercial real estate. Residential markets are easier to understand, and the financial barrier to entry tends to be lower. You might be able to buy a property for $20,000 to $30,000 down, especially if you find a good deal on a foreclosure or distressed listing.
While rental properties are technically considered passive investments, being a landlord is anything but hands-off. You’ll have to handle repairs, screen tenants and deal with late or missed payments. If a tenant bails, you’re still on the hook for the monthly mortgage payment. So, while the income potential is real, the work and risk are just as real.
Real estate investing app FAQs
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
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