13 Best Real Estate Investing Apps in 2022
March 25, 2022
Real estate investors aren't just wealthy professionals who can afford to buy physical real estate independently. Today, anyone can invest in real estate using a real estate investing app. The landscape has changed for the retail investor, making it easy for just about anyone to jump on board commercial or residential real estate investing.
Ways to Invest in Real Estate
Today there are many ways to invest in real estate rather than just buying physical property and managing it, although that's an option too. Here are the top ways to invest in real estate.
Flipping houses requires adequate knowledge of the area, how and where to find the best real estate deals, and connections with quality contractors that can help you flip the house fast to turn a profit.
Most investors fix and flip houses within six months to reduce the holding costs and increase profits. You'll need to understand what homes need fixing up, how to increase a home's value, and how to market the house to sell quickly to earn your profits.
Buying and Renting Homes
If you like the thought of being a landlord, you can buy investment properties, keep them, and find tenants to live in them. Then, you can manage the properties yourself or hire a property management company to do it for you.
Buying and renting homes requires adequate knowledge of the real estate industry, how to find the best real estate deals, and the ability to collect rental income, manage tenants, and maintain a property. In addition, if you invest in properties outside of your area, it's crucial that you hire a property management company to manage it, so make sure to include that in your cost projections.
When you buy a real estate investment trust (REIT), you buy into an investment fund that pools money from multiple investors and distributes it either as a loan to real estate investors (debt) or to invest in a property's equity.
Some REITs offer dividends in the form of interest or rental income earned and pay them out monthly or quarterly. You'll also earn the appreciation of real estate when the investment matures. As with any investment, you can choose to reinvest your dividends or cash them out.
Online Real Estate Investing Apps
Online investing apps help investors invest in real estate without physically owning the property. Whether you invest in a fractional share of a piece of real estate, buy REITs, or mutual funds.
Many apps for real estate investing have low minimum investment requirements and are open to the general public, not just accredited investors.
Why Use a Real Estate Investing App
Using a real estate investing app can make investing in real estate more accessible. Many apps have low barriers to entry, allowing even non accredited investors to invest in real estate. You don't have to know much about real estate to use them either. You just need to know your risk tolerance, how much you want to invest, and what type of investment strategy you'll use.
A real estate investing app makes investing in real estate a reality for even the busiest investor. Some even allow you to invest with as little as $10, making it possible for just about anyone to invest.
Characteristics of Quality Real Estate Investing Apps
If you're looking for quality real estate investing apps, you should know what to look for. Here are some of the top characteristics of a real estate investment app.
- Low minimum investment threshold
- Clear explanations of an investment's risk
- A lot of information about each investment property or opportunity
- A redemption program should you need to cash your investment in early
- Information on the local real estate market
- Opportunities for retail investors and accredited investors
How to Make Money With Real Estate Investing
There's always risk in any investment opportunities, including real estate. Whether you're investing in commercial properties, residential properties, or a combination of the two, there's always a risk of loss.
Diversifying your real estate portfolio to offset the risk of a total loss is a way to maximize your earnings, but there's never a guarantee. Whether you're investing in project developers and their building ideas, existing homes, or new rental properties, there's a risk of default, values dropping, and losses occurring.
With a careful investment strategy and insight from a trusted financial advisor, though, you can find ways to make money with real estate investing.
13 Best Real Estate Investing Apps
Concreit is a real estate investment app with weekly payouts and no minimum investment required. You can set up automatic investments or invest manually in the REITs of your choice, whether debt or equity investments. Concreit offers investments in low-risk properties and usually provides a steady rate of return in exchange for it.
Fundrise is an online investing platform that allows investors to buy eREITs (real estate investment trusts) with a minimum investment of just $500. Fundrise offers residential and commercial real estate investments in both debt and equity products.
On Fundrise, the investing team looks for properties worth more than they are selling for. Then, they buy them, fix them up and increase their values, working with local operators to manage the properties.
PeerStreet offers debt investments. You invest in the loans, banks, or lenders made and earned the interest paid. The minimum investment is $1,000, and you can diversify your real estate portfolio to offset your risk.
PeerStreet pays monthly dividends (interest), and you can view the ratings of each investment yourself to decide if it's a good fit for you. You'll find loans with varying terms, including fixed-income returns for those who have a conservative investment strategy.
RealtyMogul has a higher minimum investment requirement of $5,000, but you get access to commercial real estate investments. In addition, realtyMogul investors vet the real estate opportunities, giving you the chance to earn passive income and experience the real estate's growth.
CrowdStreet is one of the largest real estate investing platforms today for institutional-quality deals, but it's only open to accredited investors. The minimum investment is $25,000, but you get access to a large number of deals across many asset classes.
CrowdStreet operates as a marketplace, and it offers investors full transparency to help you choose the right investments for your portfolio.
- Arrived Homes
If you've always dreamt of investing in residential real estate but didn't have the capital or the desire to be a landlord, Arrived Homes can help you achieve your dreams. With just $100, you can invest in real estate and earn rental property income quarterly. It's as simple as signing up, choosing your investments, and making passive income.
HappyNest's goal is to make real estate investing a reality for anyone that wants to try it. You need just $10 to start, and anyone can invest. Once you link your funding account, choose how much to invest and which REIT you want in your portfolio. They pay rental payments (dividends) weekly, monthly, or quarterly so you can see a return on your investment often.
DiversyFund offers growth REITs with payouts occurring once the property is sold. Investors need just $500 to start, and anyone can invest using the platform. However, it's best for investors looking for long-term investments versus short-term gains.
Streitwise offers investments in equity REITs through commercial real estate. Streitwise advertises an annual rate of return of 8%, but like any investment, you shouldn't assume it's guaranteed. It does require a higher investment of $5,000 to start, and it pays out quarterly dividends.
Other investors looking to invest directly in real estate could benefit from Roofstock. This app offers real estate investment opportunities across the country in all price ranges. Many of the properties listed are turnkey properties, which means they already have tenants. You buy the home and instantly become a landlord. In addition, Roofstock offers a 30-day money-back guarantee, and they protect their investors with their strict vetting process.
CityVest is another real estate crowdfunding platform for accredited investors. You'll need a minimum investment of $25,000, but you'll get access to institutional real estate investments. They have a strict vetting process and provide opportunities most retail investors wouldn't have access to on their own.
If you're looking for real estate projects that don't have to do with commercial real estate but prefer farmland, AcreTrader is an excellent option. The app buys and sells acres of farmland, and investors can crowdfund their investment to get in on the outstanding returns. You'll need a minimum investment of $15,000 - $25,000 to start.
Millionacres is a subscription service that helps you find vetted commercial real estate opportunities to invest in. With the subscription, you get access to new stock picks monthly, the hottest investment alerts, and educational opportunities to help you be a more informed real estate investor.
Real Estate Investing Apps FAQ
Do Real Estate Apps for Investing Really Work?
Like any app, investing apps have their pros and cons. There are always risks with investment opportunities, and you should always try to diversify your efforts. Investing apps can help make investing easier by lowering the barrier to entry and giving you access to more opportunities than you'd have on your own.
There's no guarantee you'll make money when you use a real estate investing app. Still, as long as you use an app with Securities and exchange commission certification and a secure vetting process, you'll be well on your way to making solid real estate investments.
What Is Good ROI?
A good ROI is subjective. A 5% ROI might seem perfect for one person, while another might prefer 8 - 10%. Because real estate values and prices fluctuate so much, ROIs often change too. The right ROI for you should be the one you're most comfortable with, and that exceeds the ROI you could earn with other investments.
Some investors prefer to limit their risk and take a low ROI, whereas others prefer higher risk and greater ROI.
How Do I Start Investing in Property With Little Money
Most people assume they need a lot of money to invest in property, including fixer-uppers. But when you use a real estate app to invest in real estate, you crowdfund with hundreds of other investors so that you don't need to come up with a large amount of capital.
The key is to find an investment app that you feel comfortable using, that you can meet the minimum investment requirement, and that invests in the type of real estate you are interested in.
Is Real Estate a Good Investment?
Real estate is typically an investment that hedges against inflation and appreciates, but there's never a guarantee like any investment. Like the stock market, real estate can crash too, so there's always the need to diversify and ensure that you protect your real estate assets as much as possible.
Real Estate Investment Apps Final Thoughts
Real estate investment apps can help break the barrier real estate investing has always had through the years. Today, just about anyone can become a real estate investor, whether you own physical real estate or not.
The right app will help you invest in real estate debt investments, equity investments, or both. So whether you're flipping and selling a property fixer or foreclosed properties or investing in a real estate portfolio, enjoy the opportunity to invest in real estate and its potential returns. Learn more about how Concreit can help you start investing in real estate with our app.
This information is educational, and is not an offer to sell or a solicitation of an offer to buy any security which can only be made through official documents such as a private placement memorandum or a prospectus. This information is not a recommendation to buy, hold, or sell an investment or financial product, or take any action. This information is neither individualized nor a research report, and must not serve as the basis for any investment decision. All investments involve risk, including the possible loss of capital. Past performance does not guarantee future results or returns. Neither Concreit nor any of its affiliates provides tax advice or investment recommendations and do not represent in any manner that the outcomes described herein or on the Site will result in any particular investment or tax consequence.Before making decisions with legal, tax, or accounting effects, you should consult appropriate professionals. Information is from sources deemed reliable on the date of publication, but Concreit does not guarantee its accuracy.