Top Real Estate Investment Apps of 2020
Homeownership was once the go-to method for Americans to build wealth over time. However, with skyrocketing housing prices and shifts in attitude, we are seeing lower rates of homeownership than ever before, especially among the millennial generation.
Real estate has always been a smart investment choice because of the stability and the potential of diversification it provides. So how can individuals who do not own homes invest in real estate?
Contrary to popular belief, there are several ways to get a stake in the real estate market without owning a home. Some of these methods include real estate investment trusts (REITs), real estate mutual funds, real estate exchange-traded funds (ETFs), and mortgage investing. In this modern day and age, we are lucky enough to have these investment options available at our fingertips through smartphone applications.
In this article, we’ll analyze two of the hottest real estate investing apps available on the market today.
CrowdStreet
CrowdStreet is a platform that focuses on commercial real estate investment opportunities such as retail, office, and multi-family office buildings. Their platform allows you to view all active offerings and projected returns on the investment. The investing process is a breeze because all you have to do is e-sign the required documents when you are ready to make it official.
Since 2017, the platform has been open to non-accredited investors. Each offering on the site has its own minimum investment, with the lowest being around $5,000. As of November 2019, CrowdStreet investors received over $74 million in returns from commercial real estate investments!
Tellus
Tellus is an app that allows you to invest in fractions of home loans with daily returns. You can choose the specific location of the home loan you are investing in by browsing through the available properties with complete transparency unlike REITs or mortgage-backed securities. The app also provides an analysis of how profitable your investment will be with information such as the loan-to-value-ratio and the projected trend of the home’s value.
One thing we love about Tellus is that the investment minimum is only $200! For the first time, real estate investing is open to everyone. It also means it is easier to diversify your investments across multiple properties. If you want to sell your stake, there is complete flexibility to do so at any time just as you would with stocks.
Final Word
Choosing what app you will use to invest depends on your current financial situation. CrowdStreet has a track record of success but the $5,000 minimum investment may be a steep barrier for some. The investment minimum of $200 with Tellus makes it much more accessible for those who want to start building their real estate portfolio. Either way, smartphone technology has made the investing process much easier than ever before.
