In 2022, North Carolina was the second-most popular place to relocate to in the U.S. Close to 65% of the moves in North Carolina were from out of state. With property appreciation rates averaging from 20% to 40% in several areas, North Carolina has one of the most favorable housing markets in 2023. Median prices in April exceeded $302,000, a 4.4% annual increase and over $100,000 higher than in 2020. Real estate crowdfunding offers opportunities for small-scale investors interested in this housing market.
Real estate crowdfunding allows individuals to pool funds through an online platform to invest in properties. The funds are used to purchase real estate or further develop the property. Real estate crowdfunding exists as an alternative to real estate investment trusts, or REITs, with higher investment requirements. Many investors choose real estate crowdfunding for the low investment requirements, multiple investment options, user-friendly interfaces and low fees. Several platforms support commercial, residential and other types of real estate investments.
Two of the most popular real estate crowdfunding crowdfunding platforms in 2023 are CrowdStreet and Fundrise. CrowdStreet is designed for accredited investors, requiring a $25,000 minimum investment to participate. While there are no fees to join, CrowdStreet typically requires investors to buy and hold for at least three to five years. In contrast, Fundrise is also designed for non-accredited investors, with a minimum investment requirement of just $10. Fundrise offers eREITs, Fundrise IPOs with a $500-minimum investment, venture funds and electronic real estate funds.
Other popular real estate crowdfunding platforms include Arrived, RealtyMogul and YieldStreet. Arrived is designed for investors interested in single-family homes and has a minimum investment requirement of $100. RealtyMogul is intended for accredited and non-accredited investors interested in commercial real estate like retail centers, apartment communities and office buildings. YieldStreet offers short and long-term multi-class funds providing access to wide variety of real estate investments.