R
eal estate remains a top wealth‑building avenue in the U.S., with 24 % of investors citing it as their long‑term favorite in a 2025 Bankrate survey. New mobile platforms now promise everyday investors access to private deals with low minimums and simple interfaces, but investors must grasp what they’re buying and the potential pitfalls.
**Top retail real‑estate apps (summary)**
| App | Best for | Minimum | Fees | Key points |
|-----|----------|---------|------|------------|
| **Fundrise** | Beginners seeking diversified exposure | $10 (standard) / $1,000 (IRA) | 0.15 % advisory + 0.85 % management (1.85 % for Innovation Fund) | Lowest entry, tax‑advantaged accounts, no redemption fees, but liquidity can pause in crises. |
| **RealtyMogul** | Access to REITs + private deals | $5,000 (REITs) / $35,000+ (private) | Up to 3 % per deal | Offers 1031‑eligible properties, IRAs, long track record. |
| **Arrived** | Fractional rental ownership | $100 | 0.4–1.2 % asset mgmt + 3.5–5 % sourcing (vacation rentals 5 %) | Owns individual homes, full property‑management service, hands‑off. |
| **Groundfloor** | Short‑term real‑estate lending | $100 | 0.25–1 % per disbursement (2025 tiers) | No investor fees, risk‑graded loans, quick turnover (6–24 mo). |
**How crowdfunding works**
Platforms pool capital for private debt or equity deals. The JOBS Act (2012) and later amendments opened the field to non‑accredited investors. Deals are usually private, not publicly traded, and can involve preferred equity or short‑term notes.
**Risks of real‑estate apps**
- **Platform failures**: PeerStreet (bankruptcy 2023), RealtyShares (capital run‑out 2018), Nightingale Properties (scandal 2025).
- **Illiquidity**: Equity stakes often lock for 5–10 years; redemption may be limited or unavailable.
- **High fees**: Management, sourcing, and performance charges can dwarf index‑fund costs.
- **Transparency issues**: Fees buried in documents; performance data may be misleading.
- **Complexity**: Private deals involve intricate legal structures and high failure rates, making them risky for inexperienced investors.
**Alternative, more transparent ways to invest**
1. **Buy a home** – Builds equity, offers tax breaks, but requires upfront capital and carries foreclosure risk.
2. **Public REITs/ETFs** – Liquid, dividend‑paying, no property management; subject to market volatility.
3. **Rental property** – Generates cash flow, full control, but demands active landlord duties and capital for down payment and repairs.
**Bottom line**
While apps lower barriers to private real‑estate investing, they come with significant liquidity, fee, and operational risks. Consider traditional routes for greater transparency and control, or use apps only after thorough due diligence.
