Primior Team

Is Real Estate Crowdfunding a Good Investment?

Real estate investing holds some level of intrigue for many investors. They are enticed by the potential for a large return on their investment, realize it’s a good alternative to the equity market and a method to expand diversity in their portfolio, but have reservations about risk and the amount of capital required. Real estate crowdfunding can make entry into the real estate market simpler, but as with every investment, it’s important to fully understand the specifics and determine its suitability within your investment goals.

Real estate crowdfunding basics

Crowdfunding is a means of raising capital through the collective efforts of individuals rather than more traditional methods of banks, financial institutions, angel investors or venture capitalists. It is in essence peer-to-peer financing for real estate with one party seeking funds for a real estate project and the other party looking to get a high return on available capital.

Types of real estate crowdfunding

As an investor, you have the choice of equity vs. debt investment. An equity investment is an investment in a specific property or properties, whereby the investor can share in the net income the property generates plus a share of appreciation if the property is sold. A debt investor receives a fixed rate of return on funds loaned to the property owner, with the loan secured by the property itself.

Accredited investor

Some real estate crowdfunding platforms require you to be an accredited investor, a term defined by the Securities and Exchange Commission as one exception to registration with the SEC for a company that sells securities. An accredited investor has either a high net worth ($1million) or high income (in excess of $200,000 each of the prior two years) or both. However, not every platform requires their investors to be accredited.

Pros

One upside of real estate crowdfunding is getting into the real estate market with a minimal investment, some as low as $1000 or less. Also, you can diversify, not just in contrast to stocks and bonds but also within the real estate market by being involved in multiple individual deals. The possibility exists to generate regular income and also share in appreciation without having to do any of the maintenance or management details that an individual real estate investor must be concerned with.

Cons

Due to the fact that many real estate crowdfunding projects are long-term in nature, liquidity is an issue. Additionally, as a relatively new and somewhat loosely-structured investment, there is sometimes less information available for investors to monitor performance for real estate crowdfunding platforms than traditional investment types.

We have the knowledge and experience to provide superior investment advice designed to match your long-term goals. When you’re ready to take the next step with your investment portfolio, contact Primior.

Book Strategy Call

Book a call with us to discuss property management, real estate asset management, or our other services and investor solutions.

Download: Opportunity Zone Tax Loophole
How Investors Are Eliminating Capital Gains Taxes in California in 2025

Report by Primior, a Southern California real estate advisory, development, management, and investment firm.

More Insights

Why Fourplexes Beat Duplexes
Multifamily Real Estate Showdown: Why Fourplexes Beat Duplexes in Bad Markets
October 4, 2025

The U.S. Census Bureau reports that multifamily real estate makes up about 31% of America’s total housing market.... (Keep reading?)

1031 Exchange Timing Strategies
Why Most 1031 Exchange Timing Strategies Fail (And How to Fix Them)
October 1, 2025

1031 exchange timing errors cost real estate investors millions in unnecessary taxes each year. Despite the significant tax... (Keep reading?)

The Opportunity Zone 180-Day Rule Explained: Don’t Miss Your Tax Break [2025 Guide]
September 30, 2025

The opportunity zone 180-day rule provides a crucial window to defer most important capital gains taxes through strategic... (Keep reading?)

12 Best Southern California Real Estate Investing Hotspots for 2025
September 25, 2025

California real estate investing feels like a rollercoaster ride these days. The market has its thrills and challenges,... (Keep reading?)

Opportunity Zone 10-Year Rule: Hidden Tax Benefits Most Investors Miss
September 23, 2025

The opportunity zone 10-year rule stands out as one of the most powerful tax advantages in today’s real... (Keep reading?)

Portfolio Digital Asset Management: Essential Guide for Enterprise Success in 2025
September 20, 2025

The digital asset market has reached an impressive $2.7 trillion market cap, making portfolio management a vital skill... (Keep reading?)

What is Asset Management: The Truth Behind $100T Industry [2025 Guide]
September 11, 2025

Asset management represents a staggering $104.4 trillion industry managed by the top 500 firms as of 2019. The... (Keep reading?)

Real Estate Tokenization: Why Traditional Investors Are Switching to Digital Assets
September 10, 2025

Real estate tokenization is transforming property investment. Market experts project its value to reach $1 to $4 trillion... (Keep reading?)

Join Primior's Newsletter

Enter your information to download the eBook:

Reserve Your Spot

Next session begins in...
00
Days
:
00
Hours
:
00
Minutes
:
00
Seconds

Not a solicitation to buy or sell securities. Educational purposes only. Accredited/HNW investors encouraged to attend. All investing involves risk. Past performance not indicative of future results. This site is not a part of the Facebook™ website or Facebook™ Inc. Additionally, this site is NOT endorsed by Facebook™ in any way. FACEBOOK™ is a trademark of FACEBOOK™, Inc. Privacy Policy. Terms & Conditions.

Apply Now

Enter your information to download the report:

Enter your information to unlock the case study:

Free guide unlocked:

Click the button below to access your free guide.

Enter your information to download the free guide:

Enter your information to download the free guide:

You've joined our newsletter.

Thank you for joining our newsletter! We will send you monthly insights, updates, and feature launches directly to your inbox.

You've joined our newsletter.

You will receive email notifications as soon as Gaia by Primior is launched and investment opportunities become available! Thank you for being a future Gaia investor.

Join Waitlist

Interested in participating in the future of real estate investing? Enter your contact information below to be placed on our waiting list and receive notifications and investment opportunities directly to your inbox once they are available.

Primior Application Form

Ready to work with Primior?

Click the button below to complete a short assessment and schedule a call with Primior’s Investor Relations team.

You've joined our newsletter.

Thank you for joining our newsletter! We will send you monthly insights, updates, and feature launches directly to your inbox.

Contact Us Now