Like cap rate and property returns calculators, commercial real estate investing apps are a must-have if you want to invest in this area. The benefit is obvious: you can find the best opportunities before anyone else.
However, you may be wondering if commercial real estate investing apps are better than an agent at hunting down commercial deals. You can take a look at our FNRP review and try an app to see how they can help you invest in the best properties!
What Is a Commercial Real Estate Investing App?
A commercial real estate investing app helps you locate commercial properties ranging from retail spaces to office complexes, without needing to go through the hassle of working with an agent. If you use an app, there will still be property considerations when investing in commercial real estate that you will need to investigate as part of your due diligence.
They also require less cash upfront. For instance, Fundrise helps you build your portfolio starting with as little as $10. You can also grow your investments, reap tax advantages, and access enticing investment deals through the app, which can be a game-changer for investors.
How Does It Work?
Commercial real estate investing apps pull information from real estate databases to provide you with the latest and most accurate information about commercial properties. They enable you to filter your searches based on price, size, location, and other details.
You can use these apps to find property listings, plan your investment, interact with agents representing commercial properties, and even simplify administrative tasks such as document scanning and signing.
Benefits of Using a Commercial Real Estate Investing App
A commercial real estate investing app can change how you do business. Here’s how:
They Have a Lower Entry Barrier
Commercial real estate investing apps like Fundrise, EquityMultiple, and CrowdStreet allow you to buy in with as little as $10 or up to $25,000.
You also don’t need to be accredited (have a gross annual income of over $200,000 for the past two years) to access most investing apps, which can help you build your real estate investing portfolio if you’re just starting out.
They Support Portfolio Diversification
Portfolio diversification is essential if you want to keep your investments safe and earn higher returns.
Commercial real estate investing apps help you spread your investments by providing information about different types of properties—such as retail spaces, offices, and apartment complexes—as possible investments. This enables you to create a portfolio that meets your goals and balances risks.
Five Commercial Real Estate Investing Apps to Consider
Here are five of the best real estate investing apps currently on the market:
With a minimum investment of $10, Fundrise is the easiest way to dip your toe into the commercial real estate industry. It also makes the investing process simpler by providing an interactive interface, higher appreciation rates, and an easy-to-understand fee schedule.
2. First National Realty Partners
First National Realty Partners (FNRP) is a private equity firm that enables investors to get involved with commercially viable investment opportunities with an average return of 12% to 18% and an annual cash distribution of 8%.
However, you need to have a net worth of at least $1 million or an annual income of $200,000 or $300,000 (depending on your circumstances).
3. Elevate Money
If you aren’t an accredited investor and have some cash lying around, you can use Elevate Money to begin your investment journey. The platform is run by the owners of the properties featured on it.
You can invest a one-time sum or contribute monthly, and get a 6.5% annualized dividend that’s paid monthly.
CrowdStreet is an investment platform for accredited investors. It enables you to invest in CrowdStreet’s funds or buy individual properties featured on the platform.
Keep in mind that you need a minimum of $25,000 to invest. However, the minimum investment varies by property.
If you’re an accredited investor and don’t have $50,000 cash in the bank, you can use EquityMultiple to make some investments.
The platform offers short and long-term growth options, low buy-in pricing (around $5,000 to $10,000), and quick returns. It’s also easier to use than most other options and enables you to be more hands-on with your investments.
The Bottom Line
Commercial real estate investing apps are a must if you’re looking to invest in real estate but don’t have the time or resources to go through an agent. They come with a lower entry barrier and potentially offer high returns.
Getting into private equity isn’t easy. So, be sure to choose from reputable commercial real estate investing apps like Fundrise, FNRP, and CrowdStreet to begin your investment journey!