Commercial real estate investments on this crowdfunding platform start at $25,000. But only one deal is up for grabs at a time — and only for accredited investors willing to commit their funds for at least four years.
$25,000
Minimum deposit
Is ArborCrowd worth a look? It might be — but only if you’re an accredited investor with at least $25,000 to spend and don’t mind locking your investment away for at least four years. Because that’s what it takes to be an ArborCrowd investor.
Truth be told, the average investor likely doesn’t meet ArborCrowd’s criteria triad, which means this platform won’t be for everyone. And if you ask me, the toughest of all is meeting at least one of the Securities and Exchange Commission’s criteria of an accredited investor:
If you do meet the above criteria and you’re interested in commercial real estate, ArborCrowd may be for you. With this platform, you don’t need to worry about scrolling through marketplaces of properties or deals. ArborCrowd only offers one investment opportunity at a time. And that’s a result of ArborCrowd’s robust vetting process: the platform often sees more than 500 deal submissions annually and typically approves fewer than 10.
The result? An investment platform designed for accredited investors seeking high-quality commercial real estate opportunities.
Under the expertise of its parent company, ArborCrowd offers commercial real estate investment opportunities to accredited investors through its online crowdfunding platform. These investment opportunities were previously only available to institutional investors and high net worth individuals. Through ArborCrowd, any verified accredited investor can participate.
ArborCrowd only offers one investment opportunity at a time. It provides comprehensive documentation to help investors decide if they’d like to participate, including information about units under management, key market factors and property renovation highlights.
Here’s a rundown of the ArborCrowd investing process:
Watch our interview with co-founder Adam Kaufman, where he explains how ArborCrowd’s crowdfunding platform works:
The ArborCrowd platform is designed with the following investors in mind:
Nonaccredited investors aren’t eligible to participate in ArborCrowd’s high minimum investment opportunities, narrowing the platform’s target audience to accredited investors with at least $25,000 on hand. And with ArborCrowd property average holding periods of four years, investors must be prepared for a long-term commitment.
Before investors can fund an investment offer, they must be willing to undergo ArborCrowd’s complementary verification process for accredited investors. The process ensures that investors meet at least one of the SEC’s criteria for accredited investors.
As far as commercial real estate crowdfunding platforms go, ArborCrowd’s minimums are comparable to its competitors. Both RealCrowd and CrowdStreet limit offerings to accredited investors, have $25,000 investment minimums and typically ask investors to commit funds for at least four years.
At first glance, ArborCrowd’s fees seem higher than most, with investors expected to cover acquisition, refinancing, disposition and assets under management fees. But that’s because ArborCrowd acts as the property’s asset manager on behalf of its investors. While other platforms don’t charge investors to participate in their offerings, they instead ask investors to pay fees to the property sponsor — something ArborCrowd investors typically don’t pay.
| Average acquisition fee | 1.25% |
| Average refinance fee | 1% |
| Average assets under management fee | 0.5% |
| Average disposition fee | 1% |
| Minimum investment | $25,000 |
| Average hold period | 4 years |
As of February 2022, there’s no available feedback on the ArborCrowd platform. While it has a Better Business Bureau (BBB) page, it’s not rated and there are no customer reviews or complaints. Its Trustpilot page is similarly sparse, with no reviews or designated TrustScore. The company also has no registered complaints with the Consumer Financial Protection Bureau. Even Reddit chatter is virtually nonexistent.
It’s unusual for ArborCrowd to have no customer feedback, despite being one of the newer platforms on the market. What does this mean for interested investors? Well, it makes ArborCrowd’s legitimacy harder to gauge. Plus, investor reviews are typically a good place to scout for red flags. Because of its lack of reviews, we recommend carefully assessing any documentation you’re asked to sign during the application process to make sure there aren’t hidden fees or clauses you should know about.
If you’re keen to invest in real estate, ArborCrowd is far from your only option. Compare platforms by investment minimums and type of real estate to find the service that best meets your needs.
Information on this page is for educational purposes only. Finder is not an advisor or brokerage service, and we don't recommend investors to trade specific stocks or other investments.
Finder is not a client of any featured partner. We may be paid a fee for referring prospective clients to a partner, though it is not a recommendation to invest in any one partner.
The signup process starts from ArborCrowd’s homepage:
You can then browse ArborCrowd’s current and closed offerings.
Reach out to the ArborCrowd team by:
ArborCrowd offers commercial real estate investment opportunities to accredited investors with deals that start at $25,000. But only one deal is offered at a time, so if you’d prefer a wider selection of properties, look elsewhere.
Explore your real estate investment opportunities with other providers to find the platform best suited to your investment goals.
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