5 Patch of Land competitors for real estate investing | finder.com

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Patch of Land competitors

Diversify across residential loans, REITs and beyond with these 5 investment platforms

Patch of Land’s peer-to-peer lending marketplace offers access to both residential and commercial properties — but it’s only open to accredited investors. If you’re not sure Patch of Land is the best fit for your investment portfolio, consider the following five Patch of Land alternatives.

Patch of Land competitors

What’s an accredited investor?

To be an accredited investor, you must meet one of the following criteria set by the US Securities and Exchange Commission (SEC):

  • You earned over $200,000 in each of the last two years and expect the same for this year.
  • You and your spouse earned over $300,000 in each of the last two years and expect the same for this year.
  • You have a net worth of at least $1 million, alone or together with your spouse, excluding the value of your primary residence.

Streitwise

You only need $1,000 to invest in Streitwise’s real estate investment trust (REIT), but management fees are on the high end of the spectrum.

  • Consider switching to Streitwise if: you’d prefer to invest in real estate through a REIT.
  • Best for: nonaccredited investors seeking longer investment horizons.

For hands-off investors interested in backing commercial real estate, Streitwise’s REIT could be a viable option. The fund has consistently posted a 10% annualized dividend, but investors need to be prepared for an initial one-year lockout period. Following this, investors can access up to 90% of their funds up until year five, when they can access 100% of their funds.

  • Management fee: 2%
  • Investment minimum: $1,000
  • Typical terms: 1 to 5 years
  • Open to nonaccredited investors?: Yes
  • Asset types: REIT

PeerStreet

Carefully vetted real estate loans are available through this peer-to-peer lending platform but you’ll need to be an accredited investor to qualify.

  • Consider switching to PeerStreet if: you seek a lower investment minimum.
  • Best for: accredited investors seeking real estate investment loans.

PeerStreet allows its investors to choose their interest rate, loan-to-value percentage, terms and investment per loan. Minimums start at $1,000 and terms begin at six months. Once your money is committed, you’ll need to wait for the term to expire before you can access your funds.

  • Management fee: 0.25% to 1%
  • Investment minimum: $1,000
  • Typical terms: 6 months to 3 years
  • Open to nonaccredited investors?: No
  • Asset types: Peer-to-peer real estate investment loans

Cardone Capital

It offers access to multifamily residential investment opportunities, but investors must be ready to lock in funds for 10 years at a time.

  • Consider switching to Cardone Capital if: you’re interested in multifamily apartment and condo opportunities.
  • Best for: nonaccredited investors prepared to take on longer investment terms.

While Patch of Land limits its offerings to accredited investors, Cardone Capital is happy to welcome any investor who is able to meet its $5,000 investment minimum. That said, its 10-year investment terms may be too long a commitment for active investors.

  • Management fee: 1% annual fee, 1% acquisition fee, 1% disposition fee
  • Investment minimum: $5,000
  • Typical terms: 10 years
  • Open to nonaccredited investors?: Yes
  • Asset types: Multifamily apartment complexes and condos

Groundfloor

You can get started on Groundfloor with only $10, but there’s no guarantee borrowers won’t default on their loans.

  • Consider switching to Groundfloor if: you seek a lower investment minimum.
  • Best for: nonaccredited investors interested in backing short-term real estate loans.

Groundfloor welcomes accredited and nonaccredited investors alike to invest in its short-term, high-yield residential loans. Investors help fund house flipping projects and loan terms typically range from six to 12 months. Some loans pay interest on a monthly basis — others pay out accrued interest upon maturity.

  • Management fee: $0
  • Investment minimum: $10
  • Typical terms: 6 to 12 months
  • Open to nonaccredited investors?: Yes
  • Asset types: Short-term high-yield residential loans

Yieldstreet

This investment platform offers the most unique lineup of investment options on this list but offerings are largely limited to accredited investors.

  • Consider switching to Yieldstreet if: you’re seeking alternative asset classes in addition to real estate investments.
  • Best for: investors looking to diversify their portfolios.

Yieldstreet may be a practical fit for investors ready to branch out into alternative asset classes, including consumer, commercial, real estate, art, marine and legal assets. Outside its individual investments, it also offers short-term notes and a four-year Prism Fund that holds multiple asset classes and terminates in March 2024.

  • Management fee: 1% to 2%
  • Investment minimum: $1,000 for short-term notes, $5,000 for Prism Fund, $5,000 for individual assets
  • Typical terms: 6 months to 5 years
  • Open to nonaccredited investors?: Yes — but only its Prism Fund
  • Asset types: Individual asset classes, short-term notes, Prism Fund

Pros and cons of Patch of Land

Patch of Land has much to offer but comes with its drawbacks.

Pros

  • $5,000 minimum. Patch of Land’s investment minimum is more approachable than the $25,000 required by some of its peers, like ArborCrowd and CrowdStreet.
  • Short-term investments. Most of Patch of Land’s deals span 12 to 18 months, which means you don’t need to worry about locking up funds for years at a time.
  • Diverse properties. While its competitors tend to offer one or the other, Patch of Land offers access to both residential and commercial properties.
  • Open to non-US investors. Investors outside the US are welcome to invest through Patch of Land.

Cons

  • Accredited investors only. You’ll need to be an accredited investor to invest through Patch of Land.
  • High fees. Patch of Land’s 3% fee is less competitive than the typical range of 0.25% to 1% charged by competing platforms.

How to transfer your brokerage account

If you’re a Patch of Land investor and want to transfer your portfolio elsewhere, you’ll need to close your Patch of Land account entirely. To do so, you’ll need to reach out to a Patch of Land representative — but only so long as there are no active investments or loans in your portfolio.

Compare real estate investing accounts

If you’re interested in this area of investing, here are some options.

Name Product Minimum deposit to open Eligible investors Available asset types Annual fee Average return
RealtyMogul
$5,000
Accredited only
Real estate
1%
Invest directly in commercial real estate through this crowdfunding platform. But you’ll pay variable fees depending on the investment type.
Streitwise
$1,000
All
Real estate
2%
8% to 10%
Streitwise is an online real estate investing company that combines innovative technology and new federal regulations.
DiversyFund
$500
All
Real estate
0%
11% to 18%
Diversify your portfolio with multifamily real estate.
Fundrise
$500
All
Real estate
0.15%
8.7% to 12.4%
Invest in commercial and residential REITs with as little as $500, but watch out for hidden costs.
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Compare up to 4 providers

Disclaimer: The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

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