We recommend that investors consider three factors before choosing a commercial real estate investment platform. It can ultimately determine whether you invest in stable, high-yield real estate assets or end up in riskier opportunities:
- What are the expected returns? While past performance doesn't guarantee future results, it’s often an indicator of the quality of investments on a platform. Look for platforms that consistently deliver returns above traditional investments like broad-market index funds and REITs (Real Estate Investment Trusts).
- What is the typical investment term? Avoid platforms that lock up funds for several years. Opt for platforms with shorter-term investments, as this allows you to access your principal quickly after investing. You have the flexibility to reinvest frequently, diversify into other assets, or withdraw your funds.
- Do they invest in real estate debt or equity? We suggest choosing a platform that invests in real estate debt rather than real estate itself, as real estate debt is safer. That’s because whenever a property is sold, debtors are paid in full before any proceeds are distributed to the owner. Investors in the real estate itself are paid only after all debtors.
In this guide, we evaluate 10 commercial real estate investment platforms against these three criteria, starting with Constitution Lending's platform, which delivers returns of 10% to 14% with investment horizons of just 6 to 12 months.
Open a free Constitution Lending account to invest in the real estate loans we originate, starting with just $1,000.
1. Constitution Lending
Earn 10% to 14% Investing in Short-term Real Estate Secured Loans
Constitution Lending is a private money lender that has originated hundreds of millions of dollars in loans since 2018. We specialize in providing fast, reliable financing to experienced real estate borrowers for fix-and-flip projects, bridge loans, and ground-up construction.
Through our investment platform, you can purchase fractional ownership in these loans starting with as little as $1,000. Instead of investing in the properties themselves, you invest in the debt secured by the real estate, earning monthly interest payments from borrowers (we explain the benefits of this in more detail below).
Here's what investors say about our real estate debt options:
We’ll explore how Constitution Lending fulfills the three factors mentioned above.
Factor #1: Earn 10% to 14% Interest Returns
Interest rates on our fix-and-flip, bridge, and construction loans range from 10% to 14%, depending on the borrower's profile and loan structure. As a loan investor, you receive these interest payments on the first of each month.
Compare this rate of return to other popular real estate investment platforms, such as Yieldstreet and Fundrise, which yield 6.6% and 4.3%, respectively.
Real estate borrowers choose our loans because we can close in 7 to 14 days, compared to 30 to 75 days with traditional banks. This speed allows them to compete with cash buyers for real estate deals, and they're willing to pay higher interest rates for this advantage.
Factor #2: Receive Your Entire Principal in Just 6 to 12 Months
Our commercial loans have terms of 6 to 12 months, after which borrowers sell or refinance their properties and repay the full loan balance. This short investment horizon means you receive your principal back quickly, rather than being locked into multi-year commitments. You can:
- Reinvest in additional loans based on market conditions
- Withdraw funds for personal needs or other investment opportunities
- Avoid the risk of being trapped in illiquid investments during market downturns
Contrast this to most real estate investment platforms, which often require 3 to 7-year holding periods with limited redemption options.
Factor #3: Invest in Real Estate Debt, Not Real Estate Itself
When you invest with Constitution Lending, you're investing in loans secured by real estate; you aren’t investing in the real estate directly. This structure protects you against losses in the property’s value because debt holders are paid first and in full from any sale.
Consider this example: say you invest in a $750,000 loan secured by a $1 million property (75% LTV or loan-to-value ratio). If real estate markets drop and the property can only sell for $750,000, you recover your full $750,000 investment from the sale proceeds because you are paid first and in full. The borrower's $250,000 equity cushion absorbs the loss. The borrower has to lose their entire equity before you lose a cent.
If you were to invest in the $250,000 equity, you would lose your entire investment. It would act as a cushion for debtors.
For strong capital protection, we exclusively originate loans with LTVs of 75% or less, providing a substantial equity buffer to protect your principal.
Read more: How to Invest in Hard Money Loans: A Comprehensive Guide
Additional Advantages of Investing in Our Real Estate Loans
We Provide Payment Protections on All Our Loans
We are the only real estate investment platform that offers a payment guarantee on all loans. If a borrower stops paying, we pay investors out of our own pocket for up to six months while we resolve the situation through loan restructuring or foreclosure. This ensures you continue receiving cash flow even during borrower defaults.
Our Borrower Default Rate Is Under 2%
Our payment guarantee is rarely needed due to the quality of real estate developers and flippers in our network. We maintain a default rate under 2%, compared to the national average of 4% for real estate loans.
This low default rate results from our strict underwriting standards and decades-long relationships with experienced real estate professionals.
We only lend to real estate investors with credit scores of 660 or higher, proven track records of successful projects, and sufficient experience to execute their business plans. This careful selection process protects investor capital and maintains consistent returns.
We Invest Alongside You
Unlike many platforms and brokerages that simply connect investors with opportunities, we originate every loan with our own capital and maintain a 50%+ ownership stake throughout the term. Our money is invested alongside yours, aligning our financial incentives to ensure loan quality and performance.
This co-investment model gives investors confidence that we're not simply collecting fees while shifting risk to them. If a loan performs poorly, we also lose money, which motivates us to maintain rigorous underwriting standards and borrower selection criteria.
How to Start Investing in Constitution Lending Real Estate Loans
You can begin investing in our high-yield debt platform in under five minutes:
- Create your investment account by providing your name and email address.
- Review available loans on your dashboard, including LTV ratios, interest rates, and borrower profiles.
- Conduct your due diligence by examining loan metrics such as LTV, after-repair LTV, interest rate, note position, borrower credit score, property pricing, and repayment type.
- Fund your investment starting at $1,000 by linking your bank account or IRA.
- Receive borrower interest payments on the first of the month in your wallet, which you can withdraw or set to reinvest automatically into more loans.
Open a free investment account to explore our current loan opportunities and start earning 10% to 14% annual returns.
2. Fundrise
Fundrise is one of the most well-known real estate crowdfunding platforms, allowing investors to access diversified real estate portfolios through REITs and eFunds. The platform focuses on acquiring, developing, and managing properties across residential and commercial sectors.
Expected Returns: Fundrise's Flagship Real Estate Fund has generated 4.3% annualized returns since inception, with their distribution rate at just 0.21% annually. These returns are significantly lower than what investors can achieve with real estate debt investments.
Investment Time Horizon: Fundrise investments typically require multi-year holding periods with limited liquidity. Early redemptions may be restricted or penalized, and the platform only allows periodic redemptions where you cannot withdraw your full principal at once.
Investment Structure: Fundrise invests in real estate equity, meaning you own shares of actual properties. This exposes investors to market volatility and property value fluctuations, as equity investors are paid last after all debt obligations are satisfied.
The platform's low returns and limited liquidity make it less attractive for investors seeking higher yields and capital flexibility. Additionally, the equity-focused structure provides less downside protection compared to debt investments.
If you’d like to learn more about Fundrise and some good alternatives, we have an entire article on that, which you can read here.
3. Yieldstreet
Yieldstreet is an alternative investment platform that provides access to private market opportunities, including real estate, private credit, private equity, venture capital, office spaces, and other alternative asset classes. The platform primarily serves accredited investors with minimum investments typically starting at $10,000.
Expected Returns: Yieldstreet's primary real estate fund yields 6.6% annually. This return profile is particularly low when compared to safer, more traditional investments such as REITs and index funds.
Investment Time Horizon: Yieldstreet investments often have holding periods of multiple years with limited liquidity options. The platform only allows withdrawals during "periodic liquidation events," and even then, investors cannot access their full principal at once.
Investment Structure: The Yieldstreet Alternative Income Fund invests primarily in real estate equity rather than debt. This structure offers little capital protection and exposes investors to market volatility.
The platform's equity focus and track record of losses make it a riskier option for conservative investors seeking principal protection.
Read more: Top 5 Yieldstreet Alternatives | Higher Returns & More Liquidity
4. Roofstock
Roofstock operates an online marketplace for single-family rental properties, allowing investors to purchase shares in individual rental homes without direct property management responsibilities. The platform focuses on providing turnkey rental property investments.
Expected Returns: Roofstock properties typically yield 3% to 8% annually, which is lower than many traditional investments like REITs and index funds that average around 10%.
Investment Time Horizon: While Roofstock offers more liquidity than traditional real estate ownership, selling shares still requires finding buyers and completing transactions. The process isn't as straightforward as selling stocks or bonds.
Investment Structure: Roofstock invests directly in rental properties, making investors equity holders rather than debt holders. This structure exposes investors to property value fluctuations and tenant payment risks without the protection that debt investments provide.
The platform's modest returns and equity structure make it less attractive for investors seeking higher yields with better principal protection.
Read more: 7 Best Roofstock Competitors for More Safety & Higher Returns
5. Crowd Street
Crowd Street is a commercial real estate investment platform that connects accredited investors with individual deals and diversified funds. Their investment strategy focuses on institutional-grade commercial properties across various sectors, including office buildings, multifamily complexes, and retail spaces.
Expected Returns: Crowd Street projects vary widely in their return profiles, with some targeting returns of 15% to 20% while others focus on more conservative yields of 8% to 12%. However, these projections are often based on optimistic scenarios that may not materialize.
Investment Time Horizon: Most Crowd Street investments require 3 to 7-year holding periods with no liquidity options during the investment term. Investors must commit capital for the full duration without early withdrawal possibilities.
Investment Structure: Crowd Street primarily offers equity investments in commercial real estate properties. While some debt offerings are available, the majority of deals involve direct property ownership, exposing investors to market volatility and execution risk.
The platform's long holding periods and equity focus make it suitable only for investors who can commit capital for extended periods and accept higher risk levels.
6. RealtyMogul
RealtyMogul provides access to both public non-traded REITs and private real estate investments, focusing on multifamily and commercial properties. The platform serves both accredited and non-accredited investors through different investment vehicles.
Expected Returns: RealtyMogul's REITs have historically generated returns in the 4% to 8% range, while their private placements target higher returns of 12% to 18%. However, the higher-yielding investments carry significantly more risk and longer holding periods.
Investment Time Horizon: REIT investments offer more liquidity with potential quarterly redemptions, while private placements typically require 3 to 5-year commitments. The platform's liquidity options vary significantly based on the investment type.
Investment Structure: RealtyMogul offers both equity and debt investments, though equity deals are more common. The platform's REIT structure provides some diversification, but individual deals still expose investors to property-specific risks.
While RealtyMogul offers more investment options than some competitors, the returns and liquidity still don't match what debt-focused platforms can provide.
7. EquityMultiple
EquityMultiple focuses on commercial real estate investments for accredited investors, offering a mix of equity, preferred equity, and debt investments. The platform emphasizes institutional-quality deals with professional management teams.
Expected Returns: EquityMultiple targets returns of 10% to 25% depending on the investment structure, with debt investments generally offering lower but more predictable returns than equity positions.
Investment Time Horizon: Investment holding periods typically range from 2 to 5 years, with limited liquidity options during the investment term. Some shorter-term debt investments may offer 1 to 2-year terms.
Investment Structure: EquityMultiple offers various investment structures, including senior debt, preferred equity, and common equity. Their debt investments provide better downside protection, but equity deals make up a significant portion of their offerings.
The platform's focus on accredited investors and longer holding periods limits accessibility for many retail investors seeking shorter-term, higher-yield opportunities.
8. Groundfloor
Groundfloor specializes in short-term real estate debt investments, primarily fix-and-flip loans. The platform allows both accredited and non-accredited investors to participate in real estate lending with relatively small minimum investments.
Expected Returns: Groundfloor offers returns ranging from 8% to 12% annually, which is competitive with other debt-focused platforms but still lower than Constitution Lending's 10% to 14% range.
Investment Time Horizon: Loans typically have 6 to 12-month terms, providing better liquidity than equity-focused platforms. This shorter investment horizon appeals to investors seeking capital flexibility.
Investment Structure: Groundfloor focuses on real estate debt, providing better principal protection than equity investments. However, the platform doesn't offer the same level of borrower quality or payment guarantees as Constitution Lending.
While Groundfloor's debt focus is appealing, the lower returns and lack of payment protections make it less attractive than alternatives with stronger investor safeguards.
9. AcreTrader
AcreTrader allows investors to purchase fractional ownership in U.S. farmland, focusing on agricultural real estate rather than traditional commercial properties. The platform targets accredited investors seeking diversification through farmland investments.
Expected Returns: AcreTrader projects annual returns of 3% to 8% through rental income and land appreciation. These returns are modest and largely dependent on agricultural commodity markets and land values.
Investment Time Horizon: Farmland investments typically require 5 to 10-year holding periods with very limited liquidity. While AcreTrader has discussed developing a secondary market, current liquidity options remain restricted.
Investment Structure: AcreTrader investments involve direct ownership of farmland through LLCs, making investors equity holders rather than debt holders. This structure exposes investors to agricultural market risks and land value fluctuations.
The platform's long holding periods and specialized focus make it suitable only for investors seeking agricultural diversification and willing to commit capital for extended periods.
10. Arrived Homes
Arrived Homes focuses on single-family rental properties and vacation rentals, allowing investors to purchase fractional shares in individual properties. The platform emphasizes accessible real estate investing with low minimum investments.
Expected Returns: Arrived Homes properties typically generate returns of 4% to 7% annually through rental income and potential appreciation. These returns are modest compared to other real estate investment options.
Investment Time Horizon: Investments typically require 5 to 7-year holding periods with quarterly dividend distributions. Early exits may be possible but often involve penalties or limited buyer interest.
Investment Structure: Arrived Homes involves direct property ownership through LLCs, making investors equity holders subject to property value fluctuations and tenant payment risks.
The platform's low minimum investment requirement is attractive, but the modest returns and long holding periods limit its appeal for yield-focused investors.
Choosing the Best Commercial Real Estate Investment Platform
After evaluating these 10 platforms against our three key criteria, Constitution Lending emerges as the superior choice for investors seeking high returns, short investment horizons, and strong principal protection.
Highest Returns: Constitution Lending's 10% to 14% annual returns exceed all other platforms evaluated, providing significantly higher income than equity-focused alternatives.
Best Liquidity: With 6 to 12-month investment terms, Constitution Lending offers the shortest holding periods, allowing investors to access their capital quickly and maintain investment flexibility.
Superior Principal Protection: By focusing exclusively on real estate debt with LTVs of 75% or less, Constitution Lending provides the strongest downside protection. The payment guarantee feature provides an additional layer of security that no other platform offers.
Aligned Interests: Constitution Lending's co-investment model ensures our financial success depends on investor returns, creating true alignment of interests rather than simply collecting management fees and advisory fees.
For investors seeking the optimal combination of high returns, liquidity, and capital protection, Constitution Lending's debt-focused platform provides the best risk-adjusted returns in the commercial real estate investment space.
Open a free investment account today to start earning 10% to 14% annual returns with as little as $1,000 and access your capital within 6 to 12 months.
