Here at IdealREI, we have taken a different approach to rankings. We do not assign an arbitrary ranking based on how much the we “like” it, or based upon how much the site/service is willing to pay us to review it.
Instead, we have established a set of criteria that is mandatory in order to receive a rating. Once the basics are met, we use a second set of criteria to evaluate them.
We then search their websites for the answers to our list of criteria. If their website lacks the information, we will search the internet, news, or press releases as well as contact the company directly if all else fails.
We currently have over 80 crowdfunding platforms on our tracking list. Because of the large number, we have decided to use the company’s position on our list to determine the number of stars it will receive.
Here is the breakdown:
|Stars||Percentage of Companies|
Another way to look at it – only the top 5% receive a 5-star rating and only the top 15% receive 4-stars or better (4, 4.5, or 5).
Also, since we are ranking companies based on their overall position, we can objectively change the rankings and ratings any time the information changes. Should a smaller company change the way they operate, we can quickly adjust their score and move their position on the list.
Since there are roughly 80 crowdfunding sites that we know about, you can expect to see the following amount in each category
Though we will track the position of every site that we can find, we prioritize our full review for the top companies and we probably won’t ever write full reviews for anything under 3 stars.
All ‘approved’ crowdfunding sites reach a basic level of functionality. This includes having a functional site with no noticeably fake investments. Also, it should have at least one open investment and be focused exclusively on real estate. Finally, all the information we are looking for should be readily available on the website or be given to us relatively quickly upon request.
Sites that meet this basic level are then graded on 11 different criteria.