Crowdfunding in the real estate industry promotes investments in real estate projects in exchange for equity profit and revenue sharing. The centrepiece of this thesis proves that the benefits of this investment type are on par with that of an open property fund in Switzerland. So far no such comparison has yet been drawn in existing research and academic literature. This thesis therefore cross-compares the two methods of real estate investments based on the transaction cost theory and the two methods’ respective risk profiles. As such two case studies and a few selected interviews are provided.