The main difference between real estate investment trusts and real estate crowdfunding is that REITs typically invest in a wide range of properties to diversify risks while crowdfunded projects usually focus on a single property.
Moreover, REITs are accessible to all kinds of investors (except private REITs) while real estate crowdfunded projects are typically reserved for accredited investors. Finally, crowdfunded projects tend to generate higher returns than REITs due to their more focalized approach and nimbler cost structure.