Top Fundrise Alternatives and Competitors for Real Estate Investing

If you're looking to diversify your investment portfolio or get started with real estate investing, you've likely come across Fundrise. However, you may be wondering if there are other options available.

Rich Uncles offers a similar eREIT investment model, allowing you to invest in a diversified portfolio of properties with a minimum investment of just $5. RealtyMogul also offers a range of investment options, including eREITs and individual properties, with a minimum investment of $1,000.

Both Rich Uncles and RealtyMogul offer lower minimum investment requirements compared to Fundrise, making them more accessible to new investors.

Real estate crowdfunding allows individual investors to pool their funds online and collectively own a slice of larger properties. This strategy is a solution to the high minimum investment amounts typically required for individual real estate deals.

Many real estate crowdfunding platforms offer a wide range of investment options, with some platforms having a minimum investment requirement as low as $10. Fundrise and Groundfloor are two examples of platforms that offer entry into passive real estate investing with a low minimum investment.

Real estate crowdfunding is not available to all investors, as it is sometimes reserved for accredited investors only. However, platforms like Fundrise, Diversyfund, and Groundfloor give small, non-accredited investors access to real estate crowdfunding.

Crowdfunding is an online investment strategy that pools individual investors' funds to finance real estate properties.

Real estate crowdfunding platforms offer a wide range of investment options, making it possible for many investors to own a slice of larger properties.

Through real estate crowdfunding, individuals can invest in apartment buildings, commercial real estate, and real estate loans with a low minimum investment.

Some platforms, like Fundrise and Groundfloor, offer entry into passive real estate investing with as little as $10.

Many real estate crowdfunding platforms have varying minimum investment requirements, management fees, and real estate investments.

Fortunately, some platforms like Fundrise, Diversyfund, and Groundfloor give small, non-accredited investors access to real estate crowdfunding.

Not all real estate investment options are equal. Online real estate crowdfunding platforms typically offer two types of investments: debt and equity.

Debt crowdfunding allows investors to lend money to real estate developers or property owners, earning interest on their investment. This option is similar to a traditional mortgage.

Equity crowdfunding, on the other hand, gives investors a share of ownership in a property or project. Understanding the difference between equity and debt investment options is essential for real estate investors.

Each type of investment has its benefits and drawbacks, and it's crucial to understand these differences before making a decision.

Crowdfunding is a way to pool individual investors' funds to finance real estate properties, making it possible for many to own a slice of larger properties.

Real estate crowdfunding platforms are now readily available, offering a wide range of investment options, and some even have a minimum investment of just $10.

Fundrise, Diversyfund, and Groundfloor are examples of such platforms that give small investors access to real estate crowdfunding.

Non-accredited investors, who don't meet the government's requirements of a net worth over $1,000,000 or income over $200,000, can also participate through these platforms.

The management fees of real estate crowdfunding platforms can be tricky, but it's essential to look at their net returns rather than just their promises of low or no fees.

Fundrise, in particular, has a strong track record, with over 385,000 members and net dividends of more than $361 million.

The company's online platform allows individuals to buy into real estate investment trusts (REITs), both equity and mortgage REITs, with a minimum investment of just $10.

If you're looking for alternatives to Fundrise, you have several options to consider. Fundrise burst onto the scene in 2012, gaining a following from both beginning and experienced investors.

Some popular Fundrise alternatives include CrowdStreet, Arrived Homes, Groundfloor, Yieldstreet, and Mogul. These platforms offer different types of investments, such as commercial real estate, rental homes and vacation properties, residential debt, and alternative investments.

Here are some key differences between these platforms:

Ultimately, the best alternative to Fundrise for you will depend on your individual financial situation, investment strategy, and risk tolerance.

Streitwise is a great alternative to Fundrise for those looking to invest in commercial and mixed-use properties. They focus on second-tier cities like Indianapolis and St. Louis, avoiding overpriced coastal markets.

Their minimum investment is $5,000, and they aim for an annual dividend yield between 8% and 9%. They've consistently delivered at least that since their inception, even during the coronavirus pandemic.

I've personally invested with Streitwise and have found them to be a reliable source of passive income. However, as with any investment, past performance does not guarantee future results.

Investors can expect to hold shares for the long term, as shares are designed for long-term holding and can't be sold for the first five years. But if you're willing to wait, you may enjoy appreciation in share prices as well as dividend payments.

Here are some key features of Streitwise:

If you're looking for alternatives to Fundrise, there are several options to consider.

CrowdStreet is a great platform for experienced investors who want to invest in commercial real estate. With a minimum investment of $10, you can access a wide range of projects and diversify your portfolio.

Groundfloor is another excellent option for those who want to invest in real estate loans. With a minimum investment of just $10, you can join a pool of investors lending money to short-term real estate flippers.

Mogul is a great choice for investors who want to invest in high-quality single-family rental homes. With a minimum investment of $250, you can buy fractional ownership in a single-family rental home and earn monthly rental income.

Here are some key features of these platforms:

FarmTogether is a good option for investors who want to invest in farmland. With a minimum investment of $15,000, you can access a diversified portfolio of farmland investments.

Yieldstreet is a great choice for investors who want to diversify their portfolio with alternative investments. With a minimum investment of $10,000, you can access a range of investments, including real estate, art, and cryptocurrency.

Ultimately, the best platform for you will depend on your investment goals and risk tolerance. Be sure to do your research and choose a platform that aligns with your needs and goals.

CrowdStreet offers flexible, high-return investments for accredited investors, with a minimum investment of $25,000. This can include individual properties or funds that blend returns from several real estate projects.

Equity investments are another option, which give investors a stake in a given property and allow them to receive returns equal to their share in the property. However, individual equity investments can come with greater risk than investing in a real estate fund with many properties.

Some investment platforms, such as Yieldstreet and EquityMultiple, offer a range of alternative investments, including real estate, art, cryptocurrency, private equity, and venture capital. These platforms can help diversify an investment portfolio and potentially reduce exposure to market volatility.

Here are some key investment options to consider:

Accredited investors have more investment options than non-accredited investors due to their special status. They can access investment options that are not available to the public, such as private placements investments, which are not regulated by the Securities and Exchange Commission (SEC).

These investments can be high-risk, but accredited investors are expected to have ample knowledge to help them make more informed choices. They are also required to have a certain level of financial standing to qualify as accredited investors.

To qualify as an accredited investor, an individual or business must meet one or more of the following criteria:

The SEC has recently expanded the definition of accredited investors to include "knowledgeable employees" or licensed securities representatives or investment advisors. This makes it easier for certain individuals to qualify as accredited investors and access more investment options.

EquityMultiple offers flexible and advanced ways to invest in commercial real estate, including senior debt, mezzanine debt, preferred equity, common equity, opportunity funds, and traditional private REIT funds. These investments vary by risk and return, and by the length of commitment.

Their shortest commitment is only six months, making them a more liquid option compared to other real estate crowdfunding platforms. EquityMultiple also allows tax strategies such as 1031 exchanges and investments in Qualified Opportunity Zones.

According to the company, they’ve delivered an average return of 14.5% to their investors so far. EquityMultiple is exclusive to accredited investors, with a minimum investment of $10,000, which can be a barrier for some investors.

Here are the key features of EquityMultiple:

Liquidity is a crucial factor to consider when investing in real estate crowdfunding. Fundrise's real estate investment funds have a five-year lock-up period for your money.

You'll have the option to submit a redemption request to cash out some of your shares ahead of schedule every quarter. Fundrise redeems shares on a first-in-first out basis, meaning it will cash out the shares you owned the longest first.

However, Fundrise does not guarantee you can cash out early, and it may charge up to 1% as an early redemption penalty for cashing out of its eREIT or eFund early.

CrowdStreet's real estate deals also have a lock-up period of three to five years, though some can last as long as 10 years. This limited liquidity is one reason it limits access to wealthy accredited users who can afford to make long-term investments.

In contrast, Groundfloor has a shorter timeframe for investments and provides more liquidity than CrowdStreet. Its shorter loan terms make the investments more liquid than some competitor crowdfunding sites.

Here's a comparison of the liquidity options for these platforms:

Overall, Fundrise provides more liquidity and early redemption options than CrowdStreet, but it's essential to understand the lock-up periods and redemption rules before investing.

CrowdStreet makes money by charging fees to the sponsors listing real estate investment deals on the platform.

The company also charges investment management fees for investors using its REITs, which can be a significant source of income.

By designing individual portfolios for investors, CrowdStreet earns advisory fees, providing a unique value proposition to its clients.

These fees can add up quickly, making CrowdStreet a profitable business model.

Fundrise charges more upfront fees to use the platform, including a 0.15% annual advisory fee, plus an annual management fee ranging from 0.85% to 1.85% depending on the fund.

CrowdStreet, on the other hand, doesn't charge investors an upfront platform fee, instead, it charges a 1.5% technology fee to sponsors listing investment deals on the platform.

Here's a comparison of the fees between Fundrise and CrowdStreet:

Investment platforms offer a range of options for investing in real estate.

CrowdStreet is one such platform that allows accredited investors to pick individual properties to invest in, ranging from apartment buildings to hotels to mixed-use buildings to self-storage complexes.

They also offer funds that blend returns from several real estate projects, with some properties yielding as much as 12% and total return targets as high as 30% per year.

Fundrise, on the other hand, has a quick and simple account setup process that takes about five minutes to get started.

You can pick an investment plan from choices that include Growth, Income, and Balanced Portfolios, or register for a Fundrise Pro account to build your own portfolio.

Groundfloor investments are loans, funded for real estate purchase and renovations, and are in a first lien position.

Here are some key features of these platforms:

CrowdStreet requires high minimum investments, ranging from $25,000 to $150,000 for some investments.

It's essential to exercise caution before committing capital to any crowdfunding project, evaluating factors such as the project sponsor's track record and the property's location and potential for appreciation.

Fees can be a major consideration when choosing a real estate investment platform. Fundrise charges 0.15% per year of your assets on the platform for its advisory fee.

Fundrise also charges an annual management fee, ranging from 0.85% for real estate funds to 1.85% for the Fundrise Innovation Fund. In contrast, CrowdStreet does not charge investors an upfront platform fee, but instead charges a 1.5% technology fee to sponsors listing investment deals on the platform.

The fees for CrowdStreet vary depending on the investment deal, with each listing the fees you owe as an investor. This can make it difficult to compare fees directly between the two platforms.

Here's a breakdown of the fees for Fundrise and CrowdStreet:

Ultimately, the fees for Fundrise and CrowdStreet are similar, but the way they are structured and charged can be different.

Fundrise's educational center offers a mix of general investing articles and market commentary, including FAQs, articles, and a podcast. They also have a YouTube channel with short videos on real estate investing.

CrowdStreet's educational library is more extensive, covering real estate fundamentals, market commentary, and FAQs. They also run live webinars and events to teach users about potential deals.

Fundrise and CrowdStreet both rely on technology-based customer support, with the option to submit questions by contact form or email. Neither platform allows phone calls to customer support.

Fundrise offers a live chat tool during business hours, Monday to Friday, and a callback request option. CrowdStreet does not provide live chat.

When choosing a real estate crowdfunding platform, it's essential to consider your initial investment amounts and liquidity. Understand what you are investing in and how long you will need to leave your money tied up.

The minimum investment amount is a crucial factor to consider. Fundrise has a minimum investment of $10, while Groundfloor also has a minimum investment of $10. On the other hand, CrowdStreet requires a minimum investment of $25,000.

You should also consider the potential for ROI versus potential losses. Groundfloor makes it easy to determine with their borrower ranking system, while DiversyFund emphasizes the success of its 5-step investment strategy, which offers some security.

It's also worth noting that some platforms, like Fundrise and Groundfloor, accept non-accredited investors, while others, like CrowdStreet, do not. This is an important consideration if you're a new investor.

Here's a comparison of some popular platforms:

Ultimately, the crowdfunding platform you choose should complement your unique financial situation and investment strategy. Be comfortable with your chosen platform, understand the lock-up period, and perform your own due diligence.

Fundrise alternatives offer a range of options for investors looking to diversify their portfolios.

Fundrise has a minimum investment of $10, which is relatively low compared to other platforms. This makes it accessible to a wider range of investors.

Here's a comparison of some popular Fundrise alternatives:

Groundfloor, in particular, stands out for its low minimum investment and focus on debt securities.

Let's compare some of the top real estate crowdfunding platforms side by side. Fundrise has a minimum investment of just $10, making it one of the most accessible options out there.

Here's a breakdown of some of the key features and benefits of each platform:

As you can see, each platform has its own unique features and benefits. Fundrise is a great option for those who want to get started with a small investment, while CrowdStreet requires a minimum investment of $25,000.

If you're looking for a platform that offers a wide range of investment options, Fundrise is a good choice. They offer REITs, private credit, and venture capital, making it a great option for those who want to diversify their portfolio.

On the other hand, CrowdStreet is a good option for those who are looking for a more hands-on approach to real estate investing. They offer a selection of commercial real estate projects that you can invest in, and they have a good track record of delivering strong returns.

Ultimately, the best platform for you will depend on your individual financial goals and risk tolerance. Be sure to do your research and choose a platform that aligns with your values and investment strategy.

CrowdStreet has been in business since 2014, giving it a solid track record of over 8 years.

More than 300,000 investors have put their trust in CrowdStreet, investing over $4.2 billion across more than 798 real estate deals.

Only around 5% of possible deals make the cut, as CrowdStreet uses strict screening criteria to decide what projects are listed on the platform.

This rigorous process suggests that CrowdStreet is serious about quality and transparency, which is reassuring for investors.

Diversyfund is a real estate crowdfunding platform that offers a unique investment strategy. They buy apartment buildings, improve them, and aim to add value for 5 years before selling. This approach focuses on capital appreciation rather than cash flow.

The minimum investment required to get started with Diversyfund is $500, which is lower than many competitors. This makes it accessible to a wider range of investors, including those who are new to real estate investing. Diversyfund's Growth REIT is an illiquid long-term investment, so it's essential to leave your money invested for at least 5 years.

Here are some key benefits and drawbacks of investing with Diversyfund:

LEX is a platform that allows both accredited and nonaccredited investors to buy equity shares of commercial real estate buildings.

You can earn income from these properties when they pay distributions, and if your holdings increase in value, you'll share in their appreciation.

Your returns will be the same as the majority owners of the properties.

One of the best features of LEX is its secondary market, where you can sell your shares without any restrictions or predetermined lockup period.

This means you have more control over your investments and can adjust your portfolio as needed.

LEX is also a self-directed platform, allowing you to select your own investments and construct a real estate portfolio that meets your personal objectives and risk tolerance.

This level of freedom and flexibility can be a game-changer for investors who want to take charge of their own financial futures.

DiversyFund is best for investors who are comfortable with their investments remaining illiquid for at least 5 years. This policy has limited exceptions, so investors must be certain that they can leave the money invested for a while.

The $500 initial investment makes DiversyFund accessible for many would-be and beginner investors. This low barrier to entry can be a huge advantage for those looking to get started with real estate investing.

DiversyFund is best for investors seeking capital appreciation, not regular cash flow. If you're looking to grow your wealth over the long-term, DiversyFund may be a good fit.

Other investors who would benefit from DiversyFund are those who have some of their portfolios in the stock market or other real estate assets, like commercial properties. They want to dip their toes into multi-family real estate for a more diversified portfolio.

Yieldstreet and Mogul are two platforms that offer alternative investment opportunities to Fundrise. Yieldstreet allows accredited investors to invest in a variety of assets, including art, real estate, and commercial loans.

One notable feature of Yieldstreet is its focus on alternative investments, which can provide a diversification benefit to investors' portfolios. By investing in non-traditional assets, investors can potentially reduce their reliance on traditional stocks and bonds.

Mogul, on the other hand, focuses on investing in real estate development projects, offering investors a chance to participate in the growth of up-and-coming properties.

Mogul offers a unique way to invest in high-quality single-family rental homes. You can buy fractional ownership in a single-family home with the potential to earn monthly rental income.

Their investment process involves scouting and vetting properties by Mogul itself. This helps ensure that investors are getting a good deal.

A minimum investment of $250 is required to get started, which is relatively low compared to other platforms.

Yieldstreet is a platform that offers a unique investment opportunity, the Prism Fund, which owns a mix of real estate and alternative investments like fine art, consumer debt, and corporate debt. This fund is available to non-accredited investors with a minimum investment of $1,000.

One of the attractive features of Yieldstreet is its potential for high returns, with an 8% dividend yield. However, it's essential to note that the fund's distribution may exceed its earnings, which could mean that a portion of the dividend payments are actually a return of your original investment.

Yieldstreet allows you to diversify your investment portfolio by investing in alternative assets, which can potentially reduce your exposure to market volatility. This platform has already seen impressive results, with investors achieving an annualized net return of 9.6% since 2015.

With a minimum investment of $1,000, Yieldstreet is more accessible than some other investment platforms. However, it's worth noting that accredited investors can also invest in a custom portfolio of assets, plus short-term notes, but this requires a higher minimum investment.

Yieldstreet's Prism Fund has a unique investment strategy that sets it apart from other real estate investment platforms. By investing in a range of alternative assets, you can potentially earn impressive returns, but it's essential to understand the risks involved.