Fundrise is an investing platform that lets anyone invest in private and commercial real estate. However, its fee structure can be complex. However, some Fundrise competitors let people give their portfolios exposure to real estate with lower fees and more investment options.
Streitwise
Streetwise offers exposure to real estate via dividend-paying REITs, which means investors can get regular payments based on their investment earnings. The platform focuses on commercial property. And unlike most crowdfunding real-estate platforms, Streitwise offers an individual retirement account (IRA) option. Its flat minimum investment of $1,000 makes it simple to invest in real estate. Unlike Fundrise, you don't need to compare different account packages. Still, its 2% management fee is a bit steeper than most.
| Account types | Brokerage, Retirement |
|---|
| Annual fee | 2% |
|---|
| Available asset types | Real estate |
|---|
| Average return | 8% to 9.5% |
|---|
Realty Mogul
Realty Mogul lets people invest in real estate through real estate investment trusts (REITs), which are funds that own income-producing real estate property. But Realty Mogul offers a few more investment options. For instance, accredited investors can invest in individual properties through private placements. Your investments may also be a bit more liquid than Fundrise, since you can take distributions from REIT earnings. However, Realty Mogul's minimum investment requirements can be larger than those at Fundrise. Some investment options require minimums ranging from $50,000 to $50 million. So Realty Mogul may work best for affluent investors.
| Account types | Retirement, Other |
|---|
| Annual fee | 1% |
|---|
| Available asset types | Real estate |
|---|
CrowdStreet
CrowdStreet
2.8 / 5
★★★★★
Designed for accredited investors, CrowdStreet offers access to various funds that invest in real estate. Create a free account online to view their latest offerings. When you invest in CrowdStreet investments, you do so through a platform called The Marketplace. Every option listed on the Marketplace is reviewed by a team of professionals with more than 60 years of combined experience in private-equity real estate. Because CrowdStreet caters to accredited investors, it's no surprise it has a high minimum investment requirement of $25,000. Investors who work with CrowdStreet can expect to have their money locked up for a few years as deals close and property is sold. CrowdStreet deals mainly with commercial real estate.
| Account types | Other |
|---|
| Annual fee | 0% |
|---|
| Available asset types | Real estate |
|---|
| Average return | 17% |
|---|
PeerStreet
PeerStreet is different from Fundrise, because you invest in real estate debt like mortgages. So you make money as borrowers pay back these loans. Use the website to shop around for properties tied to loans and choose one to invest in. As borrowers make interest payments on their home loans, PeerStreet collects portions of those payments and provides it to investors. According to the PeerStreet website, the company has paid more than $175 million to investors since 2013. Filter loans by factors such as APR, lien-to-value (LTV) ratios, property location and more. Moreover, you can also fund a self-directed IRA with your investments.
| Account types | Retirement |
|---|
| Annual fee | 0.25%
1% |
|---|
| Available asset types | Real estate |
|---|
| Average return | 7% to 12% |
|---|
| Annual fee | 0.25%
—
1% |
|---|
| Average return | 7% to 12% |
|---|
Patch of Land
Patch of Land is another real-estate debt platform. But this one is geared toward accredited and institutional investors. The investments are also short-term with loan terms ranging from 30 days to 36 months. As borrowers pay back these loans, you get part of it in the form of monthly distributions.
| Account types | Other |
|---|
| Annual fee | 0%
3% |
|---|
| Available asset types | Real estate |
|---|
| Average return | 9% to 11% |
|---|
| Annual fee | 0%
—
3% |
|---|
| Average return | 9% to 11% |
|---|
Pros and cons of Fundrise
Fundrise provides ordinary investors with access to real estate investments via various fund options. Here are some of the benefits and drawbacks.
Pros
- Multiple membership options designed for different types of investors
- No need to be an accredited investor to get started
- Diversify portfolio with commercial and residential property
Cons
- High fees
- Complex fee structure
- Highly illiquid investments
If you’re switching brokers, the process can be different across different providers. The process may have plenty of restrictions since platforms like Fundrise offer real estate investments, which are known for being highly illiquid. Fundrise charges a $10,000 fee to transfer funds to a different account. When switching platforms, the process may look like this.
- Fill out a transfer initiation form with your new broker.
- Your current broker validates your form or notifies you of next steps within three business days.
- Your old broker completes the process and moves funds within six business days.
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