While Fundrise is one of the biggest players in the real estate crowdfunding scene, you may be looking for Fundrise alternatives to further diversify your portfolio. Here’s a review of the six best.
Fundrise is one of the most popular places for investors looking to dabble in real estate crowdfunding, and with good reason.
While it’s been around for nearly a decade, the platform was the first entity to introduce eREITs – electronic REITs which Fundrise claims to be the “next evolution in real estate investing”. Fundrise now has over 500,000 members with up to $2 billion invested in real estate.
Over the past several years, a variety of Fundrise alternatives sprouted with a few options that offer unique investment opportunities that Fundrise doesn’t have.
If Fundrise didn’t live up to your expectations or if you’re looking to guarantee that you’ve checked all of your options, here are 8 of the top sites like Fundrise.
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The best sites like Fundrise
CrowdStreet has been around since 2014 and is one of the most popular real estate crowdfunding platforms today. As a Fundrise competitor, CrowdStreet is a great entry point for investors who want to dabble in real estate investing, as it pairs project developers with individual investors.
All developers are vetted by CrowdStreet and undergo rigorous background and reference checks. This makes investing easier for investors who do not have the time or ability to vet developers on their own.
As a CrowdStreet investor, you can select individual properties and interact directly with the project sponsor. You may also buy into CrowdStreet’s funds which are composed of several real estate projects (very much like a mutual fund).
CrowdStreet offers a minimum investment that depends on the type of project, but you’ll discover that most individual projects require a $25,000 minimum investment. The platform’s real estate funds also have varying minimums that range from $25,000 to $100,000.
|Min To Invest||Accredited Only?||Fees||Next Steps|
|$1,000||Yes||1-1.75%/year||Sign Up||Read Full Review|
Who should use CrowdStreet?
CrowdStreet is great for risk-tolerant accredited investors who are willing to invest long-term. While CrowdStreet developers are vetted, new investors are still advised to do their own due diligence.
See Related: CrowdStreet Review: Is It Worth It?
Launched in 2012 as one of the first few companies that aimed to disrupt traditional real estate through online crowdfunding, RealtyMogul has over 197,000 investors.
The platform has offered capital to over 375 investments while earning over $400 million in capital. RealtyMogul is open to both accredited and nonaccredited investors who are looking to invest in commercial real estate.
More popularly known for its exceptional due diligence, RealtyMogul also vets each property in its portfolio, making sure to scrutinize each deal using its own methods and models. If it’s your first time investing in REITs RealtyMogul is a strong option.
The platform claims to prioritize cash-flowing properties to help you earn passive income with real estate through dividends.
RealtyMogul investors get access to two public nontraded REITs, while accredited investors may opt for joint venture equity investments and 1031 exchanges. Your minimum varies depending on your investment, but you’ll be able to invest with just $5,000.
|Min To Invest||Accredited Only?||Fees||Next Steps|
|$1,000||No||0.50%/year||Sign Up||Read Full Review|
Who should use RealtyMogul?
If you’re an accredited investor looking to access private placements or a non-accredited investor looking to access nontraded public REITs, RealtyMogul’s range of service offerings may be perfect for you.
See Related: RealtyMogul Review: Is It a Scam or Legit?
While Roofstock works very much like Fundrise and Realty Mogul when it comes to offering an easier entry point to real estate investing, it has a unique selling point.
With most crowdfunded real estate platforms, the investor loans money to a developer or rehabber to finish a project within a defined timeframe. On Roofstock, however, the investor purchases the property outright, making it one of the most unique Fundrise alternatives.
The process is similar to turnkeys, and Roofstock investors get to generate income the moment they invest. Roofstock allows people to instantly earn rental income from properties they invest in, even if they don’t want to put in much work in acquiring one.
All properties in Roofstock must go through a vetting process, and while there’s no minimum investment, all accounts come with a 0.50% setup fee.
If an investor is not satisfied with a property, the platform’s 30-Day Satisfaction Guarantee allows him to sell the property back to Roofstock. The platform also repurchases properties that are not sold within 90 days.
Who should use Roofstock?
With its low fees, homes with tenants, and services that are open to nonaccredited investors, Roofstock is one of the best Fundrise alternatives for first-time real estate investors.
DiversyFund is one of the youngest entries in this list, but that doesn’t mean it can’t be one of the best Fundrise alternatives. One of the best apps like Fundrise, this online real estate investing platform allows non-accredited investors to invest with just $500 and zero platform fees.
The only downside to this setup is that all your dividends will be reinvested, which prevents investors from earning income until their properties are sold.
A $500 investment gives you access to DiversyFund’s Growth REIT – a SEC-regulated REIT that allows you to earn passive income with real estate by investing in apartment buildings.
While most real estate crowdfunding platforms like Fundrise utilize third parties to manage their deals, DiversyFund completely owns the properties they invest in. What this means is zero investment fees and higher returns for the investor.
Who should use DiversyFund?
DiversyFund is perfect for investors who are okay with their cash sitting for years. With its low minimum and fees, it’s also for investors with shallow pockets who are looking for a low-cost entry into real estate
This online real estate investing company makes commercial real estate investing available to everyone through topnotch technology and federal regulations. You can invest in a professionally managed portfolio with just $1,000 in Streitwise, and this gives you access to private real estate assets.
Streitwise’s main goal is to acquire a diversified portfolio of investments that are home to creditworthy tenants to offer a steady source of dividends to its investors.
Streitwise focuses on both fairly priced markets that generate high dividends and properties in emerging markets that are easily sold to tenants who have high net worth and great credit.
Streitwise requires a 3% account fee and an ongoing 2% management fee, which are all collected before your dividends are distributed.
Who should use Streitwise?
Streitwise is perfect for both accredited and non-accredited investors, trustee holders, IRA holders, as well as individual investors with a high net worth.
See Related: Streitwise Review: Pros, Cons & Fees
6. M1 Finance
M1 Finance is good at two things: automated investing and a high degree of customization, making it one of the best Fundrise alternatives. This allows investors to create a tailored portfolio that aligns exactly with their preferences.
M1 Finance also allows you to develop portfolios with low-cost ETFs. You can also use individual stocks are a combination of both.
To streamline investments, M1 Finance uses investment portfolio templates in its robo investing feature which it called “Pies” (a strategy based on Modern Portfolio Theory). Investors may opt to invest all their money in any of these pre-built templates or choose to customize it according to their preferences.
The platform then manages their account by following the allocation within the Pie, constantly rebalancing and allocating each contribution you make.
There’s a wide selection of pre-built pies in categories that include general investing, responsible investing, plan for retirement, industries and sectors, income earners, and just stocks and bonds, among others.
Who should use M1 Finance?
M1 Finance has a lot of attractive service offerings for experienced investors, including its capacity to offer a high level of portfolio customization.
If you’re a new investor, know full well that M1 Finance won’t walk you through the entire goal-setting process. You’ll have to do your own risk analysis and educate yourself about how ETFs, stocks, and markets work.
See Related: M1 Finance vs Robinhood – Which is Better?
7. Origin Investments
With a strong track record of success among its investors, Origin Investments is one of the best Fundrise alternatives in the market. The platform has a weighted average 31% internal rate of return on its returned deals.
Origin Investments mainly focuses on multifamily residential real estate, and member investors participate in sizeable funds to raise capital that its managers then allocate. The platform offers a variety of ways to invest.
The IncomePlus Fund is an income and growth-oriented fund that allows accredited investors to earn passive income. The QOZ Fund reduces investors’ federal tax bills by investing in outside long-term and short-term capital gains into the Fund.
Do note, however, that the platform is only available to accredited investors who can invest a minimum of $50,000 or higher, depending on their chosen find.
Origin Investments’ fee structures aren’t the cheapest in the market, but it also isn’t the highest (the platform takes 1.25% of your net asset value).
Who should use Origin Investments?
Origin Investments is a great choice for accredited investors who are looking for full transparency and security. Unlike private REITs, Origin Investments allows you to see each property that makes up each fund.
Unlike other crowdfunded real estate sites that pool funds to purchase a piece of commercial real estate, Yieldstreet works a bit differently. Instead, the platform crowdfunds the debt incurred to finance those investments, as long as a host of other deals.
The company, which launched in 2015, began with a focus on litigation finance – the process of pairing investors with a plaintiff looking to loan cash to cover lawsuit settlement expenses.
Yieldstreet has then branched out to a plethora of offerings, including commercial loans, financing residential and industrial property deals, the purchase of fine art, and oil tankers, among others.
Investors earn by accruing interest payments and return of the principal investment over the course of the loan. Most deals in Yieldstreet are for accredited investors, but its Prism Fund, which requires a minimum investment of $5,000, is open to non-accredited investors as well.
Who should use Yieldstreet?
Yieldstreet is one of the best Fundrise alternatives for both accredited and non-accredited investors who are aiming to diversify their portfolio and are okay with having their money sit for years.
See Related: YieldStreet Review: Is It Legit or a Scam?
Groundfloor allows anyone with just $10 to invest in real estate fix-and-flip deals. Founded in 2013, this online marketplace brings investors together for short-term lending investments. It is also a portal for borrowers aiming to secure short-term financing for their real estate projects.
As an investor, you’ll get access to a variety of short-term, high-yield investments with returns that range between 6% and 14%. This percentage depends on the risk grade of the loan. Remember, the higher your projected returns are, the higher the risk that comes with it as well.
You don’t have to be an accredited investor to participate in Groundfloor, and with just $10, you can fund your account. All deals and borrowers are pre-screened to make sure that all deals work out for investors.
Who should use Groundfloor?
With a low entry barrier fee to participate, Groundfloor is great for beginner investors who want to participate in real estate crowdfunding. It’s also a great opportunity for anyone looking to diversify their investment portfolio in real estate.
See Related: Free Real Estate Rental Property Calculator
This peer-to-peer lending platform is a marketplace for both investors and borrowers who are looking to dabble in real estate loans.
As one of the best Fundrise alternatives, PeerStreet focuses mainly on high-quality private real estate loans, with a goal to offer real estate loans in a niche that isn’t easily accessed by non-traditional real estate investors.
With real estate loans, you’ll need a different perspective on underwriting your real estate investment.
Private money loan investments are PeerStreet’s main product, as it believes that the risk for this asset class is mispriced only to favor investors.
To limit the various risks included in investments, PeerStreet structures the loans which are secured by mortgages and deeds and backed up by hard assets.
There’s a difference between PeerStreet and a traditional REIT as the platform allows anyone to select the loans which they want to invest in, instead of investing in a ready-made mixed bag of properties.
PeerStreet requires a $1,000 minimum investment, which is lower than many mutual funds and exchange-traded funds.
Who should use PeerStreet?
With sophisticated loans and unconventional arrangements, PeerStreet isn’t for small investors. Experienced investors who are well versed with specialized real estate lending and its risks will find PeerStreet to be a very lucrative platform.
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- 10 Important Pros and Cons of Real Estate Investing
- How to Underwrite Real Estate Investments