Investing in real estate used to be a costly ordeal, not to mention the time commitment of buying and then managing the property. Even if you went the route of hiring a property manager, that was yet another expense to factor in.
Thanks in large part to online crowdfunding companies though, investing in real estate has not only never been easier, but never been more affordable either.
When it comes to real estate crowdfunding companies, Fundrise is one of the best and most popular on the market. They aren’t the only real estate investment company though.
Keep reading to learn more about Frundrise and how they stack up against Fundrise competitors.
As we touched on above, Fundrise is a real estate crowdsourcing platform. Fundrise offers both commercial and residential real estate investment opportunities that aren’t available to the general public. The company currently has around 500,000 members and has done over $4 billion in investments in its history.
The best part about Fundrise is once you have made the financial commitment to invest, they handle the rest, including managing your portfolio and the properties you have invested in.
Where Fundrise sets itself apart from its competitors is its affordability. For as little as $1, you can begin investing with Fundrise.
For those who are looking to invest more, they offer 5 different tiers of membership plans, all with varying minimum investment amounts:
- Starter – $10 minimum
- Basic – $1,000 minimum
- Core – $5,000 minimum
- Advanced – $10,000
- Premium – $100,000
Each membership tier comes with its own set of unique benefits and perks as well as access to different deals.
Fundrise is hardly the only real estate crowdfunding company on the market. They are, however, one of the more popular ones, and for good reason.
Let’s take a look at who some of their top competitors are and how they compare to Fundrise.
CrowdStreet is arguably Fundrise’s top competitor. CrowdStreet allows you to invest in properties directly or through commercial REITs. Compared to Fundrise though, CrowdStreet is much more restrictive.
For starters, CrowdStreet only allows you to invest in commercial real estate, whereas Fundrise allows for both commercial and residential investments. The minimum requirement to join the platform is also much greater for CrowdStreet at $25,000.
The biggest restriction by far is that CrowdStreet only makes its platform available to accredited investors. That means that unless you have a net worth of over $1 million or an annual income of at least $200,000 and have successfully gone through the accreditation process, you can’t use CrowdStreet.
Streiwise is one of the newer real estate investing companies on the block. Unlike Fundrise and many of its competitors, they are not a crowdfunding company. Instead, they offer their clients nontraded, private REITs that own already-leased commercial real estate properties.
Like CrowdStreet, they only offer commercial real estate investing, unlike Fundrise which also offers residential options. While they do cater to both accredited and non-accredited investors like Fundrise, their minimum requirement for investing is significantly higher at $5,000.
Unlike Fundrise and many Fundrise competitors, Goundfloor specializes in debt-based real estate investing. What this means is that, unlike the investment deals that most crowdfunding real estate companies offer, all of Groundfloor’s deals are short-term investments.
Like Fundrise, the minimum investment for Groundfloor is $10 and with that comes information about the project, a timeframe, and target returns.
It’s important to note though, that debt-investing can carry a significant amount more risk than the more traditional equity investing that Fundrise offers.
When it comes to Fundrise competitors, RealtyMogul is most comparable to CorwdStreet. Like CrowdStreet, RealtyMogul offers its clients REITs as well as direct deals.
Where RealtyMogul is similar to Fundrise is that it offers its services to both accredited and non-accredited investors; however, its minimum requirements are much higher. Most RealtyMogul investments come with a $25,000 minimum. Some are offered with a minimum of $5,000, which is still much higher than the $10 minimum that Fundrise requires to get started.
Thanks to companies like Fundrise and its competitors, diversifying your portfolio to include real estate investing has never been easier or more affordable.
You can also breathe easy knowing that Fundrise is safe and 100% legit. It has an A rating from the Better Business Bureau, a 4.8 out of 5 rating in the App Store, and uses bank-level security in order to protect your personal information and your money.
For more information about Fundrise, or to get started investing with them today for as little as just $10, click here.