Real estate investing has long been a way for people to diversify their portfolios, whether it be the individual property route (single-family homes, condos, townhouses, etc.) or the commercial property route (shopping centers, business parks, etc.).
One downside to real estate investing has been the financial capital required to do it. There’s also the headache of managing the property and dealing with everything that goes along with it.
Thanks to platforms like Fundrise and CrowdStreet, though, investing in real estate has never been easier, or more affordable.
Keep reading to learn more about Fundrise vs. CrowdStreet:
Fundrise is a real estate crowdsourcing platform that provides investors with access to real estate investments that aren’t on the public market. The company currently has around 500,000 members and has done over $4 billion in real estate investments since its creation.
Fundrise offers five tiers of memberships: Starter, Basic, Core, Advanced, and Premium. Each tier comes with a minimum investment requirement as well as more and more perks the higher you go.
With Fundrise, you can begin investing for as little as $10 (Starter Tier) and as much as $100,000 (Premium Tier).
- Starter – $10 minimum. Diversification across the Flagship Fund. Automatic reinvesting of dividends.
- Basic – $1,000 minimum. All benefits of Starter plan. Ability to set investment goals and invest in an IRA. Access to Funrise IPO.
- Core – $5,000 minimum. Ability to customize your investing. All benefits of the Basic plan. Access to a wider variety of funds. Six months of advisory fees are waived for each person you refer.
- Advanced – $10,000 minimum. All benefits of Basic and Core plans. Ability to invest in the Fundrise eFund. Nine months of advisory fees are waived for each referral.
- Premium – $100,000 minimum. Access to unique offerings is only available to accredited investors. Priority access to the full investment team. One year of fees are waived for each referral.
Once you pick the membership tier that works best for you and your budget, Fundrise will allow you to invest in a diversified portfolio that features real estate projects, both commercial and residential. From there, the team at Fundrise handles all the rest, including managing your portfolio.
With Fundrise, you have two different ways of making money. You can make money through quarterly dividends and through appreciation in the overall value of your investment shares.
CrowdStreet is currently the largest commercial real estate investment platform on the market. They currently have over 100,000 investors and have invested in over $4 billion of real estate in their company history.
Unlike some other real estate crowdsourcing platforms, including Fundrise, CrowdStreet is available only to accredited investors with an annual income of at least $200,000 and a net worth of over $1 million.
In addition to real estate investment trusts, CrowdStreet also allows its investors to invest in individual real estate properties, much in the same way that you would invest in an individual stock. For a minimum investment of $250,000, CrowdStreet will also create a custom investment portfolio for you, tailored specifically for your needs.
The biggest difference between Fundrise vs CrowdSource is the requirements to join the platform. While anyone with a minimum of a $10 investment can join Fundrise, CorwdSource is only for accredited investors and requires a minimum investment of $25,000.
Another major difference is the type of investment options each platform offers. While CrowdStreet offers real estate investment trusts, individual properties, and custom portfolios, they only allow you to invest in commercial properties. Fundrise, on the other hand, only offers real estate investment trusts and eFunds. They do, however, allow you to invest in both residential AND commercial properties.
Finally, the 3rd major difference is the fees that each platform charges. Fundrise charges both advisory and management fees that amount to approximately 1% of the annual cost based on your portfolio’s value. CrowdStreet, however, does not charge any fees.
While no investment is guaranteed, both platforms are safe and legitimate to use.
Fundrise uses bank-level security in order to protect your personal information and your money. They use an AES bit symmetric key encryption, which is the same encryption that the large commercial banks use.
CrowdStreet limits access to client information to only specific employees. This helps prevent your private information from ending up in the wrong hands. They also use encryption services as an extra layer of protection.
Want To Know More About Fundrise vs. CrowdStreet?
Whether you are new to real estate investing and looking to diversify your portfolio, or you are looking for a way to invest in real estate without all the headaches involved, both Fundrise and CrowdStreet are great options.