10 Best Fundrise Alternatives for Real Estate Investments
November 10, 2022
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When it comes to real estate investing, Fundrise is one of the most popular platforms out there.
However, some investors find that the platform doesn’t quite meet their needs. In that case, there are several other platforms to choose from that offer a similar experience with some distinct advantages.
There are many Fundrise alternatives to consider, and we’ve put together a list of good options to explore. But before we dive in, let’s look at some of the drawbacks of Fundrise.
Shortcomings of Fundrise
First, Fundrise is open to both accredited and non-accredited investors with a $10 minimum initial investment. However, to access more specialized options, like investing through an IRA or choosing from customized portfolio strategies, you must have between $1K–$100K to invest.
Second, Fundrise is a good option for those looking to invest long-term; the average investment length is around 5 years. However, it's important to note that your funds are illiquid, although you can redeem your money early by paying a 1% withdrawal fee.
10 Fundrise Alternatives
If you’re looking to avoid these issues, we’ve selected 10 sites similar to Fundrise to help you consider which investment platform is right for you. We'll start with Concreit, which allows you to invest in real estate debt rather than equity, helping minimize risk.
Concreit is for high-earning individuals looking for an investment option that offers solid returns. The platform allows investors to participate in fixed-income first-lien mortgages through SEC-qualified Regulation A+ Tier 2 offerings.
Real estate debt provides a steadier source of income than equity investments, with the potential for weekly payouts. Additionally, real estate debt can act as a buffer against inflation, protecting your investment over time. The minimum investment with Concreit is just $1, although account maintenance fees apply until you invest $5,000.
Concreit helps you to easily invest in what works for you when it works for you with auto-investments and financial goals. This short YouTube video explains how to create an auto-invest schedule directly from the Concreit smartphone app.
You can rest easy knowing that your money is diversified across hundreds of high-yield, income-focused first-lien mortgages in the United States. This cash flow strategy has been used by hedge funds and private equity funds for wealthy investors. In addition, Concreit is trusted by tens of thousands of clients who have made over 100,000 investments on the platform.
There are several benefits of investing with Concreit:
- Diversify your portfolio out of riskier and more volatile investments like crypto and individual stocks.
- Concreit invests in hundreds of high-yielding, income-focused first-lien mortgages across the country, which helps minimize risk.
- Dividends with Concreit are paid weekly, and the average annualized return has been 5.5% over the last year.
- You can cash out at any time, with no minimum investment time requirement.
- The Concreit app offers a more liquid alternative to investing in mortgage notes directly.
- Managed by a team of experts who carefully select each investment for the portfolio, investors can be confident that their money is in good hands.
First-position real estate debt is a good option if you want to invest in real estate but avoid the headache that comes with owning property. To get started investing with Concreit, click the button below.
AcreTrader offers accredited investors the opportunity to purchase shares in farmland, providing a stable alternative to commercial real estate investments. Returns are generated through potential appreciation and annual cash rental payments from farmers. The investing minimum is $10,000, although some deals require higher amounts.
Most opportunities have a holding period of 5–10 years, with a secondary marketplace available for selling shares. By investing in farmland through AcreTrader, individuals can diversify their portfolios and benefit from the stability and growth potential of this unique asset class.
CrowdStreet is a real estate crowdfunding platform that caters to accredited investors. It offers diversified funds, individual deals, and a tailored, professionally managed portfolio. The company claims that only a small percentage of deals make it through the rigorous vetting process, resulting in a high-quality selection of investment opportunities.
So far, CrowdStreet has funded over 691 deals totaling $4 billion in investments and 147 realized deals. In short, CrowdStreet presents a promising option to accredited investors looking for curated real estate investment opportunities.
With a minimum investment of only $500, DiversyFund offers non-accredited investors the opportunity to invest in real estate. This platform primarily invests in multifamily apartment complexes across the United States and reinvests all profits into buying more properties. As a long-term, illiquid investment, the company expects investors to leave their money in for at least 5 years with their Growth REIT offering.
DiversyFund uses a value-add approach, acquiring properties and investing in improvements to generate returns through rental income and property appreciation. In addition, investors receive payouts at the end of the crowdfunding term (usually 5 years). In contrast, Fundrise pays dividends every quarter.
EquityMultiple offers a variety of options for commercial real estate investment, ranging from short-term senior debt to long-term opportunity funds. These investments vary in terms of risk, return potential, and commitment length. In addition to traditional investment opportunities, the platform allows for tax strategy implementation through 1031 exchanges and Qualified Opportunity Zone investments.
With an average return of 18.7%, EquityMultiple has delivered strong results for investors so far. However, as with many crowdfunding platforms exclusive to accredited investors, the minimum investment amount is not inexpensive; it starts at $5,000 and potentially requires more for certain opportunities.
Groundfloor offers debt-based funding for development projects. Catering to flippers, most loans on the marketplace only last 6–12 months, making it a unique option among crowdfunding investments.
On the platform, individuals can fund development projects with as little as $10 and have access to information about the project, time frame, and targeted returns. In addition, rather than pooling funds to own a small stake in properties (as with equity crowdfunding), Groundfloor allows investors to pick and choose which loans they want to fund.
PeerStreet is a company that connects accredited investors with private lenders and brokers nationwide who specialize in real estate development. With a $1,000 minimum investment and loan terms ranging from 1–36 months, the platform has facilitated over $4 billion in transactions across 44 states.
PeerStreet allows individuals to diversify their debt investment portfolio through carefully vetted private lending opportunities. These investments have resulted in over $225 million in interest returned to investors, according to the company's website.
RealtyMogul is a popular option for investors looking to access different types of commercial real estate. One thing that sets RealtyMogul apart is its focus on investing in cash flow properties with leases, including land. Investors can choose between debt and equity deals.
Both accredited and non-accredited investors can participate with a minimum investment of $5,000. The platform offers investments in REITs, private placements, and 1031 exchange properties. RealtyMogul offers two REIT options: MogulREIT I, which pays distributions monthly, and MogulREIT II, which pays distributions quarterly.
If you're looking for a reliable source of dividend income from real estate, Streitwise may be a good investment platform to consider. Since 2017, they’ve maintained an average dividend yield of 9.1%, and their current REIT offering boasts an annualized return of 7%.
Both accredited and non-accredited investors can get started with a minimum investment of only $5,000 (or 500 shares). Their portfolio focuses on equity-based commercial REITs, such as apartment complexes and single-family rental properties.
Yieldstreet offers investors access to various alternative asset classes, including real estate, art, cryptocurrencies, and short-term notes. One particularly appealing aspect of Yieldstreet is the option to invest in the Prism Fund with a minimum of just $2,500. This fund is a fixed-income portfolio consisting of a diverse range of assets, such as fine art, real estate, and consumer goods.
The company also offers numerous opportunities for investing in real estate, including a Growth & Income REIT with a minimum investment of $5,000. According to the company, its real estate offerings have delivered an impressive net annualized return (IRR) of 9.71% since inception.
5 Tips for Choosing a Fundrise Alternative
When choosing an investment alternative to Fundrise, there are a few things to remember.
1. Do Your Research
It's important to do your research before investing in any platform. Make sure you understand the investment options available, whether the site is restricted to accredited investors, and the risks and rewards associated with each offering.
2. Consider Your Goals
What are you hoping to achieve with your investment? Is Fundrise the right platform for you, or is another option a better fit?
3. Review the Minimum Investment
Be sure to review the investment minimum with each platform before making a decision. While platforms like Concreit have an investment minimum of just $1, others require hundreds or thousands of dollars to get started.
4. Stay Diversified
You want to maintain a diversified portfolio, especially when it comes to real estate investments. Be sure to invest in different types of properties across different geographies, and consider investing in debt as well as equity.
5. Ask Questions
Don't hesitate to ask the platform's representatives if you have any questions. They should be able to provide you with all the information you need to make an informed decision.
While Fundrise is a popular option for real estate investing, it's far from the only game in town. Several other companies offer similar services. From traditional companies like CrowdStreet to more modern options like Concreit, there's an investment platform for everyone. So get out there and start exploring your options!
If you're interested in investing in real estate debt while minimizing volatility, visit Concreit to learn more about fixed-income first-position real estate mortgage liens.
This information is educational, and is not an offer to sell or a solicitation of an offer to buy any security which can only be made through official documents such as a private placement memorandum or a prospectus. This information is not a recommendation to buy, hold, or sell an investment or financial product, or take any action. This information is neither individualized nor a research report, and must not serve as the basis for any investment decision. All investments involve risk, including the possible loss of capital. Past performance does not guarantee future results or returns. Neither Concreit nor any of its affiliates provides tax advice or investment recommendations and do not represent in any manner that the outcomes described herein or on the Site will result in any particular investment or tax consequence.Before making decisions with legal, tax, or accounting effects, you should consult appropriate professionals. Information is from sources deemed reliable on the date of publication, but Concreit does not guarantee its accuracy.