So, you're intrigued by real estate investing, but spending a ton of money on individual investment properties might be discouraging. Luckily, real estate crowdfunding platforms like Fundrise and CrowdStreet are here to make investing in this asset class more accessible and affordable. Both platforms offer various investment options, helping you tailor your portfolio to suit your preferences and goals.
But you might be wondering which one is better. Well, that's what we'll discover in this Fundrise vs CrowdStreet review.
Fundrise is a real estate platform that gives investors access to exclusive real estate investment trusts (eREITs) and eFunds that aren't publicly available. They offer both commercial and residential real estate projects. You're in as long as you can meet the minimum opening investment requirement of just $10.
Fundrise has five account tiers: Starter, Basic, Core, Advanced, and Premium. Each comes with a different minimum starting investment and provides access to various features:
You can join the lowest account level for just a $10 opening investment. This tier diversifies the Flagship Fund, allows automatic investments, and automatically reinvests dividends. It's perfect for those new to real estate investing who want penalty-free redemption opportunities.
Besides the Starter plan benefits, the Basic level lets you set investment goals and invest via an IRA. With a minimum investment of $1,000, you can access the Fundrise iPO (Internet public offering).
By investing $5,000, you can enter the Core level, where you can customize your investing based on goals like income, growth, or balanced returns. This tier includes all the Basic plan benefits, diversification across more funds, potential access to any open eREITs, and six months of advisory fees waived for each friend you refer.
With a starting investment of $10,000, you can join the Advanced level. Here, you'll get all the perks of the Basic and Core accounts, the ability to invest directly into the Fundrise eFund, and access to plus plans for greater diversification and tax-advantaged funds. You'll also get nine months' worth of advisory fees waived for each referral.
The top tier, Premium, requires a minimum investment of $100,000 and offers unique investment options for accredited investors. You'll enjoy all the Core and Advanced plans' features, priority access to the platform's investment team, and a full year of advisory fees waived for each person you refer.
CrowdStreet is one of the largest commercial real estate marketplaces out there. But here's the catch — it's only available to accredited investors.
To be one, you need an annual income of over $200,000 (or $300,000 if married) and a net worth exceeding $1 million, not including your primary residence. This makes it challenging for many real estate investors to join and invest.
Besides REITs, CrowdStreet also lets you invest in individual real estate properties. It's like investing in a single stock instead of a mutual fund.
If you've got at least $250,000, they can create a tailored investment portfolio based on your needs and goals. Just remember, CrowdStreet focuses only on commercial real estate investments.
Read our CrowdStreet review for a detailed insight into what this platform offers.
Now, neither platform is inherently better when choosing between Fundrise and CrowdStreet. Both made it onto our list of the best investment apps. Knowing your situation and goals is crucial to figure out which is right for you.
CrowdStreet probably won't be an option for many real estate investors due to its accredited investor requirement. If you're a new investor or have a lower net worth and just want to build passive income, Fundrise is likely more accessible.
If you qualify for both platforms based on your income and net worth, think about these factors to decide which one suits you better:
First, consider the investment options you're interested in. If you want funds and individual deals, CrowdStreet might be the better choice. But if you prefer the diversification of a REIT and don't want to invest a lot, Fundrise could be more up your alley.
Another crucial factor is cost. If you have enough cash to invest with CrowdStreet and want to maximize your return, avoiding fees can help you achieve that. Fundrise comes with advisory and management fees, which can add up.
If CrowdStreet is the perfect fit for you, click here to sign up and get started.
But if you're a new investor more interested in REIT, click here to check out Fundrise to see how the platform works first-hand.
