Thinking about investing in real estate? You might have heard about Fundrise, one of the top crowdfunding platforms out there. But it’s always smart to explore other options since everyone has different investment goals. Here are some alternatives to Fundrise that you might want to consider.
Fundrise is a crowdfunding platform that makes real estate investing accessible to non-accredited investors in the U.S. It was one of the first companies to make real estate investments available to the general public, with a minimum investment of just $10. Fundrise operates as a private REIT (Real Estate Investment Trust), pooling funds from small investors to purchase properties. The company manages these properties to generate returns for its investors.
In recent years, real estate crowdfunding has become increasingly popular, making it easier and less risky for investors to diversify their portfolios. Even if you don’t have a lot of money or aren’t an accredited investor, you can still get involved in real estate crowdfunding.
Here are some top alternatives to Fundrise:
1. **EstateGuru**: This Pan-European platform facilitates property financing and investing by providing property-backed P2P loans. Investors pool their money online for a single property, earning returns when the borrower repays the loan. Since 2014, EstateGuru has funded around €680 million and served over 100,000 investors from more than 100 countries.
2. **Reinvest24**: An equity-based crowdfunding platform where each investor holds a share in the property. Investors receive rental income distributions and profit from the property’s capital growth when it’s sold. Reinvest24 has funded €35 million worth of projects, with a 15.12% yield for 209 projects.
3. **Diversyfund**: This platform offers institutional-level commercial real estate investing, focusing mainly on multifamily assets. It’s designed for those looking to grow their real estate investments.
4. **Groundfloor**: A real-estate debt investment platform open to both accredited and non-accredited investors. It offers short-term, high-yield investments suitable for passive investors.
5. **Acorns**: A savings and cashback app that rounds up your spare change from shopping and invests it in portfolios managed by professionals from firms like Vanguard and BlackRock.
6. **RealtyMogul**: Open to both accredited and non-accredited investors, this platform offers REITs, single properties, and 1031 private placements.
7. **CrowdStreet**: This platform makes commercial real estate investing more accessible by lowering investment costs. It offers a variety of investment options and focuses on capital regrowth, but it’s only available to accredited investors.
8. **Streitwise**: Offers investment in professionally managed REITs and accepts cryptocurrency payments. It’s available to both accredited and non-accredited investors.
9. **EquityMultiple**: Provides institutional-level commercial real estate investments to accredited investors, offering equity, preferred equity, and senior debt options.
10. **Yieldstreet**: A crowdfunding platform that offers various investment options, including real estate, marine projects, arts, legal deals, and commercial loans. Most options are available only to accredited investors.
11. **Cadre**: A platform for high-net-worth individuals, offering institutional-quality investments and opportunities in high-growth markets.
12. **Modiv**: Offers investments in commercial real estate through REITs and is more transparent due to its annual audits by the SEC. However, its REITs are not publicly traded, making it harder to sell shares.
13. **PeerStreet**: A P2P platform offering real estate debt investments. Loans are secured through deed mortgages, sourced from private brokers and lenders.
14. **RealtyShares**: Focuses on real estate projects like single-family house flips, offering both equity investments and real estate loans.
15. **Roofstock**: Specializes in buying and selling single-family rental properties, pairing investors with vetted property managers.
Fundrise has a solid track record, with average annualized returns between 7.31% and 16.11% from 2017 to the third quarter of 2021. While it’s a great option for non-accredited investors looking for lower minimum fees and higher-than-average returns, other platforms like Yieldstreet and DiversyFund may better suit accredited investors with different needs.
Fundrise, founded in 2012, has paid over $194M in dividends to its investors, proving its reliability. Real estate crowdfunding is an excellent way to diversify your portfolio without needing to be an accredited investor or having a lot of money. With the alternatives listed above, you have plenty of options to choose from based on your financial goals and investment preferences.
Good luck with your real estate investing journey!