Fundrise is one of the most popular real estate crowdfunding companies, and it lets investors diversify their portfolios with real estate starting at just $10.
However, Fundrise is just one company in the space. Additionally, there are numerous ways to benefit from real estate investing apps, like equity-based investing, earning dividends, or earning interest on real estate loans.
So, if you’re looking to start investing in real estate but want to explore all of your options, this list of Fundrise alternatives is for you.
Best Fundrise Alternatives for Accredited and Non-Accredited Investors
Before picking a company like Fundrise to invest in, define your investing goals, timeframe, and how much capital you have to start with.
From there, you can pick the right Fundrise alternative to suit your investing style.
1. DiversyFund: Best for Long Term Investors
- Minimum Investment: $500
- Fees: No management fees
- Fund: Growth REIT
At DiversyFund, they make it easy to buy shares in a portfolio of fully vetted, multifamily real estate.
With the click of a button, you could own a piece of a real estate investment trust (REIT), across multiple properties, just like Fundrise.
DiversyFund provides only one type of investment: The Growth REIT. This real estate investment trust focuses on offering investors income by investing in residential apartment buildings.
Unlike other crowdfunding platforms, DiversyFund invests in commercial properties and owns them outright. This saves the investor from hefty commission fees that come with other crowdfunding sites.
Investing with DiversyFund is a great alternative to Fundrise. You can get started with just $500 and your small investments can reap big returns. All dividends are reinvested in properties so you don’t have to worry about withdrawing gains until your property sells.
Investors don’t have the option of selling their investments and must wait until the company liquidates to make a profit. The investment term may be at least five years in duration.
DiversyFund is an excellent choice for investors who want a more passive way of investing and aren’t too worried about liquidity. The low investment minimum of $500 is appealing.
- The minimum investment for Diversity Fund is $500.
- Investors see no management fees on their investments.
- They own and manage the properties.
- Only one fund to invest in.
- Dividends are reinvested.
DiversyFund is an opportunity for new investors to diversify in alternative investments.
2. RealtyMogul: Best for REITs and 1031 Exchange
- Minimum Investment: $5,000
- Fees: 1%
- Fund: MogulREIT I and MogulREIT II
RealtyMogul lets you can get access to private market offerings that 128,000+ investors have joined and invested over $650 million.
Both non-accredited and accredited investors can invest in real estate through RealtyMogul.
Non-accredited investors can choose from two different real estate investment trusts (REITs) that invest in a portfolio of properties.
An accredited investor can acquire a single property or take part in a 1031 Exchange, which is the trade of one investment property for another that allows capital gains to be avoided.
The 1031 Exchange is named for Section 1031 of the Internal Revenue Code, which allows you to defer capital gains taxes when you sell personal property and reinvest the proceeds within prescribed time limits in a similar kind and value property or properties.
RealtyMogul is ideal for investors who want to invest in REITs and 1031 Exchange. With a 1031 exchange, investors can defer capital gains taxes. RealtyMogul enables qualified investors to sell current properties and acquire “like-kind” properties.
- Two REIT options.
- Private placements.
- 1031 exchange.
- REITs require a minimum investment of $5,000.
- For the first three years, REITs have an early-redemption penalty.
Getting started with RealtyMogul is a smart option for real estate investors that want a ton of diversification and private placements options. You can gain explore to more deals by signing up, over $3.5 billion in deals have been posted on the platform.
3. Roofstock: Best for Passive Rental Income
- Minimum Investment: You make offers on rental units
- Fees: 0.50% or $500 of contract price
- Fund: Rental properties
If you want to earn passive income from rental units without having to manage tenants yourself, Roofstock is for you.
With Roofstock, you can buy rental properties across the United States. Listings include comprehensive information on expected annualized returns, appreciation, cash flow, and property taxes. Listings also share the current occupancy status, when leases end, and expected rent and expenses.
There’s a healthy variety of rental properties, ranging from sub $100,000 single-family rentals to more expensive multi-family condos. Roofstock also includes information on neighborhood ratings, previous property inspections and valuations, and title report and insurance quotes so you can analyze properties properly.
Making an offer is free, and Roofstock charges a marketplace fee of 0.50% or $500 of the contract price if the offer is accepted. Following closing, Roofstock can connect you with local property managers to handle tenants and property maintenance for you.
Roofstock is ideal if you want an efficient way to acquire rental properties and outsource property management to keep things passive.
- Variety of listings and home prices
- In-depth property metrics
- Network of local property managers
- Offers IRA investing and a 1031 Exchange
- You generally require significant capital to buy rental properties
- Roofstock used to let you invest in rental properties shares, but this feature isn’t currently available
If you want to earn passive income from managed rental units, Roofstock is the company for you.
4. Groundfloor: Best for Short-Term Debt Investments
- Minimum Investment: $10
- Fees: Investors don’t pay fees
- Fund: Short-term real estate loans
Many Fundrise alternatives let you invest in real estate equity to generate returns. However, this often requires a longer investment period and more starting capital.
With Groundfloor, you invest in short-term, high-yield real estate debt instead of equity investments. There’s a $10 investment minimum, and Groundfloor states it’s seen 10.5% returns to date.
You can build your own debt-based portfolio as well. Groundfloor lets you browse real estate projects with various loan terms, interest rates, and loan to ARV ratios to suit your risk tolerance and investment timeframe.
Groundfloor investors typically receive payments within six to nine months, and with a $10 minimum, this is one of the most beginner-friendly investment options around.
Groundfloor is best if you want a shorter-term real estate investment option with a low investment minimum.
- Investors don’t pay any fees
- $10 minimum initial investment amount
- Short-term loans so you get repaid quickly
- Loan defaults are an investment risk
- Listings have a decent amount of information, but you can’t dig into the nitty gritty details of a loan
Groundfloor has one of the lowest minimum investment requirements on the market and also lets you invest for the short-term.
5. Streitwise: Best for Real Estate Dividend Income
- Minimum Investment: $5,000
- Fees: 3% upfront and 2% annually
- Fund: Commercial real estate REIT
While Streitwise requires $5,000 to begin investing, it’s one of the best Fundrise alternatives if you’re looking for dividend income.
Streitwise still lets you invest in commercial real estate with its REIT. The fund has paid over 8% in dividends since 2017, with the latest dividend being 8.4% in Q2 of 2021.
Streitwise typically has one or several investment offerings at a given time. Properties are commercial real estate, meaning the tenants are companies and the properties themselves are usually multi-million dollar office spaces or retail buildings.
For fees, you pay 3% upfront and a 2% annual management fee. The upfront fees don’t reduce your shares, however.
Streitwise has a higher investment minimum than Fundrise, but it boasts a high quarterly dividend to let you earn passive income from real estate.
- Historical dividend payments of 8% or higher
- Commercial real estate properties can carry less tenant risk
- You can reinvest dividends
- Higher fees compared to Fundrise
- Few active listings to invest in
According to Streitwise, the goal is to develop a diversified portfolio of value oriented investments with creditworthy tenants. Ultimately, this allows for a handsome quarterly dividend payment and minimal risk of rental income loss.
Fundrise Alternatives for Accredited Investors Only
Some Fundrise competitors are only open to accredited investors. According to Investors.gov, to qualify as an accredited investor, you must either:
- Have a high net worth of over $1 million, either alone or with a spouse, excluding the value of your primary residence.
- Earned income over $200,000 (or $300,000 with a spouse) in each of the prior two years and anticipate earning this amount for the current year.
If you meet this criteria, the following companies like Fundrise are viable investments.
6. CrowdStreet: Best for Commercial Real Estate Investing
- Minimum Investment: $25,000 for most marketplace listings
- Fees: 0.50% to 2.5% for most investments
- Fund: Offers single properties or two types of funds
Out of all the commercial real estate investing options for accredited investors, CrowdStreet is one of the largest and most flexible.
On CrowdStreet, you can invest in individual deals on commercial real estate properties, and there’s usually several properties on this online marketplace. Typically, single-property investments require at least $25,000 to invest.
Alternatively, you can invest in two funds: a single-sponsor fund that’s run by one real estate firm or a CrowdStreet fund that invests in a variety of properties. If you want more diversification and someone handling real estate investing for you, this is better than investing in properties on your own.
Project fees typically range from 0.50% to 2.5%. Fund fees can also reach around 3% depending on your investments.
CrowdStreet also has a Private Managed Account service that builds a real estate investment portfolio to match your goals. The advisory service requires a $250,000 minimum balance, and fees vary depending on your investments.
CrowdStreet is an ideal choice for accredited investors who want less hands-on investing in commercial real estate. If you want a personally managed account, CrowdStreet is also for you.
- Variety of investment options
- Fees can be low for certain projects
- Plenty of marketplace listings at a given time
- High minimum investment amount
CrowdStreet has a high minimum investment requirement, but this is one of the best ways for accredited investors to diversify their portfolios with commercial real estate.
7. EquityMultiple: Best for Investment Variety
- Minimum Investment: $5,000 for short-term loans and $10,000 or more for equity-based investments
- Fees: Typically 0.50% to 1.5%
- Fund: Variety of investment options, including debt, preferred equity, and opportunity funds,
EquityMultiple states it makes real estate investing “simple, accessible, and transparent” for accredited investors. And, with a $5,000 investment minimum and variety of ways to build your portfolio, this claim is quite fair.
You have three options to invest with EquityMultiple:
- Direct Investing: Invest in single properties with as low as $10,000 with target durations of six months to five years.
- Fund Investing: Invest in multiple assets for increased diversification. The EquityMultiple fund requires a minimum investment of $20,000 and has a target duration of 1.5 to 10+ years.
- Savings Alternative: Invest in diversified notes with as low as $5,000 with target durations of three to nine months.
Fees vary depending on your investment type. Equity investments usually charge 0.5% to 1.5% while debt investments charge 1% or less.
Funds have varying origination fees and annual administrative expenses, but this is still normally under 2% in annual fees.
Accredited investors who want a variety of real estate investment options and lower minimum investments than platforms like CrowdStreet.
- Variety of investment options.
- Low fees.
- Variety of investment properties.
- Equity-based projects have higher minimum investment requirements
- Fees vary and are somewhat confusing to understand
Overall, EquityMultiple has more variety than most Fundrise alternatives. Equity, debt, funds, and 1031 Exchanges are all available, and properties range from townhouses to commercial office spaces.
8. PeerStreet: Best for Real Estate Debt Investing for Accredited Investors
- Minimum Investment: $1,000
- Fees: 0.25% to 1.00%
- Fund: Real estate debt investments and a Credit Opportunity Fund
Like Groundfloor, PeerStreet lets you provide peer-to-peer debt financing for real estate projects to earn interest from borrowers.
When you sign up, you answer a brief questionnaire about your investing experience, goals, and risk tolerance. Afterwards, you can view dozens of listings to find the right debt investment.
PeerStreet does an excellent job at giving investors information on loans. For starters, loans show the yield, loan-to-value ratio, term, and loan amount. PeerStreet also includes borrower credit score, track record on previous PeerStreet loans, the loan strategy, and property type information.
You need at least $1,000 to start investing, and new loan opportunities appear daily. Typically, loan periods last from one to 36 months.
You earn monthly interest payments, and you can also enable Automated Investing to invest in properties that match your investing criteria. PeerStreet charges a servicing fee on loans that’s a spread between borrowers and lenders that’s typically 0.25% to 1.00%.
PeerStreet is best for accredited investors who want a low minimum investment amount on short-term real estate debt investments.
- $1,000 minimum investment
- New loans get added daily
- You can automate your investing
- Monthly interest payments
- Lenders still pay some fees on loans.
- A real estate fund is available but requires a $100,000 minimum investment.
If you want to earn monthly interest payments on short-term real estate loans, PeerStreet is for you.
9. ArceTrader: Diversifying Your Portfolio With Farmland
- Minimum Investment: $15,000
- Fees: 0.75%
- Fund: Invest in U.S. farmland
Most Fundrise competitors let you invest in commercial real estate, rental properties, or debt. In contrast, AcreTrader lets accredited investors take advantage of U.S. farmland.
According to AcreTrader, farmland delivers an average annual return of 11.0% and has low volatility. Farmland investing also lets you generate returns in two ways: land appreciation and rental payments from farmers.
AcreTrader has an intense vetting process, so there aren’t always listings. But new farms appear every few weeks, with the minimum investment amount usually ranging from $15,000 to $50,000.
Listings include the type of crop that’s being grown, gross cash yield, and net annual return. According to AcreTrader, a yield of 3% to 5% is typical for lower-risk properties.
One downside of investing in farmland versus traditional real estate is that it’s even less liquid. However, you can sell your shares to other investors on AcreTrader’s marketplace, so liquidity risk is lower.
AcreTrader is the best Fundrise alternative if you want to diversify your portfolio with income-generating farmland.
- Earn through appreciation and rental payments
- AcreTrader has a thorough vetting process for listings
- You can sell shares through AcreTrader’s marketplace
- Potentially lower annual returns than traditional real estate investing
- Weather and crop pricing changes are market risks
- Less liquid than traditional investments
AcreTrader is one of the most reputable platforms for investing in farmland.
Real estate crowdfunding uses funds from a group of investors to help fund real estate investments.
This could mean using funds to purchase properties in opportunity zones, develop existing properties into higher-value assets, or to provide loans for real estate development.
Real estate crowdfunding is different than traditional real estate investing. There are four main ways to make money with real estate crowdfunding:
Capital Appreciation: This occurs when you own shares in real estate and the property appreciates.
Rental Income: Many real estate crowdfunding platforms invest in single-family rental properties or commercial real estate to generate rental income.
Dividend Payments: Some crowdfunding sites pay annual or quarterly dividends to shareholders.
Interest Payments: If you fund real estate loans, you earn interest as the borrower pays off their loan.
Picking the best real estate crowdfunding platform depends on your goals, starting capital, and risk tolerance.
Companies like Fundrise and DiversyFund are best for long-term, equity-based investing. In contrast, you can try companies like Groundfloor or PeerStreet for short-term, debt-based financing.
Fundrise is one of the most popular real estate crowdfunding platforms. But, you don’t have to limit yourself with how many Fundrise alternatives are on the market.
As long as you pick a platform that matches your investment goals and risk tolerance, you can build your wealth with real estate investing. You can even try multiple investment platforms to diversify your portfolio with equity, debt, and other types of real estate.