The return you can get with real estate crowdfunding platforms makes them popular. Nowadays online, you’ll find all kinds of platforms, most of them with commercial real estate up for grabs. Two of the most popular for investing in real estate out there are Crowdstreet and Fundrise, both of which are stirring up interest from all kinds of investors.
Below, we’ll put these two real estate crowdfunding platform moguls head-to-head, seeing how they rank up against one another. In the end, investors should have all they need to choose the best real estate investment platforms between Fundrise and CrowdStreet for them and start investing money on debt investments, balanced investing, and real estate investing.
Crowdstreet is a real estate crowdfunding platform that brings commercial real estate, borrowers, and lenders altogether. No new investors or non-accredited investors can access direct investing and start real estate investing.
There is an accredited investor requirement, needing to be an accredited investor to score private managed accounts. Once you reach accredited investor status, you can pick a portfolio on Fundrise and CrowdStreet and enjoy capital appreciation through individual real estate deals.
Apart from commercial real estate, investors can get their hands on other asset class of investment options, including real estate crowdfunding with portfolio investing options like retail, office, mixed-use, and even multifamily apartment homes. The list goes on and accredited investors can even scoop up opportunities to look into hospitality and senior housing for balanced investing.
There are a few options when it comes to investing in real estate with Crowd Street, accredited investors can come together to purchase or they can partake in individual investments. Either way, they can enjoy no investment fees on commercial real estate investments with a good potential return and a decent minimum investment, even with a starter portfolio.
Fundrise is also a real estate crowdfunding platform that allows accredited investors to score investment options in real estate using eFunds.
These are not publicly traded and are exclusive to Fundrise, making them a good long-term growth option for investors that are looking for a supplemental income plan. All of the diversified funds involve commercial real estate, capital appreciation, and a few other property styles like single-family rental homes.
The key to portfolio-based investing with Fundrise successfully is to choose whether you want to begin investing and take investment options slow and grow over the long term or, earn an influx of steady income by investing in multiple things at a time. Whatever you choose, you can enjoy equity on investments and even score mortgage investments too.
CrowdStreet vs Fundrise – Unique Features
When putting the two head-to-head, real estate investors should first point out what makes each platform unique. This means highlighting key points so that it makes the decision much easier. Below, we’ll point out the two real estate crowdfunding platforms' unique features for Fundrise Vs. CrowdStreet.
Unique CrowdStreet Features
With CrowdStreet, you have to be an accredited investor to get involved. This is a unique feature that is not true of all real estate crowdfunding platforms, which makes them stand out. In addition, you can do mutual funds or individual real estate projects in a number of private placements including:
- Individual properties
- Apartment buildings
- Residential real estate
- Commercial real estate projects
- Commercial properties
- Office buildings
- Storage units
- Mixed-use properties
- Other real estate projects
Unique Fundrise Features
Perhaps the most telling feature about Fundrise is that you can find it all around the United States. That’s right! Real estate investors, non-accredited investors, and new investors in all 50 states have access Fundrise, which is something that not all real estate crowdfunding platforms can say.
They also offer a unique and exclusive mix of commercial properties through eREIT and eFunds for private placements in the underlying property, which means there are options for both commercial real estate and individual properties. Accredited investors can choose to make a slow and steady income or pop in and out of real estate investments to change it up here and there.
Fundrise Vs. Crowdstreet
Out of the two, this round goes to Crowdstreet real estate investment trusts, though Fundrise has a lot of amazing features. The things that stand out to us are the diversity in unique features, a long-term investment, and real estate investments, all of which we love to see.
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CrowdStreet vs Fundrise – Minimum Investment
Initial real estate investments could be the make or break as to which platform you choose. For a look at the Fundrise Vs Crowdstreet and how they compare, let’s take a look at the minimum amount that an accredited investor should bank on and the long-term growth with each real estate platform.
CrowdStreet Minimum Initial Investment
Variety is the spice of life and something that every accredited investor can enjoy when they go with CrowdStreet. Because there are so many different real estate investment opportunities and residential properties to choose from, there is a wide range of minimum investment, no matter the personal financial situation or investment portfolio.
As a good estimate, this real estate investing has a minimum investment required of anywhere from $10,000 all the way up to $50,000 and beyond. This includes real estate investment, individual real estate properties, trusts, and more.
Fundrise Real Estate Investing Minimum
Fundrise is a real estate investment platform that's a little less complicated and comes with a minimum investment of $1000 for most individual properties and other real estate online.
You can find only two types of investments to make, though they extend out into a number of different property styles. Starting off with $1000, accredited investors can take their pick on properties and start earning money once payments are being made, collecting off of the interest rate.
Fundrise Vs. Crowdstreet
When it comes to minimum investment, we think that Fundrise takes this round. Real estate investors will be stoked that they can enjoy real estate deals at a low minimum investment on a real estate investment and still have access to a ton of top-notch properties to choose from.
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CrowdStreet vs Fundrise – Fees
As an investor of any kind, you’re probably always looking out for the best deals. That includes for fees, which could take away from your supplemental income. To get down to the good stuff and give you the real estate investment specs that you’ve been waiting for, let’s take a look at each platform’s fees.
CrowdStreet Commercial Real Estate Fees
Real estate investors will be happy to know that with CrowdStreet, there are never any fees. Investors can enjoy the luxury of exchange traded funds without having to be bombarded by fees and percentages that are difficult to estimate. Instead, accredited investors can use quarterly dividends toward buying up more real estate and creating a diversified portfolio.
Fundrise does have fees though they are not too steep. The annual fees come with an annual management fee of 1%, which is still competitive. However, if you’ve got a long list of prime real estate, you could be paying much more than you bargained for.
Fundrise Vs. CrowdStreet
It should come as no surprise that our winner for this category goes to CrowdStreet! The opportunity to invest without worrying about fees takes the stress out so investors can worry about more important things-like choosing equity investments. It's our independent financial advice to skip fees and enjoy more real estate transactions.
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CrowdStreet vs Fundrise – Ease of Use
Just like with any online platform, users will need to take the ease of use into account. When you invest in rental properties, you want to know that the platform you’re using is reliable and will be up and running when you need it the most. Below, we’ll look at a few key features of each real estate platform to check their user-friendliness.
You can get ahold of a real estate firm agent by phone or email between the hours of 8:00 a.m. and 5:00 p.m. They calculate in Pacific Time, helping you get a better estimate.
They operate Monday through Friday and are not open on the weekends, which could be a bummer if you have a direct investment question after hours. While it is helpful to know, investors are limited to the amount of time that they can get ahold of a knowledgeable agent about investment markets.
Fundrise gets a big deduction here, as they only list an email for their accredited investor to get in touch with them. Though they generally get back to investors promptly, there is something about a human voice that makes you feel more at ease. You may email and they say they will get back to you, though it’s not stated when.
Even the employees that work for the platform cannot locate real estate investors' information unless they can prove that they need it. That is a big deal for a company, as it limits the risk of identity theft or wrongful treatment. In addition, there are all sorts of safeguards, including multiple layers of protection including encryption and two-factor authentication.
With Fundrise real estate investors can choose to use two-factor authentication so that they feel extra protected. They claim to have a bank-level system of security, using that to make sure that all information coming in is encrypted. On top of that, they are connected with transport layer security (TLS), which helps them keep all user info safe and sound.
Features of Real Estate Crowdfunding Platforms
The platform is pretty simple to use and allows real estate investors to get connected pretty quickly. Once connected, investors have a ton of options at their fingertips, getting a notification when something new and exciting comes up that meets their criteria. If investors can do so, they can partner up with other investors and partake in a venture to pick out the best real estate investments.
Fundrise is easy to use too, though you can only choose from two types of investments. When you log in, you’ll get a glimpse of all of the available properties, getting to take your pick from the one that you like best. After all is said and done, you can watch your money with their interactive real estate investing platform and check up on your growth to see how you’re doing.
Fundrise Vs. CrowdStreet
For this round, it's a bit difficult to choose as one is stronger than the other but, if we have to pick one, we're going with Fundrise! We like the fact that the platform is easy to use and we also like that Fundrise has a lot of extra security to keep investor information safe.
Which Real Estate Platform is Right For You?
Fundrise: All About Balance
This platform is best for the investor that’s looking to get both income and growth. This goes hand in hand with a mix of investments, all of which you can get as long as you’re ok with a little more risk.
One of the biggest deals is that you might tie up your money and you could be looking at a longer time to return than you bargained for. The type of real estate investor that this platform would be perfect for is one that isn’t too concerned with the speed at which returns on investments pop up and one that will help them for a long period of time.
CrowdStreet: Individual Investing
If you like to do things on your own and are more concerned with your own abilities to invest, then CrowdStreet is a great one for you. This platform takes a long list of properties of all types, turning them into opportunities for the savviest accredited investor.
There are also no fees, something more feasible for the solo investor and has a bit of flexibility in the types of investments on real estate that individuals can partake in.
Which to Choose for Real Estate Investing? Fundrise Vs. CrowdStreet
In the end, it's up to you to decide but, there are some things that can help out. Ask yourself what type of investment you'd like to make and how you plan to grow your income. Then, think about whether you're going into it solo or you'd like to take a chance on group real estate investments.
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When you’re on the hunt for a real estate investing platform, it’s best to look at a few key things. In this review, we’ve put the spotlight on two of the best, putting them head-to-head. At the end, we showed the differences between them with things like fees, real estate investment, safety, and more.
Is There A Clear Winner?
While we did point out the different types of investors and whether Fundrise and CrowdStreet work better for them, each investor can still pick and choose their personal preferences, choosing the one that gives their starter portfolio the best return on real estate investment trusts. As far as a clear winner, we didn’t have one concrete and think that it just depends on the type of investing you do.
As an independent investor, you should go for CrowdStreet, enjoying zero fees and a long list of investment types. If you plan to partner up, Fundraise has a lot of opportunities, connecting investors of all kinds.
When you branch out and search for an opportunity to invest, always keep your options open and shop for platforms that give you more of what you are looking for. Spread out and invest in all types of real estate if you can, enjoying money back on interest collected from borrowers. Then, once you get the personal financial advice you need, you can enjoy investing in a ton of properties, learning the ropes as you go along.
So, is there a clear winner? Well, not exactly. Though we leaned closer toward CrowdStreet, it just depends in the type of investment you plan on making. Real estate opportunities are all around and something that all kinds of investors can take advantage of. When choosing the one for you, think about a few key things like:
- The safety
- The platform
- The website
- The types
- of investments
- The potential to grow your investment
Picking a real estate platform to jump in on real estate investing is a great way to invest and grow your cash, something that all investors can get behind.