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This content is for informational purposes only and is not intended to provide financial advice.
Both Fundrise and CrowdStreet real estate investing platforms have advantages and disadvantages. Consider your situation and objectives to find the best fit for you.
Suppose you’re considering investing in real estate. In that case, you might be put off by the money required to do so through personal investment properties. Fortunately, real estate crowdfunding platforms like CrowdStreet and Fundrise have made learning how to invest in this asset class affordable and straightforward.
Fundrise is Best for: | CrowdStreet is Best for: |
Non-accredited investors
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Accredited investors
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Investors searching for low-cost real estate investment opportunities | Long-term investors |
Those who can’t afford down payments |
Investors looking to diversify from stocks
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Passive investors | |
New real estate |
You’ll have many more investment options with these real estate platforms that could help you adapt your portfolio to your specific needs and goals. However, which platform is superior: CrowdStreet vs. Fundrise? Here’s everything you need to know to make your own decision.
Fundrise | CrowdStreet | |
Minimum investment | ● $500 for the Starter portfolio.
● $1,000 for the Basic portfolio. ● $5,000 for the Core portfolio. ● $50,000 for an Advanced account. ● $100,000 for a Premium account.
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● At least $25,000 |
Account Fees | ● No account fees | ● Registration is free Don’t like ads? Become a supporter and enjoy The Good Men Project ad free ● Fee varies for independent projects ● 0.50% to 2.5% CrowdStreet funds annually |
Investment Options | ● Four different portfolio options hold a mix of Fundrise’s eREITs, eFunds, and the Interval fund.
● Users can invest in the Fundrise internet public offering (IPO). |
● Private equity investments
● Single-asset projects and funds |
Features | ● Varies based on your account level |
● Provides the choice between existing individual deals, funds, or custom funds; offers several resources, including webinars, online education, and events.
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Account types available | ● Individual accounts
● Joint accounts ● Entity accounts ● Trust accounts ● IRAs
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● Individual accounts
● Joint accounts ● Entity accounts ● Trust accounts ● Self-directed IRAs
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Fundrise vs. CrowdStreet: Determining Factors?
Neither of these real estate platforms is fundamentally superior to the other, and both made our list of the best investment apps. You must first understand your situation and goals to find the best fit for you.
Because of its accredited investor requirement, CrowdStreet is unlikely to be an option for most real estate investors. Furthermore, Fundrise is much more accessible to new investors and individuals with lower net worth who simply want to build some passive income.
If you qualify for both based on your income and net worth, you should consider a few different factors to determine the best fit for you.
Factor 1: Cost
Cost is the first determinant factor to consider before subscribing to either Fundrise or CrowdStreet.
Fundrise is cheaper than CrowdStreet
● Fundrise minimum investment cost is $500 whereas CrowdStreet minimum investment cost is $25,000 |
Fundrise Cost
Fundrise offers five investment options through its Starter Portfolio and Premium Plan, as detailed below:
- $500 for the Starter portfolio
- $1,000 for the Basic portfolio
- $5,000 for the Core portfolio
- $50,000 for an Advanced account
- $100,000 for a Premium account
CrowdStreet Cost
On the CrowdStreet marketplace, you can invest directly in real estate deals. Create your portfolio deal by deal, with detailed documentation and visibility for each opportunity. To make a direct investment in most properties, a minimum balance of $25,000 is required.
Factor 2: Investment Strategy
Investment strategy is the second criterion to consider before making a choice between Fundrise and CrowdStreet.
CrowdStreet Beats Fundrise in Investment Strategy
● CrowdStreet makes a connection between individual investors with project developers to make investing in commercial real estate projects globally for potentially higher returns ● It supports diversification of funds and vehicles across multiple properties |
Fundrise Strategy
Fundrise focuses on building well-rounded, resilient portfolios that deliver consistently and remarkably strong results based on clients’ goals and risk tolerance by utilizing a combination of strategies.
Fundrise strategy is broken down as follows:
1. Fixed Income
Fundrise Fixed Income aims to generate above-market yields by offering innovative and detailed financing solutions backed by high-quality real estate.
2. Core Plus
The Fundrise Core Plus strategy focuses on stabilized real estate with moderate leverage and a long investment horizon, where we can add value through focused asset management.
3. Value Add
The Fundrise Value-Add strategy involves obtaining existing properties for less than investing capital and replacement cost to enhance their profit margins.
4. Opportunistic
The opportunistic Fundrise strategy focuses on gaining underused, well-located properties in the most competitive environments. Fundrise reimagines these properties, often from the ground up, using the combined expertise of its best-in-class partners and in-house development team.
CrowdStreet Strategy
CrowdStreet connects individual investors with project developers to make investing in commercial real estate projects across the country simple.
CrowdStreet strategy is broken down as follows:
1. Diversified Vehicles and Funds
The diversified vehicles, funds, and investment options on CrowdStreet are ideal for those who want to spread their money across multiple properties. You can access two types of funds through the company: CrowdStreet funds and single-sponsor funds.
2. Individual Deals
Individual deals on CrowdStreet are ideal for those who prefer to direct their money to specific properties. This option allows you to invest directly in your favorite properties. It employs an investment team to keep your deals on track.
3. Customized Portfolios
Not interested in researching individual deals or CrowdStreet’s funds? CrowdStreet’s customized portfolios will do all the work for those who prefer managed accounts.
Factor 3: Performance
The ultimate factor to be considered is the performance of these platforms.
CrowdStreet Outperforms Fundrise
● Apparently, CrowdStreet has a track record of 17.1 percent average annual return for investors |
Fundrise Performance
According to track record, the average annualized Fundrise returns ranged from 7.31 percent to 16.11 percent between 2017 and the third quarter of 2021. Fundrise intends to be a long-term investment vehicle. As a result of this strategy, performance might be slow during the first few years before picking up.
CrowdStreet Performance
CrowdStreet is a widely recognized real estate crowdfunding platform that connects investors with project developers looking to fund a project, making it simple to invest in commercial real estate projects across the country. According to CrowdStreet, the average annual return for investors is 17.1 percent.
Fundrise vs. CrowdStreet – The Bottom Line
Crowdfunded platforms can provide excellent access to REITs and other real estate investment opportunities to real estate investors of all levels. Both CrowdStreet and Fundrise are widely known real estate investing platforms. Still, depending on your situation and goals, one may be better than the other. You should do your homework before making that decision, keeping your personal risk tolerance and financial goals in mind.
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