If you’re considering investing in real estate but are unsure of which platform to use, you may be wondering about the differences between EquityMultiple and Fundrise. Both of these platforms offer opportunities to invest in real estate projects, but they have some key differences that you should be aware of before making a decision.
In this blog post, we’ll compare EquityMultiple vs Fundrise side by side, covering their key features, investment options, and fees. By the end, you should have a better idea of which platform is right for you and your investment goals.
Key Features of EquityMultiple
EquityMultiple is a real estate crowdfunding platform that allows accredited investors (much like competitor First National Realty Partners) to access a diversified portfolio of commercial real estate projects. Some key features of EquityMultiple include:
- EquityMultiple provides a technology platform that allows accredited investors access to private real estate opportunities that are professionally managed
- The platform offers a variety of property types and risk profiles, allowing for diversity in investment
- The platform allows self-directed investors more transparency than most traditional REITs
- The platform requires a minimum investment of only $5,000 for note investment, or $10,000 for property investment
- EquityMultiple has an in-house underwriting team that provides extensive research, resulting in a seamless investing process
- The platform allows accredited investors to participate in real estate funds and direct real estate transactions alongside experienced sponsors and lenders
- Partnered with Mission Capital, a well-known and well-connected real estate advisory firm, providing the company with strong financial backing and support.
One of the biggest advantages of EquityMultiple is the ability to invest in a diversified portfolio of commercial real estate projects. This can help reduce risk by spreading your investment across multiple properties and markets. Additionally, EquityMultiple’s network of experienced sponsors provides a steady stream of high-quality deal flow, and the platform’s expert due diligence and underwriting help ensure that only the best projects are offered to investors.
Key Features of Fundrise
Fundrise is another real estate crowdfunding platform that offers investors access to a range of real estate investment opportunities. Some key features of Fundrise include:
- Investment minimums as low as $10
- Wide range of real estate investment options, including single-family homes, apartment buildings, and commercial properties
- Advanced technology for efficient and transparent investing
- Access to expert guidance and support
- Competitive fees and returns
- Available to all investors
One of the key advantages of Fundrise is the wide range of investment options available. Whether you’re interested in single-family homes, apartment buildings, or commercial properties, Fundrise has something for you. Additionally, the platform’s advanced technology makes it easy to track your investments and see how they’re performing. And with expert guidance and support available, you can feel confident in your investment decisions.
Investment Options
One of the biggest differences between EquityMultiple and Fundrise is the investment options available. As we mentioned above, EquityMultiple focuses on commercial real estate projects, while Fundrise offers a wider range of options, including single-family homes, apartment buildings, and commercial properties.
If you’re looking to invest in a specific type of real estate, it’s important to consider the investment options available on each platform. EquityMultiple’s focus on commercial real estate may be a good fit for accredited investors, but others may prefer the wider range of options offered by Fundrise.
To dive deeper into the historical returns for Fundrise, check out this blog.
Fees
When it comes to fees and returns, both EquityMultiple and Fundrise offer competitive rates. EquityMultiple charges a management fee of 0.5% – 1.5% of the amount invested, depending on the type of investment, and also 10% of profits once an investor has received all of its initial investment back. Fundrise charges a management fee of 1% of the amount invested.
Conclusion
Fundrise and EquityMultiple are for very different investors. Fundrise allows non-accredited investors to start investing with as little as $10, while EquityMultiple is only available to accredited investors and requires a minimum of $5,000. Both platforms offer great systems for automating the property purchasing process. However, EquityMultiple only invests in commercial properties. It is clear that Fundrise is better suited for new real estate investors, but does offer premium packages for those with more than $100,000 to invest. Both platforms are illiquid, which means they are not a good fit for short term investors or those who prioritize liquidity.
So, if you are an accredited investor looking to get into the world of commercial real estate investment, Click Here to check out EquityMultiple. And for those of you not quite at the level of accredited investor and looking for hassle free exposure to real estate, check out Fundrise today!
