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Fundrise Vs. Crowdstreet

Fundrise Vs. Crowdstreet

The amount of money needed to invest in real estate through individual investment properties may discourage you if you are interested. Fortunately, real estate crowdfunding websites like Fundrise and CrowdStreet have made learning how to invest in this asset class simple and affordable.

You will have many more investment options with either of these real estate platforms, allowing you to customize your portfolio to meet your unique preferences and objectives. But between Fundrise and CrowdStreet, which platform is better? Here is all the information you need for your own decision.

A brief comparison of both companies is shown in the table below. 

Criteria  Fundrise  Crowdstreet 
Account types available 
  • Individual accounts
  • Trust accounts
  • Joint accounts
  • IRAs
  • Entity accounts
  • Individual accounts
  • Trust accounts
  • Joint accounts
  • Self-directed IRAs
  • Entity accounts
Features 
  • It varies depending on your account level.
  • Provides numerous resources, such as online instruction, webinars, and events; allows choosing between existing funds, custom funds, or individual deals.
Investment options 
  • eFunds and REITs
  • REITs, custom portfolios, and individual properties
Management fees
  • .85% annual management fee; .15% annual advisory fee
  • None 
Minimum investment 
  • $10
  • $25,000
Best for
  • Real estate investors who don’t meet the criteria for accredited investors; new investors who want to test the market or supplement their income,
  • Accredited investors

Fundrise Vs. Crowdstreet Summary

  • By being very accessible to small retail investors, Fundrise adopts a new approach to non-public REITs.
  • With a $10 minimum investment, investors with Fundrise can start purchasing REITs of private real estate projects in the United States.
  • On the other hand, CrowdStreet offers three distinct investment options, the lowest of which requires a minimum investment of $25,000.
  • Accredited investors are not required for Fundrise.
  • Accredited investor status is necessary for the majority of CrowdStreet investments.
  • While the fees on CrowdStreet vary depending on the type of investment, Fundrise has a flat 1% fee.
  • While Fundrise exclusively offers portfolio-based investing, CrowdStreet offers three different forms of investments.

While Crowdstreet offers a higher return on investment, among other better features, it is not a perfect choice for new or intermediate-level investors. Smaller investors will benefit more from Fundrise’s minimum investment criteria, which range between $10 and $10,000, making it a more affordable platform than Crowdstreet.

Fundrise makes it simple to become a real estate investor, but be prepared to conduct your research to ensure you understand the risks and underlying costs of each investment.

Fundrise Overview

Fundrise is a legit real estate crowdfunding platform with 500,000 members and has raised $4.7 billion in real estate investments since its launch. The minimum investment amount with Fundrise is $10.

Real estate is a great way to diversify your investment portfolio, and the Fundrise platform is a great choice.

Investing through a platform like Fundrise can be one method to add real estate to your portfolio if you already have a diversified stock and bond portfolio and the patience to let your money sit for at least five years. Just make sure you’re conscious of the risks and conduct your research.

Features

  • Low investment minimums
  • Interval fund 
  • Available to non-accredited investors
  • Redemption plans 
  • Non-traded REITs

Pros

  • The website is easy to use. 
  • IRA accounts are available 
  • It has a low minimum investment 
  • It is open to all investors. 

Cons

  • Fees can be hard to understand 
  • It is a highly illiquid investment 
  • Investor due diligence is required to handle its complexities growth 

Get Started With Fundrise

Crowdstreet Overview

CrowdStreet is a platform that allows accredited investors entry to institutional-grade commercial real estate investments, including charter schools, hotels, hospitals, and apartments. Because it serves as a marketplace where real estate potential sponsors publish their offerings for accredited investors to invest in, CrowdStreet doesn’t collect any fees.

Because CrowdStreet only accepts accredited investors, the minimum investment in a single project is $25,000. Due to this criterion, most CrowdStreet investors will be seasoned investors who either have a large amount of capital to invest in various real estate projects or have a high-risk tolerance and will fully participate in one project they love. CrowdStreet offers little-to-no hand-holding because the platform caters to a more sophisticated audience. Therefore investors must conduct their due research on their ideas.

Features 

  • In-depth research
  • Accredited investors only
  • Investing guidance
  • Complex investments

Pros

  • Diverse investment structures 
  • No fees charged 
  • Offers institutional-grade real estate 
  • Has a high return on investment 

Cons

  • Illiquid investment. 
  • Accepts only accredited investors. 
  • Diversification is difficult because of the $25,000 minimum investment amount. 
  • Investors must carry out their due diligence. 

Fundrise Vs. Crowdstreet Conclusion

Due to the accreditation criteria for all investors, which includes a necessary investment minimum of $25,000, the majority of retail investors will not be qualified to invest with Crowdfund. However, even if Fundrise is a more accessible option, some investors could feel that they are smaller investors in a larger pool of investors, which means their smaller contributions have a lower chance of success than those of larger investors. Non-accredited investors should consider investing in traditional REITs or real estate ETFs because there are lower costs and more liquidity, given the underwhelming performance of eREITs.

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