Best Fundrise Alternatives
Fundrise made its impactful debut in 2012, quickly becoming a go-to platform for both novice and seasoned investors eager to delve into real estate markets. With the subsequent rise of similar platforms, investors are now spoilt for choice, each offering its own allure. Let’s navigate through the landscape of remarkable Fundrise alternatives that beckon with their distinct appeal.
Best for “Investing in Commercial Real Estate”: CrowdStreet
CrowdStreet, stationed in the bustling tech hub of Austin, Texas, was brought to life in 2014 by visionaries Tore Steen and Darren Powderly. Tailored for the seasoned investor with a penchant for commercial real estate, CrowdStreet offers a direct line to developers and specific projects. It's a haven for accredited investors, recognizing those with a robust net worth or substantial annual income.
What sets CrowdStreet apart is its commitment to portfolio diversification and access to a broad spectrum of investment opportunities. To date, the platform has successfully funded a multitude of projects, marshalling billions from a large pool of investors.
Best for “Investing in Rental Homes and Vacation Properties”: Arrived Homes
Arrived Homes, established in 2020 with support from notable figures like Jeff Bezos and Marc Benioff, champions the democratization of wealth creation through real estate. By facilitating investment in fractions of rental and vacation homes, Arrived Homes removes the traditional barriers facing would-be investors.
Its unique model of finding, buying, and managing properties simplifies the investment process, offering a clear path to ownership of high-quality assets. This approach, combined with minimal liability and exceptional customer support, positions Arrived Homes as a leading choice for accessible real estate investment.
Best for “Investing in Residential Debt”: Groundfloor
Groundfloor introduces an innovative twist to real estate investment by opening doors to investing in residential debt. Since its inception in Atlanta in 2013 by Brian Dally and Nick Bhargava, the platform has carved a niche for high-yield, short-term investment opportunities accessible to a broad audience.
With affordable entry points and a transparent, no-fee account structure, Groundfloor stands as a bastion for those seeking to diversify their portfolios beyond traditional stocks and bonds, all without the need for intermediaries.
Best for “Investing in an Array of Alternative Investments”: Yieldstreet
Headquartered in the vibrant heart of New York City, Yieldstreet emerged in 2015 under the leadership of Michael Weisz and Milind Mehere. Its mission: to unlock the private market for individual investors. Yieldstreet spans a diverse range of alternative investments, from real estate to art, and even emerging sectors like cryptocurrency.
Yieldstreet’s platform is highlighted for its expansive investment opportunities, offering a potential hedge against market volatility and aiming at generating strong returns. With a growing community and a wealth of investments, Yieldstreet is redefining the landscape of personal investment.
Overview of Fundrise
Fundrise, conceived by the Miller brothers and launched in 2012, has since grown into a cornerstone of online real estate investment, amassing a substantial member base. It differentiates itself through a diverse array of investment trusts and affordable account tiers, making real estate investment accessible to a wider audience.
The platform’s approach, characterized by low entry barriers and a commitment to maximizing investor returns, underscores a transformative shift in how individuals engage with real estate investment.
Compare These Platforms Side by Side
| Company | Minimum Investment | Types of Offerings | Accepts Non-Accredited Investors | Annual ROI |
| Fundrise | $10 | REITs, private credit, venture capital | Yes | 3.47% |
| Arrived Homes | $100 | Fractional real estate | Yes | Single-family: 3% – 5%; Vacation: 2% – 5%; Private Credit: 7% – 9% |
| CrowdStreet | $25,000 | Commercial real estate | No | 12.9% (internal rate of return) |
| Ground floor | $10 | Limited recourse obligations (debt securities), notes, fix-and-flip loans | Yes | 10% |
| Yieldstreet | Varies by investment | Alternative investments (real estate, art, private equity, venture capital) | Yes, for some funds | 9.6% |
| Mogul | $250 | Fractional real estate | Yes | 20% – 26% (projected annualized return) |
Get Started Investing in Real Estate Online
The evolution of online crowdfunding platforms has democratized access to real estate investment, offering a gateway for a diverse range of individuals to partake in this lucrative arena. As each platform brings something unique to the table, potential investors have the opportunity to find a platform that aligns with their investment philosophies and financial objectives. Whether your interest lies in commercial real estate, residential properties, or an eclectic mix of alternative investments, the digital age has ensured that there’s a platform catered to your needs.
