Fundrise is one of the most popular real estate crowdfunding companies, and it lets investors diversify their portfolios with real estate starting at just $10.
However, Fundrise is just one company in the space. Additionally, there are numerous ways to benefit from real estate investing apps, like equity-based investing, earning dividends, or earning interest on real estate loans.
So, if you’re looking to start investing in real estate but want to explore all of your options, this list of Fundrise alternatives is for you.
Best Fundrise Alternatives for Accredited and Non-Accredited Investors
Before picking a company like Fundrise to invest in, define your investing goals, timeframe, and how much capital you have to start with.
From there, you can pick the right Fundrise alternative to suit your investing style.
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Best for low minimum investment
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Best for accredited investors
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Rating:
4.5
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Rating:
5.0
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Minimum Investment to Start: $100
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Minimum Investment to Start: $10,000
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These are more details on the best Fundrise alternatives for both accredited investors and non-accredited investors:
Arrived: Best for Single-Family Rental Income
- Minimum Investment: $100
- Fees: 1% annually + property management fees
- Fund: Single-family rental properties
Arrived is one of the top real estate investing platforms, especially for those looking to get started with as little as $100. It allows you to invest in single-family rental properties across the U.S. and earn passive income through rental income and property appreciation.
The platform offers a variety of rental properties, and you can choose which specific homes to invest in. Arrived makes it easy for beginner investors to enter the real estate market with low capital, as they handle property management, tenant sourcing, and all other logistics.
Arrived typically pays quarterly dividends from rental income, and you can track property performance through the platform’s dashboard. The fees are straightforward, with a 1% annual management fee and additional property management fees, which vary by property.
Best For
Arrived is ideal for investors looking for a low-cost entry into real estate, with the ability to invest in individual rental properties and diversify across multiple homes.
Pros
- Low minimum investment of $100
- Fully managed rental properties
- Passive income through rental dividends
Cons
- Holding periods of 5-7 years may not suit short-term investors
- A limited selection of rental properties is available
Arrived aims to make real estate investing accessible to everyone, enabling you to build a portfolio of rental properties and earn passive income, all without the burden of managing the properties yourself.
- Invest in rental homes with as little as $100
- Earn passive income from rent payments
- No landlord duties—Arrived manages everything
- Diversify with properties across the U.S.
- Easy sign-up and no accreditation required
Groundfloor: Best for Short-Term Debt Investments
- Minimum Investment: $10
- Fees: Investors don’t pay fees
- Fund: Short-term real estate loans
Many Fundrise alternatives let you invest in real estate equity to generate returns. However, this often requires a longer investment period and more starting capital.
With Groundfloor, you invest in short-term, high-yield real estate debt instead of equity investments. There’s a $10 investment minimum, and Groundfloor states it’s seen 10.5% returns to date.
You can build your own debt-based portfolio as well. Groundfloor lets you browse real estate projects with various loan terms, interest rates, and loan to ARV ratios to suit your risk tolerance and investment timeframe.
Groundfloor investors typically receive payments within six to nine months, and with a $10 minimum, this is one of the most beginner-friendly investment options around.
Best For
Groundfloor is best if you want a shorter-term real estate investment option with a low investment minimum.
Pros
- Investors don’t pay any fees
- $10 minimum initial investment amount
- Short-term loans so you get repaid quickly
Cons
- Loan defaults are an investment risk
- Listings have a decent amount of information, but you can’t dig into the nitty gritty details of a loan
Groundfloor has one of the lowest minimum investment requirements on the market and also lets you invest for the short-term.
Groundfloor offers short-term, high-yield real estate debt investments to the general public. You can get started with only $10.
Fundrise Alternatives for Accredited Investors Only
Some Fundrise competitors are only open to accredited investors. According to Investors.gov, to qualify as an accredited investor, you must either:
- Have a high net worth of over $1 million, either alone or with a spouse, excluding the value of your primary residence.
- Earned income over $200,000 (or $300,000 with a spouse) in each of the prior two years and anticipate earning this amount for the current year.
If you meet this criteria, the following companies like Fundrise are viable investments.
Yieldstreet: Best for Alternative Investing
- Minimum Investment: $10,000
- Fees: 1% – 2.5% in management fees
- Fund: Access to real estate, commercial, marine, legal and art investments.
Yieldstreet is an alternative investment marketplace that brings private investment opportunities to retail investors. These alternative investments have typically been dominated by hedge funds and the ultra-wealthy.
As of last year, $1.5 billion had been invested in the platform. Yieldstreet was placed 46th on the 2020 Inc. 5000, a list of the fastest-growing privately held businesses in the United States.
Although most transactions are limited to accredited investors, Yieldstreet launched the Alternative Income Fund in August 2020, which is accessible to nonaccredited investors with a $10,000 minimum investment.
Best for
Yieldstreet provides a marketplace where individuals can invest in privately structured credit deals, which are typically inaccessible to retail investors. There is no other platform that lets you invest in real estate, art, legal finance, and more.
Pros
- Investments starting at $10,000
- A great way to diversify your investments
- Access to real estate, commercial, marine, legal and art investments
Cons
- Most investments are open only to accredited investors
Traditional investments that were reserved for the ultra-wealthy are now available to you. Wealth professionals recommend allocating 15-20% of your portfolio to alternatives. Diversify your portfolio and earn passive income with investments starting at $10,000.
EquityMultiple: Best for Investment Variety
- Minimum Investment: $5,000 for short-term loans and $10,000 or more for equity-based investments
- Fees: Typically 0.50% to 1.5%
- Fund: Variety of investment options, including debt, preferred equity, and opportunity funds,
EquityMultiple states it makes real estate investing “simple, accessible, and transparent” for accredited investors. And, with a $5,000 investment minimum and variety of ways to build your portfolio, this claim is quite fair.
You have three options to invest with EquityMultiple:
- Direct Investing: Invest in single properties with as low as $10,000 with target durations of six months to five years.
- Fund Investing: Invest in multiple assets for increased diversification. The EquityMultiple fund requires a minimum investment of $20,000 and has a target duration of 1.5 to 10+ years.
- Savings Alternative: Invest in diversified notes with as low as $5,000 with target durations of three to nine months.
Fees vary depending on your investment type. Equity investments usually charge 0.5% to 1.5% while debt investments charge 1% or less.
Funds have varying origination fees and annual administrative expenses, but this is still normally under 2% in annual fees.
Best For
Accredited investors who want a variety of real estate investment options and lower minimum investments than platforms like CrowdStreet.
Pros
- Variety of investment options.
- Low fees.
- Variety of investment properties.
Cons
- Equity-based projects have higher minimum investment requirements
- Fees vary and are somewhat confusing to understand
Overall, EquityMultiple has more variety than most Fundrise alternatives. Equity, debt, funds, and 1031 Exchanges are all available, and properties range from townhouses to commercial office spaces.
They make real estate investing simple, accessible, & transparent for accredited investors. Vetted high-yield projects. $5K minimum investment.
Real estate crowdfunding uses funds from a group of investors to help fund real estate investments.
This could mean using funds to purchase properties in opportunity zones, develop existing properties into higher-value assets, or to provide loans for real estate development.
Real estate crowdfunding is different than traditional real estate investing. There are four main ways to make money with real estate crowdfunding:
Capital Appreciation: This occurs when you own shares in real estate and the property appreciates.
Rental Income: Many real estate crowdfunding platforms invest in single-family rental properties or commercial real estate to generate rental income.
Dividend Payments: Some crowdfunding sites pay annual or quarterly dividends to shareholders.
Interest Payments: If you fund real estate loans, you earn interest as the borrower pays off their loan.
Picking the best real estate crowdfunding platform depends on your goals, starting capital, and risk tolerance.
Companies like Fundrise are best for long-term, equity-based investing. In contrast, you can try companies like Groundfloor for short-term, debt-based financing.
Summary
Fundrise is one of the most popular real estate crowdfunding platforms. But, you don’t have to limit yourself with how many Fundrise alternatives are on the market.
As long as you pick a platform that matches your investment goals and risk tolerance, you can build your wealth with real estate investing. You can even try multiple investment platforms to diversify your portfolio with equity, debt, and other types of real estate.
We earn a commission for this endorsement of Fundrise.
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