When it comes to real estate investing, Fundrise is one of the best crowdfunded real estate platforms out there. It’s great because it’s available to non-accredited investors, offers real estate diversification, low cost, and has some of the lowest investment minimums.
It’s approachability is also one of its weaknesses – you can’t pick specific investments and you’re at the mercy of their investment strategy. For many, that’s acceptable.
If you are looking for alternatives to Fundrise, to give you additional diversification or exposure into different asset classes within real estate, there are a lot of alternatives to consider. And while Fundrise is a legit platform for real estate investing, several Fundrise alternatives may be a better fit (or a better complement) for your investment strategy.
Table of Contents
Best Fundrise Alternatives for Accredited and Non-Accredited Investors
It’s possible to invest in multifamily and commercial properties with these alternatives. Many of these real estate crowdfunding sites are open to non-accredited and accredited investors.
RealtyMogul
Best for REITs and 1031 Exchange
RealtyMogul offers investment options for non-accredited and accredited investors.
Non-accredited investors have two different real estate investment trust (REIT) options that invest in a basket of properties. Accredited investors have the ability to invest in single properties or participate in a 1031 Exchange.
The Income REIT
- Minimum initial investment: $5,000
- Annual asset management fee: 1%
- Open to non-accredited and accredited investors
The first of two REIT offerings is The Income REIT (recently renamed from MogulREIT I). This REIT pays monthly dividends with an annual distribution rate between 6% and 8%.
Investors should consider this REIT if they want to earn more recurring passive income through debt-type investments.
The minimum investment is $5,000 which is noticeably higher than Fundrise ($10). Each subsequent investment requires a $1,000 minimum contribution.
This REIT invests in multi-family, retail, and office properties across the United States.
The annual asset management fee is 1% which is competitive for REITs. Like other crowdfunded REITs, there are accompanying fund expenses to buy and sell properties. These fees vary.
It’s possible to sell investment shares without an early redemption penalty after three years.
The Apartment Growth REIT
- Minimum initial investment: $5,000
- Annual asset management fee: 1.25%
- Open to non-accredited and accredited investors
Consider the Apartment Growth REIT II if you only want to invest in multi-family apartments.
(formerly called MogulREIT II)
This REIT focuses on long-term capital appreciation with equity-type investments. This investment strategy can have higher investment returns than the debt-focused strategy that the Income REIT pursues.
While waiting to sell properties for a profit, the Apartment Growth REIT pays a quarterly distribution with a 4.50% annualized return.
The investment minimum is $5,000 and $1,000 for subsequent investments. It’s possible to sell investment shares without an early redemption penalty after three years.
Private Placements
- Minimum initial investment: $15,000 to $50,000
- Accredited investors only
It’s possible for accredited investors to invest in single properties via private placements.
The investment minimum is between $15,000 and $50,000 per property with a 3-7 investment horizon. Properties may have quarterly distributions but the dividend schedule and fees vary by offering.
RealtyMogul private placements can include these property types:
- Multi-family
- Office
- Retail
- Industrial
- Self-storage
- Medical office
Here’s what it means to be an accredited investor.
1031 Exchange
Current real estate investors can defer capital gains taxes with a 1031 exchange. RealtyMogul lets accredited investors sell existing properties and acquire a “like-kind property.”
Pros & Cons
Pros
- Two REIT options
- Private placements
- 1031 exchange
Cons
- $5,000 investment minimum for REITs
- Early redemption penalty for REITS for the first three years
Read our full RealtyMogul review to learn more about its investing options.
Streitwise
Best for investing in office properties
Streitwise lets non-accredited investors and accredited investors invest in office buildings and multi-use properties. There is currently one REIT offering.
1st Streit Office
- Minimum initial investment: $5,000 (500 shares)
- Annual management fee: 2%
- Open to non-accredited and accredited investors
The 1st Streit Office REIT invests in office buildings and mixed-use office/retail properties across the United States. The minimum initial investment is the cost of 500 shares or $5,000.
This fund pays quarterly dividends with a targeted annual yield between 8% and 9%.
The 2% annual management fee is higher than most crowdfunded REITs which are closer to 1%. Other fund fees apply.
The minimum investment horizon is one year. But you must hold fund shares for five years to avoid an early redemption fee. Most Fundrise alternatives have the same redemption policy.
Pros & Cons
Pros
- Invests in office and mixed-use building
- Low investment minimum
- Quarterly dividends
Cons
- One investment option
- High annual management fee
Read our full Streitwise review here.
Roofstock
Best for buying single-family rental homes
Roofstock is one of the most unique Fundrise alternatives as you can buy turnkey single-family rental homes.
Non-accredited investors can invest but must buy an entire property. This platform can be a good option when wanting to own long-distance investment properties.
Each Roofstock offering lists these details:
- Home listing price
- Estimated closing costs
- Necessary repair costs
- Cap rate
Potential investors can make an offer through Roofstock. It’s also possible to find a property manager and purchase a home warranty through Roofstock if you buy a rental home.
Similar to a local rental property, investors are responsible for future repairs and maintenance.
Roofstock One
- Minimum initial investment: $5,000
- Annual management fee: 0.5%
Accredited investors can participate in the Roofstock One feature to buy fractional shares in individual properties.
The minimum initial investment is $5,000 with a minimum 6-month investment period.
The annual management fee starts at 0.5% of the home price or interest price. Other fees, including property taxes and maintenance costs apply.
Pros & Cons
Pros
- Turnkey single-family rental homes
- Fractional ownership for accredited investors
Cons
- Non-accredited investors must buy an entire property
- May be unable to tour properties before buying
Read our full Roofstock review to learn more.
Groundfloor
Best for short-term investing
- Minimum investment: $10
- Annual management fee: None
Groundfloor can be the best Fundrise alternative for non-accredited investors wanting to invest in single residential properties. Each property can have between one and four families.
The investment minimum is $10 per property with an average 10% return.
Also, the investment period is only 6-12 months versus several years. Long investment horizons are an inherent trait of crowdfunded real estate investing.
You may appreciate the shorter holding period if real estate default rates concern you. But Groundfloor properties are not risk-free.
You invest in fix-and-flip properties that require extensive repairs. The property owner repays the loan and you earn interest income.
If the borrower defaults, the property may go into foreclosure and investors can lose their investment principal.
There isn’t a preset investor fee withheld from the stated interest rate when you fund the loan request.
Pros & Cons
Pros
- $10 minimum initial investment
- 6, 9 and 12-month investment terms
- Non-accredited investors can invest in single properties
Cons
- Can only invest in fixer-uppers
- No managed REIT investment option
Read our full Groundfloor review to learn more about investing in fix and flips.
Fundrise Alternatives for Accredited Investors Only
The following platforms are only for accredited investors. Each platform offers different investment options.
CrowdStreet
CrowdStreet only offers investment options for accredited investors. Qualified investors can invest in REITs and single properties for commercial real estate.
Diversified Funds
- Minimum initial investment: $25,000
- Annual management fee: Up to 1.5%
The CrowdStreet diversified funds and vehicles can provide exposure to specific sectors within the vast commercial real estate sector.
The minimum initial investment is $25,000 for most funds similar to CrowdStreet’s individual deals. This fee is higher than other crowdfunded REITs.
Fund offerings can vary and investors will need to check the marketplace for open offerings.
Some recent CrowdSteet funds include:
- E-commerce
- Medical offices
- Senior housing
- Self-storage
- Multi-assets
Each fund offering lists the targeted average cash yield. The investment period varies between 3 and 10 years for each fund.
The fund management fees can vary by offering. Also, the investment amount can determine the annual management fee. Higher investment amounts can reduce the annual fee.
Individual Deals
- Minimum investment: $25,000
- Annual asset management fee: 1.5%
CrowdStreet lists different individual offerings with a targeted investment period between 2 and 10 years. Many deals require a 3-year or 5-year investment commitment.
Each offering lists the targeted internal rate of return and the distribution schedule. Investors may not receive an investment income until the investment period ends and liquidates.
One small downside of CrowdStreet is they rarely offer 1031 exchange properties. Consider RealtyMogul to participate in a 1031 exchange.
Tailored Portfolios
Investors with a high net worth can work with a CrowdStreet advisor to build a customized portfolio.
Pros & Cons
Pros
- Wide investment selection
- Managed funds
- Individual properties and tailored funds
Cons
- High investment minimums
- Relatively high investment fees
Read our full CrowdStreet review to learn more.
PeerStreet
Best for short-term investments
Invest in loan notes for single-family and multi-family properties using PeerStreet.
The investment experience is similar to peer-to-peer investing sites like LendingClub but for real estate. Investors can self-direct their investments or take an automated investing approach.
As you invest in debt-structured real estate loans to earn interest income, PeerStreet investments can be less risky. Most individual projects on other platforms are equity-structured deals that rely on capital appreciation and a long-term investment horizon.
Self-Directed Investing
- Minimum initial investment: $1,000
- Service fee: 0.25% to 1.00%
The minimum investment is as low as $1,000 with an investment period between one month and 36 months. Most loans have a 6-24-month term. Consider PeerStreet for short-term investments.
Some of the loan types include buy-to-rent and fix-and-flip. Each loan is a first-lien position meaning PeerStreet investor can receive payment first.
Annual average returns are between 6% and 12% which are competitive with other debt-type real estate investments.
The service fee is between 0.25% and 1.00% depending on the loan.
Automated Investing
Each PeerStreet loan only requires a $1,000 minimum investment which is significantly lower than most private placements. It’s easier to invest in multiple loans at once as a result.
Investors can set filters to identify potential investments.
Some of the screening filters include:
- Loan term
- Loan to Value (75% maximum)
- Minimum yield
When PeerStreet finds a qualified loan, they reserve a position for 24 hours. If you don’t cancel within the 24-hour period, PeerStreet buys a position.
Unlike some peer-to-peer automated investing platforms, PeerStreet won’t build a portfolio for you. Investors must set up their own loan screens and PeerStreet handles the rest.
Pros & Cons
Pros
- Short-term residential and multi-family investments
- $1,000 minimum investment
- Automated investing
Cons
- Cannot sell loan position early
- No equity-structured investment options
Read our full PeerStreet review to learn more.
AcreTrader
Best for farmland investing
Experienced real estate investors will appreciate how AcreTrader makes it easy to invest in another asset class – farmland.
Different tracts from across the United States come available on a regular basis. It’s possible to invest in farmland that grows row crops like corn and soybeans. Some offerings provide pecans and almonds.
The minimum investment is between $10,000 and $25,000 per offering. Average investment returns are between 3% and 10% depending on the deal structure.
In most offerings, investors earn rental income from the tenant farmer. Offerings with higher income potential can earn income from crop sales.
The minimum investment period for most offerings is five years but can be as high as 10 years.
There is an annual servicing fee of 0.75%.
AcreTrader doesn’t always have open investment offerings but investors can receive alerts about upcoming deals. Each deal comes with an offering circular and a webinar to help research the project.
Pros & Cons
Pros
- Earn rental income from farmland
- Invest in multiple states and crop types
- Low annual servicing fee (0.75%)
Cons
- Open offerings are not always available
- Minimum 5-year investment period
Read our AcreTrader review and decide if farmland investing is for you.
EquityMultiple
Best for commercial real estate investing
EquityMultiple offers private placements in commercial real estate along with managed funds. One unique trait about EquityMultiple is the ability to invest in tax-advantaged opportunity zones and 1031 exchange properties.
Fund Investing
- Minimum investment: $20,000
- Annual management fee: 0.50% to 1.5%
To easily invest in multiple projects, consider a managed fund. EquityMultiple offers funds for these loan structures:
- Debt
- Equity
- Commercial real estate securities
- Opportunity zones
The minimum investment starts at $20,000 but can be higher with an average 1% annual servicing fee. The investment period is between 1.5 and 10 years.
Direct Investing
- Minimum initial investment: $10,000
Directly investing in individual properties starts at $10,000 per offering. The holding period is between 6 months and five years for most properties.
Debt, preferred equity and common equity deal structures are available.
The fee structure depends on the deal type. Debt and preferred equity offerings incur a rate spread. Equity investments have an annual asset management fee.
1031 exchange investing is available too for qualifying properties.
Opportunity Zone Investing
An opportunity zone is a relatively new investment option stemming from the 2017 tax law changes. State and federal governments can designate certain urban, suburban and rural areas for economic development.
It’s possible to defer capital gains tax payments but investors may need to hold the offering for at least 10 years.
EquityMultiple may require a minimum $40,000 investment to invest in an opportunity zone. They also offer an opportunity fund to quickly diversify into this asset class.
Pros & Cons
Pros
- Many investment options
- Opportunity zone investing
Cons
- Relatively high investment minimums
Get started with EquityMultiple
Summary
There are plenty of Fundrise alternatives that can help you earn passive income. You can increase your exposure to commercial and multi-family real estate or branch into another asset class. These platforms can help you successfully invest in crowdfunded real estate.
