Investing in real estate has always been an attractive proposition for investors seeking a balance of steady income and long-term appreciation. However, until recently, this was a privilege reserved for the wealthy, who could afford to buy properties outright or invest large sums into real estate investment trusts (REITs). With the advent of crowdfunding, it’s now possible for everyday investors to pool their resources and invest in real estate opportunities across the country.
Two of the most popular crowdfunding platforms for real estate investing are Fundrise and Crowdstreet. Both offer access to a wide range of real estate investments, from debt to equity and residential to commercial. In this article, we’ll compare Fundrise vs Crowdstreet, to help you decide which platform is right for you.
Quality Assets and Investment Philosophy
Fundrise is known for acquiring high-quality assets and adhering to a value investing strategy. Their portfolio is designed to be resilient and withstand economic downturns, and they acquire assets for less than their intrinsic value and replacement cost. Fundrise invests in a wide range of properties, from commercial real estate to multifamily and single-family homes.
Crowdstreet, on the other hand, focuses on commercial real estate investments, including office buildings, retail spaces, and industrial facilities. The platform is built for accredited investors, and their investment philosophy emphasizes steady income and capital appreciation. Crowdstreet invests in well-established and growing markets across the US
Strengths and Weaknesses
Fundrise is an affordable and accessible option for everyday investors, with their low minimum investment requirement and straightforward process, even a brand new investor can take advantage of what Fundrise has to offer. Click here to get started with Fundrise today.
Crowdstreet, on the other hand, operates as an online marketplace that connects investors with a variety of commercial real estate investment opportunities. The platform offers a range of investment options, including individual properties, funds, and developments, giving investors more control over their investments.
Crowdstreet’s main goal is to provide investors with access to institutional-quality commercial real estate investments, which have typically been inaccessible to individual investors. Crowdstreet’s offerings are typically more targeted and focused than those offered by Fundrise, and the platform provides a detailed overview of each property, including its financials, market analysis, and property management details.
One of the main differences between Crowdstreet and Fundrise is the level of control and customization available to investors. Crowdstreet offers a more hands-on approach, allowing investors to choose individual properties and investments that align with their investment goals. This can provide a more personalized experience, but it also requires more research and effort from the investor.
Fees and Returns
One of the biggest advantages of Fundrise is their low-fee approach. Investors pay an annual investment advisory fee of 0.15% and an asset management fee of 0.85%. The fees can be waived under certain circumstances, making Fundrise an affordable option for investors. Fundrise portfolios have the potential to generate dividends on a quarterly basis, while their shares also grow in value over time.
Crowdstreet, on the other hand, charges a subscription fee of $12 per month, and a 1% management fee. However, Crowdstreet has a minimum investment requirement of $25,000, which is significantly higher than Fundrise’s minimum of $10. Returns on Crowdstreet investments are typically in the form of monthly or quarterly distributions.
Investment Process and Liquidity
Investing in Fundrise is a straightforward process, with a user-friendly platform that makes it easy to create an account, choose your portfolio strategy, and diversify your investments across a series of investment funds. The platform offers a transparent experience, with regular updates on each asset in your portfolio, including construction progress, occupancy reports, and market data trends.
Crowdstreet also has a user-friendly platform, but the investment process can be a bit more complex. You have to conduct your due diligence on each investment opportunity, and the investment minimum of $25,000 can be a barrier for some investors. Crowdstreet investments are usually less liquid than Fundrise investments, with a typical holding period of 3 to 5 years.
Eligibility and Minimum Investments
Fundrise is open to any US citizen over the age of 18, with no accreditation required. The minimum investment is $10, making it accessible to a wider range of investors.
Crowdstreet is only available to accredited investors, which typically means having a net worth of $1 million or an income of $200,000. The minimum investment is $25,000, which is higher than Fundrise’s minimum. If you’re an accredited investor, click here to get started with Crowdstreet today!
Final Thoughts
Fundrise and Crowdstreet both offer unique investment opportunities, and the right choice for you will depend on your investment goals and preferences. Both platforms provide access to high-quality commercial real estate investments, but the level of control and customization, fees, liquidity, and returns differ between the two. Before making any investment decisions, be sure to research both platforms, understand the fees and risks involved, and consult with a financial advisor if necessary.
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