As one of the first online platforms to crowdfund real estate investing, Fundrise quickly comes to mind for many real estate investors. However, several other online platforms offer various reasons to consider checking them out. For online crowdfunding for real estate, here are the best Fundrise alternatives. You might find a platform that is better suited for how you want to invest.
Quick Look: Best Best Fundrise Alternatives
- Best for Investing in Commercial Real Estate: CrowdStreet
- Best for Investing in Rental Homes and Vacation Properties: Arrived Homes
- Best for Investing in Residential Debt: Groundfloor
- Best for Investing in an Array of Alternative Investments: Yieldstreet
- Best for Investing in High-Quality Single-Family Rental Homes: Mogul
Best Fundrise Alternatives
Fundrise burst onto the scene in 2012, gaining a following from both beginning and experienced investors. Since then, several other online crowdfunding platforms have popped up as alternatives to Fundrise. Here’s a look at some of these best Fundrise alternatives and why Benzinga loves them.
Best for Investing in Rental Homes and Vacation Properties: Arrived Homes
- Best For:$100 Minimum InvestmentVIEW PROS & CONS:securely through Arrived Homes's website
Arrived, formerly known as Arrived Homes, allows you to invest in fractions of rental homes and vacation properties. Your investment can be as little as $100 or as much as 10% of the property.
Founded in 2020, Arrived is backed by Jeff Bezos of Amazon and Marc Benioff of Salesforce. It has over $185 million in assets under management (AUM) and has funded more than 400 homes.
Why We Love It: Arrived says it wants to empower the world to build wealth through investing in real estate. To that end, Arrived finds, buys and manages properties, taking away what many would-be real estate investors see as pain points. Arrived also limits your liability through limited liability corporations and provides easy access to customer support.
Best for Investing in Commercial Real Estate: CrowdStreet
- Best For:Accredited InvestorsVIEW PROS & CONS:securely through CrowdStreet's website
Based in Austin, Texas, CrowdStreet was founded in 2014 by Tore Steen and Darren Powderly. If you’re an experienced investor looking to invest in commercial real estate, CrowdStreet might be for you. The platform connects you to developers, allowing you to invest directly in specific projects.
CrowdStreet works with accredited investors who have net worths of at least $1 million or earn annual incomes of at least $250,000.
Why We Love It: CrowdStreet aims to help investors diversify their portfolios and reviewers credit it with providing access to diverse investments and good background information on potential investments. As of July 2024, the company claims that more than 790 projects had been funded by more than $4.3 billion from thousands of investors.
Best for Investing in Residential Debt: Groundfloor
- Best For:Low Fees and $10 Minimum InvestmentVIEW PROS & CONS:securely through Groundfloor's website
Brian Dally and Nick Bhargava founded Groundfloor in 2013 in Atlanta to broaden the ability of individuals to invest in real estate debt. Through Groundfloor, investors can invest in nonrecourse debt securities backed by the underlying properties with terms of 12 to 18 months.
Alternatively, investors can invest in loans structured like bonds with terms of 30 days, 90 days or 12 months. Debt securities are higher risk with a potential for higher returns, while loans are lower risk with lower potential returns.
Why We Love It: Groundfloor is good for experienced investors looking for high-yield investments with shorter timelines. Investors enjoy the low barrier to entry with a $10 minimum for investments and a no-fee structure for accounts. Ground floor also does not charge a management fee and it gives you access to private real estate directly instead of through a management company. Ground floor claims to have over 250,000 investors and more than $1.3 billion in active investments.
Best for Investing in an Array of Alternative Investments: Yieldstreet
- Best For:Diverse Range of Alternative AssetsVIEW PROS & CONS:securely through Yieldstreet's website
Yieldstreet is headquartered in New York City and headed by Michael Weisz, who cofounded the financial services company in 2015 with Milind Mehere. Their goal was to open up private market investing for individuals, although a $10,000 minimum might exclude some small investors. Yieldstreet offers an array of alternative investments, including real estate, art, cryptocurrency, private equity and venture capital.
Why We Love It: Yieldstreet can help you diversify your investment portfolio beyond traditional stocks and bonds, potentially reducing your exposure to market volatility. Yieldstreet says it provides investors with strong returns, claiming that investors have seen an annualized net return of 9.6% since 2015. The online platform says it has 477,646 members with an average of 9.4 investments per member.
Best for Investing in High-Quality Single-Family Rental Homes: Mogul
Alex Blackwood and Joey Gumataotao, two real estate investors formerly with Goldman Sachs, founded Mogul Club in 2012. The company, headquartered in Washington, D.C., uses blockchain technology to provide people with access to investing in high-quality single-family homes. Venture capital investor Tim Draper and former U.S. Treasurer Rosa Rios back Mogul.
Why We Love It: As an investor, you can buy fractional ownership in a single-family rental home with the potential to earn monthly rental income, benefit from appreciation and receive the tax benefits of being a property owner. Properties are scouted and vetted by Mogul. While a little higher than some other platforms, investors have a fairly low barrier to entry. A minimum investment is $250.
Overview of Fundrise
Brothers Ben and Dan Miller, whose family worked in real estate, founded Fundrise in 2010 and launched the company’s online real estate investment platform in 2012. Based in Washington, D.C., Fundrise claims more than 385,000 members with net dividends of more than $361 million. The company touts a portfolio of more than $7 billion.
Fundrise’s online platform allows individuals to buy into real estate investment trusts (REITs) – both equity REITs and mortgage REITs. The platform offers several levels of accounts, with the lowest level requiring a minimum investment of $10.
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
Online crowdfunding has allowed anyone to start investing in real estate. You know more about some of the best Fundrise alternatives to kick off real estate investing.
Frequently Asked Questions
Is there anything better than Fundrise?
What is better depends on several factors, including your financial situation, investment strategy and risk tolerance. Some alternatives to Fundrise include Arrived, Concreit, CrowdStreet, DiversyFund, Groundfloor, RealtyMogul and Yieldstreet.
Is Fundrise or Groundfloor better?
Fundrise buys physical commercial properties, while Groundfloor provides loans for individuals to purchase real estate. You would be investing in an equity real estate deal with Fundrise versus a debt real estate deal with Groundfloor.
What percentage does Fundrise take?
Fundrise charges an annual 0.15% advisory fee and a 0.85% fee to manage real estate investments, for a total charge of 1.0% per year. It also charges an annual management fee of 1.85% for its Innovation Fund.
