Have you ever made a real estate investment? Yes, it's among the most well-known and successful strategies for accumulating wealth. When prices are high, though, new investors are afraid to invest. Many people require additional funding to purchase office buildings or other income-generating assets like rental homes.
Fortunately, crowdfunding platforms like Fundrise make commercial real estate a reasonable investment for almost every investor. But like branching out your investments, it's also sometimes beneficial to change the platforms you choose to invest with. Many crowdfunding platforms offer different fee structures, variations, and options for your money. So, here we have piled up the best alternatives to Fundrise for you. Read on to learn more!
Top 6 Alternatives to Fundrise
The following are the best alternatives to Fundrise. They may help you choose the best one according to your investment potential.
Streitwise
If you want a steady dividend income from your real estate investment, Streitwise is an excellent option. Want proof? Its strong track record says it all. Streitwise has made over 8% in annual dividends for the last 20 quarters. But it's not the end. This real estate investment trust is convenient for accredited and non-accredited investors and requires only a $5,000 investing minimum.
Like Fundrise and other platforms, Streitwise centers on commercial REITs, which means you are buying a piece of ownership in income-generating properties like office buildings, etc. Currently, one RIET offering aims at 8% to 9% annual dividends. How much do they charge? Streitwise charges only 2% of the total profit as management fees yearly. Although it's more expensive than Fundrise, Streitwise focuses on high and stable quarterly dividend payments. Dividends cited are also net of fees.
Roofstock
Many Fundrise alternatives use a crowdfunding model and deal in commercial real estate. But Roofstock helps you find and invest in rental properties like single-family homes. You can also get portfolios of multiple homes if you want to start a landlord business.
Roofstock provides great listing information, including average annualized returns and a neighborhood score. You can even glimpse floor plans, take a 3D tour, and review insurance quotes and title reports. And the best part? You can access the current lease, tenant details, and payment history details.
Inspected Properties and Flexible Investments
Roofstock properly inspects the properties before listing them. You can also take their property management service to keep things submissive. Although no minimum investment is required, cash or financing deals will have various requirements based on your property. Roofstock charges 0.50% or $500 for fees, depending on which is higher at the time of your deal acceptance.
DiversyFund
DiversyFund is good at managing properties with more than 100 units. The main goal of their RIET approach is to acquire affordable multi-family properties to raise rental income. Sometimes, money is needed to renovate flats to increase their possible rental income. The building's worth may rise as a result of these improvements. To use this platform, you must invest at least $500. The monthly income is reinvested to strengthen the finances until a reasonable profit can be made from the property sale. They usually keep the property for five years, although it can take longer to sell depending on the real estate market. Investors receive their whole dividend payment and capital gains when the property is sold.
RealtyMogul
Similar to Fundrise, RealtyMogul has been working from the year 2012. Using this website, you may invest in various commercial properties nationwide. The platform is not intended for regular real estate investors who require access to crowdfunding; instead, it handles deals that lock in for millions of dollars.
RealtyMogul is the best option if you want to make a significant investment and are looking for an alternative to Fundrise. It may surprise you that RealtyMogul paid back over $100 million to investors on investments in over 350 properties totaling over $2 billion. You can invest in RealtyMogul's REITs, which offer a portfolio of properties if you're not an accredited investor. While accredited investors can invest in individual assets, they are given a growth and income RIET.
Pre-vetted Investments
The fact that RealtyMogul provides pre-checked possessions is its most significant feature. Ten percent of the deals that RealtyMogul first displays proceed to the fundraising stage. This platform goes through a thorough screening procedure that looks into sponsor histories, track records, and investor backgrounds to ensure investors can make a profit. RealtyMogul REITs are available to you with a $5,000 minimum investment.
Groundfloor
Groundfloor invests in buying and renovating real estate to flip homes for a profit in the future. This method could require a lot of little capital investments. Like Fundrise, Groudfloor has a $10 minimum investment requirement and doesn't charge processing costs to keep your money invested.
Even if the average yearly returns are at least 10%, the outcomes can change depending on the specific properties you invest in. Many real estate crowdfunding platforms keep up your money for at least five years. However, Groudfloor is different because they specialize in loans with shorter termsbetween six and twelve months.
Arrived Homes
A recent entry into the real estate crowdfunding environment, Arrived Homes, allows you to invest in rental houses for a minimum of $100 and earn steady passive income through rental payments. You can use monthly rental fees and property appreciation; you don't need to be an accredited investor.
No average returns are derived from appreciation data because Arrived Homes has not sold any real estate. On the other hand, since they started in 2019, annual payments of dividends have ranged from 3.2% to 7.2%. Arrived Homes calculated annual appreciation returns ranging from 9.3% to 13.3%. Typically, it costs 1% annually.
Conclusion
Although real estate investing is never easy, modern crowdfunding platforms have made it more possible. Every investor has options, no matter what their goals are: stable dividends, rental income, or capital growth. Building wealth is accessible to everyone with these alternatives to Fundrise which provide a variety of properties and affordable minimum deposits. Explore your options and begin making investments in your future right now!
