Real estate Investment Comparison
Wondering whether Fundrise or CrowdStreet is a better investment? We put them both to the test to help you compare and decide where to invest your money.
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Fundrise is a good hands-off investment option for novice real estate investors, but investors pay for it with very low liquidity, paltry rent dividends, and appreciation gains disconnected from the true value of the properties they help fund.
Makes it easy to invest in real estate with a well designed platform and low entry costs
Their stated fee structure is low, starting at just 1% per year
They've been around since 2010 and has acquired billions worth of real estate
Expected investment time window is at least 5 years
They make a big deal about their low 1% fees. But they've disconnected the value of their REIT shares from the true value of the properties in their portfolio, giving them opportunities to capture returns before they appear in their investor's accounts
Typical returns of 10.70% per year is average compared with returns from other real estate investment options (typically 5-15% in rent yield per year) and the stock market (average 10% per year)
Only pays rent to investors a few times a year - much less often than other real estate investment options. This hurts cash flow and makes it harder to reinvest and access compounding returns
Good option for experienced high net-worth investors, but variable fee structure and high minimums don't work for everyday investors.
Makes it easy to invest in real estate with a well designed platform and low entry costs
Detailed business model and financial support documents, along with profiles on the project principals
They've been around since 2014 and has acquired billions worth of real estate
Most offerings require a $25k commitment, preventing diversification for all but the wealthiest investors
Expected investment time window is at least 5 years
CrowdStreet reports their past performance before taking fees into account, making it hard to compare to other options on the market
Each offering has a different structure and fee schedule, making them hard to compare for all but the most experienced investors.
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