Discover Your Real Estate Venture in 2023: Unraveling Fundrise Alternatives
Looking to invest in real estate? Fundrise has got you covered. Based in Washington, DC, this popular online platform lets ordinary folk invest in real estate from as little as $10. Co-founded by brothers Dan and Ben Miller in 2010, Fundrise owns a massive portfolio worth over $7 billion.
Fundrise is your ticket to passive real estate investing. Picture owning property for income without all the management headaches. Plus, you can start with only $10. It’s got an impressive history of returns, offers a diverse portfolio to choose from, and even pays out quarterly dividends.
More of a seasoned investor? Try their Pro plan. From a measly $10 per month, you get to pick your investments and build your portfolio from scratch. We recommend options like Fundrise for those wanting passive income or long-term wealth. The only catch is that you need to stick with your investment in the long term.
Now, finding the perfect private REIT is no joke, considering the many platforms out there. Let’s talk about Fundrise’s five closest rivals in terms of returns, fees, and flexibility.
First off, we have CrowdStreet, a platform only for accredited investors founded in 2012. With a return rate between 17% to 18.1% and a whopping $4.16 billion invested, it’s earned its reputation. However, the minimum investment is quite high at $25,000.
Next up, RealtyMogul. Open to all types of investors, it focuses on profitable commercial properties. With a minimum investment of just $5,000, it’s a fantastic option, especially for the non-accredited investors out there.
Brought to life in 2014, DiversyFund lets you dive into real estate investing for as low as $500. You can even tailor your investment based on your goals – whether that be growth, dividend, or retirement. Take note, though, that investment horizons can range from 5 to 7 years.
Next, First National Realty Partner offers a very particular type of real estate – grocery-anchored shopping centers. The catch? A hefty minimum investment of $50,000. However, with an average return rate of 12-20%, it could be an option for the right investor.
Lastly, we have EquityMultiple, a platform focussed on multi-family assets for accredited investors. With two investment options and returns starting at 17%, it’s another good platform to consider. Just bear in mind the minimum investments of $5,000 and $10,000, respective to the investment type.
Before we wrap up, let’s tackle some frequently asked questions:
Do REITs beat inflation? Typically, yes. Property value and rent incomes, both contributing to REITs, tend to rise with inflation.
Should I pick public REITs or Fundrise? Fundrise generally outperforms public REITs. However, public REITs offer higher liquidity since they trade like securities on exchanges. Meanwhile, Fundrise shares take a while to liquidate.
Is Fundrise a good investment in 2023? Definitely. With an average annual return of around 5.29% to 22.99% over the last six years, it beats both public REITs and the S&P 500 index. If you can be patient and hold for at least 7 years, the returns go up to 83.4%. So, buckle up for some long-term investing.
