The Faceoff Between Streitwise and Fundrise: Unveiling the Intricacies of Real Estate Crowdfunding Giants

Looking to start investing in real estate but not sure where to start? No worries, I’ve got you covered! Let me break it all down for you in a more casual and easy-to-understand way. It’s all about two popular real estate investment platforms, Streitwise and Fundrise.

Alright, so you’re probably wondering who these guys are and how they can turn your dollars into more dollars, right? Simply put, Streitwise and Fundrise are platforms that allow people like you and me to put our money into real estate projects we couldn’t usually access without having loads of extra cash lying around.

Here’s the thing, both options allow you to chuck a few bucks their way. Still, there’s a significant difference when it comes to the minimum investment: you only need $10 to get started with Fundrise, while Streitwise requires a minimum of $5,000.

Now, a quick rundown on both: Fundrise has been around since 2012, making it a veteran in the online real estate investment game. They gather money from lots of investors like yourself to spend on different real estate projects. Usually, these are commercial spaces or condo buildings, sometimes with a bit of residential property mixed in. On average, people tend to invest around $5,000 with Fundrise, and the annual return rates usually fall somewhere between 10-14%.

On the other hand, Streitwise came onto the scene in 2016 and they focus primarily on office properties. Their co-founders are so confident in what they’re doing that they’ve invested more than $5 million of their own money in the platform. Pretty impressive, right?

Both platforms offer decent returns, but there’s a bit of a catch. While returns from Fundrise can be variable because you choose your individual investments, Streitwise has been pretty consistently pulling in an average return of around 9.2% from 2017 till today. So, even though Fundrise might give higher returns, Streitwise offers stability.

When it comes to fees, things start to look a little different. Fundrise charges a 1% annual fee, which includes charges for asset and investment management. For Streitwise, they stick to a 3% upfront fee followed by a 2% management fee each year. It might seem a bit steep, but their transparency is something new investors appreciate.

However, both Fundrise and Streitwise tie up your money in long-term investments. You should only be investing money you won’t need for the next five or more years because real estate isn’t exactly known for its liquidity. You can potentially cash out early, but that comes with fees.

Lastly, Fundrise and Streitwise offer accounts to suit various budgets, but Fundrise gets a leg up for its variety and lower entry barriers. With Streitwise, you’re pretty focused on commercial real estate.

So, what’s the verdict? Well, if you’re looking to get started with just a little cash, I’d recommend Fundrise for its variety and decent returns. But if you’re more into commercial properties and like the security, Streitwise looks pretty solid. Either way, these platforms make investing in real estate more accessible for everyone, so it’s worth checking them out!

Oh, and just a heads up, if you decide to go with either one through my link, I might get a small commission. But don’t worry, it’s at no additional cost to you. Happy investing!