Unpacking the Rivalry: A Detailed Analysis of Streitwise and Fundrise, the Giants of Real Estate Crowdfunding Platforms.

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Review: Streitwise vs. Fundrise – Which Real Estate Investment Platform to Choose

Real estate is an excellent way to grow your wealth, but it used to be tough to get into this field. Luckily, platforms like Fundrise and Streitwise have changed this by letting anyone invest in real estate without a big chunk of money upfront.

Fundrise and Streitwise work pretty similarly – they both let you invest in real estate easily without needing a lot of money to start. But, there are differences between them, and picking the one that fits your needs is crucial.

So let’s take a closer look at both.

Fundrise 101

Fundrise is a big name in the real estate crowdfunding space and has been around since 2012. They’ve raised over $1 billion and worked with more than 150,000 investors, investing mainly in commercial office spaces and condos, with some residential real estate too.

A typical investment in Fundrise is around $5,000, and the yearly returns usually fall between 10 – 14%. It’s super beginner-friendly but also works for experienced investors looking to build a large real estate portfolio.

More about Stretiwise

Streitwise, founded in 2016, focuses on office property locations. Both beginners and seasoned investors can use it, with a minimum investment of $5,000. The co-founders have invested over $5 million of their own money in Streitwise, showing they really trust their platform.

Returns and How They Work

Looking at the potential return, Fundrise seems to have an upper hand compared to Streitwise. For instance, in 2021, the Fundrise Starter Portfolio had a net return of 29.3%. However, Streitwise has been quite consistent with an average return of 9.2% since 2017.

When using Fundrise, you’ll choose to invest in eFunds or eREITs covering a range of non-traded real estate options. Streitwise, on the other hand, allows you to invest in commercial real estate via a non-traded equity Real Estate Investment Trust (REIT).

Fees Involved

While Streitwise has a more straightforward fee structure with a 3% upfront fee and 2% annual management fee, Fundrise charges a 1% annual fee for using its platform.

Liquidity and Account Types

In Fundrise, you have five account levels: Starter, Basic, Core, Advanced, and Premium, with the minimum investment ranging from as low as $10 to $100,000 or more. On the other hand, Streitwise focuses specifically on commercial real estate investments, with a minimum investment of $5,055.

Dividend Reinvestment

Both Streitwise and Fundrise offer a Dividend Reinvestment Plan (DRIP), allowing investors to automatically reinvest their dividends into more REIT shares, potentially compounding returns over time.

Pros and Cons

Fundrise’s key advantages lie in its low minimum investment, diversified portfolio, lower management fees, and a longer track record. Streitwise’s strong points are its straightforward fees, strict vetting of new projects, and higher dividends.

In conclusion, both Fundrise and Streitwise are excellent options for real estate investing based on your preferences and budget. While Fundrise seems to be the more flexible and established of the two, Streitwise has made a name for itself with its simplicity and high dividends. Whether you’re a newbie or a veteran investor, both platforms offer interesting options to grow your portfolio in the real estate market.