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Fundrise has provided a new way for investors to access real estate properties to add to their investment portfolio.

However, when rules changed around how online crowdfunded real estate platforms could avoid registering security listings with the SEC, a flood of new investment opportunities hit the market.

These offered investors unprecedented access to residential and commercial properties through real estate loans and equity investments like preferred equity or common equity in notes.

These new real estate fund investment options through an online marketplace provide access to earn interest income and rental income, monthly or quarterly dividends, and even capital gains in a different manner than traditional real estate investing.

If real estate investors want to know how to invest money in rental properties, office buildings, a real estate Growth REIT, Growth, income or other value-oriented investments outside the stock market, this list of Fundrise alternatives is for you.

What is Fund Rise?


fundrise product info

Fund Rise allows you to choose investments in real estate portfolios or several properties in one investment. In theory, this diversifies your investment risk while providing you access to several properties simultaneously.

To date, the most popular real estate investment platform offering a portfolio approach is Fundrise. This investment platform provides several options for you to review and invest your money. Their available portfolio options include:

  • The Starter Portfolio – This option allows investors to start investing in real estate with as little as $10.
  • Core Portfolios (Supplemental, Balanced, and Long-Term Growth) – Each of these “Core Portfolios” comes with a higher minimum investment of $1,000 and targets a different investment objective. Supplemental aims to provide additional passive income from real estate investing on the Fundrise platform. Long-Term Growth invests money for the primary goal of capital appreciation. At the same time, Balanced focuses on both of these investment objectives. By offering these investment portfolio options, investors can choose which investment objective best aligns with their financial goals.

 


Best Fundrise Alternatives for Accredited Investors

1. First National Realty Partners (Grocery-Anchored Commercial Real Estate)


first national realty partners sign up

  • Minimum Investment to Start: $50,000
  • Type of Real Estate Investment: Grocery-anchored commercial real estate
  • Type of Investor: Accredited Investors

First National Realty Partners (FNRP) is one of the fastest-growing vertically integrated commercial real estate investment firms in the United States.

The company’s mission is to provide everyday, accredited investors with access to real estate assets that were originally available only to institutional investors.

Leveraging their team of industry-leading professionals and foundational relationships with top-tier national brand tenants, including Kroger, Walmart, and Wholefoods, they compete directly against these institutions to present investors with deals that achieve superior passive returns.

Specializing in grocery-anchored CRE, FNRP provides partners with exclusive access to institutional-quality commercial real estate investment opportunities both on and off-market.

They’ve helped thousands of investors increase their net worth and diversify their portfolios against market volatility through deals which yield steady cash flow from day one, as well as significant upside through their proven value-add strategies.

By investing with FNRP, you become a partner with a team of real estate professionals in the necessity-based retail space. From acquisition to disposition, their entire investment lifecycle is 100% in-house.

To ensure you’re presented with only the best institutional-quality investments, their team filters through over 1,000 deals and chooses just ONE that they are confident will achieve strong returns.

Unlike a traditional REIT or fund, you have the ability to pick the deals that best align with your investment needs so that you can build your own portfolio within their holdings.

FNRP does this by providing a transparent platform in which you have access to all the information you need to make a confident decision. You will never have to invest blindly.

Starting to invest with First National Realty Partners does carry a high entry fee: a $50,000 minimum. For this, however, you gain access to unique deals no one else on this list provides: combining stability and strong returns.

Sign up to learn more about the opportunity and if it makes sense for your investment goals.

Read more in our First National Realty Partners review.

Related: Best Bookkeeping and Accounting Software for Rental Properties [Free + Paid]

2. EquityMultiple


equity multiple sign up

  • Minimum Investment to Start: $5,000
  • Type of Real Estate Investment: Commercial Real Estate
  • Type of Investor: Accredited Investors Only

Some platforms like EquityMultiple allow you to invest in individual properties, specifically commercial real estate. Others allow you to invest in real estate property portfolios.

EquityMultiple carries a minimum $5,000 initial investment and comes with a limitation on the type of investors who can participate.

Namely, EquityMultiple only allows its individual commercial real estate projects to receive investments from accredited investors.

For those interested in learning more about EquityMultiple, consider signing up for an account and going through their qualification process.

Related: 14 Best Investments for Accredited Investors

3. YieldStreet


yieldstreet sign up

  • Minimum Investment to Start: $2,500
  • Type of Real Estate Investment: Commercial Real Estate
  • Type of Investor: All Investors

Alternative investments have become increasingly popular as fintech services open up once closed markets to the individual retail investor.

These opportunities have democratized numerous markets and unlocked previously-inaccessible cash flows to pad your income from assets.

Yieldstreet is one such platform leading the charge to provide access to income-generating assets in several asset classes.

Yieldstreet is an alternative investment platform that provides you with income-generating opportunities.

These investment opportunities come backed by collateral, typically have low stock market correlation, and span various asset classes.

Such asset classes include:

  • art finance
  • real estate
  • commercial finance
  • legal finance, and more.

Yieldstreet has been in business since 2015 and has returned over $600 million to its investors since its founding.

Historically, their yields range from 7%-15% and have predefined payment schedules (i.e., monthly or quarterly payments).

They may pay principal and interest upon the occurrence of certain events (e.g., case settlement within a legal finance investment).

The durations of investment opportunities range from 6 months to 5 years and have investment opportunities starting as low as $2,500.

Learn more by opening an account now for access to passive income-filled returns on your investments.

Related: 19 Best High-Yield Investments [Safe Options Right Now]

4. CrowdStreet


crowdstreet sign up

  • Minimum Investment to Start: $25,000
  • Type of Real Estate Investment: Commercial Real Estate
  • Type of Investor: Accredited Investors Only

CrowdStreet is a real estate investment platform available exclusively to accredited investors looking to invest in commercial real estate for long periods.

The illiquid investments have performed well, but they require you to commit money for a few years, making you leave your money invested in these investments.

Further, CrowdStreet comes with a high minimum investment of $25,000, which shouldn’t come as a significant surprise.

The platform caters to accredited investors, whereas platforms that allow non-accredited investors have low minimum investment requirements.

Depending on the type of project chosen, you might be receiving a return immediately through quarterly dividends on the commercial rental properties.

Though, you might also choose a project which takes a few years to provide you with money.

Related: 7 Best Banks for Real Estate Investors + Landlords

5. FarmTogether


farmtogether sign up

  • Minimum Investment to Start: $10,000
  • Type of Real Estate Investment: Farmland
  • Type of Investor: Accredited Investors Only

FarmTogether allows real estate investors to invest in farmland. This largely untapped asset class provides cash flow properties with stable returns.

Investors can invest in shares of entities that hold farmland, generally LLCs managed by FarmTogether. You can receive cash distributions and gains through land appreciation.

The income comes quarterly or annually, depending on the farmland’s harvest schedule and lease agreement with the farmer.

You’d only realize the appreciation value when it came time to sell. This allows you to hold properties for the long-term and realize more favorable capital gains tax treatment.

 

6. AcreTrader


acretrader sign up

  • Minimum Investment to Start: $10,000
  • Type of Real Estate Investment: Farmland
  • Type of Investor: Accredited Investors Only

AcreTrader operates a similar crowdfunding real estate investing platform as FarmTogether, focusing on accredited investors with at least $10,000 to invest over three years or more.

The platform has a limited number of new offerings to choose from but has a rigorous underwriting and due diligence process for properties offered on the platform.

You can invest through a Self-Directed IRA (SDIRA) or a taxable brokerage account.

 

Best Fundrise Alternatives for Non-Accredited Investors

7. Streitwise → Real Estate Investment Trusts (REITs)


streitwise sign up

  • Minimum Investment to Start: $5,000
  • Type of Real Estate Investment: Commercial Real Estate
  • Type of Investor: All Investors

Some people consider Real Estate Investment Trusts (REITs) to be the mutual funds of real estate.

REITs are a collection of properties operated by a company that uses the money investors give them to buy and develop real estate.

You can choose to invest in trusts that build condos, apartment buildings, business complexes, or other facilities.

REITs pay you dividends. These are fitting income-producing assets for people who want an easy way to get involved with real estate investing without having to purchase the property themselves.

One avenue to explore for investing in REITs is by investing through Streitwise.

Streitwise is a new era of real estate investing. With the capital raised by qualified investors, the company leverages the best-performing property investments into professionally designed portfolios.

The returns then get distributed and serviced through an online REIT- with your income as their mission.

Suppose you’re looking to generate passive income while conserving cash on hand.

In that case, Streitwise provides the perfect opportunity for both accredited and non-accredited investors and offers one of the lowest fee structures around.

The company has provided an 8.4% annualized return due to its superior property selection and low fee structure, far outpacing comparable Public REITs or bonds.

streitwise dividend yield comparison

Qualified investments include properties stretching broadly across America from the Midwest to the West Coast and leveraged based on Streitwise’s analysis.

By placing $5 million of their own money in these investments, Streitwise places a good deal of skin-in-the-game for all sponsors and 100% incentive alignment between sponsor and investor interests at all times.

The service has a minimum investment of ~$5,000 to begin investing in commercial real estate properties.

The company provides REIT offerings federally registered with the SEC and offers them to both accredited and non-accredited investors.

Investing through an investment vehicle like Streitwise’s REIT offers a great source of passive income, recurring cash flow, higher returns, portfolio diversification and inflation protection.

With an 8.4% annualized return and a low fee structure, Streitwise provides one of the best opportunities for passive income in real estate investing.

It outpaces comparable REITs and has delivered an annualized dividend return of at least 8%

streitwise dividend payout history

Despite Covid’s effect on the general real estate market, Streitwise met return targets through:

  • Employing strong credit tenancy (100% contractual rent obligations met in 2020)
  • Using conservative underwriting (51% loan to value, LTV)
  • Maintaining a low/transparent fee structure.

All dividends quoted are net of fees, with fees already taken out. Consider exploring Streitwise for your real estate investing needs today.

 

8. RealtyMogul


realtymogul investment options

  • Minimum Investment to Start: $5,000
  • Type of Real Estate Investment: Commercial and Residential Real Estate
  • Type of Investor: All Investors

RealtyMogul is an online real estate crowdfunding marketplace for real estate investing, namely commercial real estate and private real estate assets.

The company caters to individuals seeing institutional quality real estate investments.

The company offers two private REITs for non-accredited investors and private placements (private real estate investments between two or more parties) for accredited investors.

Suppose you wish to participate in private placement opportunities through RealtyMogul.

In that case, you can choose to invest through fractional ownership in an individual property or group of properties.

Interested investors who’d like to participate in the real estate investment trust (REIT) opportunities can look at their two options:

  • The Income REIT: Pays monthly dividends at a 6% – 8% annualized rate (net of annual management fee) and focuses on income-generating assets more than growth-oriented investments. This fund invests in commercial real estate investment options like office buildings and retail space and residential real estate investment options like multifamily properties.
  • The Apartment Growth REIT: A more balanced approach between income and growth, this REIT offers the ability to earn passive income at a lower annualized rate than the monthly dividends from The Income REIT, but with an eye toward capital appreciation as well. This fund differs in the holdings held within the portfolio, opting instead to invest solely in residential apartment buildings.

RealtyMogul charges a 1% annual management fee for their Income REIT fund and a 1.25% annual management fee for their Apartment Growth REIT fund.

Learn more about RealtyMogul by visiting their site.

 

9. GROUNDFLOOR → Investing in Fix and Flips


groundfloor sign up

  • Minimum Investment to Start: $10
  • Type of Real Estate Investment: Residential Real Estate
  • Type of Investor: All Investors

GROUNDFLOOR offers short-term, high-yield real estate debt investments to the general public.

The service targets fix and flips, better known as fixer-uppers for short-term debt instruments ranging between 3-18 months in length.

If you are interested in fixer-uppers but don’t have the personal expertise to select the right property, nor choose the best contractors for their value, you should consider GROUNDFLOOR.

The service aims to make an asset class otherwise inaccessible to the general public and has averaged 10% annual returns. You only need $10 to begin investing on the platform.

 

10. DiversyFund → Investing in Multi-Family Units


diversy fund sign up

  • Minimum Investment to Start: $500
  • Type of Real Estate Investment: Multi-Family Residential and Commercial Real Estate
  • Type of Investor: All Investors

DiversyFund is a widely-known and trusted platform for people looking to invest in real estate.

This service caters to individuals looking to invest in multifamily units like apartment buildings.

The service targets properties they believe will appreciate with added investment after purchase.

They renovate properties with a medium-term time horizon (~5 years) and look to flip them to other investors.

This model yields investors cash returns while invested and a capital gain once sold.

The service has developed expertise in the multifamily real estate market, targeting apartment complexes containing 100-200 units that produce monthly cash flow.

You can start investing in one of DiversyFund’s portfolios for as little as $500.

Related: 36 Best Passive Income Ideas [Income Investments to Consider]

11. Roofstock


roofstock sign up

  • Minimum Investment to Start: Full price of the rental property purchased on the platform or $5,000 for accredited investors to buy shares of rentals
  • Type of Real Estate Investment: Residential Real Estate
  • Type of Investor: All Investors (Accredited Investors need $5,000+ to buy shares of rentals)

There are many different types of investors, but they all share one thing in common. They want to make more money than the market average. The problem is that most people don’t know how to do this.

Roofstock has a solution for you, and it’s so easy! Roofstock will help you find your perfect investment property by giving you access to thousands of properties every day from only the best selection in each area.

As a non-accredited investor, you can’t buy fractions of an investment property, instead only the entire property itself. Roofstock provides unmatched transparency in detailing everything you need to know about the residential real estate you view on the platform.

The service caters to long-distance real estate investing, allowing landlords to live far away but still own the entire piece of residential real estate as a turnkey rental property.

This avoids some pitfalls of real estate crowdfunding sites and provides opportunities to invest in whole residential real estate investment options.

Accredited investors can participate in the Roofstock One investing model, allowing you to purchase “shares” of individual rental properties owned and operated by Roofstock.

Other Top Investment Opportunities to Consider


Check out some of these other investment options for a complete listing of every FinTech-enabled investment opportunity popping up in 2022.

 

Who Are Fundrise’s Competitors?


evaluating investments

The most direct competitors to Fundrise are fellow non-accredited investing platforms offering access to both commercial and residential real estate investment portfolios.

This hybrid asset allocation approach makes Fundrise unique compared to its competitors, providing a differentiated investment offering.

The service doesn’t allow individuals to select individual units unless choosing a residential real estate developer’s project, commercial real estate project or multifamily offering (e.g., apartment buildings).

Can You Get Rich from Fundrise?


investing money decisions

Fundrise has achieved competitive yields in their industry, making investors significant profits during their history.

The company targets returns between 8-13% per year, offering stable returns that stand to compound well over time if you remain invested in the service.

While not recommended for allocating most of your portfolio to any crowdfunding service, this could serve as an outlet to consider outside of learning how to get rich off stocks or picking stocks for the long-term.

Related:

Do Real Estate Crowdfunding Platforms Have a Minimum Investment?


man looking at his phone happy

Some Fundrise alternatives for real estate require you to have a minimum investment to participate on their real estate crowdfunding platform.

The minimum investment may vary between non-accredited and accredited investors.

However, you might have different minimum investment requirements based on the type of investment you make.

Private placements might have a higher minimum investment than if you invested in real estate loans as an accredited investor to earn rental income.

Likewise, purchasing equity in real estate crowdfunding investments like residential real estate or commercial properties could require you to meet different minimum investment obligations.

Make sure you check with the Fundrise alternatives in real estate crowdfunding to see if you have interest meeting and maintaining a minimum investment amount as a non-accredited or accredited investor.

Can You Participate in Commercial Real Estate Investing through Crowdfunding Platforms?


young man on laptop looking up information

Yes, you can invest in commercial properties through real estate crowdfunding platforms like Fundrise and several Fundrise alternatives.

While services like DiversyFund offer access to multifamily residential real estate investments, Fundrise alternatives like First National Realty Partners, YieldStreet, EquityMultiple, CrowdStreet, RealtyMogul and others offer commercial real estate investments.

These often allow you to earn passive income in private market offerings or participate in several real estate projects through direct investing or opportunity zone investing.

Real estate investors should understand how options like a Growth REIT might affect their taxes.

Considerations include payments toward property taxes, how they can defer capital gains taxes and whether these interest payments can provide the returns they seek.

Commercial real estate carries a different risk profile than residential real estate, so make sure you understand the risks involved.

What are Accredited Investors?


reviewing financial information

While this definition recently changed, from one which usually meant high-net-worth/high-income individuals, to now one which focuses on investor experience and knowledge, it typically skews more towards investors with financial wherewithal and familiarity.

That said, the new amendments from the SEC allow investors to qualify as accredited investors based on defined measures of professional knowledge, experience or certifications in addition to the existing tests for income or net worth.

These tests for financial resources include having an aggregate net worth of over $1,000,000 and earning over $200,000 in each of the two most recent years or joint income with that person’s spouse over $300,000 in each of those years with a reasonable expectation of reaching the same income level in the current year.

About the Author

Riley Adams is a licensed CPA who works at Google as a Senior Financial Analyst overseeing advertising incentive programs for the company’s largest advertising partners and agencies. Previously, he worked as a utility regulatory strategy analyst at Entergy Corporation for six years in New Orleans.

His work has appeared in major publications like Kiplinger, MarketWatch, MSN, TurboTax and CNBC’s Acorns. Riley currently holds areas of expertise in investing, taxes, real estate, cryptocurrencies and personal finance where he has been cited as an authoritative source in outlets like CNBC, Time, NBC News, APM’s Marketplace, HuffPost, Business Insider, Slate, NerdWallet, The Balance and Fast Company.

Riley holds a Masters of Science in Applied Economics and Demography from Pennsylvania State University, Bachelor of Arts in Economics and a Bachelor of Science in Business Administration and Finance from Centenary College of Louisiana.