With the recent rise of cryptocurrency, many investors have wondered which platform for investing in real estate is best. The two major contenders are RealtyMogul and Fundrise with their respective features. Let’s compare them to find out what each company has to offer investors today!
The “fundrise vs crowdstreet reddit” is a question asked by many investors. The answer to this question is that both platforms are effective, but Fundrise has more potential for growth.
Real estate crowdfunding platforms have sprung up all over the internet as interest and investment potential in real estate markets have grown. These platforms make owning real estate simple and accessible, allowing you to invest in specialized properties. You might invest in real estate investment trusts (REITs), which are similar to mutual funds in that they enable you to own many properties in one fund.
Some systems enable you to invest in single real estate assets, while others allow you to buy a portion of a property. You may pick how you want to invest and what sort of property you want to invest in using real estate crowdfunding sites.
Both Fundrise and RealtyMogul are well-known platforms that provide excellent services to clients looking to establish a real estate investment portfolio without spending a lot of money. A full comparison between RealtyMogul and Fundrise may be found here.
Overview of RealtyMogul vs. Fundrise
RealtyMogul and Fundrise are two platforms headquartered in the United States that cater to various sorts of investors. Here’s a quick rundown of each.
RealtyMogul Information
RealtyMogul is a crowdfunding website that has over 185,000 registered users and has funded over 375 investments. You may invest in REITs and private real estate investment properties with RealtyMogul. The investments, on the other hand, come with greater risks and larger profits. You have complete control over the properties you invest in and when the revenue is collected. You may also put your profits back into the business.
Apartment complexes, industrial, multi-family apartments, self-storage, retail space, and offices are among the assets in which RealtyMogul invests. If you wish to invest in Private Assignments, you must be an accredited investor and go through a rigorous verification procedure to limit risk. To discover more, read our entire RealtyMogul review.
RealtyMogul is the source for this information.
What is Fundrise?
Fundrise is an investing platform that is available to everyone, even those with little net worth. It was founded in 2012 and has made over $4 billion in real estate investments. You may invest in eFunds and eREITs using it. Both of these financial vehicles are Fundrise-exclusive, meaning they are not publicly traded and can only be purchased via the platform.
eREITs are concerned with income, while eFunds are concerned with growth. You will be investing in a variety of assets, including commercial and single-family residential, regardless of whether you pick eFunds or eREITS.
You may earn a steady income and get capital appreciation by investing with Fundrise. These funds may be set up as equity, debt, or preferred equity investments. Fundrise features a minimal minimum, no fees, and requires no credentials. To discover more, read our entire Fundrise review.
How Do RealtyMogul and Fundrise Work?
Investors may pick from a variety of investment alternatives on both sites. Let’s look at how each one works.
RealtyMogul
RealtyMogul is a real estate investment crowdfunding platform that enables investors to choose from a selection of real estate projects. Industrial sites, office buildings, multi-family housing, medical facilities, and other commercial structures are available. You purchase shares in the RealtyMogul limited liability company when you invest. This business invests in the LLC that owns the property’s title. The investment term varies depending on the kind of investment and might vary from three to ten years.
You may invest in a particular project or non-traded REIT (REIT for Apartment Growth or REIT Income) goods based on the available listings.
The REITs are not registered with the Securities and Exchange Commission, but RealtyMogul Advisory is. Both REITs provide automatic reinvestment, which allows you to set up a periodic contribution from the bank.
Fundrise
Fundrise is an online real estate investing platform that lets you participate in real estate investment trusts (eREITs) and exchange-traded funds (eFunds). You may begin investing for as little as $10 and select from both residential and commercial properties. Fundrise is organized into five tiers, each of which provides distinct services and has a minimum investment requirement.
- Starter: A basic account level that just takes $10 to start investing; you may diversify your portfolio with the Flagship Fund and arrange an automatic monthly contribution of $10 or more. It also allows for automated Reinvesting Dividends.
- Basic: The basic plan contains all of the Starter plan’s features plus the ability to establish financial objectives and invest via an IRA. It allows you to participate in the IPO of Fundrise for a minimum investment of $1,000.
- The third tier is the core level, which requires a $5,000 commitment and allows you to personalize your investment depending on long-term objectives such as growth, balanced returns, or income. You may invest in any of the eREITs, and if you suggest someone, your advising costs will be eliminated for six months.
- Advanced: The advanced tier begins at $10,000 and includes all of the Basic and Core account’s features. It enables you to invest in the Fundrise eFund and plus plans. You get a nine-month advisory fee waiver if you recommend a friend.
- Premium: Only accredited investors are eligible for the highest tier or premium, which requires a minimum commitment of $100,000. You may also invest in private funds at this tier when they become available. It also provides you preferential access to the investing team, as well as a year’s worth of advising costs waived for each referral.
Fundrise is the source of this information.
Main Differences Between RealtyMogul and Fundrise
Here are some of the platforms’ most notable characteristics that set them apart from the competition.
RealtyMogul
RealtyMogul is a safe and easy-to-use platform with a lot of useful features.
Options for Non-Accredited Investors
RealtyMogul enables non-accredited investors to own real estate and profit from it via REITs.
Minimum Investment is Low
RealtyMogul is an easy-to-use platform for all sorts of investors, and you can get started for as little as $5,000.
Joining is completely free.
It will not cost you anything to join the platform. Individual investments on the site may have their own set of fees.
Program of Buyback
Non-traded REITs are illiquid and might cause your money to be locked up. RealtyMogul, on the other hand, offers a REIT Share Repurchase Program, which enables you to sell your REIT Income shares back to the platform every quarter. It’s worth noting that buybacks are contingent on money availability. After you’ve held the shares for a year, RealtyMogul may repurchase them at a lower price. The following are the buyback and holding periods:
- When held for less than a year, the percentage is 0%.
- When held for one to two years, 98 percent
- When retained for two to three years, 99 percent
- When you keep REITs for more than three years, you get a 100% return.
Exchanges 1031
Accredited investors can also invest in Exchanges 1031. Doing so helps handle the capital gains tax when you sell an asset and will instantly reinvest the proceeds even before they turn taxable. Usually, this process is complex and requires you to meet specific eligibility criteria but RealtyMogul makes it simple.
RealtyMogul is the source for this information.
REIT Income
The REIT Income invests and manages a large portfolio of different commercial real estate properties. It owns different commercial properties and also invests in real estate-related debt and equity assets. If you want monthly dividends, you can invest in REIT Incomes. Additionally, you can also go with a Reinvesting Dividends plan to enjoy growth and regular income.
REIT for Apartment Growth
An REIT for Apartment Growth invests in the common and preferred equity of multifamily apartment properties across the nation. The buildings offer high income and occupancy in different market cycles. The REIT aims to realize capital appreciation so it is a good option for growth strategies. It is open to accredited and non-accredited investors. The distributions are paid each quarter.
Private Assignments
A private placement is a one-time investment in a single property or a group of properties. RealtyMogul is a real estate investment firm that specializes in retail, commercial, and industrial assets. However, this investment option is only available to authorized investors, with a minimum commitment ranging from $25,000 to $50,000 and a three to ten-year time horizon. The distribution is done every three months.
Fundrise
Fundrise is a fantastic real estate investing platform that enables you to get started with as little as $10. Fundrise does not need you to be an accredited investor to participate. Here are some of the highlights.
IPO of Fundrise
You may participate in Fundrise’s first public offering (IPO). As an early-stage investor, you may participate in Fundrise’s development by purchasing shares of its parent company. The minimum investment is $1,000, and the shares are not available for public trading.
Reinvesting Dividends
You can grow your wealth through Reinvesting Dividends. Fundrise offers a Reinvesting Dividends Program where you can reinvest the dividends you receive automatically and grow your wealth at no extra cost.
Self-Directed Individual Retirement Accounts
Fundrise allows you to invest in Millennium Trust Company-managed regular and Roth IRAs. It has a $125 yearly cost in addition to the usual expenses.
Program of Redemption
Fundrise has a Program of Redemption where you can sell your shares back to the company and you for a fee of anywhere between 0% and 3% of the share price. But redemption within the introductory 90-day period will not attract any fees. Fundrise can also suspend the redemption at any time.
Goal-Oriented Investing
You may plan your long-term objectives, such as retirement, starting with the Basic account level. A goal tracker is available on Fundrise to assist you. It will also provide suggestions for the measures you should take to reach your objectives.
Fundrise is the source of this information.
Diverse Investor Tiers
You may pick from five account tiers, and their features will become available as your investment grows. They all have the same advising charge and provide you access to the same items.
eFunds and eREITs
You get to invest in 18 types of eFunds and eREITs through Fundrise. But the funds aren’t publicly traded and they offer income, growth, balanced focus, and income and growth options.
Simple to Use
Fundrise is an easy-to-use platform with a simplified interface that makes it simple to create an account and begin investing.
Own a home without the headaches of being a landlord.
Fundrise enables you to invest in real estate for as little as $10 and own property without the hassles of being a landlord.
Investment Options with RealtyMogul vs. Fundrise
Investors may use Fundrise and RealtyMogul to find funds that provide various commercial real estate possibilities.
RealtyMogul
RealtyMogul features a variety of commercial buildings available for purchase, as well as freestanding real estate investments. Individual properties are also available to approved investors.
RealtyMogul is the source for this information.
Fundrise
You may invest in commercial and residential real estate, as well as single-family homes, with Fundrise.
Returns of RealtyMogul vs. Fundrise
No platform can guarantee the amount of return on your investment, but a simple glance at previous returns should give you a fair indication.
RealtyMogul
RealtyMogul provides information about its historical performance. Its Private Assignments are distributed on a quarterly basis and potential returns range from 0% to 10% in average annualized returns based on the investment type. The RealtyMogul REIT Income has monthly distributions ranging from 7.7% to 8% annualized since inception.
The REIT for Apartment Growth has quarterly distributions of around 4.5% annualized. RealtyMogul has a targeted Internal rate of return ranging from 15.6% to 26.1%. The targeted cash on cash returns range from 5.9% to 7.5% and the targeted equity multiples range from 1.51 times to 2.46 times.
Fundrise
Fundrise, like RealtyMogul, gives information on previous returns. To assist you understand Fundrise’s historical performance, below are the average annualized returns over the last five years.
- 9.47 percent in 2019
- 9.11 percent in 2018
- 11.44 percent in 2017
- 8.76 percent in 2016
Fundrise is the source of this information.
RealtyMogul vs. Fundrise: Fees & Commissions
Let’s look at the fees and commissions that each platform charges for investing.
RealtyMogul
Fees are based on the kind of investment you make with RealtyMogul. A 1% annual asset management fee will be charged, with REIT management costs ranging from 0.50 percent to 0.60 percent yearly. Certain investments may need you to pay a one-time charge.
Fundrise
Fundrise charges a one percent yearly fee. A 0.15 percent investment management charge plus a 0.85 percent asset management fee make up this cost. In addition, an asset origination fee ranging from 0% to 2% of the investment is charged. An early redemption fee will be charged to investors who redeem their shares before they have been held for five years. Each year you keep the investment, the cost will be lowered.
Platform and App Comparison: RealtyMogul vs. Fundrise
Although both systems have a user-friendly website, neither has a mobile app.
RealtyMogul
RealtyMogul is a user-friendly platform, however it is only accessible via a web browser and lacks an app. To safeguard and store data, Realty Mogul employs firewalls and encryption. It also continuously analyzes the system infrastructure for vulnerabilities and invasions.
RealtyMogul is the source for this information.
Fundrise
Fundrise has an advantage over RealtyMogul since it has a user-friendly app and website. Fundrise offers two-factor authentication as an optional security feature and encrypts investor data with bank-level protection. All platform connections are secured using HTTPS and transport layer security.
Customer Support: RealtyMogul vs. Fundrise
Here’s how simple or difficult it will be to contact customer service for further information.
RealtyMogul
During normal business hours, RealtyMogul may be reached via email or phone. A team of specialists is available to assist members with their questions.
Fundrise
Unless you have a premium account, getting in contact with the Fundrise staff is difficult. They get priority assistance and have the ability to arrange calls, whilst lower account levels can only contact the team through email or the website’s contact form. The average response time is two business days. There is no direct phone number to reach a member of the team.
What We Like About RealtyMogul vs. Fundrise
This is what we enjoy about each platform after looking at both.
RealtyMogul
- Non-accredited investors are welcome to participate.
- Earnings reinvestment
- Investing on autopilot
- a safe platform
- A user-friendly website
Fundrise
- Minimum Investment is Low
- Access to a variety of private funding
- Various investment schemes are offered for various investors.
- As the investment grows, additional features become available.
- Process is simple and straightforward.
- Mobile app that is easy to use
- Reinvesting Dividends
- Investing with confidence
Fundrise is the source of this information.
What We Don’t Like About RealtyMogul vs. Fundrise
Both platforms have various disadvantages. We’ll go through them in detail below.
RealtyMogul
- To get started, you’ll need at least $5,000.
- Investing in illiquid assets
- There is no mobile app available.
- Fee structure that varies
- Only accredited investors have access to stand-alone properties.
Fundrise
- Features for small investors are limited.
- Investing in illiquid assets
- Only make long-term investments.
- High yearly fees
- There is no possibility to invest in single homes.
- There is no assurance of redemption.
For Whom Is RealtyMogul Intended?
Realty Mogul is intended for individuals with a high risk tolerance and a desire to invest for huge returns. Some investments are only available to authorized investors.
Who Is Fundrise Intended For?
Fundrise is a great option for real estate investors searching for the proper blend of income and growth. The income option is perfect for you if you want rapid financial flow. However, if you want to include growth in your investing portfolio, you must wait until the assets are sold. This implies you’ll have to be willing to take risks and invest for the long haul.
RealtyMogul vs. Fundrise Frequently Asked Questions
Here are some frequently asked questions about selecting the best real estate investing platform for your investment journey.
To invest with RealtyMogul or Fundrise, do I need to be an accredited investor?
To invest in Fundrise or RealtyMogul, you do not need to be an accredited investor. It is open to accredited and non-accredited investors alike. On RealtyMogul, however, certain investment opportunities are only available to authorized investors.
Which is the better platform: RealtyMogul or Fundrise?
There is no one platform that is best for all sorts of investors. Before you decide to invest, you should consider your risk appetite, financial objectives, funding availability, and personal preferences. If you just have a limited amount to invest in single-family rental residences, Fundrise is a fantastic option.
Which platform, RealtyMogul or Fundrise, is better for beginners?
As a beginner, you must choose a platform that works best for you and serves your investment goals. Fundrise is a good platform because it has Minimum Investment is Low and does not require you to be an accredited investor.
Last Thoughts
Both real estate platforms have a successful track record and a large user base. They are perfect for real estate investors looking to diversify their portfolio. They also have a wide range of projects to pick from, many of which have produced solid returns in the past.
Whatever you choose, do your homework and investigate thoroughly. You must define your objectives and keep track of the funds you raise via crowdfunding. RealtyMogul is required if you wish to invest in individual properties. If you don’t have a lot of money to invest and don’t want to purchase individual homes, Fundrise is the way to go. Before making an investment choice, learn how the platforms function and if one or both of them meets your requirements and objectives.
The “fundrise vs yieldstreet” is a question that many investors are asking today. The two platforms have different perks and are not always comparable.
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