Crowdstreet vs. Fundrise: Which Offers Better Features, Services & Fees?

Real estate investing has been a popular option for those who want to diversify their assets, but given the costs, it's been limited to the wealthy. However, real estate investing platforms like Crowdstreet and Fundrise have turned to crowdfunding methods to offer a more affordable and simpler way of investing in real estate assets.

But with both real estate investing apps having similar concepts, how do you choose which one will work best for your budget and goals? Here's a review of Crowdstreet vs Fundrise so you can see which one has better offers for all types of investors.

What is Fundrise?

Fundrise is an online real estate platform that integrates crowdfunding so that it can offer more affordable real estate assets to a variety of investors. It has over 500,000 members and acquired over 200 property assets collectively worth $5.1 billion.

How Does Fundrise Work?

Fundrise has access to proprietary real estate investment trusts (eREITs) and eFunds not normally available to the public. Anyone who can meet the minimum investment requirement can invest in Fundrise’s diversified portfolio of real estate projects. As it’s the Fundrise team that manages these portfolios, even investors who are new to real estate assets can invest at a lower risk.

Fundrise follows the strategy of “value investing” when it acquires assets considered less than its intrinsic value and replacement cost. Fundrise increases the value of each asset over time which is why investors still get returns annually.

How Much Does Fundrise Cost?

Fundrise is not limited to just commercial real estate investments but also residential assets and more. It offers five tiers or accounts that you can choose from with varying investment minimums.

Starter

With an initial investment of just $10, you can invest in a diversified portfolio of real estate assets across the Flagship Fund. Plus, you can set up automatic investments of a minimum of just $10 with the option to add more per month and have your dividends reinvested automatically.

Basic

The Basic plan has a $1,000 investment minimum. You get all the benefits of the Starter plan plus it allows you to set goals for your investment and even IRA investing. You are also given access to the Fundrise IPO.

Core

The most popular plan of Fundrise has a $5,000 investment minimum but offers more customization so you can take control of your portfolio. The Core plan allows you to customize your investment goals whether it’s income, balanced returns, or growth. Get all the benefits from the Basic plan but with better diversification including being able to invest in available eREITs.

Advanced

Get all of the benefits of the Core plan and more with a $10,000 investment minimum. The Advanced plan offers more sophistication including directly investing into the eFund of Fundrise as well as access to tax-advantaged funds and diversification across more types of funds.

Premium

Fundrise offers its highest-level plan for a $100,000 investment minimum. The Premium plan gives exclusive access to one-of-a-kind offerings to accredited investors and priority access to the investment team.

What is Crowdstreet?

Crowdstreet makes real estate investment more accessible through equity crowdfunding. It is considered the largest commercial real estate marketplace online and is only available to accredited investors. This means you should have an annual income of $200,000 and a net worth of $1 million excluding property. This makes Crowdstreet a great option for accredited investors. If you have the extra money to invest, then Crowdstreet is the perfect option to grow your wealth instead of keeping it in the bank.

How Does Crowdstreet Work?

Crowdstreet provides investment opportunities across all types of commercial assets including multifamily, industrial, hospitality, offices, student housing and many more. Crowdstreet also ensures that its project developers and sponsors are legitimate through a rigorous vetting process and intensive background checks. There are no Crowdstreet fees for signing up but projects usually require a minimum investment of $25,000 up to $100,000. Still, Crowdstreet’s services are unmatched when it comes to the support its professional team provides.

How Much Does Crowdstreet Cost?

Crowdstreet requires no initial fees but is exclusive to accredited investors. Crowdstreet does get a small portion of your investments depending on the type of project, some from 0.5% up to 2.5% annually.

It offers a variety of investment options for those looking to diversify their real estate portfolio.

Diversified funds and vehicles

Spread your investment across numerous and varying projects that have minimum investments similar to individual projects. With this type of investment, you can invest in several projects for safety rather than just sticking to one.

Individual deals

Crowdstreet offers curated options for this investment type where you can pick which project you want to invest in. The singular investment gives you access to the necessary documents and the sponsor directly so you can constantly monitor it first-hand.

Tailored portfolio

For those who just want to place their money in an investment account and have professionals do all the work, this option is best. The Crowdstreet professional team will be responsible for building your real estate portfolio, even going as far as managing it. This investment type requires a higher minimum, $250,000 to be exact.