4 Alternatives to Fundrise
Even though Fundrise is one of the top real estate crowdfunding websites in the industry, it’s not for everyone.
Thankfully, there are a lot of alternatives that you can choose from when it comes to investing in real estate online or raising money for your real estate property.
Keep in mind that restrictions vary from platform to platform. Some platforms will only accept accredited investors into their marketplace. Other platforms have specifications regarding the types of properties that can undergo financing.
1. Realty Mogul
Realty Mogul was founded in 2012 and is one of the original real estate crowdfunding platforms. Over $250 million has been invested on the website and $55 million has been paid out to investors.
Property managers and real estate firms can get financing in the form of commercial loans and equity capital.
Investors can either invest directly into individual properties or with their REIT option. If you invest directly in a property, it’s calleed a private placement and you must be an accredited investor.
On the REIT side, Realty Mogul is comparable to Fundrise. Their MogulREIT is very similiar to Fundrise’s eREIT.
The REIT is open to both accredited and non-accredited investors with a minimum investment amount of $1,000.
The funds are then pooled together and invested in a variety of property types, including self-storage, retail, office, multi-family, and more.
RealtyShares is another major player in this industry that you can use to invest in real estate online or get financing for a real estate property. As of the time of writing, over 550 projects have been funded on the platform and more than $59 million of principle has been returned to investors.
You must be an accredited investor to participate on the platform and take advantage of the various deals. Thus far over $300 million has been invested on the platform.
As a real estate developer or manager, you can also get financing for residential and commercial properties. If you’re looking to fund your property fast with hard money, this is a great option! You can use the financing for a fix and flip.
This website has funded more than $219,964,192 worth of loans and has returned $61,192,174 to investors.
On the investor side, Patch of Land focuses on debt opportunities, where you can gain access to short-term notes ranging from 30 days to 36 months. You can tailor the riskiness of your portfolio by choosing from a variety of loan types, like residential fix and flip, ground up construction, commercial, and more.
The platform itself pre-funds all their deals and requires a $5,000 minimum investment on the part of the various participants.
You can also use the marketplace to get financing for a real estate project. The site advertises funding in as little as 7 days and short term rates as low as 7.99%. You can borrow from between $100k and $5 million.
I mention PeerStreet as an alternative to Fundrise, because I think it really caters to some of the conservative investors in the audience. If you’re not familiar, this site allows you to create your own portfolio of real estate loan investments.
Think Lending Club, but for real estate investing. Cool, huh?
At the time of writing PeerStreet has funded over $180 million in loan investments and returned more than $60 million to investors. You must be an accredited investor to participate in their marketplace.
As you can see, there are a lot of ways to participate in the real estate crowdfunding game. If you haven’t already, I urge you to check out my book, Real Estate Crowdfunding Explained. It has a lot more information on the topic.
If you have any questions about real estate, don’t hesitate to shoot me an email!
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