Best RealtyShares Competitors

Jeremy Biberdorf Image
Updated
Dec 02, 2024
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Quick Breakdown

Quick Breakdown


  • Best for non-accredited investors seeking a diversified portfolio with lower minimum investments.

  • Ideal for investors looking for high-return opportunities and a REIT buyback program.

  • Suitable for accredited investors interested in private equity real estate with a high account minimum.
Real estate investing has witnessed a paradigm shift with the advent of crowdfunding platforms, revolutionizing access to property markets for individual investors. Among these, RealtyShares has emerged as a notable name, offering diverse investment opportunities.

This article delves into RealtyShares, examining its offerings and comparing it with its top competitors in the market, providing insights for investors seeking alternatives in the real estate crowdfunding space.

What is RealtyShares?

RealtyShares is a real estate investment platform that caters predominantly to accredited investors, offering them a chance to participate in a variety of real estate deals. Launched in 2013, the platform has distinguished itself by providing access to real estate investments that were traditionally reserved for wealthy individuals or institutional investors.

RealtyShares allows investors to fund projects in increments, lowering the barriers to entry in real estate investing. The platform’s focus is primarily on single-family home flips, although it does present a mix of multifamily and commercial projects.

RealtyShares functions by pooling funds from investors to finance real estate projects, offering both debt and equity investment opportunities. It’s an innovative way to disrupt the traditional real estate funding process, providing speed and efficiency in transactions.

RealtyShares Pros & Cons

Pros

● Low minimum investment requirements

● Diverse range of real estate deals

● Quick and efficient funding process

● Access to deals with short lifecycle

● Exclusively caters to accredited investors

Cons

● Limited to higher-risk single-family home flips

● High management fees

● Restricted to accredited investors only

● Limited geographic diversity in deals

● Lack of transparency in fees and deal structures

Why Seek Alternatives to RealtyShares?

While RealtyShares offers unique opportunities in real estate crowdfunding, its focus on single-family home flips may not align with every investor's strategy or risk tolerance. Additionally, the platform's higher management fees and the exclusive nature of its services to accredited investors may prompt some to seek more inclusive or diverse investment platforms.

Alternatives to RealtyShares could offer a wider range of real estate investments, including commercial properties, lower fee structures, or access to non-accredited investors. For a more comprehensive list of alternatives, check out my article detailing the best real estate crowdfunding platforms.

Learn More About RealtyShares

Top 3 RealtyShares Competitors

Fundrise

4.6 stars
Fees 1%
Best For Diversified real estate funds
Benefits
Overview
Company
  • Accessible to non-accredited investors
  • Low minimum investment starting from $500
  • Diversified portfolio options including eREITs and eFunds
  • Regular dividend payouts
  • Transparent fee structure
  • Simple and user-friendly platform
  • Educational resources for investors
  • Option to invest through self-directed IRA
Fundrise is a pioneering real estate crowdfunding platform that opened doors to non-accredited investors, offering an affordable entry point into real estate investing. Its focus on eREITs and eFunds allows for diversified exposure across various property types and locations.

The platform stands out for its commitment to making real estate investing accessible, with an emphasis on transparency and investor education. Check out my Fundrise vs RealtyShares comparison article for a head-to-head look at these platforms.

Launched in 2010, Fundrise was among the first to democratize real estate investments. Based in Washington D.C., the company has been a trailblazer in offering real estate investment trusts (REITs) and other investment products tailored for individual investors.

Fundrise's innovative approach, combining technology and real estate expertise, has enabled it to build a robust platform that simplifies investing in real estate.

RealtyMogul

3.5 stars
Fees 1% to 1.25%
Best For High returns
Benefits
Overview
Company
  • Accessible to non-accredited investors
  • Low minimum investment starting from $500
  • Diversified portfolio options including eREITs and eFunds
  • Regular dividend payouts
  • Transparent fee structure
  • Simple and user-friendly platform
  • Educational resources for investors
  • Option to invest through self-directed IRA
Fundrise is a pioneering real estate crowdfunding platform that opened doors to non-accredited investors, offering an affordable entry point into real estate investing. Its focus on eREITs and eFunds allows for diversified exposure across various property types and locations.

The platform stands out for its commitment to making real estate investing accessible, with an emphasis on transparency and investor education. Check out my Fundrise vs RealtyShares comparison article for a head-to-head look at these platforms.

Launched in 2010, Fundrise was among the first to democratize real estate investments. Based in Washington D.C., the company has been a trailblazer in offering real estate investment trusts (REITs) and other investment products tailored for individual investors.

Fundrise's innovative approach, combining technology and real estate expertise, has enabled it to build a robust platform that simplifies investing in real estate.

CrowdStreet

4.5 stars
Fees Free registration, varying fees for independent projects, and 0.50% to 2.5% Crowdstreet funds annually.
Best For Accredited investors
Benefits
Overview
Company
  • Exclusive focus on commercial real estate investments
  • High-quality, vetted investment opportunities
  • Access to private equity real estate
  • Intuitive and user-friendly platform
  • Strong educational resources for investors
  • Investment opportunities with potential for high returns
  • Direct investment in individual real estate projects
  • Advanced portfolio diversification options
CrowdStreet offers a unique platform for accredited investors to directly invest in a wide range of commercial real estate projects. Since its inception in 2014, CrowdStreet has focused on providing access to institutional-quality real estate investments, emphasizing transparency and investor empowerment.
Based in Portland, Oregon, CrowdStreet has rapidly grown to become one of the leading online commercial real estate investment platforms. The company's innovative approach to real estate crowdfunding, combined with a strong commitment to investor education and customer service, has garnered significant attention in the industry.

Final Thoughts

RealtyShares has carved a niche in the real estate crowdfunding market, especially for accredited investors interested in residential property flips. With that being said, platforms like Fundrise, RealtyMogul, and CrowdStreet offer compelling alternatives with diverse real estate investment options, catering to a broader investor base.

For non-accredited investors or those seeking lower minimum investments, Fundrise presents an accessible and diversified option. RealtyMogul combines the flexibility of offering investments to both accredited and non-accredited investors with a strong portfolio of commercial real estate. Meanwhile, CrowdStreet stands out for those with higher capital, seeking direct investment in commercial real estate projects.

At the end of the day, the choice between RealtyShares and its competitors will depend on individual investment goals, risk tolerance, and the desire for portfolio diversification within the real estate sector.

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Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He’s a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.