Cardone Capital vs Fundrise 2024
Disclosure: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on Modest Money.
If you’re an investor looking to invest in real estate but don’t want to buy a property outright, you may be considering investing platforms like Cardone Capital and Fundrise.
Both platforms allow you to invest in real estate without owning the property directly, making it more accessible and affordable for individual investors.
Cardone Capital and Fundrise operate on different models, with Cardone Capital focusing on larger, cash-flowing properties and Fundrise offering a more diversified portfolio of smaller properties.
Each platform has unique features, such as investment minimums, fees, and management strategies, which may suit different investor preferences and goals.
In this Cardone Capital vs Fundrise review, we’ll compare both platforms and evaluate their investment strategies, average returns, and fees to help you decide which platform is better for your investment needs.
|Cardone Capital is Better For:
|Fundrise is Better For:
|High investment returns
|Professional real estate investors
|Private real estate investment
|Real estate opportunities
|Long-term investors (5+ years)
When deciding between Cardone Capital and Fundrise, it’s crucial to understand each platform’s unique features. Both platforms provide funding for investors, but it’s essential to evaluate each option carefully.
Factor 1: Investing Style
Fundrise is More Affordable
- Fundrise has a minimum investment of $10
- Cardone Capital has a $5000 minimum investing
- Fundrise investing style allows you to invest in alternative investments
Cardone Capital provides investment opportunities for both accredited and non-accredited investors. Non-accredited investors receive more detailed information about the fund structure, fees, and performance since regular disclosures are filed with SEC.
However, it is up to you to read them. Investing $5,000 can be significant for most individuals to entrust to someone else. On the other hand, for accredited investors, the minimum investment is $100,000, which is among the highest minimums in the accredited investor class.
Fundrise allows you to invest in real estate with a minimum investment of just $10. This makes it a much more accessible option for those who may not have tens of thousands of dollars for a traditional real estate investment down payment.
Fundrise is a reputable platform that allows you to invest in alternative investments, and its higher membership levels offer even more opportunities.
Factor 2: Internal Rate of Returns
Fundrise has a Lower IRR
- Fundrise has an Internal Rate of Return of 8-12%
- Cardone Capital IRR is 15%
- Fundrise as an average annual yield of 7.5%
When considering Cardone Capital’s potential returns, it’s important to note that the advertised Internal Rate of Return (IRR) is 15%, a high bar. The company aims to achieve this goal by tripling the capital on the sale of the property, along with monthly distributions of 6% annualized.
It’s important to remember that whether Cardone Capital will achieve this goal is still uncertain since none of the funds has been sold or closed. However, if the company’s strategy proves successful, it could make it the better investment platform in terms of returns.
Fundrise claims to offer a range of 8-12%. This figure represents a combination of dividend payments and appreciation over time. While it may be slightly higher than the average annual yield of the stock market (which is around 7.5%), it falls short of the return that can typically be expected in real estate syndication.
However, it is worth noting that real estate investing is not without risk and that returns can vary widely depending on various factors.
Factor 3: Cost
Cardone Capital (Fund IX) has a Target Return of 17% Yearly
- Cardone Equity Fund VIII has a minimum investment of $10,000
- Fundrise Advanced account requires a minimum investment of $50,000
- Users can invest in multifamily properties with Cardone Capital
The minimum investment for their subscription is $5,000. Investors can choose to invest in one of their fund offerings with different minimum investment requirements.
For example, the Cardone Equity Fund VIII has a minimum investment of $10,000. This fund invests in multifamily real estate properties with a target return of 15% annually.
Another fund option is the Cardone Equity Fund IX, which has a minimum investment of $50,000. This fund also invests in multifamily properties with a target return of 17% annually.
Fundrise makes it easy and accessible for anyone to invest in real estate. They have a minimum investment of $10.
Cardone Capital vs Fundrise: Our Summary
Cardone Capital and Fundrise are popular real estate investment platforms but differ in their approach and offerings. Cardone Capital focuses exclusively on multifamily real estate.
The platform has a higher minimum investment requirement but offers personalized guidance and support from experienced real estate professionals.
Click here to check out Cardone Capital.
Fundrise, on the other hand, has a lower minimum investment requirement and a range of subscription options to suit different investment needs and budgets.
Ultimately, the choice between Cardone Capital and Fundrise will depend on your investment goals and preferences.
Click here if you’d like to get started with Fundrise.