Equity Multiple vs Fundrise 2023
Real estate has always been a staple of any investment portfolio. But, it’s becoming increasingly difficult to invest in real estate because of the large upfront funds needed.
Not only that, you have to deal with all the hassles that being a landlord brings.
That was until crowdfunding platforms came along.
Equity Multiple and fundrise are two crowdfunding platforms that are designed to make real estate investing easy.
With these platforms, you can invest in real estate for very little upfront money. And you get to avoid all the hassles of homeownership.
|Equity Multiple is better for||Fundrise is better for|
|Commercial Deals||Private Real Estate deals|
|Accredited Investors||Non-Accredited Investors|
Fundrise is a popular real estate investment platform where people from all walks of life can invest in real properties for as little as $10.
Equity Multiple is a newer crowdfunding platform. It allows accredited investors to invest in real estate with a minimum of $5,000.
Let’s look at some comparisons:
|Annual Subscription Fee Basic Service||$5,000 Minimum Investment||$10 for Starter and $1,000 for Basic|
|Annual Highest Subscription Cost||$20,000 for Fund Investing||Premium - $100,000 Minimum|
|Investing Approach||Debt, Equity||Debt Investments, Equity, IRA, Dividend|
|Horizon Considered||Six months to 5 years||>5 Years|
|Modest Money Overall Rating|
Equity Multiple vs. Fundrise: Determining Factors
Let’s look at three important factors you should consider when deciding on your preferred real estate investing platform.
Factor 1: Cost
Cost is always going to be a significant factor when looking at competitors of Fundrise and Equity Multiple.
The investment minimum of crowdfunding platforms is what draws the everyday investor in.
There is a considerable difference between the upfront investment of Equity Multiple and Fundrise.
Here’s how they stack up below.
Fundrise Is Preferable To Equity Multiple
- Fundrise requires a low initial investment of just $10.
Equity Multiple: Cost
Equity Multiple has a minimum investment of $5,000. They will also charge their users an annual fee ranging from 0.5% – 1.5%, depending on the investment type.
You can read a full Equity Multiple review here.
Fundrise is very beginner friendly and getting started for as little as $10 is a no brainer.
They offer some other membership plans that range from $1,000 – $100,000. These are good options if you’d like to invest in other real estate projects not offered on the basic plan.
Regarding fees, Fundrise will charge a 1% fee annually.
You can read the full review of Fundrise here.
Factor 2: Investment Strategy
Knowing how a real estate crowdfunding platform makes its investments is a crucial strategy for success.
A good investment strategy will outline any risks involved as well as expected returns.
Fundrise Is Preferable To Equity Multiple
- Fundrise offers a more diverse portfolio
- Fundrise is available to non-accredited investors
Equity Multiple: Investment Strategy
Equity Multiple focuses on giving their investors a hands off approach to real estate investing.
Their sole focus is investing in commercial real estate!
Accredited investors can invest in a completely passive strategy and allow Equity Multiple to go out and find investment deals. These will include commercial real estate like malls, office buildings, and even multi-family homes.
The platform will select suitable investment options from a large variety of building types across a range of locations.
Equity Multiple has more than $80 billion in real estate transactions and is currently sitting on $2.5 billion in assets. This has generated a return of roughly $24 million for investors.
You can get started with Equity Multiple today by clicking the link.
Fundrise: Investment Strategy
Fundrise is all about offering low-cost investments to diversify your investment portfolio.
Fundrise is a legit way of generating passive income through real estate containing both debt and equity investments.
Investors get a return from interest payments for debt loans, asset appreciation, and rental income from real estate properties.
Fundrise is a long term play. On average, most of their investments will be held for 5 years. Fundrise encourages you to continually re-invest any earnings back into other investments on the platform.
They continually look for undervalued properties where they know they can add value. They will acquire these properties and do their thing. By doing so, they hope to return serious profits back to their investors.
Through its portfolio of real estate assets across the United States, Fundrise offers both fixed-income and equities investments.
Portfolios are then divided into different types of investments, which include growth or income.
You will have a choice of four investment strategies which are:
- Fixed Income
- Value Add
- Core Plus
All strategies offer different opportunities for diversification, but they’re all good ways to add diversity to your investment portfolios.
Fundrise puts a large focus on generating a return for its investors and since its inception, Fundrise has averaged returns ranging from 5% – 22% per year.
Factor 3: Performance
A crowdfunding platform’s performance history is important. It’s a quick way to gauge what you could expect when you make an investment.
Below is the performance of Equity Multiple vs. Fundrise.
Equity Multiple: Performance
EquityMultiple has a historical annual return of 17.4% which is averaged across all its offerings – funds, direct, and savings alternative notes.
According to Equity Multiple, they have returned $240.3 million to their investors and have a total project value of over $4.2 billion.
Their gross distribution has increased from $20 million to $240.3 million in the last six years, which is an impressive increase.
Learn More About Equity Multiple
From 2017 through 2022, the annual return on Fundrise was typically between 5% and 22%.
A 10% gain is considered typical with Fundrise.
Fundrise has more than 371k investors, earning more than $226M+ in net dividends from the company.
Learn More About Fundrise
Equity Multiple vs. Fundrise: The Bottom Line
Each of these real estate platforms offers very different opportunities for investors. It’s difficult to choose between these two, as they have different characteristics. Both are reliable and trustworthy investments.
Both Fundrise and Equity Multiple offer great tools for automating the process of buying real estate.
Fundrise is suitable for newbies and non-accredited investors looking to get into investing in real estate. Although they do offer premium services for those looking to invest more than $100,000.
Equity Multiple is a good choice for more established investors.
A key difference between the two is that Equity Multiple invests only in commercial property and is only available to accredited investors.
Because of this, Equity Multiple is a good choice for more established investors.