Streitwise vs Fundrise 2023: Which real estate platform is better?
Disclosure: This is a testimonial in partnership with Fundrise & Streitwise. We earn a commission from partner links on Modest Money.
Investing in real estate is a fantastic way to build wealth but it’s becoming increasingly more difficult to get into the market.
Thankfully there are more and more ways everyday investors can still invest in real estate without the huge upfront capital.
Online real estate investing platforms such as Streitwise and Fundrise make it possible for investors to get started in real estate with very little upfront investment.
|Streitwise Is Better For:||Fundrise Is Better For:|
|Non-Accredited Investors||Accredited Investors|
|Medium Risk Tolerance||High-Risk Tolerance|
|Low Holding Period||Low Minimum Investment|
|Real Estate Insurance Trusts||Wide Range Of Property Selection|
|High Dividend Returns||Low Fees|
|Redemption Options||Traditional / Self-Directed IRAs|
|Knowledgeable Investors||Novice Investors|
These platforms offer their users a wide variety of investment options such as commercial property, REITs, residential properties, and vacation rentals.
Previously investing in the type of real estate offered by these platforms was only available to the ultra wealthy.
Now, the average Joe can get started for as little as $10.
Let us look at some comparisons:
|Minimum Investment||500 Shares At NAV, Currently $4,835||$10|
|Real Estate Assets||Private REITs, Commercial Real Estate Properties, Residential Properties||Commercial Properties, Apartment Complexes, Real Estate Investment Trusts|
|Horizon Considered||1-5 Years||5+ Years|
|Fees||2% Annual Management Fee||0.15% - 0.85% Annual Management Fee|
|Best Use||Short / Long-Term Investments||Long-Term Investments|
|Modest Money Overall Rating|
Streitwise VS Fundrise: Determining Factors?
Each real estate investing platform has its own unique investment approach. These approaches include things like the way they choose investments, their view on risk, and their opinion of the market.
The following determining factors should be considered when deciding on which platform is best for you.
Factor 1: Investment Strategy
Streitwise is a popular Fundrise competitor and both offer similar real estate investment strategies.
Although similar, they each have their own unique features.
Fundrise Is Preferable To Streitwise
- Fundrise is designed to be completely passive
- Fundrise offers a more diverse portfolio
Streitwise: Investment Strategy
Streitwise currently only offers one REIT which purchases commercial real estate properties.
They use a four-pronged strategy to purchase and maintain a commercial real estate portfolio occupied by reliable tenants that generate consistent income.
Streitwise looks for assets in prime locations that are close to services, easy to get to, and a history of well-established businesses.
They focus mainly on high-quality, non-gateway markets. These are often more expensive to acquire but have significantly higher capital gains.
Their current product has a loan-to-cost rate of 50%. As a whole, this investing strategy is proving very successful.
You can learn more about Streitwise here.
Fundrise: Investment Strategy
Through its portfolio of properties across the US, Fundrise offers both debt and equity investments. These portfolios are then split into categories of growth, or income based.
Occasionally, Fundrise will feature a blend of both.
Often though, the $10 minimum investment still leaves newcomers wondering if Fundrise is legit.
Of course it is!
The platform is designed to be 100% completely passive for investors and has averaged returns ranging from 5-22% per year.
Investors have a choice of four investment strategies (Fixed Income, Core Plus, Value Add, And Opportunistic). Every “Fundrise Strategy” has a separate array of unique properties and diversified portfolios.
Fundrise focuses on making regular returns from investments rather than looking for a home run.
Factor 2: Investment Minimums
Before investing in the real estate space, investors should know that every platform has varying minimum investment requirements.
These can be a make-or-break deal for some, and investors should always pay attention to these before committing to a real estate investing platform.
Fundrise Is Preferable To Streitwise
- It’s hard to beat a $10 minimum investment
- Accredited and unaccredited investors can both invest in Fundrise.
Fundrise: Investment Minimums
Investors can create a Fundrise Portfolio for just $10 and have access to various US real estate properties for this price.
You can read a full in-depth review of Fundrise here.
Streitwise: Investment Minimums
The investment minimum for Streitwise is 500 shares, which is about $5,000 at the current NAV price. Depending on changes in share price, the minimum investment required can alter every quarter.
After the initial purchase of 500 shares, investors can raise their shareholdings. Streitwise require a minimum of $500 increments for that.
Factor 3: Historical Performance
A platform’s track record is always a consideration when choosing the best platform for you.
Let’s look at how Fundrise and Streitwise’s prior results stack up.
Streitwise: Historical Performance
Since its launch in 2017, Streitwise equity REIT has delivered 22 consecutive quarters of annualized returns between 9.1%.
Not bad right?
Streitwise has a strong focus on delivering passive income for their users. If you’ve always wanted to get into real estate and start generating a passive income then get started with Streitwise today here.
Learn More About Streitwise
Fundrise: Historical Performance
On average, from 2017 through 2022, the yearly returns on Fundrise were between 5%-23%, which means a 10 percent gain is considered typical.
An account may see annual income valued at a rough 21% return after two years.
That could then potentially be followed by returns of 34.5% after three years, 49.6% after four years, 60.5% after five years, and a remarkable 86.1% after six.
And, it’s all passive.
Learn More About Fundrise
Streitwise vs. Fundrise: The Bottom Line
It’s a tough one to call as both are good real estate investing platforms for generating rental income.
Fundrise does offer a broader range of real estate projects that produce income and capital appreciation, with a lower investment minimum. Their website and mobile app is also better and more user-friendly than Streitwise.
Streitwise is different because investors have more control of their money invested in the firm. In addition to maintaining solid investment strategies, they own and operate all of their properties.
Depending on the way you like to invest, Streitwise could be a better option. Either way, both are a great choice.