Yieldstreet vs Fundrise
With investors experiencing high volatility in the markets, some are now looking for alternative avenues to invest their money. Examples of alternative investments include REITs, unique artwork, and precious metals.
Both Yieldstreet and Fundrise provide a quick and easy way to start investing in real estate and alternative avenues with little to no experience.
If you’re searching for a platform to make alternative investments with minimal investment then read on.
|Yieldstreet is Better for:||Fundrise is Better for:|
|Seasoned investors making over $200,000 a year||Passive investors and novice investors who make less than $200,000 a year|
|Investors aiming to expand beyond equities and bonds in their portfolio||Investors seeking an inexpensive way to get started in real estate investing|
|Asset-based investment||Flexible investment options|
|Short term investment||Long term investment|
|Moderate Risk Tolerance||Higher Risk Tolerance|
So, how do you choose which one is right for you?
Let’s take a closer look at Yieldstreet vs Fundrise and compare some core features that will help you decide for yourself.
Let’s look at some comparisons:
|Minimum Investment||$2,500 / Growth & Income REIT $5,000||$10, Starter Plan|
|Available Assets>||Real Estate Properties, Legal Finance, and Asset-Based Investments||REITs (Real Estate Investment Trusts) and proprietary funds|
|Fees||1% – 4% Annual Management Fee||1% total|
|Current Promotion||More Info||More Info|
|Modest Money Overall Rating|
Yieldstreet Vs. Fundrise: Determining Factors?
When people look at Fundrise competitors they are usually looking at three main determining factors.
These are investing styles, expected returns, and price. An investor is able to decide if a platform like Fundrise is legit or not quickly based on these three factors.
Here’s how Yieldstreet vs Fundrise compare below.
Factor 1: Investing Styles
Both Yieldstreet and Fundrise platforms offer affordable ways for the “ordinary person” to make passive income or invest for long-term development.
Crowdfunded platforms are now very popular which means individual investors have options. It would be best if you determined which platform is best for you based on your objectives and budget.
Yieldstreet Investment Style Is Preferable To Fundrise If You Like
- A Diversified portfolio other than real estate
- An Easy-to-use platform
- A High potential return and income
- Are a well-established investor with lots of cash
Yieldstreet Investing Style
Yieldstreet provides its users with curated investment opportunities in alternative investments such as commercial real estate, marine investments, and artwork.
By partnering with diverse companies, Yieldstreet gives you the power to build your own portfolio of custom products and services.
These alternative types of investments were previously only accessible to institutions and the wealthy.
Yieldstreet does mainly target investors who have a six-figure portfolio and would like to diversify beyond what an ordinary brokerage can offer.
Fundrise Investing Style
Fundrise makes it easy and affordable for investors to buy into real estate without having to spend a lot of money upfront.
In fact you can get started with as little as $10.
All you need to do is choose your desired portfolio management approach. After that, the Fundrise team will manage your investment portfolio.
That’s it, you’re done. Sit back and let Fundrise continue to look for and buy new assets for your diversified portfolios.
Factor 2: Cost
The cost of any service is usually the first thing investors look at. Here’s how these two stack up against each other.
Fundrise 1% Fee Structure Is Lower Than Yieldstreet’s Potential 4%
Fundrise charges a 1% annual fee for most of its users. A portion of that fee goes towards:
- Ongoing project management
- Dividend performance reporting, reinvesting, and distribution
- Customer support and relations
Yieldstreet’s yearly management fee can range anywhere from 0% up to 2.5% on average and also offer the possibility of investing with flat annual fees.
These are detailed on their website and differ between the products offered.
Investors may also be required to pay annual fund fees, depending on the legal structure of the offering.
Fundrise charges a 1% annual fee on users’ accounts with an additional fee structure depending on what happens with your investment.
- When Fundrise acquires a new asset, it charges an origination fee ranging from 0 to 2% of the purchase price.
- In the first five years after investing, shares redeemed early are subject to an early redemption fee of one percent.
- IRA self-direction fees: $125 a year to Millennium Trust Company
Factor 3: Performance
It’s a good idea to check the past performance of any investment platform before investing any cash.
Here is what you can expect when investing in Yieldstreet or Fundrise:
Yieldstreet anticipates returns ranging from 8% to 20%. They turn down more than 90% of the proposals brought to the platform which allows them to maintain and claim such high levels of returns.
Yieldstreet’s service provides substantial returns but you’re not guaranteed success.
Fundrise has an average cumulative net return rate of 60.4%. Between the years 2017 and 2021, its average annual return rates varied between 7.3% and 22.9%
These figures assume that you reinvest any dividends from Fundrise back into Fundrise.
Yieldstreet vs. Fundrise: The Bottom Line
Yieldstreet and Fundrise are very unique in their own rights. Picking one based on your investment strategy and experience is your best bet.
If you’re an Accredited Investor or if you want access to a broader range of investments, Yieldstreet is right for you.
You’ll be better off going with Fundrise if you’re looking for an investment strategy that allows you to “set it and forget it,” in addition to having lower fees.