Real estate crowdfunding has been a popular investment option for many people over the years. There are more applications and services being added to the list every month. Our goal is to bring you the most honest, simple, and informative reviews. Turns out, users also want to compare specific applications.
This review compares Groundfloor and Fundrise . The better service depends on your needs. Let's dive in!
According to our readers (you!), when it comes to real estate crowdfunding, people
care most about the minimum investment required, whether they need to be an
accredited investor, and whether or not the software has support private reits.
Let's look at how Groundfloor and Fundrise stack up
against each other on these threads.
To start, we will consider the minimum investment required for both applications. In other words, how much does one need to invest to use the service? Out of the two, Groundfloor minimum investment of $10 is smaller than the deposit of required by Fundrise.
Being an accredited investor is often required from real estate crowdfunding
However, for Groundfloor and Fundrise being an accredited investor is not a requirement. This means anyone can invest, as long as they invest the minimum amount required.
When it comes to having support for private REITs, there is a clear division between Groundfloor and Fundrise. Fundrise does have support for private REITs, while Groundfloor does not.
|Review||Groundfloor Review||Fundrise Review|
Overall rating as by Investor Junkie.Rating
|Commissions & Fees|
|Ease of Use|
|Amount of Deals|
|Promotions||None||Open an Account|
|Account Fees||No Fees for Investors||1%/year|
|Investment Length||3 - 12/months||N/A|
|Regions Served||8 states plus Washington, D.C.||50 States|
|Self Directed IRA|
|Sign Up||Sign Up|
Groundfloor is a real estate lending marketplace created for non-accredited and accredited investors. Specializing in lending for single-family or small multi-family home rehab and renovation loans, Groundfloor provides access to short-term, high-yield returns with a minimum investment of as little as $10. Typical loans return 6%–14% annually on a six- to 12-month term.
Invest online in commercial real estate via eREITs and eFunds. Gain access to real estate deals without the high dollar commitment typically needed, without being an accredited investor and without paying the high front-end load fees. However, since its investments are illiquid, publicly traded real estate investments might be a better option.