RealtyMogul vs. Fundrise
Before investing money in any platform, consider the fees, account types, and other features. Here’s how RealtyMogul and Fundrise compare.
Minimum investment | $5,000 for a REIT
$25,000+ for individual properties |
$10 |
Management fees | Will vary depending on the REIT; a 1.0% to 1.25% asset management fee is common | 0.15% annual advisor fee
+ 0.85% annual asset management fee |
Asset classes | REITs and individual properties | Managed portfolio of individual properties |
Account types available |
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Features |
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Distributions | IncomeREIT offers a 6.00% annual distribution paid monthly
Growth REIT offers a 4.5% annual distribution paid quarterly |
Some portfolios generate dividends quarterly |
Best for... | Accredited investors with at least $5,000 to invest | Beginners looking for a managed real estate option |
Visit RealtyMogul | Visit Fundrise
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When to choose RealtyMogul
You want the most control over your investments
RealtyMogul allows you to invest independently; it just provides the options. That means you’ll get to customize your portfolio, choosing only the investments that interest you and fit your risk profile. You will need a minimum of $25,000 to invest in individual properties or $5,000 for an REIT. You must be an accredited investor to invest in private properties, though.
You want to invest in individual properties
Real estate companies or “sponsors” as RealtyMogul calls them, lists individual properties on the RealtyMogul platform that RealtyMogul’s affiliated broker-dealer, RM Securities, fully vets, giving investors the opportunity to invest in them. Some property types include:
- Office buildings
- Apartment buildings
- Retail
- Industrial
- Mixed-use
These investments are typically reserved for institutional investors, but RealtyMogul offers opportunities for private placement and 1031 exchanges for accredited investors.
You have more experience investing in real estate
RealtyMogul offers the option to choose individual properties, but you should have extensive experience in doing your due diligence on vetting properties, and not just relying on the RealtyMogul process. But if you have experience, it’s a nice way to diversify your portfolio further than an automated system might.
To learn more about RealtyMogul’s offerings, read our full RealtyMogul review.
When to choose Fundrise
You’re not an accredited investor
Fundrise is open to any investors over the age of 18 with a valid Social Security number. This opens the door to many more investors, especially because they only require a $10 investment. If you don’t have a lot saved or available for investing, but want to give it a try, Fundrise offers the opportunity.
You’re looking for a long-term investment
Most of the Fundrise funds require a 5+ year holding period, so if you’re looking for somewhere to invest your money and leave it untouched for a long time, this can be a good option. While the funds offer some liquidity, there may be penalty fees and liquidation is only available at the end of each quarter since the goal is to keep the funds invested long term.
You’d want options in your investment plans
Fundrise doesn’t have a one-size-fits-all investment plan. Instead, you can choose from one of four options to meet your investment goals:
- Supplemental income plan: This plan pays quarterly dividends and focuses on capital for real estate developers.
- Long-term growth: Rather than dividends, this plan focuses on property appreciation, which means investors wait longer for payouts, but may see higher returns.
- Balanced investing plan: This plan is a combination of the supplemental and long-term growth plans, giving investors the best of both worlds.
- Venture capital plan: This plan is somewhat riskier and invests in top-tier technology companies before they IPO. Payouts are mostly focused on appreciation, not dividends.
To learn more about Fundrise’s offerings, read our full Fundrise review.
Key differences
Understanding the key differences between RealtyMogul vs. Fundrise can help you determine which is best for you:
Minimum investment requirements
Fundrise has substantially lower minimum requirements, depending on the plan you choose. It even has a low minimum investment starter option that requires just $10. RealtyMogul, on the other hand, has a $5,000 initial investment minimum for REITs and a $25,000+ minimum for individual properties.
Independent investing choices vs. managed private real estate
RealtyMogul allows investors to hand-pick the properties they want to invest in. Fundrise, on the other hand, puts together an investment portfolio for you based on your goals and risk tolerance. Both of these are good options; it’s simply up to how you prefer to organize your portfolio.
Accredited vs. non-accredited investor options
Non-accredited investors have options on both platforms, but many more options on Fundrise vs. RealtyMogul. Although you can invest in REITs through RealtyMogul without being accredited, to invest in individual properties, you must be accredited. Fundrise doesn’t require investors to be accredited.
Plan options
Fundrise offers four different plans depending on the features you want and the minimum amount you want to invest. With this structure, you can grow as your investments start to grow and get services that better your investing experience. RealtyMogul focuses on offering specific investment options rather than plans, which may be preferable if you prefer more control over your investments.
Mobile apps
Fundrise offers an easy-to-use app so you can see how your investments are performing. RealtyMogul doesn’t yet have an app, so you must be comfortable doing everything on your desktop.
FAQs
What are the differences between Fundrise and ReatlyMogul?
Fundrise and RealtyMogul differ mostly in their investor requirements. To invest in individual properties through RealtyMogul, you must be an accredited investor, whereas you won’t need to be if you go through Fundrise. That being said, with RealtyMogul you get to choose the properties you invest in, whereas Fundrise creates a portfolio for you.
Is Fundrise a scam?
Fundrise is not a scam. Fundrise is a registered LLC and is accredited by the Better Business Bureau and scores a Better Business Bureau rating of A+.
Can you get rich from Fundrise?
There’s no guarantee that you’ll get rich if you do choose to invest with Fundrise. Nor is it likely that you’ll ever get rich quick from any one investment. Gaining wealth from investing often takes years of dedication and consistent contributions.
Fundrise has shown impressive returns over the years, with many of its clients seeing a return of over 40.5% after five years, but this is not indicative of what you may earn.
Bottom line
When it comes to Fundrise vs. RealtyMogul, it all depends on the experience you’re looking for. Overall, they both have a lot to offer potential real estate investors. New investors looking for a beginner-friendly experience will likely prefer Fundrise, which doesn’t require high minimum investments and also doesn’t require their investors to be accredited.
For more advanced investors, RealtyMogul provides an easy way to browse real estate options and it also offers REITs for those looking for a more low-key option. With RealtyMogul, however, you will need a more sizable minimum investment.
Both options have relatively low liquidity compared to stocks and other investments, which is something to keep in mind as you do your due diligence. That means you may pay a penalty if you choose to redeem or sell back your shares to the real estate platform.
As always, take the time to learn how to invest in real estate before diving into these real estate crowdfunding platforms, and keep in mind that, like the stock market, there are no guarantees when it comes to real estate investing. But one of these platforms could be a way to diversify your portfolio when you’re ready to expand beyond mutual funds and other more traditional investments.