Fundrise vs. CrowdStreet vs. Yieldstreet

Are all real estate investing platforms the same? Definitely not. There may be quite a few platforms to choose from to help craft your real estate portfolio, but they vary. They have different opportunities, target multiple types of investors and vary in minimum required investments.

If you’ve done research into investing platforms, you’ve probably seen the names Fundrise, Crowdstreet and Yieldstreet. These three platforms are some of the most popular. So which is best for you? Compare Fundrise vs. CrowdStreet vs. Yieldstreet to see the pros and cons of each platform.

What is Fundrise?

Fundrise is an online investing platform that makes real estate accessible to various investors. It focuses on real estate eFunds and eREITs and helps investors create a diversified real estate portfolio. And with a low $10 investment minimum, investors of all financial situations can join. No accreditation is needed.

Fundrise is also great for beginner and passive investors. Users don’t need to choose their investments. They answer a few questions upon creating their account to help Fundrise determine their investment strategy and then fund their account. Fundrise will then use the funds to create a portfolio that suits the investor’s strategy.

Though Fundrise has a low investment minimum, it’s important to note that the amount in the account determines what investment users can access. Fundrise uses a tier system, and each tier comes with its features and access to different investments. Investors will need to be at the Core tier and have $5,000 in their account to access eREITs. If investors have less than that in their account, they can only access the eREITs. The tiers are:

• Starter: $10 minimum
• Basic: $1,000 minimum
• Core: $5,000 minimum
• Advanced: $10,000 minimum
• Premium: $100,000 minimum

Who is Fundrise Best for?

Fundrise is best for beginner and passive investors. The low investment minimums make it accessible for a variety of investors to get started crafting a real estate portfolio. 

Pros

• Low investment minimum
• 1% annual fee
• Easy-to-use
• Has a mobile app

Cons

• Must have $5,000 invested to access eREITs
• Not very liquid

What is CrowdStreet?

CrowdStreet is tailored toward experienced investors and connects them to exciting crowdfunding opportunities. Once investors have an account, they can browse the CrowdStreet marketplace, which lists various real estate projects. CrowdStreet investors can invest in residential properties, apartment buildings, commercial properties and more.

CrowdStreet is for accredited investors only. To reach accredited investor status, you must have over $1 million in net worth or an income over $200,000 individually or $300,000 with a spouse. Additionally, most investments on the CrowdStreet platform require a minimum investment of at least $25,000. 

Most crowdfunding opportunities on CrowdStreet have a three to 10-year investment timeline, and there are few options for an early exit. So only investors looking to invest in the long-term should consider CrowdStreet. CrowdStreet also does not charge any fees to set up an account, but investment sponsors may charge fees for access to an investment.

Who is CrowdStreet Best for?

Accredited investors with $25,000 or more to invest in real estate may enjoy the opportunities listed on CrowdStreet.

Pros

• Offers a variety of real estate investments
• History of strong returns
• Easy-to-use platform

Cons

• Accredited investors only
• High investment minimums
• No mobile app

What is Yieldstreet?

Yieldstreet is an alternative investment platform that gives investors access to a variety of investment types. On the platform, investors can find opportunities to invest in real estate, private credit, short-term notes, art, crypto, private capital and more. This is great for investors who don’t just want to invest in real estate but diversify their portfolio into a variety of alternatives.

Yieldstreet is not exclusively for accredited investors. Nonaccredited investors can also join the platform and have access to a variety of investments, but they won’t be able to access a majority of the investments. It also has a fairly high minimum investment requirement, with most investments requiring at least $10,000 to participate. 

Fees are determined by investment and can range from 0%-2.5%. Each investment also has its own terms. Some investments are only for a few months while others are for several years. Plus, all the investments listed on the platform are very carefully vetted, so investors can feel secure in their investment decisions.

Who is Yieldstreet Best for?

Yieldstreet is best for accredited investors and investors over $10,000 looking to diversify their alternative holdings.

Pros

• A variety of alternative investments
• Available to non-accredited investors 
• Has a mobile app

Cons

• Most offerings are only for accredited investors 
• High minimum investment requirements

Comparing Real Estate Crowdfunding Platforms

Comparing how Fundrise vs. CrowdStreet vs. Yieldstreet compares their pricing, investment options, investment requirements and other categories may help you choose the platform that will best help you achieve your goals.

Investment Options

All three platforms offer real estate investments, but they vary in vehicle. Fundrise only offers real estate eFunds and eREITs, and the REITs require $5,000 invested. These vehicles are great for beginner investors and investors with low risk tolerance but may not satisfy others. CrowdStreet offers a variety of real estate investments with varying risks, but only accredited investors can access them. 

Yieldstreet has the widest scope of investment options, with opportunities not just in real estate but a variety of alternatives. Nonaccredited investors have access to some of these carefully selected investments, but most are reserved for accredited investors.

Platform Fees and Costs

Fundrise is the most accessible platform, with a minimum investment requirement of only $10. However, it is important to note that investors with less than $5,000 invested won’t have access to the eREITs. It charges a 1% annual fee, though other fees, such as withdrawal fees, may be charged. 

The cost structure of CrowdStreet and Yieldstreet are a little different. CrowdStreet does not charge fees to create an account, but individual investment opportunities may charge fees between 0%-2.5%. The investments also require a $25,000 minimum investment. YieldStreet charges a 1% annual management fee and a 0.5% annual administrative fee. Specific investments may also charge annual fees. The minimum investment requirement for this platform is $10,000.

User Experience and Customer Support

All three of these platforms have great reviews and an easy-to-use platform. Creating an account with any of these platforms is simple and only requires answering a few questions about your investment strategy and personal information. CrowdStreet and Yieldstreet will also ask you to confirm your status as an accredited investor. Fundrise and Yieldstreet both have great mobile apps, but CrowdStreet only has an online platform. 

Yieldstreet also has stellar customer support, with the option to send an email, chat with a customer service representative or read one of their many articles. CrowdStreet also has a large library of resources, but no chat option. Investors can fill out the “Ask a Question” form. Fundrise also only has a form that can be found under the “Contact Us” tab.

Regulation and Security

Yieldstreet lists the extensive security measures they take to protect their investors, such as:

• Two-factor authentication
• Use of AI to detect and prevent account takeovers
• Data in transit is encrypted with a minimum of 128-bit encryption and data at rest is encrypted with FIPS-140-2.

However, it’s important to note that Yieldstreet was charged by the SEC in September 2023 for misleading investors.

Fundrise advertises bank-level security and encrypts user information with an AES bit symmetric key. CrowdStreet does not list its security measures but claims user information is secured by its information security program. All three platforms are regulated by the SEC.

Which Real Estate Investing Platform is Best?

It can be hard to choose between the variety of real estate investing platforms out there. However, comparing Fundrise vs. CrowdStreet vs. Yieldstreet can help investors identify which platform will best suit their needs, accreditation status and goals. For example, Fundrise may be best for beginner investors who don’t have thousands of dollars to put into their portfolio, but CrowdStreet or Yieldstreet may be better for accredited investors. Review your portfolio and finances, and determine which platform best suits your unique needs.

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