I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.
This guide to Fundrise vs. Groundfloor will help you to choose the most suitable real estate investing platform for your needs.
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Who Can Invest:
Any investor
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Who Can Invest:
Any investor
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Availability:
All 50 states
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Availability:
All 50 states
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Minimum investment:
$10
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Minimum investment:
$10
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Management fee:
0.15% annual advisor fee, 0.85% annual asset management fee
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Management fee:
None
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Asset Classes:
Managed portfolio of individual properties
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Asset Classes:
Debt investment for Fix and Flip projects
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Account Types Available:
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Account Types Available:
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Features:
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Features:
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Distributions:
Some portfolios generate dividends quarterly
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Distributions:
N/A
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Best for:
Beginners looking for a managed real estate option
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Best for:
Fix-and-flip investors
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- Individual
- Joint
- Trust
- IRAs
- Business
- Variety of plans with minimum investments ranging from $10 to $100,000
- Mobile app that has an in-app newsfeed so you can stay up-to-date
- IRAs
- Individual
- IRAs
- Automatic investing option
- Invest in collateralized real estate debt
About Fundrise
Fundrise is a real estate investment platform that allows you to purchase private REIT shares, track your investment’s performance, and reinvest dividends according to your preference.
To that end, Fundrise identifies, buys, and manages platform users’ properties, maximizing long-term investment returns.
The company automatically allocates your balance across different funds based on your personalized goals. The platform is accessible, easy to use, and boasts low credit and investment requirements.
Additionally, the company prioritizes accessibility and transparency, ensuring that information is readily available on its website.
Fundrise intends to provide quality investment opportunities to the average U.S. citizen, and the platform’s user-friendly interface and wealth of information cater to both new and experienced investors.
Welcome to the future of real estate investing. Build a portfolio of private assets like real estate, private credit, and venture capital.
About Groundfloor
With the 2008 housing crisis putting a new perspective on real estate debt, Brian Dally and Nick Bhargava founded Groundfloor in 2013 with the idea that non-accredited investors should be able to build wealth through debt investments.
In this regard, Groundfloor offers the lowest minimum investment terms of all the real estate crowdfunding platforms, in addition to a savings app with returns backed by real estate projects.
Investing in real estate debt instead of equity offers lower risk. Groundfloor exclusively deals with short-term real estate debt investment.
Investing short term puts the average investor obligation at just six to twelve months. The core values of the Groundfloor platform are evident in its partnering with the affordable housing-oriented entity PadSplit to actively reduce metropolitan gentrification.
The main focus of this initiative is the founder’s home city of Atlanta, Georgia.
Groundfloor is a new financial tool for retail investors. They open the door to short-term, high-yield returns backed by real estate.
Which Platform Should You Choose?
Ultimately, both Fundrise and Groundfloor deliver unique features and services for different prospective investors.
If you’re just starting out, Fundrise may be the best option. If you want to invest in short-term real estate debt, then Groundfloor is the better option for you.
If you’re still undecided, check out the criteria below for each platform. You can also read customer reviews on both companies’ websites or user testimonials on third-party websites.
Choose Fundrise if:
Fundrise is best for non-accredited investors and beginners. Choose the Fundrise competitor if:
- You have a small budget since the platform requires an initial investment of only $10.
- You want a fully automated, managed service, as Fundrise selects assets for you.
- You are new to property investing or require a more hands-off service.
Choose Groundfloor if:
Groundfloor is most appropriate for investors looking to invest in short-term real estate debt. Opt for Groundfloor if:
- You have a small budget since the platform requires an initial investment of only $10.
- Investors looking for access to short-term high yield investments.
- Investors that want to generate consistent cash flow.
I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.
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