Fundrise vs. RealtyMogul: Which is the Better Platform?

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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. RealtyMogul will help you to choose the most suitable REIT platform for your needs.

Who Can Invest:
Any investor
Who Can Invest:
Accredited investors
Availability:
All 50 states
Availability:
All 50 states
Minimum investment:
$10
Minimum investment:
$5,000
Management fee:
0.15% annual advisor fee, 0.85% annual asset management fee
Management fee:
Dependent on REIT: Average of 1.0% to 1.25% asset management fee
Asset Classes:
Managed portfolio of individual properties
Asset Classes:
REITs and individual properties
Features:
  • 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
Features:
  • Customizable portfolios
  • Offers individual property listings and two REITs
  • 1031 exchange platform
Distributions:
Some portfolios generate dividends quarterly
Distributions:
IncomeREIT offers a 6.00% annual distribution paid monthly
Growth REIT offers a 4.5% annual distribution paid quarterly
Best for:
Beginners looking for a managed real estate option
Best for:
Accredited investors with at least $5,000 to invest
Who Can Invest:
Any investor
Availability:
All 50 states
Minimum investment:
$10
Management fee:
0.15% annual advisor fee, 0.85% annual asset management fee
Asset Classes:
Managed portfolio of individual properties
Features:
  • 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
Distributions:
Some portfolios generate dividends quarterly
Best for:
Beginners looking for a managed real estate option
Who Can Invest:
Accredited investors
Availability:
All 50 states
Minimum investment:
$5,000
Management fee:
Dependent on REIT: Average of 1.0% to 1.25% asset management fee
Asset Classes:
REITs and individual properties
Features:
  • Customizable portfolios
  • Offers individual property listings and two REITs
  • 1031 exchange platform
Distributions:
IncomeREIT offers a 6.00% annual distribution paid monthly
Growth REIT offers a 4.5% annual distribution paid quarterly
Best for:
Accredited investors with at least $5,000 to invest
  • Are you eager to invest in real estate?
  • Do you want the passive income of property investments without the hassle of managing every process step?
  • Are you looking for real estate deals for apartment complexes or other excellent portfolio options?

We’ve assembled this thorough overview of Fundrise vs. RealtyMogul—two of the best real estate investment trust (REIT) platforms—to give you the necessary tools to establish lucrative property investments.

Regardless of your specific investment goals or personal finance status, REITs are an easy and popular way to invest in real estate, and REITs collectively own over $4.5 trillion in gross real estate assets.

RealtyMogul, one of the highest-performing property investment platforms, has witnessed over $500 million in capital invested in real estate assets since its inception in 2013.

Although both services let you manage passive investments, several crucial differences between them—from investment opportunities to credit requirements—may influence your decision.

Use this guide to select the best platform for your investment needs and begin generating passive income as a viable illiquid alternative to the stock market.

Key Takeaways
  • Fundrise and RealtyMogul are crowd-funded real estate investment platforms that cater to different niches.
  • Fundrise is best for non-accredited investors, while RealtyMogul is best for accredited investors.
  • Fundrise automatically generates a portfolio based on your objectives, while RealtyMogul allows you to choose your own REITs and funds.
  • Fundrise typically offers low-cost investments with moderate returns, while RealtyMogul provides higher-cost investments with higher returns.

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.

Fundrise Pros & Cons

Pros
  • Invest with just $10
  • Hands-off real estate investing
  • Open to all investors
  • Easy-to-use platform
Cons
  • Taxed on dividend income
  • Illiquid investments
  • Charges an annual fee
Fundrise

Welcome to the future of real estate investing. For a limited time, invest and get $10 in shares*. It only takes a few minutes to get started.

We earn a commission when you open up a free account and deposit funds.

About RealtyMogul

RealtyMogul is a property investment platform that allows you to invest significant funds in real estate assets across the country.

The company funds commercial real estate, including apartment buildings, retail properties, office buildings, and industrial sites.

Commercial properties tend to require higher budgets but also generate higher returns for investors.

RealtyMogul investment focuses on commercial properties that are fully stable, located in Class A neighborhoods, and entail low risk.

As a real estate platform, RealtyMogul requires a minimum budget of $5,000 for REITs and $25,000 for individual assets.

RealtyMogul offers several features that other platforms do not, including customization, managed onboarding, and responsive, multi-channel customer service.

With RealtyMogul, you can choose your assets and customize your portfolio. For this reason, RealtyMogul may work best for those with some experience or accredited investors.

RealtyMogul Pros & Cons

Pros
  • Possibility for high returns
  • Pre-vetted investments
  • REIT buyback program
  • Experienced management team
Cons
  • High investment minimum
  • Illiquid investments
  • Must be an accredited investor
RealtyMogul

RealtyMogul gives investors access to commercial institutional-quality real estate opportunities with the potential to generate income.

We earn a commission when you open up a free account and deposit funds.

RealtyMogul vs. Fundrise: How Do They Compare?

Although RealtyMogul and Fundrise have managed property investment options, the two platforms differ in several essential aspects.

While Fundrise offers low minimum investments, RealtyMogul requires a higher initial investment. Additionally, RealtyMogul requires accreditation for select assets.

As a result, RealtyMogul generally caters to investors with heftier budgets and higher-than-average credit.

Moreover, while both platforms allow you to invest in REITs, RealtyMogul has more customization options and lets you self-select individual assets based on your needs and interests.

RealtyMogul also specializes in commercial investments, which tend to require higher budgets. For this reason, RealtyMogul may work better if you have some property-investing experience.

Lastly, although both maintain fully managed services, RealtyMogul has a more responsive customer service team and additional avenues of communication for investors.

Which Platform Should You Choose?

Ultimately, both Fundrise and RealtyMogul 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 customize your portfolio and get greater returns, consider RealtyMogul.

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 RealtyMogul 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 RealtyMogul if:

RealtyMogul is most appropriate for accredited investors and high-net worth investors. Opt for RealtyMogul if:

  • You have a more significant investment budget since the platform requires a minimum investment of $5,000.
  • You have the time and expertise to self-select funds and properties.
  • You need responsive and high-quality customer service.

FAQs

Are you still undecided? Have a look at the answers to our most frequently asked questions.

What is the difference between Fundrise and RealtyMogul?

Fundrise facilitates investments for non-accredited, low-budget investors, while RealtyMogul caters to experienced moderate/high-budget investors.

What are eREITs and eFunds?

eREITs and eFunds are just proprietary names for REITs and funds owned by Fundrise. These give investors the opportunity to leverage real estate crowdfunding platforms.

How does Fundrise work?

Fundrise allows users to choose an investment objective and strategy and assembles a fully managed portfolio. Users can track metrics and make certain adjustments on the platform.

How does RealtyMogul work?

When it comes to a Fundrise vs. RealtyMogul working comparison, the latter platform requires a more extended set-up and verification process.

Once you start, you can self-select REITs and funds to diversify your portfolio.

Fundrise

Welcome to the future of real estate investing. For a limited time, invest and get $10 in shares*. It only takes a few minutes to get started.

We earn a commission when you open up a free account and deposit funds.

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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