With the rapid growth of online real estate investing, more and more people are considering private property investments. There are a lot of options out there, fundrise or realty mogul. But which one is best?
Fundrise and Realty Mogul is the two biggest name you really need to know in investment crowdfunding. Fundrise, founded in 2012, has been around since the beginning of this movement. In 2015 it became the first online investment platform to offer commercial real estate opportunities to retail investors. On the other hand, Realty Mogul was founded in 2009 by two successful entrepreneurs who wanted to make real estate investing accessible to everyone. It’s a little older company but has seen much faster growth in recent years due in part to its partnerships with institutional investors like Fidelity Investments and JPMorgan Chase.
With these two giants going head-to-head, you have to ask yourself: Which one do you choose?
What is Fundrise?
Fundrise is a crowdfunding platform for commercial real estate. It helps investors in the U.S. invest in any property that is offered publicly by a large national or international owner, such as hospitals, malls, hotels, and office buildings. Investors can then receive monthly payments from their investments while they own them.
It’s easy to get started with Fundrise because it has an intuitive interface and straightforward instructions on how to invest. If you’re interested in investing in commercial real estate but don’t know where to start, Fundrise is a great place to look!
What is Realty Mogul?
Realty Mogul is a web and mobile app that has been around since 2009. It allows users to connect with experienced real estate investors and brokers in their area, build an investment portfolio, and utilize industry-leading technology to analyze properties.
One of the most notable aspects of Realty Mogul is its partnerships with institutional investors like Fidelity Investments and JPMorgan Chase. This means that if you invest in one of Realty Mogul’s funds, your money can be used for commercial real estate investments like Fundrise’s offerings. In fact, one of Realty Mogul’s models is on-the-ground tours to help investors decide which properties are worth investing in!
Another big differentiator between the two companies is how they market their products. Fundrise is exclusively online while Realty Mogul has both online and mobile apps. In addition to these differences, the two companies also offer some pretty different services: Fundrise lets you invest in just one property while Realty Mogul offers a variety of ways to invest in multiple properties at once or through a single fund.
Why did Fundrise get a head start?
There are a few reasons that Fundrise is ahead of the competition. First, it has been around since 2012, giving it years to build up its infrastructure. On top of this, it receives over 6 million visitors and 550,000 new investors per year, which gives them a huge audience to work with.
Second, it has an investor-friendly platform. It’s easy to use and set up; their team provides support 24/7; and there are no hidden fees or surprises in their contracts. Third, they offer access to real estate opportunities across the United States as well as leveraged loans for those who can’t afford full equity investments. All in all, Fundrise offers more investor-friendly features than Realty Mogul and is still growing rapidly.
If you’re looking to invest in property through crowdfunding but want to avoid the risks of investing at a smaller company that may not survive the next few years (like Realty Mogul), then you should consider investing with Fundrise.
How about Realty Mogul?
Realty Mogul is a newcomer on the market and typically has lower fees. But, it has been around for a long time, so there’s more information available about it in comparison to Fundrise.
This company also has a unique business model that allows investors to contribute funds through their brokerage accounts. It means you don’t have to be an accredited investor in order to invest with Realty Mogul.
In addition, Realty Mogul offers the ability to invest in real estate from anywhere in the United States. You can even invest while on vacation!
However, it’s important to note that Realty Mogul doesn’t provide any tax advantages over Fundrise because both companies are based out of states without an income tax requirement. So if you live in a state like New York with high taxes and capital gains rates, you might want to consider investing with Fundrise instead of Realty Mogul.
Who’s the winner of this battle?
Fundrise is the winner.
Fundrise has been around a lot longer than Realty Mogul and has had more time to refine its product. It also offers more investment options with an increased focus on commercial real estate, which is an attractive option for most investors. The company also offers more transparency and information about your investments, which some people value in their investment choices.
The other thing investors like about Fundrise’s platform is that it doesn’t charge transaction fees as Realty Mogul does. This means you don’t have to pay extra fees on top of your purchase price when you invest in Fundrise’s private property opportunities. While this might not seem important to some people, it still can be a deciding factor for others who want as little hassle as possible when investing online.
Ultimately, there are many factors to consider when choosing between these two companies—some of which might not matter to you personally, but other factors could make one platform stand out over another for your particular needs.
Advantages of Fundrise
When it comes to Fundrise, you’ll find a lot of perks.
Fundrise is the first online investment platform to offer commercial real estate opportunities to retail investors. It’s also one of the only platforms that allow for so-called “non-accredited” investors—that means if your company has $500,000 or less in assets, you can still invest. That doesn’t mean your investments will be limited to just $500K, though. They have a minimum investor contribution of only $5K.
Another perk is Fundrise’s low fees—only 0.25% of your investment goes toward management and 3% is used for marketing expenses.
If you’re looking for an easy way to diversify your portfolio with commercial real estate investments without worrying about the high cost of hiring a broker or dealing with financial advisors, then Fundrise may be right for you.
Advantages of Realty Mogul over Fundrise
Fundrise is a younger company, founded in 2012. Realty Mogul, founded in 2009, has more experience in the industry. Realty Mogul also has more expertise in institutional partnerships, like those with Fidelity Investments and JPMorgan Chase. This means that it will have a greater potential for long-term success.
There’s also the question of pricing: Fundrise offers commercial property investments at an affordable rate of $600 per property while Realty Mogul charges higher rates of $3,500 per property. The bigger disadvantage to this is that Realty Mogul attracts a more sophisticated audience that may be harder to please than Fundrise’s crowd.
In terms of customer service, Realty Mogul does not offer as much customer support as Fundrise does which might make it less appealing for beginners who want instant help.
Disadvantages of Fundrise
Fundrise is the smaller of the two companies. It’s been around for about three years, whereas Realty Mogul has been around for nine years.
Additionally, Fundrise has a limited number of investments on offer at any given time. This also means that you have to put a lot more time and effort into finding the right investment.
While this company is still growing, it might be more difficult to get started with Fundrise than it is with Realty Mogul.
Disadvantages of Realty Mogul
There are a few disadvantages of Realty Mogul that you should be aware of before you make your decision.
For one, Realty Mogul doesn’t offer the same amount of investment opportunities as Fundrise does. It offers only several private real estate deals rather than a broad range. Additionally, it has stricter requirements for investing in its platform due to regulations and security issues.
Another disadvantage is that Realty Mogul hasn’t been around quite as long as Fundrise. This means there aren’t as many investors to choose from on the platform and there’s less competition in general.
Finally, Realty Mogul limits the number of investments you can make per quarter to $250,000. That’s not much compared to Fundrise which allows for up to $1 million dollars per quarter.
In this piece, we have compared and contrasted the two leading real estate investment crowdfunding platforms: Fundrise and Realty Mogul. We have also explored some of their strengths and weaknesses. Kindly do your own part by making diligent research in order to know which one is best for you.