DiversyFund vs. Fundrise • Which Real Estate Investing Platform is Better? • Benzinga
Want to jump straight to the best? Diversyfund is definitely the best real estate investing platform for most people.
Both DiversyFund and Fundrise are real estate crowdfunding platforms that provide everyday investors with lower financial barriers to enter the real estate market and earn money through income-generating properties. However, the setup and functionality of each platform is a bit different. Learn more and decide which platform is right for your needs with our guide.
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Investment Options
Both DiversyFund and Fundrise are real estate investing platforms that provide investors with an easier and more accessible way to invest in the real estate market. DiversyFund describes itself as an alternative investing platform for the “everyday investor,” intending to help retail investors diversify their retirement accounts through growth-oriented real estate investment trust (REIT) investing.
A REIT is a unique type of investment that finances income-producing real estate investments. Most REITs operate in a fairly straightforward manner. The company that owns the REIT purchases residential or commercial spaces and rents them out to tenants. In exchange, the REIT then distributes a portion of the profits (at least 90% of taxable earnings) back to shareholders in the form of dividends.
DiversyFund operates a single public non-traded REIT open to every U.S.-based investor, regardless of accreditation status. The fund strategy for the DiversyFund Growth REIT is a value-added investment strategy that focuses on renting and maintaining multi-family real estate apartment complexes with a cycle of about 5 years. After the appreciation period closes, DiversyFund sells the property and distributes profits to investors based on their contribution amount.
DiversyFund invests in multiple real estate investment projects that can generate income and appreciate in value over time.
Fundrise operates in a similar manner. However, the Fundrise platform provides you with more control over the types of investments included in your portfolio. When you sign up for a Fundrise account, you’ll choose between 3 unique portfolios based on your personal risk tolerance. On 1 end of the spectrum is Fundrise’s income portfolio, which is primarily made up of stable investments that produce rental income over time. While these properties may not rise in value as drastically, they should produce predictable income over time, which can be beneficial for investors closer to retirement.
On the opposite end of the spectrum, Fundrise offers an appreciation-oriented portfolio option for investors who have more years left until they retire. These properties have more potential to increase in value over time but may not produce income for the first few years of ownership. Fundrise also offers a portfolio option that balances income-generation and appreciation potential.
Both platforms provide investors with an easy and less time-consuming way to profit from the real estate landscape. Instead of choosing individual stocks or real estate investment opportunities, you’ll only need to decide how much investment capital you want to put into your portfolio. DiversyFund and Fundrise will handle property selection, management and payouts on your behalf.
Customer Service Rating
To get in contact with DiversyFund’s customer service team, send a message to [email protected]. In addition to email support, the platform also maintains an extensive FAQ and an online chat bot to help you find quick answers to some of the most common customer questions you might have.
Fundrise offers a similar customer service contact structure. To speak with its customer service department, you’ll need to send an email using Fundrise’s messaging platform here. We recommend using the name and email associated with your existing Fundrise account for the fastest possible response from the platform’s team. In addition, you can also explore Fundrise’s FAQ, which has answers to some of the most common questions.
Overall, we rate both platforms’ customer service options 4 out of 5 stars, as this is the most common type of customer support you’ll see with similar real estate investing platforms. In the future, we’d love to see these platforms extend customer service options to include phone support.
Customer Pricing
Both DiversyFund and Fundrise have account minimums that you’ll need to meet when you open an account. DiversyFund requires a minimum initial deposit of $500, which the platform will then divide among investments according to your unique portfolio. Unlike some other real estate investing platforms, DiversyFund acts as both the developer and the platform provider, allowing it to eliminate management and broker fees. Development fees range from 2% to 8% depending on the individual investment.
Fundrise requires a minimum investment of $1,000 to open an account. Higher-value accounts have more access to diversified investment opportunities, which can be beneficial if you’re looking for more control over your investment strategy. To qualify for the highest level of diversification in your Fundrise account, you’ll need to have $100,000 in assets. Fundrise also charges advisory fees on its accounts, which vary by holding type and account level.
If you’re looking for a more affordable and straightforward way to invest in real estate, DiversyFund offers a low minimum account balance and fewer fees. We awarded DiversyFund 4 out of 5 stars for pricing and Fundrise 3.5 out of 5 stars.
Mobile App
Both DiversyFund and Fundrise offer straightforward, user-friendly mobile applications that mimic the functionality of the corresponding desktop platform. Some features that you’ll find with both DiversyFund and Fundrise’s platforms include the following.
- Balance tracking: Monitor the performance of your investments and your returns over time using visualization features like graphing and projected income.
- Scheduled payments: Need to invest on-the-go? Both Fundrise and DiversyFund allow you to deposit into your real estate investment account using transfers on mobile.
- View details on holdings and investment opportunities: Both Fundrise and DiversyFund allow you to research holding details and learn more about investments currently supported by the app through its mobile platform.
Though we found Fundrise’s mobile platform to be a bit more attractive and well-designed in terms of user experience, both apps perform the same basic functions well and are easy to begin with. We rated both Fundrise and DiversyFund 4.5 out of 5 stars for mobile design.
User Benefits
DiversyFund and Fundrise are both similar platforms and offer many of the same user benefits. Some of the biggest benefits that you’ll be able to gain from both platforms include the following.
- Easy investment options: If you’re a hands-off investor interested in real estate, both DiversyFund and Fundrise can be excellent options. Simply decide how much money you want to invest, and your platform of choice will divide your investments across multiple real estate facets.
- Low minimum investments: If you were to invest directly in property, you’ll usually need a down payment equal to thousands of dollars. Fundrise and DiversyFund allow you to invest with as little as $500 to $1,000, and fees are manageable and reasonable.
- Comprehensive mobile platform: Travelers can sometimes find it difficult to allot time to explore investment opportunities on a desktop. Both Fundrise and DiversyFund allow you to invest from anywhere using mobile deposits.
Overall, both platforms can provide learning opportunities for new real estate investors looking for a lower-risk way to get started.
User Experience
Both DiversyFund and Fundrise offer simple, straightforward investing experience. Getting started with both platforms takes as little as a few minutes, and you can begin transferring funds to your account as soon as your personal details are finalized. Important documents are also easy to locate, as is educational information on investment offerings. Overall, we rate both platforms 4.5 out of 5 stars for usable, streamlined investing processes.
DiversyFund and Fundrise vs. Competitors
DiversyFund and Fundrise aren’t the only real estate investing platforms you have access to. Explore a few of the platforms’ competitors below.
Minimum Investment
$10,000
Minimum Investment
$10,000
1 Minute Review
CrowdStreet is a commercial real estate investing platform where people can invest directly in commercial projects. Unlike a brokerage firm, CrowdStreet isn’t a middleman. Instead, the platform acts as a marketplace where investors can pick and choose the best deals for their time horizon and strategy.
Available investments range from family living spaces to office buildings to storage facilities and investors can sign up for a free membership. Your investment options are limited to what’s live on the Marketplace and you’ll need capital to build a diverse real estate portfolio. Only accredited investors can access deals through CrowdStreet.
Best For
- Investors looking for diversification away from stocks
- Real estate investors interested in new opportunities
- Accredited investors with lots of capital at their disposal
Pros
- Unique opportunities available
- Makes real estate accessible and understandable
- Investors can devote capital to both debt and equity offerings
- Offers quality education materials and answers to FAQs
Cons
- Real estate is highly illiquid
- Most properties require a minimum $25,000 investment
- You’re limited to what’s on the CrowdStreet Marketplace
Minimum Investment
$1,000
Minimum Investment
$1,000
1 Minute Review
Yieldstreet is an alternative investment platform that allows you to access unique, diversified and expert-reviewed investments. From real estate offerings to works of art, Yieldstreet offers investments that have low correlations with the general markets, meaning they can act as a new source of portfolio diversity.
Yieldstreet’s platform is easy to initiate and use — open an account in just a few minutes and begin browsing available investments before your account is fully verified. Due diligence information is easy to find and clearly laid out, and most investments include additional resources to learn more about the investment’s industry or category. Although the majority of investments are only open to accredited investors, anyone can invest in Yieldstreet’s Prism Fund.
Best For
- Passive income generation
- Accredited investors
- New investors looking for an intuitive platform
Pros
- Wide range of expert-reviewed alternative investments
- Investments that are pre-funded by Yieldstreet
- Prism Fund open to non-accredited investors
Cons
- Majority of investments only open to accredited investors
Minimum Investment
$5,000
Fees
Vary based on investment type
Minimum Investment
$5,000
Fees
Vary based on investment type
1 Minute Review
This unique online platform enables investors to handle the entire commercial real estate investing process right from their RealtyMogul dashboard. With rigorously vetted property listings, expertly managed REITs, and a commitment to providing top-notch service and support to its members, RealtyMogul makes commercial real estate accessible to everyday investors.
Best For
- Newer accredited investors who want access to pre-vetted properties
- Non-accredited investors seeking consistent cash flow from well-managed REITs
- Experienced real estate investors who want access to deal-specific information that allows them to perform their own due diligence more easily.
Pros
- Do everything from finding the investment property through to signing the legal documents and monitoring your portfolio, all in one platform.
- All properties are pre-vetted through RealtyMogul’s transparent and rigorous due diligence process.
- Investment minimums as low as $5,000
- Keep track of investments with regular updates posted directly to your dashboard
- Automated investing
Cons
- Individual property marketplace is only open to accredited investors
- Does not offer portfolio management
1 Minute Review
Groundfloor is open to non-accredited investors and private individuals looking for active real estate alternative investment. Groundfloor has great volume with more than 10 investments.
Individuals with small portfolios will also like the low $10 minimum and 0 investor fees. However, most of the loans are given to house flippers, and there is a risk of borrowers defaulting on their loans.
Best For
- Non-accredited investors: It is a good option for non-accredited investors who want to invest in an individual capacity.
- Private investors with small portfolios: Groundfloor charges a relatively small premium of $10, which private investors with small portfolios find attractive.
- Active-investors: Groundfloor is also ideal for investors who want to actively maintain and control their real estate portfolio.
Pros
- Charges the lowest minimums in the industry
- 0 investor fees
- Open to non-accredited investors
Cons
- Offers no bankruptcy protection
- High rate of an uncured default
- Many loans are for judicial-only states
Minimum Investment
Between $3,000 and $10,000, depending
Fees
0.75% and 1% per year based on asset value
Minimum Investment
Between $3,000 and $10,000, depending
Fees
0.75% and 1% per year based on asset value
1 Minute Review
AcreTrader is an investing platform that makes it easy to buy shares of U.S. farmland and earn passive income, starting in just minutes online. The platform features actual parcels of farmland where investors can choose offerings to participate in based on their investment preferences.
Farm types range from Midwest Row Crop Farms to California Almond Orchards, but you don’t need to be an agriculture expert to get started. They have a very thorough underwriting process to vet the offerings, and present information in an easy-to-understand offering page on their website where you can get started with as little as $10k and 10 minutes.
Best For
- Investors looking for diversification away from stocks and other traditional assets
- Real estate investors interested in new opportunities
- Accredited investors with multi-year investment horizons
Pros
- Real, uncorrelated asset class with a history of consistently strong returns
- Highly qualified team with best-in-class underwriting practices
- The platform has some of the lowest fees that you’ll find in real estate investing
Cons
- Investment minimums are typically $10,000+
- Only open to accredited investors at this time
Minimum Investment
$1,000
Minimum Investment
$1,000
1 Minute Review
Looking to diversify your portfolio and get into real estate? A real estate investment trust (REIT) that owns income-producing real estate may be a great place for you to start. Streitwise is a REIT that specializes solely in commercial real estate and has a low entry investment requirement of $1,000. Based in Los Angeles, Streitwise was created in 2017 by three veteran real estate investors who were frustrated that there wasn’t a good option for unaccredited investors to get into the commercial real estate market.
Streitwise focuses on investing in low-risk rental commercial real estate aimed at providing clients with consistent high-yield returns. The team invests in markets that are steadily growing and offer low-risk potential outcomes. While they’re still young and growing, the founders have built their business based on solid experience coupled with a vision for the future of investing. If you’re looking to diversify your current investment portfolio but feared real estate was too lofty a goal, Streitwise is worth exploring.
Best For
- Investors looking to diversify
- Investors with less than $200k in annual income
- Passive traders
Pros
- Consistent quarterly dividends
- Low, transparent fees
- Low investment minimum
- Convenient and easy to use
Cons
- Young company
- Projections are uncertain
- Limited portfolio
- Limited technology
Overall Rating
Both Fundrise and DiversyFund offer similar real estate investing opportunities. We awarded both platforms a score of 4 out of 5 stars for their shared mobile experiences, easy signups and relatively low fees and pricing. Ultimately, the best choice for you between DiversyFund and Fundrise will vary depending on your individual investing and platform preferences. If you’re looking for the lowest possible fees and account minimums, DiversyFund might be the best option for you. On the other hand, if you’re searching for more control over your investment allocations and minimum account balances aren’t as high on your list of concerns, Fundrise could be a better choice.
DiversyFund and Fundrise Tutorials
DiversyFund Tutorial
Fundrise Tutorial
Frequently Asked Questions
Can you really make money with Fundrise?
Yes, it’s possible to earn returns on your investment through Fundrise’s property investment opportunities. If you’re more concerned with income than appreciation, you might want to select Fundrise’s income-generation portfolio when signing up for your account. However, as with all market-related investments, profits are not guaranteed.
Is DiversyFund a good thing?
If you’ve ever been interested in investing in real estate but you aren’t sure where to begin, opening an account with DiversyFund might be the right option for you. With minimum investments as low as $500 and accounts available to non-accredited investors, DiversyFund could be a good option to learn more about real estate investing without risking too much money.
DiversyFund accelerates your wealth creation by reinvesting cash flows from the properties — the DiversyFund Growth REIT is a public non-traded REIT designed to build wealth by investing in multifamily real estate and intends to build wealth over an approximate 5-year timeline. You don’t have to be an accredited investor to invest in Diversyfund. Open a Diversyfund account today.