The Best Fundrise Alternatives for Real Estate Investors in 2025
The real estate investment world is changing rapidly, and Fundrise has been one of the most recognizable platforms driving that change. It helped open the door for everyday investors to gain access to real estate projects without owning or managing properties directly.
However, as more investors gain experience, many begin to search for Fundrise alternative platforms that offer different opportunities, investment types, or return potentials. Whether you’re looking for commercial properties, short-term lending options, or platforms with higher flexibility, there are excellent alternatives to explore.
This guide breaks down how Fundrise works, why investors seek other options, and provides in-depth insights into the top alternatives available in 2025.
Understanding Fundrise and Its Core Model
Fundrise was launched to democratize real estate investing. The platform allows users to invest small amounts of capital into eREITs or eFunds, which are collections of real estate projects managed by professionals. Investors earn money through a combination of property appreciation and rental income distributions.
The minimum investment requirement is relatively low, making Fundrise attractive for beginners. The platform handles everything property acquisition, management,and reporting w,hile providing quarterly updates through an easy-to-use dashboard.
Despite these strengths, Fundrise has certain limitations:
- You don’t choose specific properties; instead, you invest in pre-built funds.
- Returns depend on Fundrise’s internal management decisions.
- Liquidity is limited, as most investments are long-term.
These limitations are the main reasons why investors often look for other platforms that provide more control, transparency, or different types of exposure.
Why Look for Fundrise Alternatives
Investors choose Fundrise for its simplicity and accessibility, but it’s not the right fit for everyone. Here are common reasons why people explore alternatives:
- More Investment Control – Some investors prefer to choose individual properties or projects rather than investing in managed funds.
- Different Risk Profiles – Platforms offering short-term debt investments may better suit those seeking steady cash flow.
- Higher Return Potential – Advanced investors might want opportunities with higher risk and higher potential rewards.
- Greater Transparency – Certain platforms provide deeper access to financial data and sponsor track records.
- Accredited-Only Opportunities – Some platforms target accredited investors with access to larger, institutional-grade projects.
By exploring alternatives, investors can match their individual strategies with the right type of real estate exposure.
CrowdStreet
Overview
CrowdStreet is one of the most well-known Fundrise alternatives for accredited investors. It focuses on commercial real estate projects, such as apartment complexes, office spaces, and industrial developments.
How It Works
Investors can browse through a marketplace of individual deals, each with detailed financial projections, sponsor information, and expected returns. Once a deal is selected, investors fund their portion and receive performance updates through CrowdStreet’s online dashboard.
Relevance as an Alternative
While Fundrise focuses on pooled investments, CrowdStreet lets investors select specific deals. This provides more control but also requires more research and higher minimum investments. CrowdStreet’s transparency and institutional-quality offerings make it an ideal choice for experienced investors.
RealtyMogul
Overview
RealtyMogul combines features of both Fundrise and CrowdStreet. It offers private real estate deals for accredited investors and public REITs that non-accredited investors can access.
How It Works
The platform allows users to invest in either individual properties or diversified funds. It performs due diligence on each deal and publishes information about sponsors, locations, and expected returns.
Relevance as an Alternative
RealtyMogul’s flexibility makes it attractive to a wide range of investors. You can choose between a hands-off fund investment or a more direct property stake, depending on your comfort level and experience.
Groundfloor
Overview
Groundfloor stands out as one of the few real estate platforms that focus primarily on short-term real estate loans. Instead of buying into property equity, investors fund renovation or construction loans for developers.
How It Works
Investors choose from various real estate loans with specific terms and interest rates. Borrowers repay the loan (plus interest) once the property sells or refinances.
Relevance as an Alternative
Groundfloor is ideal for investors seeking steady cash flow and shorter investment horizons. It carries less exposure to market fluctuations because returns depend on loan performance rather than property appreciation. It also has low minimum investments, making it accessible to beginners.
Arrived Homes
Overview
Arrived Homes takes a unique approach by allowing investors to buy fractional shares of individual rental homes and vacation properties.
How It Works
Investors can browse available homes, review property details, and purchase shares. Rental income is distributed quarterly, and any appreciation is realized when the property is sold.
Relevance as an Alternative
Unlike Fundrise’s pooled approach, Arrived gives investors tangible exposure to specific properties. It’s a great option for those who want the feeling of owning real estate without the operational headaches of managing tenants.
DiversyFund
Overview
DiversyFund focuses on growth-oriented multifamily real estate projects. The platform acquires and improves properties, creating value through renovation and efficient management.
How It Works
Investors pool funds into a single real estate portfolio managed by DiversyFund. Profits are generated when the improved properties are sold, offering long-term growth potential.
Relevance as an Alternative
DiversyFund is suitable for those seeking long-term appreciation rather than immediate cash flow. It has a similar structure to Fundrise but emphasizes value-added projects that could produce higher returns over time.
How Technology Enhances These Platforms
Technology is the driving force behind the success of modern real estate investing platforms. It enables efficiency, transparency, and accessibility for investors across all experience levels.
Simplified Onboarding
Digital platforms make the signup and verification process quick. Investors can upload documents, verify accreditation status, and fund accounts entirely online.
Data Transparency
Technology provides real-time access to deal information, financial models, and progress updates. Investors can monitor project milestones or rental performance from their dashboards.
Automation of Distributions and Reporting
Platforms automate dividend or interest payments, annual tax forms, and performance reports, reducing manual errors and improving user convenience.
Advanced Analytics
Through predictive modeling, machine learning, and market analytics, platforms assess project risks, forecast returns, and screen deals more effectively.
Scalable Management
With integrated investor portals and communication tools, these platforms manage thousands of investors and millions in capital seamlessly, reducing administrative costs and improving efficiency.
Benefits of Exploring Fundrise Alternatives
Diversification
Each platform offers access to different property types ,residential, commercial, or industrial, allowing you to spread risk across multiple assets and markets.
Control and Flexibility
Alternatives like CrowdStreet give investors control over which properties to fund. Others, like Groundfloor, allow flexibility with shorter commitments.
Potential for Higher Returns
Platforms focusing on commercial deals or value-add properties can offer higher returns compared to Fundrise’s pooled funds, although with higher risk.
Transparency
Many alternatives provide deeper insight into sponsor history, deal assumptions, and financial performance, which helps investors make informed decisions.
Accessibility
Even though some alternatives cater to accredited investors, others remain open to everyone, ensuring that beginners can still participate in real estate investing.
Real-World Use Cases
Use Case 1: Building a Passive Income Stream
An investor who values steady income could choose Groundfloor’s short-term loans or Arrived Homes’ rental properties. These generate consistent monthly or quarterly payouts without long holding periods.
Use Case 2: Seeking Long-Term Capital Growth
Investors with a higher risk tolerance and longer investment horizon might prefer DiversyFund or CrowdStreet. These focus on larger development projects that appreciate significantly over time.
Use Case 3: Diversifying Away from Stocks
Real estate offers diversification benefits because it doesn’t move in lockstep with equity markets. Platforms like RealtyMogul or Fundrise can help balance a portfolio dominated by stocks.
Use Case 4: Gaining Commercial Property Exposure
Accredited investors who want exposure to office spaces, industrial warehouses, or retail centers can find such opportunities on CrowdStreet, offering returns tied to corporate leases and property development.
Use Case 5: Combining Different Platforms
Some investors diversify across multiple platforms using Fundrise for diversified funds, Groundfloor for short-term debt, and Arrived Homes for tangible residential ownership to balance liquidity and returns.
Risks to Consider
While these alternatives open exciting opportunities, real estate investing is not risk-free.
- Illiquidity: Most investments have multi-year lockups, making early withdrawals difficult.
- Market Risk: Real estate values can decline during recessions or shifts in demand.
- Execution Risk: Project delays, cost overruns, or poor management can impact returns.
- Fee Structures: Some platforms charge multiple layers of fees, reducing net returns.
- Platform Risk: Dependence on the platform’s operations and financial stability introduces a level of counterparty risk.
Understanding these risks helps investors make informed decisions and manage expectations.
Frequently Asked Questions
Q1: Are Fundrise alternatives suitable for beginners?
Yes. Platforms like Groundfloor and Arrived Homes have low minimums and simple interfaces, making them friendly for beginners. Others, like CrowdStreet, require more experience due to higher minimums and deal complexity.
Q2: Can I invest in multiple platforms at the same time?
Absolutely. Many investors diversify across multiple platforms to balance risk and reward. Combining different models, such as debt, equity, and fund structure,s can create a more resilient portfolio.
Q3: What kind of returns can I expect from these platforms?
Returns vary depending on the platform and project type. Debt platforms might offer steady 7–10% annualized returns, while equity-based projects could aim for 10–20% or more, depending on market performance and holding period.
