YieldStreet vs Fundrise vs DiversyFund vs CrowdStreet Comparison: Which Real Estate Investment Advisor is Better?

Have you thought about investing in real estate but don’t know where to get started? Do you think you need a large amount of money to enter the arena but don’t have it? Never fear, real estate investment apps are here! Real estate investment advisor apps work much like any other investment advisor app. The user signs up for an account, deposits an amount of money, and then allots it to real estate products as an investor. These apps bypass the traditional methods of real estate investing, which include owning property, dealing with maintenance and tenants, and a variety of other headaches. By using an app, an investor with a smaller amount of money can invest in real estate investment trusts, which is a company that owns real estate assets. These are usually available on stock exchanges, which makes them tradeable in apps such as the ones reviewed below. So which platform should you choose to get started in real estate? Should you consider YieldStreet vs Fundrise, YieldStreet vs DiversityFund, or YieldStreet vs CrowdStreet? Read on to learn more.

The Best Real Estate Apps

Remember, all platforms have different account minimums, investment options, management fees, and varying degrees of functionality in the user interface of their apps. Choose the one you feel the most comfortable with.

YieldStreet

YieldStreet is a good place for new investors to start because it only requires a $500 account minimum to open an account.Maintenance fees range from 1% to 2%, though investments start at 0%. It offers access to multi-asset class funds, short-term notes, and alternative investments. Investors also get regular payouts over the course of the investment. On the other hand, YeildStreet’s investments tend to be higher risk than some others, and though the fees are relatively low, they can still get up to $300 a year, which might be costly for the investor with limited spare funds. Comparing YieldStreet vs Fundrise, we see that the yields have a potential to be greater, but they are also riskier.

Fundrise

Fundrise gets you started investing in real estate with as little as a $10 minimum deposit to open an account. Fees start at 1%, with an additional $125 for IRAs, and users can invest in REITs, Fundrise IPOs, and electronic real estate funds. There are five different investment levels to choose from, which offer diversified investments and are a good place for passive investing. On the other hand, investments are not as liquid as stocks, and cashing out is more difficult. The fee schedule is somewhat complex, and it is not recommended for short-term investors. Most people start out with the Starter Portfolio, which focuses on US real estate and only requires a $10 investment. The next level up is quite a leap from the Basic level, which requires a $1,000 investment. Users can choose the level they are comfortable with, and sit back and watch it grow.

DiversyFund

DiversityFund requires a $500 minimum investment to get started, but has 0% management fees and focuses only on REITs. Its process is largely automated, taking some of the uncertainty out of the process, and it’s available to non-accredited investors. On the other hand, its investment options are limited, you must hold your investments for at least 5 years and you can’t choose them, and there are no IRAs. You will also not be able to liquidate your investments until the properties are sold. However, the company manages the investments for you, and it owns all of the companies in which you will be investing. COmparing YieldStreet vs DiversityFund, we see that they both start at $500 minimum investments, but DiversityFund is slightly less risky.

CrowdStreet

CrowdStreet is one of the costlier options for real estate investing for beginners, requiring a $25K account minimum. Its fees are also a little confusing, with 0% maintenance fees for investors but 1–5% for sponsors and 2.5% for tailored portfolios. Users can invest in CrowdStreet funds, single-sponsor funds, and individual deals. This gives CrowdStreet the advantage of a wide range of options for investors, and it also offers educational resources. On the other hand, it is not available to non-accredited investors (those with a net worth of less than $1 million), and it is not for those in need of short-term liquid investments. There is also no mobile app available. Comparing YieldStreet vs CrowdStreet, we can see that CrowdStreet is for the investor who already has a substantial amount of wealth to invest, while YeildStreet is better for those without a lot extra to start with.

Summary

The important part of any investment is research. Selecting the best real estate advisor for your needs, especially on these platforms that are essentially crowd-funding platforms, requires a certain amount of time spent reading websites and reviews from other users, identifying your own personal needs and goals, and selecting the service that best fits these. Trust is also a major part of real-estate investment. Unlike stocks, where company performance and financial history are easily researched, real-estate investments do not often have these factors. Consider the longevity of the companies in which you invest, your previous real-estate endeavors, and decide for yourself if it is worth taking the first step.

FAQ

1. What is a crowdfunded real-estate platform?

This is the model by which companies use social networking over the internet to encourage investors to support a particular real-estate project. The money offered up by individual investors is pooled into the general fund for the project, and the profits from the project are metered out to each investor based on their initial invested amount.

2. What is a Real Estate Investment Trust? (REIT)

This is an established company that owns, develops, and operates real estate assets that generate income. These sorts of investments are similar to stocks, some even being traded on exchanges, though they offer higher dividends than stocks.

3. How risky are these apps?

Any investment carries a certain amount of risk, and some real estate endeavors, like stocks, can be riskier than others. Real estate is highly illiquid, in that it can not be cashed out nearly as easily as stocks. Investing in real estate is a long-term strategy, and converting the investment to cash usually happens only after the project is completed.