Fundrise vs. DiversyFund: Comparing 2 Real Estate Investments

This post highlights a couple of crowdfunded real estate funds available to everyone, not just the accredited investor. Both require a minimum of $500.

I have personally invested with both DiversyFund and Fundrise, the two that will be compared and contrasted today. Also, I have an affiliate relationship with both companies. If you choose to work with them, this site may receive a referral fee, and you’d be supporting our charitable mission.

If you’re a reader of personal finance blogs, you know that real estate investing is a hot topic—bloggers plug and review companies like Fundrise, Realty Mogul, and PeerStreet.  A relatively new but highly competitive fund in this space is DiversyFund. The team at DiversyFund asked the team at The Money Mix to take a look at their fund. We’re glad we did.

The most common and readily available way to invest in real estate is via real estate investment trusts or REITs (pronounced Reets). REITs purchase various types of real estate (residential, commercial, multi-family, etc.) Many REITs offer a diversity of these types of real estate in their funds.

Publicly Traded REITs

Private Equity

In the past, private equity real estate funds have only been available to the wealthy. Individuals must be accredited investors to get into the typical fund.

Private Equity

Accredited investors are those with at least $200,000 in income ($300,000 joint) or a $1,000,00 net worth (exclusive of residence). That cuts off the vast majority of the investing public. Only the 1% get into the game. That’s been the biggest complaint and downside of private equity funds.

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