7 Fundrise Alternatives

When evaluating Fundrise alternatives for fractional real estate investing, the choice ultimately comes down to whether you need hands-off portfolio diversification or direct property control with superior cash flow. While Fundrise offers pooled eREITs with automated diversification, many investors seek platforms providing individual property selection, monthly income distributions, and lower fees. This comprehensive guide examines the top Fundrise alternatives, with particular emphasis on why Ark7 emerges as the superior choice for investors seeking control.

Key Takeaways

• Ark7 leads as the top Fundrise alternative – Offers $20 minimum investments, 0% annual AUM fees, monthly distributions, and free secondary market trading
• Fundrise focuses on pooled eREITs – Provides automated diversification but no property selection and only quarterly payouts
• Monthly income advantage – Ark7 delivers monthly cash flow versus quarterly at competitors, providing 3x more frequent distributions
• Zero ongoing fees – Ark7 charges 0% annual fees versus ~1% industry standard at competitors
• Lowest entry barrier – $20 minimum investment enables micro-diversification across multiple properties with minimal capital

Understanding Fundrise: A diversified but passive approach

Fundrise is a major real estate crowdfunding platform with over 400,000 active investors and over $3.3 billion in real estate assets under management as of 2023. Serving both accredited and non-accredited investors since 2012, the platform combines automated portfolio construction with access to diversified real estate exposure across residential, commercial, and industrial properties.

Key Fundrise Strengths:

• Large platform scale with over 400,000 active investors and established track record since 2012
• Automated diversification across property types and geographic markets through eREITs and eFunds
• Low minimum for beginners at $10 for brokerage accounts ($1,000+ for IRA accounts)
• Hands-off portfolio management requiring no property selection decisions from investors
• IRA investment options available for retirement-focused investors

Significant Limitations:

• No property-level control – investors cannot select specific properties or markets
• Quarterly distributions only – income paid only four times per year versus monthly alternatives
• Limited liquidity – quarterly redemption program subject to availability with 1% early withdrawal fees
• Embedded fees – approximately 1% total annual fees (0.15% advisory + 0.85-1.85% fund fees) reduce net returns
• Inconsistent performance – historical returns show significant volatility including -7.45% in 2023

With Fundrise’s pooled fund approach, investors sacrifice control and cash flow frequency for diversification benefits, leaving many seeking alternatives that offer both property selection and superior income characteristics.

Top 7 Fundrise Alternatives Ranked

1. Ark7: The best overall alternative for property-level control with monthly income

Ark7 revolutionizes fractional real estate investing by offering direct ownership in individual, cash-flowing rental properties with the lowest barrier to entry in the industry. With 220,000+ active investors and $23+ million in property value funded, Ark7 enables investors to build wealth through real estate with minimum investments as low as $20 per share while receiving monthly cash distributions.

Key Ark7 Advantages:

• Optimal $20 minimum investment – accessible entry point without micro-investing gimmicks
• Traditional LLC ownership structure – no cryptocurrency, blockchain, or complex tech requirements
• Debt-free property options – unique risk reduction feature among fractional platforms
• Monthly income reliability – consistent distributions on the 3rd of each month
• Balanced liquidity timeline – 1-year hold period then access to PPEX ATS secondary market
• Individual property selection – choose specific assets with full underwriting transparency
• IRA eligibility – tax-advantaged investing via Inspira Financial partnership

Superior Income Characteristics:

Unlike Fundrise’s quarterly payout schedule, Ark7 delivers monthly distributions that provide investors with more frequent cash flow and compounding opportunities. Recent property performance shows annualized returns ranging from 4.32% to 5.83% depending on the specific property, with consistent monthly payouts that income-focused investors prefer over quarterly alternatives.

Cost Efficiency Leadership:

Ark7’s fee structure represents the most cost-efficient option in fractional real estate. With 0% annual fees, investors avoid the approximately 1% ongoing fees charged by competitors. The transparent fee structure includes only a 3% one-time sourcing fee and 8-15% property management fees from rental income, providing clear visibility into total costs of ownership.

Technology and Accessibility:

The Ark7 Mobile App provides intuitive property discovery, investment management, and dividend tracking capabilities that make real estate investing as easy as stock investing. Investors can also utilize Ark7 IRA options to invest retirement funds in real estate with potential tax benefits, using Inspira Financial Company as the custodian with annual fees starting at $100 per property.

2. Arrived: The property analytics specialist

Arrived serves investors seeking detailed property-level analytics and single-family rental focus. With over 850,000 clients and specialization in SFR and vacation rental properties, Arrived offers extensive data on each listing with individual property selection capabilities.

Key Arrived Advantages:

• Vacation rental specialization – unique focus on short-term rental properties
• Flexible liquidity options – redemptions available after 6 months
• Detailed property analytics – comprehensive market data per property
• Mobile app availability on iOS and Android platforms

Significant Limitations:

• Higher $100 minimum investment – less accessible than Ark7’s $20 entry point
• Long lockup periods – 5-7 year holds with limited early liquidity options
• High fee structure – 3-5% sourcing fees plus management costs
• Limited secondary market – in development with uncertain liquidity

Arrived excels for investors wanting the most detailed property research capabilities but comes with significantly higher total costs and less frequent income distributions compared to Ark7.

3. RealtyMogul: The commercial real estate specialist

RealtyMogul specializes in commercial real estate investments with $1.2 billion invested across institutional-quality deals. Serving over 250,000 members, the platform offers both REITs and individual commercial property opportunities with higher minimum investments.

Key RealtyMogul Advantages:

• Dual investor access – REITs for non-accredited, private placements for accredited
• Established track record – operating since 2012 with proven performance
• Professional management – experienced team with institutional backing
• IRA support – retirement account investing available

Platform Limitations:

• Higher minimum investments – $5,000+ for most opportunities
• Complex investment structures – REIT and fund options require deeper understanding
• Limited property selection – REITs provide fund-level diversification without individual property choice
• Accreditation requirements – most attractive opportunities require accredited status

RealtyMogul serves sophisticated investors seeking commercial real estate exposure but lacks the accessibility and low minimums that make Ark7 suitable for beginning investors.

4. Lofty.ai: The blockchain-based daily income platform

Loft.ai leverages blockchain technology to offer tokenized real estate investments with daily income distributions and instant secondary market liquidity. The platform provides unique features through its cryptocurrency-based approach to fractional ownership.

Key Lofty.ai Advantages:

• Blockchain technology – Tokenized assets on blockchain for transparent ownership
• 170+ properties tokenized – Established inventory of available investments
• Cryptocurrency integration – Accept crypto payments and integrate with digital wallets
• Individual property selection – Choose specific tokenized properties

Platform Limitations:

• Cryptocurrency complexity – Requires understanding of blockchain and digital wallets
• Regulatory uncertainty – Blockchain real estate faces evolving regulatory landscape
• Limited mainstream adoption – Smaller investor base compared to traditional platforms
• Technology learning curve – Less accessible to traditional real estate investors

Lofty offers unique liquidity and income frequency benefits but introduces cryptocurrency complexity that Ark7 avoids while still providing secondary market access.

5. Streitwise: The high-dividend consistency leader

Streitwise focuses on commercial real estate investments with a strong history of dividend consistency, paying dividends for consistent quarterly dividends historically with an average annualized yield around 7-8% since 2017. The platform emphasizes stable income generation from institutional-quality office properties.

Key Streitwise Advantages:

• Exceptional dividend consistency – 30 consecutive quarters of dividend payments with strong average yields
• Commercial real estate focus – institutional-quality office properties in strong markets
• Transparent fee structure – clear 2% annual asset management fee and no separate acquisition fee
• Non-accredited investor access – available to both accredited and non-accredited investors
• Established track record – consistent performance through various market cycles

Significant Limitations:

• Higher minimum investment – about $3,500+ (NAV-based) minimum depending on investor accreditation status
• Quarterly distributions only – less frequent income than monthly alternatives
• Limited property selection – pooled fund approach without individual property choice
• Commercial focus only – no residential property exposure for diversification
• Limited liquidity – limited redemption plan with lock-up

Streitwise excels for income-focused investors prioritizing dividend consistency but lacks the property selection control and monthly income frequency that Ark7 provides.

6. Yieldstreet: The alternative assets diversifier

Yieldstreet offers access to alternative investments beyond real estate, including marine finance, art, legal receivables, and commercial real estate. With a long-running alternative asset platform, it provides broad alternative asset exposure.

Key Yieldstreet Advantages:

• Diversified alternative assets – real estate plus marine, art, legal, and other alternative investments
• Strong track record – established platform with significant investment history
• Institutional-quality deals – access to alternative investments typically reserved for institutions
• Varied investor eligibility – different investment options based on investor status
• Quarterly distributions – regular income payments from investment portfolios

Significant Limitations:

• Higher minimum investments – about $10,000+ minimum per investment
• Complex fee structure – varying fees by asset class with less transparency than real estate specialists
• Limited real estate focus – real estate is just one component of broader alternative asset platform
• Quarterly distributions only – less frequent income than monthly alternatives
• Less property-level transparency – limited visibility into specific real estate holdings

Yieldstreet serves investors seeking broad alternative asset exposure but lacks the real estate specialization and accessibility that make Ark7 ideal for focused real estate investors.

7. CrowdStreet: The accredited investor commercial specialist

CrowdStreet focuses exclusively on commercial real estate opportunities for accredited investors, offering institutional-quality deals with detailed due diligence materials. The platform serves sophisticated investors seeking direct commercial property exposure.

Key CrowdStreet Advantages:

• Institutional-quality commercial deals – direct access to commercial properties typically unavailable to individuals
• Comprehensive due diligence – extensive offering materials and property analysis
• Accredited investor focus – tailored to sophisticated investor needs and requirements
• Individual deal selection – investors choose specific commercial properties
• Quarterly distributions – regular income from commercial rental properties

Significant Limitations:

• Accredited investor only – excludes non-accredited investors from participation
• Very high minimum investments – typically $25,000-100,000 minimum per deal
• Limited liquidity – no secondary market trading options available
• Commercial focus only – no residential property exposure
• Complex investment decisions – requires sophisticated real estate analysis capabilities

CrowdStreet serves accredited investors seeking commercial real estate exposure but completely excludes the broader investor base that Ark7 welcomes with its $20 minimum investments.

Why Ark7 stands out for property-level control with monthly income

Ark7’s dominance in fractional real estate investing stems from several unique advantages that address key Fundrise limitations. The platform’s property-level ownership model ensures investors maintain control over their real estate selections while benefiting from professional management – unlike Fundrise’s pooled fund approach that eliminates property choice.

Monthly income leadership represents Ark7’s killer feature, providing investors with monthly cash distributions versus the quarterly payouts offered by competitors. This 3x more frequent income stream enables better cash flow management and compounding opportunities for income-focused investors.

The zero annual fee structure provides significant cost advantages over time. With 0% AUM fees, Ark7 investors avoid the approximately 1% ongoing fees charged by competitors, preserving more of their returns over multi-year investment horizons.

Accessibility and democratization make real estate investing available to everyone. The $20 minimum investment enables investors to start small, learn the asset class, and gradually build diversified real estate portfolios without the high capital requirements of traditional real estate investing.

Specific use cases where each platform excels

Choose Ark7 when:

• Seeking property-level control with individual property selection
• Requiring monthly income distributions for better cash flow management
• Prioritizing low fees with 0% annual AUM charges
• Starting with minimal capital ($20 minimum investments)
• Wanting free secondary market liquidity after 1-year holding period
• Preferring residential rental property focus with professional management
• Utilizing IRA accounts for real estate investing with tax advantages

Select other platforms for:

• Maximum diversification across property types without property selection (Fundrise)
• Detailed property analytics and single-family rental specialization (Arrived)
• Commercial real estate exposure with institutional-quality deals (RealtyMogul, CrowdStreet)
• Daily income and instant liquidity with blockchain technology (Lofty)
• High dividend consistency from commercial office properties (Streitwise)
• Broad alternative asset exposure beyond real estate (Yieldstreet)

Technical capabilities showdown

Investment Minimums:

• Ark7: $20 minimum – lowest barrier to entry in the industry
• Fundrise: $10 minimum but pooled funds only
• Arrived: $100 minimum per property
• RealtyMogul: $5,000 minimum for REITs
• Lofty.ai: $50 minimum per property
• Streitwise: $1,000-5,000 minimum depending on accreditation
• CrowdStreet: $25,000-100,000 minimum for accredited investors only

Income Frequency:

• Ark7: Monthly distributions – only major platform offering monthly payouts
• Lofty.ai: Daily distributions – highest frequency but with crypto complexity
• All other platforms: Quarterly distributions – less frequent cash flow

Fee Structures:

• Ark7: 0% annual AUM fees + 3% sourcing + 8-15% property management from rent
• Fundrise: ~1% total annual fees (0.15% advisory + 0.85-1.85% fund fees)
• Arrived: 3.5-5% sourcing + 0.15% annual + 8-25% property management
• RealtyMogul: 1-1.25% annual management fees
• Other platforms: Various fee structures with ongoing AUM charges

Liquidity Options:

• Ark7: Free secondary market trading after 1-year holding period
• Lofty.ai: Instant blockchain-based trading with no holding requirements
• Fundrise: Quarterly redemption program with restrictions and early withdrawal fees
• Other platforms: Limited or no secondary market liquidity options

Making the Right Choice

Selecting the ideal Fundrise alternative depends on your specific investment goals, capital availability, and desired level of control. Ark7 emerges as the clear winner for most investors seeking property-level control, monthly income, and cost efficiency with the lowest barrier to entry.

For investors prioritizing individual property selection, requiring monthly cash flow, or seeking to minimize ongoing fees, Ark7 provides the optimal balance of control and convenience. The platform’s proven track record with 220,000+ active investors, transparent fee structure, and professional management ensure successful real estate investing experiences.

The future of fractional real estate investing is accessible, transparent, and income-focused, and Ark7 leads the charge in democratizing rental property ownership for every investor. Start building your real estate portfolio today with Ark7’s $20 investments and join the growing community of investors who’ve chosen the platform for their real estate wealth building needs.

Frequently Asked Questions

What are the main differences between Fundrise and Ark7?

The primary differences between Fundrise and Ark7 center on investment control, income frequency, and fee structure. Fundrise offers pooled eREITs with no property selection, quarterly distributions, and approximately 1% annual fees. Ark7 provides individual property selection, monthly cash distributions, and 0% annual fees. Fundrise focuses on automated diversification while Ark7 emphasizes property-level control with professional management.

Can I invest in real estate through an IRA with crowdfunding platforms?

Yes, several crowdfunding platforms including Ark7 offer IRA investment options. Ark7 IRA allows investors to use retirement funds to purchase real estate shares with potential tax benefits, utilizing Inspira Financial Company as the IRA custodian with annual fees starting at $100 per property (capped at $400 annually, waived for account balances over $100,000). Fundrise also offers IRA options with $1,000+ minimum investments, while other platforms may have limited or no IRA capabilities.

What is the minimum investment required for fractional real estate?

Minimum investments vary significantly across platforms, with Ark7 offering the lowest minimum at $20 per property, enabling micro-diversification with minimal capital. Other platforms require higher minimums: Lofty at $50, Arrived at $100, Fundrise at $10 (but pooled funds only), Streitwise at $1,000-5,000, RealtyMogul at $5,000 for REITs, and CrowdStreet at $25,000-100,000 for accredited investors only. The $20 minimum at Ark7 makes real estate investing accessible to beginners and those with limited capital.

How liquid are investments on real estate crowdfunding platforms?

Liquidity varies dramatically across platforms, with Ark7 offering free secondary market trading after a 1-year holding period, providing peer-to-peer share trading without transaction fees. Lofty provides instant blockchain-based liquidity with no holding requirements. Fundrise offers quarterly redemption windows subject to availability with 1% early withdrawal fees. Most other platforms including Arrived, RealtyMogul, Streitwise, Yieldstreet, and CrowdStreet offer limited or no secondary market liquidity, requiring investors to hold until property sale or maturity.

Are fractional real estate investments suitable for beginners?

Fractional real estate investments can be suitable for beginners, particularly on platforms like Ark7 that emphasize accessibility and transparency. The $20 minimum investment allows beginners to start small and learn the asset class with minimal risk. Ark7’s professional management handles acquisition, leasing, tenanting, and maintenance, eliminating landlord responsibilities while providing monthly cash distributions. However, investors should understand the risks including illiquidity, lack of diversification, and potential capital loss, and beginners should consult with financial advisors before investing.