Fundrise vs Realty Mogul [2024] Realty Mogul vs Fundrise

You might think investing in real estate is out of your league. After all, the average price for homes sold in 2023 was $487,300. 

But do you have $5,000? That’s all you need to invest in real estate through Realty Mogul.

Or how about $10? Amazingly, that’s the minimum for getting started with Fundrise.

These real estate platforms are changing the game! So, which is better? 

Let’s break down the Fundrise vs Realty Mogul debate – looking at fees, returns, and all the key details.

Fundrise vs Realty Mogul Overview

Fundrise and Realty Mogul have a lot in common. They’re both investment platforms that offer real estate investment trusts (REITs) as a major part of their business model.

But these platforms aren’t exactly the same. That would make the Fundrise vs Realty Mogul debate too easy!

Where do the differences lie? The minimum investment is one big factor – $10 with Fundrise and $5,000 with Realty Mogul.

Then there’s the fact that Realty Mogul lets accredited investors choose specific projects to invest in, and Fundrise doesn’t.

Read on to learn more about how each platform functions. 

What is Fundrise and How Does Fundrise Work?

Fundrise is an investment platform that uses “crowdfunding” for real estate investments. It does this by offering private real estate investment trusts (REITs). 

Instead of buying an entire property yourself (or investing in specific properties at all), you pool your money with other investors to buy a massive portfolio of properties.

And when I say “massive,” I mean it. Fundrise is involved in 290 active projects, and they’re worth over $7 billion combined. 

Fundrise offers investments in three types of assets:

• Real estate
• Private credit
• Venture capital

The platform is most famous for its real estate investing – and that’s also what’s most relevant in the Fundrise vs Realty Mogul debate.

With Fundrise, real estate investments are super accessible. To invest in the portfolio, you don’t need to be an accredited investor, and the minimum investment is just $10. 

Yes, $10 – as in, you can invest in real estate for the price of a cheap meal!

A real estate investment with Fundrise is designed to last 5 years. It’s possible to get out early, but it can be costly. After filing a “liquidation request,” you’ll have to wait until the end of the quarter to get your money. You might also be charged a penalty. 

You’re better off only investing in Fundrise if you’re sure you can commit to a 5-year process.

How can you get started? Here’s a 3-step process for investing in real estate with Fundrise:

1. Choose your account type and sign up. You can open a standard “personal investment account” or opt for a tax-advantaged individual retirement account (IRA). 
2. Invest in real estate. And if you want to invest in specific funds within the Fundrise portfolio, you can pay $10 a month for Fundrise Pro. 
3. Collect your returns. If your investment makes money, Fundrise will distribute your earnings each quarter. 

Check out this full Fundrise review to learn more. 

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What is Realty Mogul and How Does Realty Mogul Work?

Realty Mogul is a real estate investment platform with multiple investment opportunities.

There are two main ways to invest with Realty Mogul:

1. Real Estate Investment Trusts (REITS). You’ll buy into a portfolio of investment properties – and you don’t have to be an “accredited investor” to participate. 
2. Portions of specific properties. You’ll get to choose the actual projects that appeal to you. To make these investments you do need to be an accredited investor.

When I say “accredited investor,” I’m referring to accreditation with the U.S. Securities and Exchange Commission (SEC). To receive SEC accreditation, you’ll need at least $1 million in wealth or $200,000 in annual income. Not quite there yet? Then, you’re better off focusing on the REIT investments from Realty Mogul.

Realty Mogul’s REITs have a minimum investment of $5,000. So, if you’re looking to start out smaller, then Fundrise’s $10 minimum could be more appealing.

Realty Mogul offers two distinct REITs with different objectives and characteristics:

• The Income REIT (MogulREIT I). This trust generally offers a 6% annualized rate of return (at the time of this publication), and you’ll receive distributions each month.
• The Apartment Growth REIT (MogulREIT II). With a greater focus on long-term earnings through capital appreciation, this trust only pays out every quarter. At the time of this publication, the annualized rate of return is estimated to be 4.5%.

Liquidity is an important issue in the Fundrise vs Realty Mogul debate. The REITs from both platforms are considered “illiquid.” This means you can’t just withdraw your money whenever you feel like it (at least not without a penalty). 

But Really Mogul does have a “Share Repurchase Program” that will buy back your shares in a REIT after a year of ownership. Just be aware that you’ll have to have the REIT for 3 or more years if you want to sell your shares at their full price. Otherwise, you’ll only get 98% or 99% per share. 

Now, let’s imagine you’re an accredited investor who wants to invest in specific properties. 

In that case, you can use the Realty Mogul platform to browse available projects. Projects include single-family homes, multifamily residential complexes, and commercial real estate.

These projects are managed by “sponsors” who handle the day-to-day affairs. And before investing, you can consider the targeted internal rate of return (IRR). Keep in mind that these returns are estimates, and you can never be 100% sure how a project will pan out. 

Fundrise vs Realty Mogul Fees

There’s no getting around fees in the Fundrise vs Realty Mogul debate. Both platforms have them.  

Luckily, neither company is committing highway robbery. Read on to see exactly how much (or how little) you’ll have to pay. 

Fundrise Fees

Fundrise has two annual fees for real estate investors:

• An “advisory fee” of 0.15% per year
• A “management fee” of 0.85% per year

Together, these add up to annual fees of 1.00%. So, if you invested $1,000, you’d end up only paying $10 each year. 

But let’s say you want to invest in specific funds within the Fundrise portfolio. To get that kind of decision-making power, you’ll need to upgrade to Fundrise Pro – which, after a 30-day free trial, will cost you $10 per month. 

Realty Mogul Fees

The Realty Mogul REITs both have organizational and offering costs that are capped at 3%, as well as asset management fees:

• 1.00% for the Income REIT
• 1.25% for the Apartment Growth REIT

And if you’re investing in individual properties, each project will have its own set of fees. But you don’t have to worry about nasty surprises. You can check the fees ahead of time in the “Offering Circulars” for each project.

Fundrise vs Realty Mogul Returns

It’s time for the most exciting section of the Realty Mogul vs Fundrise conversation: the returns!

Both platforms are pretty transparent about how much their investors typically earn. Let’s dig into the details!

Fundrise Returns

Over the past 5 years, investors on Fundrise have earned average annual returns of 6.7%.

But to really get to the bottom of the Realty Mogul vs Fundrise debate, let’s break that number down a bit further.

Real estate investments are inherently unstable. It’s not like you’ll earn exactly 6.7% from Fundrise each year. 

Here are the average annual returns for Fundrise since 2019:

• 2023: -7.45%
• 2022: 1.50%
• 2021: 22.99%
• 2020: 7.31%
• 2019: 9.16%  

In 2021, Fundrise investors were probably dancing for joy. And in 2023? Not so much. 

But remember, a Fundrise investment is supposed to last 5 years. It can be expected to have some ups and downs along the way.

Sign Up for Fundrise Now

Realty Mogul Returns

Here are the estimated returns for Realty Mogul’s real estate investment trusts (REITs):

• The Income REIT (MogulREIT I) – 6% annualized rate of return (distributed monthly)
• The Apartment Growth REIT (MogulREIT II) – 4.5% annualized rate of return (distributed quarterly)

*Note: These return rates are not guaranteed or stable. They’re based on past performance, and could rise or fall in the future. For example, the Apartment Growth REIT lost 4.04% after its first year, but then it earned 9.58% by the end of Year 3. 

Now, let me be real: Those returns aren’t exactly off the charts. When you invest in an alternative investment like Realty Mogul’s REITs, you aren’t necessarily trying to get rich. The goal is to protect your money and increase the probability of consistent growth by diversifying your investment portfolio.

So, sure – a basic stock fund attached to the S&P 500 might outperform a Realty Mogul REIT one year. 

But you never know what could happen in the future. If the stock market goes into a slump, a potential 6% annual return from a real estate investment could be what keeps your entire portfolio afloat.  

That’s what makes alternative investments appealing in the first place. Check out this article for more on alternative investments. 

If you’re interested in precious metals as an alternative investment, check out our Goldco vs Augusta Precious Metals comparison to learn more and see how you can participate.

And if you’d like to learn about wine and whisky as alternative investments, our Vint vs Vinovest comparison can help.

So how about the individual properties and diversified funds available on Reality Mogul? 

Each project has its own targeted internal rate of return (IRR). At the time of this publication, the IRRs for listed projects range from 16.8% – 27.2%. Again, those are estimates. Investing in individual properties can be even riskier than investing in REITs.   

Pros and Cons of Fundrise vs Realty Mogul

As a potential investor, it can be tough to choose a side in the Realty Mogul vs Fundrise debate. Overall, the platforms are super similar!

One way to decide between them is by comparing each platform’s strengths and weaknesses. Here are the pros and cons to look out for in the Fundrise vs Realty Mogul comparison. 

Pros and Cons of Fundrise

Fundrise Pros

• The minimum investment is just $10. You also don’t have to be an accredited investor. It doesn’t get much more accessible than that!
• The fees are simple and fair. If you invest in real estate through Fundrise, you’ll end up paying 1% each year in fees (due to the 0.85% annual “management fee” and the 0.15% “advisory fee.”)
• There’s a highly-rated mobile app. It has 4.8 stars on the Apple App Store and 4.4 stars on Google Play. 

Fundrise Cons

• You can’t invest in specific projects. Even if you pay the $10 a month for Fundrise Pro, you’ll only get to choose specific funds, not individual properties. 
• The investments are “illiquid.” With Fundrise real estate investments, you could face a penalty if you try to get your money back in less than 5 years. 
• The rate of return varies widely from year to year. It’s even possible to lose money. In 2023, Fundrise investors lost 7.45%. However, over the past 5 years, the average annual return has been 6.7%. 

Get Started with Fundrise Here

Pros and Cons of Realty Mogul

Realty Mogul Pros

• REITs are available to non-accredited investors. That makes the platform more accessible than some real estate investment services.
• Accredited investors can invest in specific properties. If you’ve got the credentials, you can maximize your returns with some smart decision-making.
• There’s a Share Repurchase Program. So, if you want to liquidate your REIT investment after a year, you can do it. 

Realty Mogul Cons

• There’s no mobile app. Unlike with many other investment platforms, you’ll have to go through a web browser to access Realty Mogul.
• The fee structure is complex. Each REIT has its own management fee (1.00% for the Income REIT and 1.25% for the Apartment Growth REIT), and investments in individual properties have their own costs. 
• The minimum investment is $5,000. Fundrise, with its $10 minimum, definitely wins this portion of the Realty Mogul vs Fundrise battle. 

Fundrise vs Realty Mogul Review 

Actual customers offer an interesting perspective on the Fundrise vs Realty Mogul conversation. 

Let’s start with some Fundrise reviews on Trustpilot.

In a 4-star review, someone said, “So far I am loving my experience with Fundrise.” They also mentioned getting dividends “on a regular basis.” 

In another 4-star Fundrise review, a user said the platform was responsive and provided “fairly decent, stable returns.” 

Someone else left a 2-star Fundirse review, calling the platform “the most non-liquid investment I’ve ever participated in.” 

Let’s switch over to Realty Mogul, which has surprisingly few reviews online. Currently, there are only two Realty Mogul reviews on Trustpilot.

One of them is a 1-star review that calls Realty Mogul “a terrible investment.” This user found the fees to be high and the growth rates to be “mediocre.” 

The other Realty Mogul review on Trustpilot gives the platform 2 stars. Apparently, this user held onto an investment for 4 years without seeing any returns. 

Fundrise vs Realty Mogul Reddit

I found a Reddit thread with people making the Fundrise vs Realty Mogul comparison. 

The thread is a few years old (from the pandemic-era economic slump, to be specific), but it’s still interesting to see what real users think of the platforms.

The thread started with someone asking about Fundrise vs Realty Mogul. 

Someone responded by saying they had invested with both platforms and still hadn’t heard whether their Realty Mogul investments had made money.

Someone else said their dividends from Fundrise were falling, but they attributed the diminishing returns to the pandemic. 

I also found a more recent thread where someone asked about Fundrise but also mentioned Realty Mogul as a potential investment opportunity. 

In response, a few users offered a surprising take on the Realty Mogul vs Fundrise debate. They argued that it’s best to use neither and invest in real estate exchange-traded funds (ETFs) instead. Their reasoning was that ETFs have more “liquidity,” meaning you’ll have more access to your money.

Fundrise vs Realty Mogul: Which is Better?

There’s no “right choice” in the Fundrise vs Realty Mogul debate. It all depends on your situation. 

Let’s say you want to invest less than $5,000 in real estate. In that case, it’s a no-brainer. You should use Fundrise, because Realty Mogul’s minimum investment is $5,000. 

And what if you’re an accredited investor who wants to invest in specific properties? Then, Realty Mogul is the better platform, since it lets you choose specific projects.

Here’s where things get tricky. Imagine you want to invest more than $5,000 in a private real estate investment trust (REIT). 

In that case, there’s really no obvious answer to the Realty Mogul vs Fundrise question. Both platforms offer exactly what you’re looking for. Your best bet is probably to investigate both of them and decide which seems most appealing.

Whatever you do, you want your real estate investments to form part of a larger investment strategy. For more investment ideas, read this article on the best way to invest money. 

Commonly Asked Questions About Fundrise vs Realty Mogul

What is The Difference Between Fundrise and Realty Mogul?

The main difference in the Realty Mogul vs Fundrise debate is that Fundrise only offers real estate investment trusts (REITs), while Realty Mogul lets you invest in individual properties as well as REITs. Fundrise also lets you invest as little as $10, while Realty Mogul’s minimum investment is $5,000. 

Can You Make Money with RealtyMogul?

You can absolutely make money with RealtyMogul. In recent years, Realty Mogul’s “Income REIT” has provided average annualized returns of 6%. Investments in individual properties advertise estimated internal rates of return (IRRs) of up to 27.2%.

And if you’d like to learn how AI can help you manage your portfolio, check out our Streetbeat review.

What is The Average Return on RealtyMogul?

The average annual return on Realty Mogul’s “Income REIT” is 6%, while the “Apartment Growth REIT” has an average annual return of 4.5%. Accredited investors can also invest in individual properties, which have expected annual returns between 16.8% and 27.2%.

Has Anyone Made Money with Fundrise?

Plenty of people have made money with Fundrise. Over the past 5 years, the average annual return has been 6.7%. And in 2021, Fundrise investors earned a remarkable 22.99%.

Crowdstreet vs Realty Mogul?

CrowdStreet and Realty Mogul are real estate investment platforms where accredited investors can invest in specific properties. Both platforms also offer real estate investment trusts (REITs). One main difference is that the minimum investment is $5,000 with Realty Mogul and $25,000 with CrowdStreet. Learn more about your options in this Fundrise vs CrowdStreet comparison.