Real estate Investment Comparison

Fundrise vs. Landa

Wondering whether Fundrise or Landa is a better investment? We put them both to the test to help you compare and decide where to invest your money.

vs.

Comparison Table
Fundrise
Landa
Minimum Investment
$10
$5
Investment Holding Period
5 years
None
Early Withdrawal Penalties
1% of total investment
None
Rent Payouts
Quarterly
Monthly
Avg. Yearly Returns
10.70%
Undisclosed
Accessibility
Star Rating - 0.5
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Earning Potential
Star Rating - 0.5
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Investment Liquidity
Star Rating - 0.5
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Fundrise
Investment Quality Score
3.0
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Landa
Investment Quality Score
3.5
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Fundrise

The Bottom Line

Fundrise is a good hands-off investment option for novice real estate investors, but investors pay for it with very low liquidity, paltry rent dividends, and appreciation gains disconnected from the true value of the properties they help fund.

Fundrise Pros:

Easy to Use ✨

Makes it easy to invest in real estate with a well designed platform and low entry costs

Low Fees 🏠

Their stated fee structure is low, starting at just 1% per year

Strong Track Record πŸ“œ

They've been around since 2010 and has acquired billions worth of real estate

‍

Fundrise Cons:‍‍

Long Lockup Period πŸ”

Expected investment time window is at least 5 years

Investment Tip: Have an exit plan before you make an investment

Troubling Accounting πŸ’Έ

They make a big deal about their low 1% fees. But they've disconnected the value of their REITΒ shares from the true value of the properties in their portfolio, giving them opportunities to capture returns before they appear in their investor's accounts

Investment Tip: Beware of investments that disconnect true value from investment value.

Average investment returnsπŸ“‰

Typical returns of 10.70% per year is average compared with returns from other real estate investment options (typically 5-15% in rent yield per year) and the stock market (average 10% per year)

Investment Tip: Compare the return of an investment with alternative options

Slow rent payout 🐌

Only pays rent to investors a few times a year - much less often than other real estate investment options. This hurts cash flow and makes it harder to reinvest and access compounding returns

Investment Tip: Compare cash flow of an investment with alternative options

Landa

The Bottom Line

Landa offers a great customer experience, liquidity, and decent returns, but has a worrisome lack of return projections and historical performance data.

Landa Pros:

Good user experience πŸ“±

Landa's mobile app is easy, intuitive, and delightful.

Low minimums Β πŸ”‘

Investors can get started from just $5.

Some liquidity ⏩

Landa's secondary marketplace is one of the only in the space, making real liquidity a possibility.

‍

Landa Cons:

Lack of documentation & projection data πŸ“‰

It's very difficult to fully understand what you're buying before you buy into a Landa property, and impossible to understand how Landa properties have performed in aggregate.

Investment Tip: Make sure to deeply understand an investment before you make it

Poor diversification options πŸ“

Most Landa properties are located in a single U.S. state, making investors vulnerable to market swings.

Investment Tip: Always ensure proper diversification across your investment portfolio

All properties are mortgaged πŸ’Έ

Landa buys properties outright before selling fractions back to their investors. Investors therefore carry the cost of financing the property.

Investment Tip: Keep an eye out for fees that benefit the investment provider rather than the investor

Trading only available during business hours βŒ›

You'll have to make trades on Landa's secondary market while you're at work .

Investment Tip: Make sure investment opportunities are flexible to your needs before making them

Read our comprehensive
Fundrise
Review
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Read our comprehensive
Landa
Review
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