Real estate Investment Comparison

Fundrise vs. Lofty

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

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Comparison Table
Fundrise
Lofty
Minimum Investment
$10
$50
Investment Holding Period
5 years
No Minimum
Early Withdrawal Penalties
1% of total investment
None
Rent Payouts
Quarterly
Daily
Avg. Yearly Returns
10.70%
10.66%
Accessibility
Star Rating - 0.5
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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
Lofty
Investment Quality Score
4.0
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
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

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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

Lofty

The Bottom Line

Lofty gives investors unprecedented flexibility with their real estate investment with low minimums, no holding period, and almost instant liquidity. Some knowledge is required to get the most of your investments, but they do a good job at providing necessary documentation to help investors make the right choice.

Lofty Pros

No holding period πŸ™

Secondary market allows investors to trade holdings with low fees from the day they buy them

Daily rent payments πŸ“…

Investors receive pro-rated rent payments in their account daily

Low minimum investment πŸ”‘

Investors can invest as much as they like as long as it's over $50

Decentralized ownership ⛓️

Investors actually own the underlying property and vote on major property decisions

Open to investors everywhere 🌎

Investors from anywhere can invest in U.S. real estate

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Lofty Cons

Some web3 knowledge required ⛓️

While buying new fractions and managing properties is easy, trading with other investors currently requires a crypto wallet (though this will not always be the case)

Investment Tip: Make sure investment options don't put you out of your knowledge depth

Delinquency Risk πŸƒ

Lofty's focus on high cap rate properties creates greater cash flow but with greater risk for lost rent

Investment Tip: Do your due diligence to property evaluate risk/reward profiles of any investment

No Mobile App πŸ“΅

Lofty currently only runs on a browser

Investment Tip: Choose investments that fit your prefered method of monitoring

Read our comprehensive
Fundrise
Review
Read Full Review
Read our comprehensive
Lofty
Review
Learn more about Lofty
Read Full ReviewGo to Lofty.ai