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Rocket Dollar

Rocket Dollar Review 2025: Alternative Assets For Your Retirement

Rocket Dollar is a provider of self-directed retirement accounts that can be used to hold alternative assets.

Rocket dollar

Quick Summary:
A self-directed retirement account that enables individuals to invest in alternative assets.

Overall Rating:

PROS

Greater flexibility in the investments you can hold

Removes leg work of opening an account

Built-in tax breaks

CONS

Pricey monthly Fee

It can take several weeks to open an account

At A Glance:

This rocket dollar review will look at an increasingly popular investing tool: self-directed retirement accounts. These investment vehicles allow individuals to hold alternative assets outside traditional stocks, bonds, and mutual funds.

  • Overview: Provider of self-directed retirement accounts.
  • Account Types: Traditional & Roth IRA, Solo 401K
  • Fees: Depending on account tier, $15 or $30 a month, plus a one-time setup fee of $360 or $600
  • Investment Options: Anything legally permissible
  • Account Minimum: None

What is Rocket Dollar?

Rocket Dollar is a provider of self-directed retirement accounts.

The company facilitates the ability for individuals to invest in alternative assets like real estate and private equity through a self-directed IRA or solo 401k.

Historically, traditional retirement accounts only allowed investments in conventional assets like ETFs, mutual funds, and target date funds. As a result, this created a gap in the market where individuals could easily add alternative investments to their retirement portfolios.

Rocket Dollar does not offer alternative investments per se. Instead, they set up the legal structure so you can invest in a self-directed IRA through your favorite real estate crowdfunding platform.

The company aims to empower individuals by making investing in alternative assets safe, simple, and fast.

Rocket Dollar was founded in 2018 by Henry Yoshida and Thomas Young. In September 2021, Rocket Dollar received a Series A investment round of $8 million, led by Park West Asset Management.

Their office is headquartered in Austin, TX.

How Does Rocket Dollar Work?

Rocket Dollar is different than most traditional retirement account providers. Most providers limit you to a predefined selection of investment options, usually exchange-traded funds, mutual funds, and targeted retirement funds.

Rocket Dollar does the opposite.

With Rocket Dollar, there are no investment options. You can invest in anything that is legally permissible, real estate and farmland, to name a few.

Rocket Dollars opens an LLC for IRA accounts, and a trust for Solo 401(k) plans to facilitate the transactions.

Rocket Dollar

The LLC or trust is the legal owner of the account, where all transactions are required to be conducted, and expenses and income received is held.

Because the LLC is the legal owner of the account, it is commonly referred to as “checkbook control” because you can write checks for any legal investment from the LLC or trust.

There are several advantages of putting your assets in an LLC, one being ease of record keeping.

Investment Options

Rocket Dollar does not provide a predetermined set of investment options. Instead, they only set up the legal structure for investing and then you are free to invest in any assets you desire.

The IRS implements some restrictions for what is considered a permissible investment. For example, a self-directed retirement account cannot purchase life insurance, collectibles (stamps, cars, art), gems, and some coins and metals.

The good news is that there are many more permissible investments than restricted assets.

Some popular investments allowed in self-directed IRA and solo 401ks include:

  • Real estate
  • Gold bars
  • LLC membership units
  • Private placements
  • Commodities
  • Tax lien certificates
  • Foreign currency
  • Mineral rights
  • Promissory notes
  • Livestock and crops

Account Tiers

There are two account tiers when you open a self-directed IRA or solo 401k through Rocket Dollar.

Rocket Dollar Tiers

The Silver Account is $15/mo and has a one-time setup fee of $360. Meanwhile, Rocket Dollar Gold, their white glove service account, is $30/mo and has a one-time setup fee of $600.

There are a few differences between the two tiers, the most significant difference being enhanced customer support and expedited service for account transfers and fulfillments.

For double the price, I don’t see considerable value-add for the Gold level account. Most users should be fine with the Silver tier while saving a few bucks.

Rocket Dollar Fees

Outside of the recurring monthly and one-time setup fees, there aren’t many other ancillary fees when you open a self-directed retirement account through Rocket Dollar.

Rocket Dollar does not charge fees based on assets under management, and there are no fees to close your account.

You can have $10,000 invested through Rocket Dollar or $100,000; the fee structure is the same for all users.

  • Management Fees: None
  • Setup Fees: one-time $360 or $600 depending on account tier
  • Monthly Fee: $15 or $30, depending on the tier
  • Account Closing Fees: None
  • Wire or ACH Fees: You may incur wire or ACH fees

Opening An Account

Opening an account with Rocket Dollar is straightforward and can be completed online.

  1. First, choose the right account for you and sign up in under 5 minute

  2. Fund your account in just a few short days. You will need to contact Rocket Dollar’s support team if you want to initiate a rollover.

  3. Invest. From there, you can write checks from your retirement account to fund any alternative asset.

Who Should Use Rocket Dollar?

Rocket Dollar is good for…

Individuals who want to invest alternative assets as part of their retirement strategy.

Rocket Dollar is not good for…

The recurring fees could significantly impact individuals who have a low account balance.

Alternatives to Rocket Dollar

Rocket Dollar’s closest competitor is Alto IRA.

The most significant difference between Alto IRA and Rocket Dollar is that Alto has a predefined selection of investable alternative assets that it offers through partnerships with alternative investing platforms.

Meanwhile, Rocket Dollar does not offer any investment options. Instead, Rocket Dollar setups up the legal structure, allowing you to invest through your self-directed retirement account. The most significant benefit of Rocket Dollar vs Alto is that Rocket Dollar provides flexibility. You can invest in anything legally permissible.

FeatureRocketDollarAltoLogoiTrustCapital
Overall Rating
Monthly Fee$15-30/mo$10-$25/moNone
One-time Setup Fee$360 -$600$0None
Minimum InvestmentNone$10/crypto
$50/alternatives
$1,000
Types of AccountsIRAs, Solo 401KIRAsIRAs
Coins/Tokens on the PlatformNone150+29
Types of InvestorsOpen to all investorsOpen to all investorsOpen to all investors
Open an accountAlto IRA ReviewiTrust Capital Review

The Bottom Line

As the ease of investing in alternative assets becomes more straightforward and more individuals pick up side gigs and start monetizing their hobbies, there will be an increasing demand for services from a company like Rocket Dollar.

While the fees charged by Rocket Dollar can be offputting for some investors, it may be worthwhile considering if you have an alternative asset like real estate or are investing in a friend’s business, the rationale for using Rocket Dollar tips scale.

Frequently Asked Questions

Roofstock

Roofstock Review 2025: Invest in Single Family Rentals

Roofstock

Overall Rating:

Quick Summary:

A one-stop shop for single-family rental properties. You can research, buy, sell, and connect with partners for financing and property management.

PROS

30-day money-back guarantee

Easy to use research tools

Curated investment properties

Vacancy protection features

CONS

A large amount of capital required

At a Glance:

FeatureRoofstock
OverviewMarketplace to purchase and sell single-family rental homes across the United States.
Type of InvestmentsSingle-Family Rentals
Roofstock tracking shares
Minimum InvestmentVaries
LiquidityNone
FeesSellers pay a 3% fee of the sale price or $2,500 (whichever is greater)
Buyers pay a fee equal to 0.5% of the purchase price, or $500 (whichever is greater)
Retirement Account Investing?Yes
Accreditation Required?No, for single-family rentals
1031 ExchangeYes

Who Should Use Roofstock?

Investing with Roofstock is a good option if…

Individuals who want direct property ownership and do not mind handling the associated maintenance with property ownership.

Investing with Roofstock is not a good option if…

Individuals who do not have a lot of upfront capital or do not want the maintenance and tenant management responsibilities.

What is Roofstock?

Roofstock is an online marketplace where non-accredited and accredited investors can browse, compare, and ultimately buy or sell Single Family Rentals (SFRs) across 27 states.

Roofstock also provides property management services to property owners and the option to purchase shares of a managed rental property portfolio through its RoofstockOne platform.

Roofstock’s goal is to make investing in Single Family Rentals accessible to all investors regardless of their geographical location or expertise.

Since its launch in 2015, Roofstock has facilitated over $5 billion in real estate transactions and raised over $130 million in Venture Capital funding.

The company is headquartered in Oakland, CA

Why invest in Single Family Rentals?

According to Roofstock, there are 2 primary drivers that make Single Family Rentals an excellent investment opportunity.

  • Non-correlated stock market performance makes for excellent portfolio diversification and building long-term wealth.
  • Single Family Rentals have similar occupancy and operating margins to multifamily properties but with lower turnover. This is beneficial to owners because there can be significant time and expenses associated with turning over a property to a new tenant.

Sources: 1 Green Street Advisors 2016; 2 John Burns Real Estate Consulting 2019

How does Roofstock work?

Roofstock’s primary feature is buying or selling properties through the Roofstock Marketplace. In the Roofstock marketplace, you can review and analyze single-family rentals, short-term rental properties, or even portfolios of single-family rentals.

Let’s take a look at how using Roofstock works…

1. Search Roofstock Marketplace for Listings

After you sign-up for the Roofstock Marketplace, you can use custom filters to seamlessly narrow your search by list price, desired return, location and more. You can also sign-up for alerts and get notified when a property that matches your criteria becomes available.

Roofstock Marketplace
Roofstock Marketplace makes property research easy and quick

Roofstock makes the research process faster by providing pictures, street views, floor plans, property inspection reports, current tenant lease information, and tenant payment history.

Other property filters include:

  • Location
  • Price
  • Neighborhood rating
  • Reduced price
  • Cap rate
  • Gross yield
  • Monthly rent

Roofstock makes a once-piecemeal research process seamless because you can vet multiple properties without missing details or e-mail follow-ups.

Roofstock is a “one-stop shop” for gathering all the information a potential investor may want to know.

2. Make an Offer

Once you find a property that you like, it’s time to submit an offer.

Submitting an offer is free.

If your offer is accepted, Roofstock charges a marketplace fee of 0.5% of the contract price or $500, whichever is higher. This fee helps cover Roofstocks certification, underwriting, and full-service transaction management services.

If you are financing the investment property, Roofstock can connect you with lenders to help you get pre-approved. Pre-approval will strengthen your offer compared to similar offers without proof of funds.

3. Close on your investment property

Once you are ready to close on your investment property, the closing process takes around 15 days if you’re paying cash on a pre-inspected property and around 30 days otherwise if you are financing a property.

The Roofstock transaction team guides you through escrow until the property is legally yours.

And if you are unhappy with your purchase, qualified Roofstock properties come with a 30-day money-back guarantee. Portfolio, select, short-term rental, VIP program, and multi-family properties are not eligible for the guarantee.

4. Start earning cashflow

Because most properties on the Roofstock marketplace are fully occupied, you start earning rental income as soon as the closing process is completed.

If your property is not occupied at the time of closing, many, but not all, properties come with vacancy protection if your property is not fully occupied within 45 days, or they will pay 75% of your lost rental income for 6 months until it is occupied.

How does Roofstock differentiate itself?

At face value, Roofstock may seem no different than any other online real estate platform such as Zillow or Redfin.

However, prior to Roofstock, there was non “one-stop shop” that enabled investors to view detailed quantitative, qualitative and financial information in one place and then purchase or sell a property within that same platform.

Information had to be pulled from various sources, and investments often required local expertise and knowledge that was not easily accessible online.

Only institutions with deep industry knowledge and connections could invest in single-family rentals at scale. 

Roofstock created a platform to address the lack of accessibility and efficiency of a typical real estate transaction by streamlining the entire transaction process and ongoing property management services. The attractive benefits of real estate investing, including monthly cash flow and appreciation potential, are now available to a much wider audience.

How Roofstock Stands Out

  • One-stop shop for researching, buying, selling, and connecting with partners for financing and property management
  • No geographic barriers – access listings from high-performing markets nationwide
  • Inventory from a range of sources with attractive investment potential 
  • Proprietary neighborhood scores to assess the quality of that area
  • Powerful analytics
  • Roofstock Support team
  • Industry-leading money-back guarantee and vacancy protection for unoccupied properties

Roofstock One

Roofstock One is an alternative way for accredited investors to invest in a portfolio of single-family rentals fully managed by Roofstock.

Roofstock One has a minimum investment of $5,000, and investors can purchase in increments of $100 after that.

There is currently no secondary market for Roofstock One shares, but as the program ramps up, the firm intends to establish one. That said, the company recommends that investors have an investment horizon of at least 5 years.

The main difference between Roofstock One and Roofstock is:

1. You are required to be an accredited investor
2. Investors are purchasing shares that track the performance of a portfolio of rental properties. You do not have direct ownership of the properties.

Investing in shares of RoofstockOne is better for investors who want a passive investment and can focus more on creating targeting portfolios that align with their investment goals.

Roofstock Fees

There are no fees to sign-up on the Roofstock platform, and submitting an offer is free. If a bid is accepted, there is a 3% seller’s fee and a buyer’s fee of 0.50% when a property is bought or sold.

The Roofstock fees are used to pay for certification, underwriting, and full-service transaction management services.

In general, Roofstocks fees are between 1.5% – 2.5%, cheaper than using a traditional real estate agent, which have 5 – 6% commissions, according to real estate firm Redfin.

  • Sellers pay a 3% fee of the sale price or $2,500 (whichever is greater)
  • Buyers pay a fee equal to 0.5% of the purchase price, or $500 (whichever is greater)
  • No recurring fees

In addition, property owners are responsible for the other traditional property ownership costs such as:

  • Mortgage
  • Property taxes and insurance
  • Maintenance and repairs
  • Property management fees (if applicable)

Roofstock Alternatives

In reality, there are not many real estate investing platforms that have the same business model as Roofstock. Groundfloor is a company that provides loans for fix and flip properties. Meanwhile, DiversyFund is a real estate firm that offers the option to invest in a portfolio of professionally-managed commercial real estate.

FeaturesRoofstockGroundfloorDiversyFund
Overall Rating
Minimum Investment$5,000$10$500
FeesSellers Fee: 3%
Buyers Fee: 0.50%
None2%
Investment TypeEquityDebtVaries
Open To All Investors?
Retirement Account Investing?
Current PromotionsNoneNoneNone
Sign-UpRead ReviewRead Review

The Bottom Line: Is Roofstock Worth It?

For ordinary investors like you and me, Roofstock provides a valuable marketplace quipped with many investor tools that make investing in Single Family Rentals as painless as possible.

However, given the high barriers to entry, limited liquidity, or maybe you are just starting to get into real estate investing, you may be better off with real estate crowdfunding or REITs, which have much lower barriers to entry, with early redemption options.

Nonetheless, if you are dead-set on owning a physical investment property, Roofstock provides an opportunity to invest in properties you may not have been able to locate or where you could not find a property that meets your investment criteria.

Frequently Asked Questions

Fundrise vs. REITS

Fundrise vs. REITs: Which Investment Option Is Right For You?

This article will compare Fundrise vs. REITs and help you decide which investment option fits your needs.

Fundrise vs. REITs: Quick Comparison

FeatureFundrise

real estate

REITs
OverviewREITs and Funds that are registered with the SEC but do not trade on national stock exchanges.REITs are registered with the SEC and publicly traded on national stock exchanges.
Minimum Investment$10, but need to invest $5,000 to have access to most featuresOne share
Liquidity1% early redemption fee if held for less than 5 years. Does not guarantee liquidity.Buy and sell anytime
Returns5.42% across all clients since 20174.34% across all REITs) since 2017
Fees1% Management fee + fees buried in offering circular.0.50% on average
Overall Stock market correlationLess correlatedMore closely correlated
VolatilityLess volatile than publicly-traded REITsMore volatile than Fundrise
ManagementUsually externally managed, meaning Fundrise is just the platform to list the REITs.Usually self-advised and self-managed, meaning they own and operate the properties.

What is Fundrise, and How Does It Work?

Fundrise is a real estate investing platform that offers people an alternative option to investing in real estate projects without the stress and costs of traditional real estate investing.

Accredited and non-accredited investors can invest in commercial real estate assets through Fundrise’s wide variety of eREITs and eFunds with a minimum investment of $10.

Fundrise

The company boasts a wide variety of investment options and strategies, goal-planning features, and a user-friendly investment dashboard.

With Fundrise, you are investing in either Fundrise eREITs or eFunds. eREITs and eFunds comprise a basket of non-traded real estate properties, from multi-family apartments to industrial complexes. The eREITs and eFunds aim to seek a combination of dividend distribution and capital appreciation, depending on the strategy.

When you open an account with Fundrise, they offer a wide range of account levels; Basic accounts require a minimum investment of $10, and the Advanced Portfolio requires a minimum investment of $10,000. The premium level is reserved for accredited investors only, with a minimum investment of $100,000.

Fundrise’s most popular account is its Core Portfolio which has all the options and benefits most investors need. A Core account requires a minimum investment of $5,000.

You can create a customized investment strategy at the Core account level and above. Investors can customize their portfolio by diversifying across a wider variety of funds with specific objectives, such as income, growth, and balanced.

What are REITs, and How Do They Work?

REIT stands for Real Estate Investment Trust. A REIT is a company that owns, operates, or invests in real estate. A REIT can be publicly traded or privately traded.

As long as a company satisfies a long list of requirements set forth by the IRS, it can qualify as a REIT.

A real estate investment trust(REIT) can be publicly traded or non-traded. This article refers to publicly traded REITs that trade on a national stock exchange, like Vanguard’s Real Estate REIT VNQ. A publicly traded REITs price fluctuates daily like a stock.

Requirements to qualify as a REIT include:

● The kinds of assets it owns
● The kind of income it generates
● Who owns it
● How much of its income it distributes to its owners

Some REITs are public, and some REITs are private. REITs can invest in multiple classes of real estate or a single class of real estate, for example, mortgages. The most well-known requirement for REITs is that they are required to distribute 90% of their income to their investors.

There are several tax advantages of qualifying as a REIT, mainly avoiding double taxation: once at the corporate level and then at the individual level – that’s why the REIT distributes 90% of its income to the owners.

Many, but not all, real estate crowdfunding platform investment offerings are structured as a REIT.

Fundrise vs. REITs: How are they the same?

When most people debate whether to invest in Fundrise or REITs, many only consider total returns. However, that only paints a partial picture. Investors should also consider their investment timeline, goals, strategy, and risk tolerance.

In some ways, Fundrise and REITs are similar, but in reality, they are very different. Let’s look below at Fundrise and REITs’ similarities and differences.

Both are passive investments

Fundrise and REITs are passive real estate investments. Both options help you access real estate assets with fewer costs than you would if you had full property ownership and management.

Fundrise and REITs have multiple investment strategies

Fundrise offers a wide range of investment strategies, such as its Growth eREIT, which focuses on commercial real estate, or its Heartland eREIT, which specializes in commercial real estate in the Midwest. Similarly, when you invest in a publicly traded REIT, many have focused investment strategies. For example, some publicly REITs may focus on multi-family apartments like Avalon Bay (ABV), while others specialize in self-storage centers only like Public Storage (PSA).

Low minimum investment

Anyone with a brokerage account can invest in publicly traded REITs for just 1 share. You can also invest with Fundrise for just $10, creating low barriers to investing for REITs and Fundrise.

Investor control

When you invest in publicly traded REITs, they usually focus on a specific strategy such as multi-family or self-storage. And similarly, Fundrise REITs also offer a wide range of strategies and investments depending on your goals.

Federally regulated

Both Fundrise and REITs are regulated by the securities and exchange commission, providing a level of security regardless of the asset you are investing in.

Fundrise vs. REITs: How are they different?

Private Real Estate Returns
Yields of Private Real Estate compared to publicly traded securities.

Private real estate has higher returns than publicly-traded REITs

Over the past 20 years, NPI (the index that tracks private real estate performance) has averaged higher returns than other major asset classes, such as publicly-traded REITs, Bonds, and Stocks.

REITs have lower fees than Fundrise

According to the FTSE NAREIT Index, the average fee for REITs is 0.50%. Meanwhile, Fundrise charges an asset management fee of 1%.

REITs are more liquid

Because REITs trade on a stock exchange, you can buy and sell publicly traded REITs anytime. Meanwhile, Fundrise offers limited liquidity options. Fundrise redemption requests prior to holding the investment for five years old are subject to a flat 1% penalty. In addition, Fundrise does not guarantee liquidity, they may stop purchasing shares back if there is extreme market volatility.

Note: Privately held REITs (such as Fundrise) are subject to a liquidity premium. A liquidity premium is a form of extra compensation that is built into the return of an asset that cannot be cashed in easily or quickly. Meaning because you can’t easily buy and sell Fundrise eREITs, there is an economic theory that you should be compensated for that lack of liquidity. And while this is just an economic concept, and reality can play out differently than theory, if you are considering Fundrise vs. REITs, then this is a relevant point.

Fundrise is less volatile

Because Fundrise is not publicly-traded, the NAV of its real estate assets will not fluctuate daily like publicly traded REITs.

Externally managed vs. Internally managed

All eREITs and funds listed on Fundrise’s platform are managed by an external company. Fundrise serves as the platform for individuals to invest through. Meanwhile, most REITs are owned and operated by the company itself. Some individuals view this as a potential conflict of interest as Fundrise may be incentivized to sign-up as many people as possible.

You might be interested in: Best Fundrise Alternatives

PROS and CONS

Fundrise

PROS CONS
Buy and sell REITs same dayMore closely correlated with the stock market
Lower feesMore volatility
Own and operate the investmentsLower returns

REITs

PROS CONS
Historically higher returns than publicly-traded REITsLimited liquidity
Lower correlation to the stock market compared to public REITsThey don’t own and operate the investments
Investor tools to pick real estate investmentsHigher fees

Which Is Better: Fundrise or REITs?

It’s not possible to say if investing in Fundrise or REITs is better. Both investments have their benefits and drawbacks. If you are interested in real estate investing but are unsure where, how to start or what real estate project to invest in, then Fundrise is a better option for you.

Fundrise makes the rather complicated world of real estate investing easy to understand for everyday individuals like you and me. Meanwhile, if you are an experienced investor who doesn’t need any investor tools or guidance, then investing in REITs through your brokerage is probably the better option for you.

That said…

There are plenty of people to rave about Fundrise, and just as many individuals who think investing in publicly-traded REITs is the only way to get exposure to real estate investing.

Fundrise is better for…

Fundrise is best for individuals who want to invest in real estate but are unsure where, how to start, or what to invest in. Fundrise can guide you in creating an investment portfolio to meet your goals and needs.

REITs are better for…

Experienced investors who want do not need any guidance in creating their real estate portfolio. Furthermore, if you are an investor who doesn’t want to lock up their money for at least 1 year, then REIT investing is better for you.

Fund That Flip

Fund That Flip (Upright) Review 2025

Can You Revolutionize Your Real Estate Investing with Fund That Flip? In this Upright Review, we’ll explore the High-Yield Short-Term Loans for Experienced Investors.

Fund That Flip

Quick Summary:

Fund That Flip (now called Upright) is a real estate investing platform allowing accredited investors to invest in a wide range of residential real estate debt and prefunding notes.

Overall Rating:

Investment Options:

Tools & Features:

Ease of Use:

Price:

Best For:

Accredited Investors interested in income-generating investing

PROS

  • Collateral-backed investments
  • Passive diversification through Real Estate Bridge Note Fund

CONS

  • Accredited Investors only
  • $5,000 minimum investment

Fees:

1 – 3% interest rate spread. Difference between what is charged to each borrower and the rate paid to investors.

Minimum Investment:

$1,000 for note funds

$5,000 for individual properties

Retirement Account Investing

Yes

Open To:

Accredited investors

Returns

10.8% on average

Dividend Reinvesting

No

SIGN UP TODAY

What is Upright?

Fund That Flip is an online real estate crowdfunding platform for accredited investors to invest in short-duration, high-yield debt notes through residential real estate projects, commonly known as “fix and flip” projects.

Fund That Flip

Founded in 2014 by Matt Rodak, Fund That Flip has facilitated over $ 2 billion of investments, with over 2,500 loans repaid, yielding an average return of 10.8%, with the average loan repaid in under 10 months.

The company is headquartered in New York City.

How Does Upright Work?

Fund That Flip lists new investment options on nearly a weekly basis. The company will list investment details and metrics to help you make the most educated decision before investing.

Most BDNs have an average duration of less than 1 year, and the average interest rate earned is around 10%.

FTF has 3 investment options. The company primarily offers individual property investing via a Borrower Dependent Note (BDN). A Borrower Dependent Note is an unsecured debt instrument, and each BDN is secured by a first position lien on the underlying property (the collateral).

Individual BDNs have a minimum investment of $5,000, and borrowers must make monthly interest payments that go directly to their linked bank account.

When you invest in a BDN, it is possible for a borrower to prepay their loan ahead of schedule, but the borrower will be required to wait a specified number of months before doing so.

Note: Without getting too technical, FTF points out that a BDN is not secured because the collateral is not pledged directly to the holder of the BDN (investor) but is pledged to the Indenture Trustee for which the investor benefits as a BDN holder.

The other way you can invest is through FTF notes. Fund That Flip notes comprise two types of notes, a Residential Bridge Note Fund (RBNF) and a Pre-Funding Note Fund (PFNF). FTF notes have a lower investment minimum of $1,000.

Who Should Invest With Upright?

Upright is GOOD for…

  • Investors who want to invest in real estate but do not want to lock up their money for extended periods of time (3-5 years). And at the same time, maintain a lower level of risk by investing in debt securities.

Upright is NOT GOOD For…

  • Investors who may need to access their funds early

PROS & CONS Explained

PROS

  • Investments back by collateral. The investments offered on the platform are backed by collateral, meaning you can have peace of mind in case of a default.
  • They Prefund their loans. This means the platform funds the loans before they are sold on their platform, which means they stand behind the loans they offer.
  • Diversification through Real Estate Bridge Note Fund. Invest in multiple properties at once through the note fund providing diversification.

CONS

  • Accredited Investors only. The platform is only open to investors who meet net worth or income requirements, which may limit its accessibility to some investors.
  • Illiquidity. Real estate investments can be illiquid, meaning that it may be difficult to sell the investment quickly if the investor needs to access their funds.
  • Trending increase in delinquencies. Recent analysis shows there is an increase in delinquency rates(30 days past due)

Investment Options

Fund That Flip offers four ways to invest. The Residential Bridge Note Fund, Pre-funding note Fund, Horizon Residential Income Fund, and Borrower Dependent Note.

Fund that Flip Investment Options

Borrower Dependent Note

Borrower Dependent Notes are a form of debt financing where investors provide funds to Fund That Flip, who in turn lend the money to real estate investors. BDNs are unique because they are tied to a specific loan made by Fund That Flip to a borrower, meaning that the performance of the BDN is directly linked to the borrower’s ability to repay the loan.

In other words, if the borrower makes their loan payments on time, investors in the BDN will receive regular interest payments and their principal back when the loan matures. However, if the borrower defaults on their loan, the BDN may be at risk of losing some or all of its value.

Why invest in Borrower Dependent Notes:

  • Minimum investment: $5,000
  • Average Returns: 10.8% returns as of this writing.
  • Transparency: FTF offers unparalleled clarity into borrower history and experience to help you vet each project.
  • Terms: 3 – 24 months
Fund That Flip Investment Options
FTF Borrower Dependent Note investment options.

Residential Bridge Note Fund (RBNF)

The RBNF is designed to be representative of the entire book of business FTF originates and is comprised of BDNs and mortgages. Sometimes, the RBNF may also extend a line of credit to pre-fund mortgages.

The minimum investment is $1,000. Terms range from 6 – 9 months, with
returns in the 10% range.

Investing in this note is analogous to investing in a stock index fund such as the Vanguard 500 Index Fund ETF (VOO).

The RBNF is designed to create passive diversification. In other words, investors in this note won’t need to review and sign-up for new investments. Instead, investors can now invest across the entire FTF book with one investment.

The RBNF is a very unique offering. I have not seen this structure across any of the other real estate platforms I’ve reviewed, which allows passive diversification across an entire book of business.

It’s also worth pointing out that because investors do not have the option to pick individual investments in the RBNF, the RBNF invests 10% of its total capital in the fund, therefore showing aligned incentives between investors and the company.

Fund That Flip
SIGN UP TODAY

Pre-Funding Note Fund (PFNF)

The other note offered by FTF is their Pre-Funding Note Fund (PFNF). Through PFNF, individuals invest in a line of credit used to fund mortgages before they are open for investing through the FTF platform or sold to institutional whole loan buyers.

You can invest in PFNF for $1,000 and increments thereafter of $1,000. The typical duration of a PFNF is between 3 – 12 months, with yields between 8% and 9.50%.

The primary benefit of pre-funding notes is that they allow investors to earn yield without taking on repayment risk.

In addition, the fact that FTF prefunds its loans shows it stands behind the investments on its platform. If FTF prefunds a loan and doesn’t live up to investors’ standards, the company is stuck with the loan.

I’m a huge fan of prefunding note investing due to the short duration of the notes and the fact that you are investing in a Line of Credit and not a loan.

However, since I’m not an accredited investor, the Pre-Funding Note Fund isn’t an option. A great alternative for non-accredited investors is Stairs by Groundfloor, which allows non-accredited investors to invest in prefunding notes for just $1.

Horizon Residential Income Fund

The Horizon Residential Income Fund invests in a diversified portfolio of short-term residential bridge mortgage loans, providing investors with income and diversification, while also providing the tax benefits of a REIT.

  • Minimum investment: $25,000
  • Targeted Returns: 10.% – 13%, 8% preferred
  • Terms: 12 months minimum

Performance & Investment Metrics

Returns can vary greatly when investing in real estate, so comparing real estate investment platforms can be challenging.

For example, depending on where in the capital stack your investment stands can greatly influence your returns. For example, FTF investments are debt and lower on the capital stack and generally have lower returns and lower risk.

On the other end, common equity is higher on the capital stack and, as a result, generally has higher returns but also more risk.

Let’s take a look at FTF returns and performance metrics...

Since its inception, Fund That Flipped returned an average of 10.8% across $2 billion invested. According to FTF, only 6- 8% of loan applications are funded.

As of June 2022, 5.72% of its loan portfolio was 30 days or more past due and has been trending slightly upward over the past few months.

The company notes the two main reasons for an increase in delinquency are supply chain issues and numerous high-dollar loans that remain delinquent because they have a dependency on exit and repayment.

  • Average Gross Yield: 10.8%
  • Percentage of Principal Returned: 99.6%
  • Number of Repaid Loans: Over 2,500
  • Total Invested: $2billion
  • Approved for Funding: 8% of loan applications
  • Delinquency Rate: 5.72% as of June 2022

Fees

Fund That Flip does not charge any ongoing management fees to investors.

Rather, FTF deducts a spread of 1 – 3 % between what it charges borrowers and what it pays to investors. Other real estate investing platforms will charge an ongoing management fee which is deducted from your balance on a yearly or quarterly basis, so this makes it a little more seamless for investors.

Fee Example: If a borrower pays 11%, FTF takes a 2% spread, and the investor will receive 9%. All yields listed are net of the spread, so what you see is what you get.

Liquidity

There is no secondary market or early redemption options if you want to sell back your BDN or RBNF, or PFNF early.

However, given the short duration of its notes (average repayment in 10 months), this is a very short timeline when it comes to real estate investing.

Many other real estate investing platforms require you to hold your investment for 3 -5 years or pay an early redemption fee of up to 3%, which can eat into your profits.

Best Alternatives

Fund That Flip’s closest competitor is Groundfloor. Both companies focus on residential real estate debt investing and offer prefunding investing. However, the main difference is the FTF is open to only accredited investors, while Groundfloor is open to all investors.

Bottom Line

FeaturesFund That FlipGroundfloorDiversyFund
Overall Rating
Minimum Investment$5,000$10$500
Fees1-3% taken as a spreadNone2%
Investment TypeDebtDebtVaries
Open To All Investors?
Retirement Account Investing?
Current PromotionsNoneNoneNone
Sign-UpGroundfloor ReviewDiversyfund Review

Fund That Flip is definitely worth considering if you are an accredited investor interested in investing in short-duration real estate debt. While their returns are on par with its closest competitor, Groundfloor, FTF is able to stand out against the crowd.

I like that all BDNs are secured by underlying collateral, thereby providing additional security for investors. In addition, the Real Estate Bridge Note Fund, which provides passive diversification across FTF’s entire book of business, is a very unique offering that I have not seen available on any other real estate investing platforms.

Lastly, I can really appreciate the level of transparency and explanations of the company’s operating model and structure, not something I have seen in other real estate crowdfunding platforms. I spent some time listening to the FTF podcast, which provides a level of detail I have not seen before.

Fund That Flip
Try Fund That Flip

Frequently Asked Questions

Our Review Methodology

Investing in the right financial products is crucial for achieving your financial goals. That’s why our review methodology is designed to give you a comprehensive understanding of various investing platforms and tools. Here’s a breakdown of what we focus on:

Tools and Features

We dig deep into the suite of tools that each platform offers. Whether it’s automated investment features, tax optimization, or the number of offering, we evaluate how these features contribute to smarter investing decisions. We ask questions like:

  • What is its main offering, and how does it compare to its peers?
  • How effective are the risk assessment tools?
  • Are there any value-added services like educational content?

Price and Value

Price matters, especially when it comes to investing, where every penny counts. We analyze:

  • Subscription fees
  • Hidden Charges
  • Price compared to the overall value received

We’ll let you know if the platform gives you the most bang for your buck.

Ease of Use

User experience can make or break an investment platform. We assess:

  • Interface Design – Is it intuitive and easy to use?
  • Mobile app availability and functionality
  • Customer Support – where applicable.

Nobody wants to navigate a clunky interface when dealing with their hard-earned money.

Our Review Methodology

Investing in the right financial products is crucial for achieving your financial goals. That’s why our review methodology is designed to give you a comprehensive understanding of various investing platforms and tools. Here’s a breakdown of what we focus on:

Tools and Features

We dig deep into the suite of tools that each platform offers. Whether it’s automated investment features, tax optimization, or specialized charting tools, we evaluate how these features contribute to smarter investing decisions. We ask questions like:

  • What is its main offering, and how does it compare to its peers?
  • How effective are the risk assessment tools?
  • Are there any value-added services like educational content?

Price and Value

Price matters, especially when it comes to investing, where every penny counts. We analyze:

  • Subscription fees
  • Hidden Charges
  • Price compared to the overall value received

We’ll let you know if the platform gives you the most bang for your buck.

Ease of Use

User experience can make or break an investment platform. We assess:

  • Interface Design – Is it intuitive and easy to use?
  • Mobile app availability and functionality
  • Customer Support – where applicable.

Nobody wants to navigate a clunky interface when dealing with their hard-earned money.

How We Do It

  1. Hands-On Testing: I signed up for Fund That Flip to provide real insight. This is how I give my unique perspective. We’re unlike some other sites where they simply rehash marketing materials.
  2. Customer Reviews: What are other users saying? We look at reviews and customer feedback to gauge public opinion.
  3. Comparative Analysis: Finally, we compare each platform against competitors regarding features, pricing, and user experience.
Real Estate

Groundfloor vs. Fundrise: Which Real Estate Platform Reigns Supreme?

In this review of Groundfloor vs. Fundrise, we’ll look at two popular real estate platforms and help you decide which fits your needs.

Groundfloor vs. Fundrise: At A Glance

Key Features
Demo Image
Demo Image
Quick Summary
Real estate crowdfunding platform that makes short-term loans to investors who fix and flip properties. Interest rates range between 5% - 15%
Real estate investment platform that offers a wide variety of REITs and Funds with varying strategies and property types
Minimum Investment
$100
$10
Fees
None (Borrower pays)
1%/yr
Property Types
  • Individual properties
  • Real estate debt
  • Multi-family
  • Comercial REITs
  • Interval funds

What Is Groundfloor?

Groundfloor is a real estate crowdfunding investment platform that allows individuals to invest in short-term real estate debt. The company makes short-term loans ranging from 6 – 12 months to real estate “flippers” who fix and flip individual investment properties.

Groundfloor

Before opening a loan to investors on their platform, Groundfloor thoroughly vets a borrower’s experience, creditworthiness, and business plan. Then, they assess the property value on an as-is and as-improved basis.

Groundfloor is open to accredited and non-accredited investors with a minimum investment of just $100.

This real estate platform was founded in 2013 by Brian Dally and Nick Bhargava and is headquartered in Atlanta, Georgia.

Read our full Groundfloor review.

What Is Fundrise?

Established in 2010, Fundrise is one of the oldest real estate investing platforms. Fundrise offers people an alternative option to investing in real estate without the stress and costs of traditional real estate investing.

Fundrise

Accredited and non-accredited investors can invest in real estate through Fundrise’s wide variety of eREITs and eFunds with a minimum investment of $10.

The company boasts a wide variety of investment options and strategies, goal-planning features, and a user-friendly investment dashboard.

More than 300,000 people use Fundrise today and have invested over $ 7 billion in properties throughout the U.S.

Fundrise is based in Washington, DC, and was founded by Ben Miller, who has over 20 years of experience in the real estate industry.

Read our full Fundrise review.

How Does Groundfloor Work?

When you open an account with Groundfloor, you can invest in short-term, collateralized (backed by the properties themselves) real estate debt instruments with a minimum investment of just $100.

Investing with Groundfloor involves lending money to real estate developers who are seeking financing for their projects. Here’s how it works:

1. Identify Investment Opportunities

Groundfloor identifies potential real estate projects that need funding: Groundfloor works with real estate developers who are looking for funding for their projects. These projects can range from single-family homes to large-scale commercial developments.

Groundfloor presents new investment opportunities on its platform weekly, ensuring investors always have the option to diversify into new projects.

2. Open the Project to Investors

Once Groundfloor has identified a potential real estate project, it creates an investment offering for it. This offering includes details about the project, including the loan amount, interest rate, loan term, and other relevant information.

3. Browse Investments

Investors can review and invest in the projects: Investors can review the investment offering and decide whether they want to invest in the project. Investors can choose to invest any amount, starting at as little as $100.

With this in mind, you can also use Groundfloor’s Investment Wizard, a feature that automatically matches available loans with your investment criteria. You can select and customize your portfolio with just a few clicks.

Most loans offered on its platform have yields between 7.5 to 14%, with a duration between 6 and 12 months or as long as 21 months.

Once you open your account, you can browse available investments and view loan metrics such as rate, term, and ARV (after repair value).

Groundfloor ivnestments
Groundfloor loans range from A (least risky) to G (most risky)

Note: Groundfloor stands behind each loan on its platform. The company prefunds loans before they launch on their platform. Because Groundfloor fully funded the loan, it shows faith in its underwriting and due diligence. Otherwise, if a loan does not meet investors’ standards, they will be stuck with a possibly underperforming loan.

4. The project is funded

Once enough investors have invested in the project, the project is considered fully funded, and the loan is closed. The developer receives the funds and can begin work on the project.

5. Investors receive monthly interest payments

As an investor, you will receive monthly interest payments based on the terms of the investment offering. The interest rate is typically higher than what you would earn from a savings account or CD.

6. The loan is paid off

At the end of the loan term, the developer repays the loan, and investors receive their principal investment back, plus any accrued interest.

7. Investors reinvest or withdraw their funds

After the loan is paid off, investors can choose to reinvest their funds in another project or withdraw their funds from the Groundfloor platform.

Overall, investing with Groundfloor allows investors to earn attractive returns by lending money to real estate developers. However, it’s important to remember that all investments come with some level of risk, and investors should carefully evaluate each investment opportunity before investing their money.

How Does Fundrise Work?

With Fundrise, you are investing in either Fundrise eREITs or eFunds. eREITs and eFunds comprise a basket of non-traded real estate properties, from multifamily apartments to industrial complexes. The eREITs and eFunds aim to seek a combination of dividend distribution and capital appreciation, depending on the strategy.

When you open an account with Fundrise, they offer a wide range of account levels. Basic accounts require a minimum investment of $10, and its Advanced Portfolio requires a minimum investment of $10,000. The premium level is reserved for accredited investors only, with a minimum investment of $100,000.

Fundrise Investor dashboard

However, Fundrise’s most popular account is its Core Portfolio, which has all the options and benefits most investors need. A Core account requires a minimum investment of $5,000.

You can create a customized investment strategy at the Core account level and above. Investors can customize their portfolio by diversifying across a wider variety of funds with specific objectives, such as income, growth, and balanced.

Groundfloor Key Features

$100 Minimum Investment. Groundfloor is truly democratizing real estate investing by removing barriers to entry. You can create a diversified portfolio by investing While Fundrise also has a $10 minimum investment, you need to invest at least $5,000 to access all of the platform’s features.

Investments Are Backed By Collateral. With Groundfloor, you are investing in real estate debt which has a much lower risk profile in the capital stack. Many other real estate platforms invest in equity or preferred equity, making them subject to a higher degree of risk.

Groundfloor Stands Behind Their Loans. Groundfloor prefunds most loans before they are sold on its platform. Doing this shows that Groundfloor has faith in its investment selection process. Because if the loan does not live up to investors’ standards, they could be stuck with the loan.

Note about fees: Many real estate investment platforms bury additional costs in their offering documents. So a word of caution when considering investing and are concerned about the fees a platform lists. The most transparent platform for fees for real estate investing is a company called Streitwise.

Which Platform Is Better?

Winner: Groundfloor

Groundfloor has a winning investment strategy.

Their low investment minimum of $100 grants you access to all of their features. While Fundrise has a $10 minimum, you must invest at least $5,000 and upgrade to a Core portfolio to use most of the platform’s features.

In addition, Groundfloor’s short-duration notes are backed by collateral, offering higher returns for varying degrees of risk. This is in contrast to Fundrise, which requires you to lock up your money for 5 years or pay a fee to withdraw your money.

Furthermore, all of Groundfloor’s investments are debt investments, which provide a higher degree of security when investing, while Fundrise’s investments span the entire capital stack.

That said, it is clear why Groundfloor is superior to Fundrise in the real estate investing platform space.

Try Groundfloor
RealtyMogul vs. Fundrise

RealtyMogul vs. Fundrise: Best Real Estate Crowdfunding?

RealtyMogul vs. Fundrise. Which Crowdfunding Platform is better for you?

Skyscraper

Realty Mogul vs. Fundrise: At A Glance

KEY FEATURES
Demo Image
Demo Image
QUICK SUMMARY
Real estate crowdfunding platform that offers individual properties and REITs
Real estate investment platform that offers a wide variety of REITs and Funds with varying strategies and property types
MINIMUM INVESTMENT
$5,000
$10
FEES
1% for REITs, varies for individual properties
1%/yr
INVESTMENT OPTIONS
  • Commercial Real Estate
  • Mult-family
  • Multi-family
  • Comercial REITs
  • Interval funds

What is RealtyMogul?

RealtyMogul

RealtyMogul is a real estate crowdfunding platform for accredited and non-accredited investors. RealtyMogul connects investors who want to invest in commercial real estate and create wealth through income or capital appreciation via REITs and private placements.

RealtyMogul was launched in 2013. To date, 240,000 individuals signed up for the platform and invested over $915 Million, financing 400+ properties valued at over $4.7 Billion.

The founders of RealtyMogul are Jilliene Helman (current CEO and Georgetown alumna) and Justin Hughes.

The company is headquartered in Los Angeles, California.

Read our complete RealtyMogul Review

What is Fundrise?

Established in 2010, Fundrise is the oldest real estate crowdfunding platform. Fundrise offers people an alternative option to investing in real estate without the stress and costs of traditional real estate investing.

Fundrise

Fundrise boasts a wide variety of investment options and strategies, goal-planning features, and a user-friendly investment dashboard.

More than 300,000 people use Fundrise today and have invested over $ 7 billion in properties throughout the U.S. Fundrise has had 21 consecutive quarters of returns, averaging 22.99% in 2021.

You can start investing in Fundrise’s Starter Portfolio with just $10.

Fundrise is based in Washington, DC, and was founded by Ben Miller who has over 20 years of experience in the real estate industry.

How Does RealtyMogul Work?

First, you need to open an account with RealtyMogul. There’s nothing special or complicated about opening an account with them.

1. Complete your account profile

Go to RealtyMogul.com. They ask for basic information such as name, address, etc.

2. Select your investments

Once you join, you have access to current eligible investments. Investment details are presented with key information.

RealtyMogul offers 2 types of investment options: REIT investing through either their Income REIT or Growth REIT and individual property investing. The Income REIT has an annualized distribution rate of 6.0% and has made monthly distributions for 64 consecutive quarters (since inception). Meanwhile, the Growth REIT has annualized distribution rate of 4.50%, paid quarterly.

RealtyMogul’s REITs are open to accredited and non-accredited investors with a $5,000 minimum investment. Individual property investments are only open to accredited investors with minimum investments between $25,000 and $50,000.

3. Complete your transaction

Once you are ready to invest, complete your transaction online in a few minutes.

4. Track your investments

You can track your total invested value and distributions in the investment dashboard. You will also receive quarterly investment reports and annual tax documents through this portal.

RealtyMogul Dashboard

How Does Fundrise Work?

When investing with Fundrise, you are investing in either Fundrise eREITs or eFunds. Fundrise is available to non-accredited and accredited investors with a minimum investment of just $10.

eREITs and eFunds are comprised of a basket of non-traded real estate properties, from multifamily apartments to industrial complexes.

The eREITs and eFunds aim to seek a combination of dividend distribution and capital appreciation, depending on the strategy.

When you open an account with Fundrise, they offer a wide range of account levels. “Basic” accounts require a minimum investment of $10, and “Advanced Portfolio” requires a minimum investment of $10,000. “Premium” is reserved for accredited investors only with a minimum investment of $100,000.

*The main difference between investing with Fundrise and RealtyMogul is that Fundrise offers tiered investment options based on how much you invest. Meanwhile, RealtyMogul only splits its investment options between accredited and non-accredited investors.

Fundrise Investment Options

Once you open a Fundrise account, you can view and manage your investments from one easy-to-use dashboard.

Fundrise Investor Dashboard

Key Features: RealtyMogul and Fundrise

RealtyMogul Key Features

  • Thorough investment vetting process.
  • Dividend Reinvestment. RealtyMogul allows for dividend reinvestment enabling investors to take advantage of compound interest.
  • 67 months of consecutive returns through its Income REIT. RealtyMogul’s flagship Income REIT has generated 67 consecutive quarters of returns since its inception in 2016, with annualized distributions ranging from 6 – 8.5%.
  • Early Redemption Features. RealtyMogul offers a tiered repurchase schedule – meaning they will repurchase shares at a discount to 100% of the NAV for up to 3 years. After 3 years, RealtyMogul will repurchase shares at 100% of the most recent NAV.

    Realty Mogul does not offer share repurchase programs for individual property investing, which is available to accredited investors only.
  • 1% Asset Management Fee. RealtyMogul REITs have a 1% annualized asset management fee, paid monthly. This means you would pay approximately .0.83% per month in fees. All distributions quoted by RealtyMogul are net of fees. Fees vary for individual property investing.
  • The site is a platform for sponsors to raise funds. This is probably the least understood feature of real estate crowdfunding. RealtyMogul, like many crowdfunding platforms, serves as a medium for real estate sponsors to raise funds for the project. In other words, most projects on their website are managed externally.

Fundrise Key Features

  • $10 Minimum Investment. You can open an account and start investing in real estate with just $10.
  • Early Redemption Option. If investors want to redeem their shares of the eREITs or eFund, they can place a redemption request at any time. However, any eREIT or eFund redemptions processed before an investment is five years old are subject to a flat 1% penalty.
  • Dividend Reinvestment. If you enable dividend reinvestment, dividends earned are automatically reinvested quarterly according to your investment plan. 
  • Create and Manage Investor Goals. This feature allows you to invest with a defined goal in mind to track your progress towards achieving your defined objectives. Investor goals are only helpful if your investment horizon is 5 years or longer.

    Common goals include saving for a large purchase or retirement. The Investor goals tool is expected to show you how your portfolio could grow over time through continued investment, appreciation, and dividend/distribution income.

    Once your goal is set, the goal tracker will monitor if your portfolio is on track, needs attention, or is off-track, and then guide you towards making adjustments to help you meet your goal.

    Investor Goals is available to all taxable accounts beginning at the “Starter” account level.
  • Automated Investing. You can schedule automatic investing to your Fundrise portfolio, at any time, with $10 increments. Auto-investments are allocated according to your chosen plan, and Fundrise may offer new investments to automatically invest in as they arise.
  • 1%/yr Fee. Fundrise charges a yearly asset management fee of 0.85% plus a 0.15% advisory fee, so 1%/yr for AUM. All dividends are net of fees. So for every $1,000 invested, you will pay $10 in fees.

    Fundrise does not charge transaction fees, sales commissions, or additional fees for enabling features on your accounts, such as dividends or auto-investment. 
  • 21 Consecutive Quarters of Positive Returns. Since its inception, Fundrise has delivered 21 consecutive quarters of positive returns with a net 11.58% return across all clients since inception. Their best quarter returned 9.40%, and their worst quarter was 1.15%.
  • Multiple Account Levels. The Fundrise platform consists of five levels of accounts with varying minimum balance requirements. Depending on the level of account opened, you will have access to different investment options.

    Fundrise’s most affordable option is its “Starter” portfolio. This low-cost package starts at $10. The portfolio includes access to Fundrise’s registered products, dividend reinvestment, and auto investing.

    If you open a ‘Starter’ portfolio, you can invest in the Income Fund, which focuses on cash flow generation, or the Flagship Fund, which focuses on income and capital appreciation.

    However, the Starter portfolio does not have IRA access or other advanced functionality. For $1,000, you can upgrade your account to the Basic Plan. With the Basic Plan, you can define your investment goals, open a taxable IRA, and invest in the Fundrise iPO.

    Neither the “Starter” nor “Basic” plans grant access to Fundrise’s non-registered investment programs. After that, there are 3 higher-level plans which include: Core, Advanced, and Premium. These plans have a higher minimum balance, but also come with more advanced features including additional investment options such as an Opportunity Zone Fund.

Head-to-Head Comparison

Below we will see how RealtyMogul and Fundrise stack up against each other. We will examine 5 key areas: investment options, early redemption features, fees, and user experience.

Investment Options

Winner: Fundrise

In terms of the pure number and breadth of investment options, Fundrise is the clear winner. Fundrise has 11 active eReits and 2 eFunds. eREIT strategies span from income generation to Midwest Region strategies.

Meanwhile, RealtyMogul offers 2 REITs (Income REIT and Growth REIT) in addition to private placements, but private placements are only available to accredited investors. The private placement investments span debt and equity investments across multiple investment strategies and property types.

RealtyMogul

RealtyMogul offers 2 REITs for all investors and private placements to accredited investors. RealtyMogul REITs include An Income REIT and Apartment Growth REIT.

Both REITs have a minimum investment of $5,000 and are open to accredited investors & non-accredited investors.

The main benefit of commercial real estate investing through REITs is that investor spread their money across multiple properties, which will provide a higher level of diversification compared to individual property investing.

Historically, REITs have provided investors with regular income streams, portfolio diversification, and long-term capital appreciation opportunities.

RealtyMogul Income REIT

  • Minimum Investment: $5,000
  • Distribution Frequency: Monthly
  • Annualized Distribution Rate: 6.00 %
  • Property Type: Diverse
  • Investment Types: Debt and Equity
  • Open To All Investors: Yes
  • Objective: Income generation
  • Trusted: Regular audits performed by Cohn Reznick
  • Good For: Monthly Income

The RealtyMogul Income REIT (Real Estate Investment Trust) is a public, non-traded REIT making equity and debt investments in commercial real estate properties diversified by investment type, geography, and property type. The REIT’s objective is to provide monthly income to investors by rigorously evaluating numerous investment opportunities to find those that can support the REIT’s distribution target.

From the start, The Income REIT has distributed 64 months of consecutive distributions to approximately 6,500 investors totaling roughly $18.5 million. Anyone can invest in RealtyMogul’s Income REIT with a minimum of just $5,000, regardless of their income or net worth.

If you are interested in monthly income through real estate, RealtyMogul’s strong history of 64 consecutive months of distributions at a 6% annualized rate could be an excellent option.

RealtyMogul Apartment Growth REIT

  • Minimum Investment: $5,000
  • Distribution Frequency: Quarterly
  • Annualized Distribution Rate: 4.50%
  • Property Type: Multifamily
  • Investment Types: Common & Preferred Equity
  • Open To All Investors: Yes
  • Investment Goal: Growth potential and income
  • Trusted: Regular audits performed by Cohn Reznick

The Apartment Growth REIT is a public, non-traded REIT that invests in apartment buildings in resilient markets that can offer current income and solid growth potential. The REIT’s primary objective is to realize capital appreciation in the value of its investments over the long term through the renovation and repositioning of the multifamily properties and pay attractive and stable cash distributions to stockholders.

As of today, the Growth REIT has distributed 16 months of consecutive distributions to approximately 2,700 investors totaling approximately $4.mm. Anyone can invest in RealtyMogul’s Growth REIT with a minimum of just $5,000, regardless of their income or net worth.

Fundrise

Fundrise Has 11 active eREITs and 2 eFunds. eREIT strategies span from income generation to Midwest Region strategies. eREITs are a diverse family of funds, each pursuing a focused real estate investment strategy. Fundrise typically allocates its clients’ portfolios to a combination of eREITs, calibrating each client to specified objectives and risk tolerance.

The eFunds are comprised of an Income Real Estate Fund, whose main objective is income distribution and currently has a 6.5% distribution rate.

Their other fund is The Flagship Real Estate Fund which has an investment objective to generate income while also seeking long-term capital appreciation with low to moderate volatility and low correlation to the broader markets. The Flagship Real Estate Fund currently has a 0.75% distribution rate.

Early Redemption Options

Winner: RealtyMogul

RealtyMogul offers a tiered repurchase schedule- meaning they will repurchase shares at a discount to 100% of the NAV up to 3 years. After 3 years, RealtyMogul will repurchase shares at 100% of the most recent NAV.

Realty Mogul does not offer share repurchase programs for individual property investing, which is available to accredited investors only.

However, RealtyMogul will repurchase your shares at 100% of their value if you should pass away before the end of the 3-year vesting schedule.

98% if you held the investment for one year but less than two.
99% if you held the investment for two years but less than three.
100% if you held the investment for three years or more.
0% if you held the investment for less than a year.

For example, if you held your RealtyMogul for 1.5 years, your redemption rate would be 98% X the most recent NAV.

Fundrise charges a 1% flat fee for any redemption request that is less than 5 years old. After 5 years, Fundrise will repurchase redemptions at full value, with no fee or penalty.

Also, neither platform can guarantee liquidity options but does so on a best efforts basis. Both companies will repurchase at the effective repurchase rate multiplied by the most recently announced NAV per share.

Fundrise: If investors want to redeem their shares for the eREITs or eFund, they can place a redemption request at any time.

However, after a request is submitted, Fundrise typically processes the requests quarterly for the eREITs, and monthly for the eFunds after a minimum 60-day waiting period.

It’s important to note that while under normal market conditions Fundrise seeks to provide investors with liquidity through the redemption plan, during a financial crisis, investors should expect us to pause the redemption plan long enough to allow enough time for whatever events may unfold.

Fees

Winner: Tie

When real estate crowdfunding platforms mention fees, they usually refer to their monthly asset management fee. Both RealtyMogul and Fundrise have a 1% management fee.

RealtyMogul REITs have a 1% annualized asset management fee, paid monthly. This means you would pay approximately .0.83% per month in fees. All distributions quoted by RealtyMogul are net of fees. Fees vary for individual property investing.

Fundrise has a 1% fee for assets under management. Fundrise charges a yearly asset management fee of 0.85% plus a 0.15% advisory fee, so 1%/yr. All dividends are net of fees. For every $1,000 invested, you will pay $10 in fees.

There are often additional fees baked in offering circulars, such as organizational and operating costs, and upfront selling costs. It’s really just a matter of how the platform presents the fees to you, which can sometimes be misleading and hard to understand.

Returns

Winner: Fundrise

Individual returns can vary depending on investment strategy and goals i.e., income generation vs. capital appreciation, so it’s hard to compare apples to apples.

That said…

Across all clients, Fundrise returned an average annualized return of 11.58%, net of fees. RealtyMogul has not listed its returns across all clients, but it has made 67 consecutive monthly distributions between 6% and 8% through its Income REIT since 2016.

For example, the RealtyMogul income REIT has made 67 consecutive monthly distributions since its inception in 2016, showing a strong track record in its REIT offerings, while Fundrise’s Income Fund has only been around since April 2022, so it’s hard to give a truly accurate comparison.

Income Funds Compared:

Since 2016, the RealtyMogul Income REIT has delivered 67 consecutive months of distributions to shareholders, with an annualized distribution rate between 6% and 8%. Meanwhile, Fundrise’s Income Real Estate Fund, which was launched in April 2022, has a current distribution rate of 6.5%. Given RealtyMogul’s strong track record, they take the W in the income category.

Fundrise Total Returns:

From 2017 – 2021, Fundrise returned an average annualized return of 11.58%, net of fees across all clients. Compared to all public REITs, which returned 13.4% and 19.21% for the S&P 500.

It’s important to note that your total returns could vary depending on your chosen plan and investment objective.

Fundrise has had 21 consecutive quarters of positive returns, with their best quarter returning 9.40% and their worst quarter being 1.15%.

Both the S&P500 and all public REITs had only 17 consecutive positive returns, with their best quarters returning 20.54%/16.70% and worst quarters returning -19.60%/-25.42%, respectively.

YearFundrise Returns
2022 Q13.49%
202122.99%
20207.31%
20199.16%
20188.81%
201710.63%

PROs & CONs

REALTYMOGUL PROS

  • Consistent Income: The Income REIT has distributed 67 months of consecutive distributions with an annual distribution rate of 6-8% since its inception in 2016.
  • Thorough Due Diligence: RealtyMogul has a rigorous vetting process – to date, only 1.1% of opportunities have been funded.
  • Retirement Account Investing: You can invest in a retirement account through a self-directed IRA (SDIRA).
  • Diversification: Cash flow from equity and debt investments create diversification across the capital stack.

REALTYMOGUL CONS

  • High minimum investment
  • Fewer investment opportunities vs. competitors

FUNDRISE PROS

  • Strong Track Record: 21 consecutive quarters of returns, averaging 22.99% across all investors in 2021.
  • Low Minimum Investment: Open an account with just $10
  • History: Most mature crowdfunding platform – founded in 2010
  • Customized Recommendations: Real estate portfolio recommendations are created for your risk tolerance.
  • Multiple Investment Strategies: Depending on your goal, they offer income generation and capital appreciation.
  • Mobile App: Fundrise is one of the few real estate platforms that offer non-accredited investors a mobile app.

FUNDRISE CONS

  • Longer Investment Horizon: The investment horizons on Fundrise are typically quite long, often five years or more. If you want to see quicker returns, Fundrise may not be the best choice.
  • Lack of Control: While Fundrise’s management of properties can be a pro for some, it could be a con for others who prefer to have direct control over their real estate investments.
  • Early Redemption Fees: While Fundrise does offer liquidity options if an investor wants to sell their shares early, there is a 1% early redemption fee if you held your shares less than 5 years.

Which is Better?

RealtyMogul’s Income REIT is an excellent option if you are looking for income generation. Its strong track record of consecutive monthly returns makes it an easy sell. If you are a beginner investor, RealtyMogul offers only 2 investment options for non-accredited investors making the selection process a bit easier.

However, if you are looking for a more customized investing approach, then Fundrise is a better bet. They offer a more comprehensive range of investment options across multiple strategies and geographical locations.

Overall, both companies have a solid operating history, but Fundrise offers more perks and features like creating and managing investor goals and a mobile app.

Alto IRA

Alto IRA Review 2025: Do You Need An Alternative IRA?

Quick Summary:

Alto is an administrator (akin to your 401k or 403B provider) of self-directed individual retirement accounts. The company facilitates the ability to invest in cryptocurrencies and alternative investments.

Overall Rating:

Stock Analysis:

Tools & Features:

Ease of Use:

Price:

PROS

  • Multiple investment options
  • Simple fee structure
  • Tax benefits through IRA investing
  • Multiple investment options

CONS

  • No stock or ETF trading
  • It could be cheaper if you invest directly with a sponsor

At A Glance:

AboutA self-directed IRA enables individuals to invest in cryptocurrencies and alternative investments
Minimum Investment$10 for crypto
Varies for other investments
Fees1% transaction fee for crypto
$10 a month, plus an execution fee for alternatives
Crypto Investment Options150+ coins and tokens. Bitcoin, Doge, Ethereum
Types of AccountsTraditional IRA, Roth IRA, Sep IRA
Retirement Account Rollovers?Yes
Alternative Investment Options75+ options. Real Estate, Art, Music Royalties, Crowdfunding

What is Alto?

Alto is an administrator (akin to your 401k or 403B provider) of self-directed individual retirement accounts. The company facilitates the ability to invest in cryptocurrencies and alternative investments.

Alto IRA

The company offers two types of IRAs: Alto CryptoIRA and AltoIRA.

The Alto CryptoIRA allows individuals to invest in over 150 cryptocurrencies and tokens through their integration with Coinbase, while the AltoIRA offers over 75 alternative investment options for accredited and non-accredited investors alike.

How Does Alto Work?

Alto IRA is a company that specializes in providing Individual Retirement Accounts (IRAs) that allow investors to invest in alternative assets. Alto IRA provides a unique investment platform that allows for diversification beyond traditional stocks and bonds within a retirement account.

Here’s how Alto works:

  1. Account Creation: You start by creating an account with Alto IRA, where you will choose the type of IRA you want, such as a Traditional IRA or a Roth IRA.
  2. Funding: You fund your account through a transfer or rollover from an existing retirement account or by making a contribution.
  3. Choosing Investments: Alto IRA gives you the flexibility to invest in alternative assets like private equity, real estate, precious metals, and startups.
  4. Investment Process: They facilitate the investment process by handling all the necessary paperwork and coordinating with investment sponsors.
  5. Fees: Alto IRA generally charges an account setup fee and ongoing administration fees, which can vary based on the investments and account balance.
  6. Tax Advantages: Depending on the type of IRA you choose, your contributions, earnings, and withdrawals may have certain tax advantages.
  7. Monitoring and Reporting: You can monitor your investments and track their performance through the Alto IRA online platform.
  8. Distribution and Withdrawals: You can make withdrawals according to the rules that apply to your specific IRA type, keeping in mind potential penalties for early withdrawal.
  9. Customer Support: Alto IRA offers support and education to help you make informed investment decisions.

Who Should Use Alto?

AltoCryptoIRA and AltoIRA are a good option if…

You are interested in alternative investments and need a little help getting started.

What Is A Self-Directed IRA?

A self-directed IRA is an individual retirement account that allows individuals to invest in alternative assets that are typically prohibited from traditional IRA accounts.

Self-directed IRAs are available as a Traditional IRA (in which you make tax-deductible contributions) or a Roth IRA (contributions are made on an after-tax basis, but distributions are tax-free).

Anyone can open a self-directed IRA, and the contribution limits are the same as a regular IRA – $6,000 per year.

Alto Crypto IRA Explained

Alto Crypto IRA

With an AltoCrypto IRA, you can invest in over 150 cryptocurrencies and tokens. You can use your IRA to buy, sell, and trade through Alto’s integration with Coinbase.

There is a minimum investment of $10 and a 1% trading fee per transaction.

You can rollover or transfer funds from an existing traditional Roth, SEP, or SIMPLE IRA and rollover or transfer funds from a 401(k) or 403(b).

Crypto IRA Summary

Crypto IRA Minimum Investment$10
Fees1% of transactions, no other monthly fees
Number of Investment Options150
Types of Investors?Open to all investors (accreditation not required)
Trading Windows24/7
Other FeaturesConcierge service to help set up your account
Rollovers Available?Yes
SecurityHot and cold storage, FDIC-insured cash
Tax Reporting?Yes, managed by Alto

Note: Crypto IRAs only allow you to hold cash and cryptocurrencies. To invest in alternatives, you need to open an Alto IRA. You can open multiple types of IRAs through Alto.

Alto IRA Explained

The Alto IRA enables individuals to invest in assets that are not publicly traded. Alto partners with over 75 alternative investment companies to provide users with a truly diversified range of investment options.

Minimum InvestmentStarts at $25 per month
Types of Investments75+ Options. Real Estate, Crowdfunding, Private Equity, Art, Music Royalties
FeesMonthly Account Fee: $25
Partner Investment Fee $10 -$50 [Only applied when the transaction is executed]
Accreditation required?Monthly Account Fee: $25
Partner Investment Fee $10 -$50.Only applied when the transaction is executed

You can invest in over 75 types of alternative investments with the Alto IRA.

Both the minimum investment and fee vary depending on the partner. However, Alto does charge a $25 per month fee to cover its own costs.

Investment options include well-known platforms such as Masterworks, Prosper, and Franshares.

Alto Investment Platform
Browse all alternative investments to find investments that fit your needs.

How Do I Open An Account?

Alto has an easy 4 step process to open a Crypto an Alto IRA.

  1. Create an account. Get started with an Alto IRA or CryptoIRA. Or Both!
  2. Select the type of account (Traditional, Roth, or Sep)
  3. Fund your account. Using cash or roll-over an old retirement account
  4. Start Investing. Choose from over 75 partners or 150+ cryptocurrencies and tokens
Investing With Alto

Fee Structure

Alto’s fee structure varies depending on whether you have an Alto IRA or an Alto Crypto IRA.

There are standard maintenance, opening, and closing fees with both types of accounts.

Fee TypeAlto Crypto IRAAlto IRA
Account Fee$0$10/$50 mo
Custody Fee$0$0
Trade Fee1%$0
Partner Investment Fee$0$10/50 mo
Account Closure Fee$50$50
Outbound Wire Transfer$25$25

The main difference in the fee structure between the two IRAs is that the Alto IRA has a monthly account fee and a partner fee when a transaction is executed. The crypto IRA does not have these fees, but instead a 1% fee of trade notional when a transaction is executed.

How Does Alto Compare?

Crypto and alternative asset IRAs are still fairly nascent in the investment world. There are a handful of up-and-coming competitors in the IRA space.

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Monthly Fee
$10 - $25/month
$15 - 30/month
$0
One-time Set Up Fee
$0
$360
$0
Minimum Investment
  • $10/Crypto
  • $50/Alternatives
Varies
$1,000
Types of Accounts
IRA
  • IRA
  • Solo 401k
IRA
Types of Investors
Open to all investors
Open to all investors
Open to all investors

Is An Alto IRA Worth It?

Yes! Alto IRA is worth it if you are interested in investing in alternatives but are unsure where to start.

The main value add is that Alto streamlines the investment process while providing a wide variety of cryptocurrencies and alternative assets in one easy-to-use platform.

But for this usability, Alto charges a monthly fee and a transaction fee.

That said, if you are an experienced investor, you can save a few bucks by investing directly with the platform.

So, if you think the streamlined process is worth the monthly fee, then Alto is a great option for you.

Frequently Asked Questions