Advertiser Disclosure

Our readers come first

 

Our primary goal at The Modest Wallet is to help our readers make smarter money decisions without needing a finance degree. Because personal finance education should be free and accessible to everyone.

 

As an independent publisher, transparency is at the core of what we do and how we do it, so we want you to know that we regularly partner with brands that have products and services that align with our values and will help our readers. When you click on some of the links on our site and complete a required action (i.e., sign up for a promotion, download an app, purchase an item, etc.), we may earn a small commission at no extra cost to you.

 

These partnerships may influence the products we review and write about (and where those products appear on the site), but they in no way affect our recommendation. All of our content and reviews are based on our research and honest opinion. This is regardless of the compensation. None of our partners or advertisers have editorial input or control because our relationship with our readers always comes first.

Advertiser Disclosure

Our readers come first

 

Our primary goal at The Modest Wallet is to help our readers make smarter money decisions without needing a finance degree. Because personal finance education should be free and accessible to everyone.

 

As an independent publisher, transparency is at the core of what we do and how we do it, so we want you to know that we regularly partner with brands that have products and services that align with our values and will help our readers. When you click on some of the links on our site and complete a required action (i.e., sign up for a promotion, download an app, purchase an item, etc.), we may earn a small commission at no extra cost to you.

 

These partnerships may influence the products we review and write about (and where those products appear on the site), but they in no way affect our recommendation. All of our content and reviews are based on our research and honest opinion. This is regardless of the compensation. None of our partners or advertisers have editorial input or control because our relationship with our readers always comes first.

Yieldstreet vs. Fundrise 2022: Which Platform Is Best?

Yieldstreet and Fundrise are two popular real estate investments making real estate accessible to retain investors.

Many or all of the products featured on this page are from our sponsors who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here is how we make money.

The information provided on this page is for educational purposes only. The Modest Wallet is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual.

Real estate and other alternative investments are an excellent way to grow your wealth over time. These investments can help you generate passive income with relatively low risk. 

If you’re new to investing or usually only invest in stocks and bonds, it can be hard to know where to start. Platforms like Yieldstreet and Fundrise can help.

These sites rely on crowdfunding to give more people access to alternative investments. 

In this article, we’ll discuss how each platform works and what to expect from each one. 

Yieldstreet Yieldstreet Fundrise Fundrise
Our Rating
3.1
3.1/5
4.4
4.4/5
In A Nutshell Yieldstreet is an online platform offering users alternative investment opportunities previously reserved only for institutions and the ultra-wealthy, including real estate, art and private business credit. Fundrise is an online real estate platform that allows investors access to a portfolio filled with dozens of real estate projects — each one carefully handpicked and proactively developed with the goal of growing their net worth.
Our Review Full Yieldstreet Review Full Fundrise Review


Yieldstreet vs. Fundrise: Overview

Yieldstreet and Fundrise are similar in a lot of ways. Both use crowdfunding, which means multiple investors pool their money in order to access offerings. They also both provide access to alternative investments, but Fundrise focuses exclusively on real estate. 

About Yieldstreet

Yieldstreet is a platform that gives people access to alternative investments, including real estate, art, and more. You might think these types of investments are only available to institutional investors and the super-wealthy, but Yieldstreet aims to make them more accessible.

Check out our full Yieldstreet review to learn more.

Yieldstreet Homepage
Source: Yieldstreet

About Fundrise

Historically, real estate has been a quality asset. But it hasn’t always been accessible to investors who don’t meet high net worth requirements. The investment process has also been complex and inefficient, involving middlemen and high fees.

Fundrise wants to change that. Their goal is to empower individual investors. To do this, Fundrise uses technology to make quality real estate investments available to a wide range of people.

Read our full Fundrise review to learn more.


Yieldstreet vs. Fundrise: How Do They Work

Both services make it easy to get started, and they don’t have strict eligibility requirements. On Yieldstreet, you’ll need to be accredited to access some of the offerings.  

Yieldstreet

Yieldstreet is all about alternative investments. They want to give people access to investments that were previously only available to the top 1%. Part of this process includes removing middlemen and other hurdles and lowering fees. 

U.S. citizens are eligible to join Yieldstreet. If you’re not a citizen but live and work in the U.S., you may also be eligible. 

Additionally, you don’t need to be accredited to invest in the Yieldstreet Prism Fund. Check out the Main Features section below to learn more about this fund. 

For other offerings, you do need to be accredited. This means you must have:

  • $200,000 in annual income per year for the previous two years or $300,000 with a spouse; or
  • $1 million in net worth, not including your primary residence

Fundrise

Fundrise works by acquiring real estate assets for less than their potential value. Their team then works to increase each asset’s value, working with local partners and managers. Fundrise calls this process a “value investing” strategy. To date, the company has acquired more than 200 assets worth more than $5.1 billion. 

Each Fundrise member’s portfolio is made up of shares in these high-quality assets. 

You don’t need to be accredited to join Fundrise, just over 18 and a citizen or permanent resident of the U.S. 

There are five account levels with different minimum investments: Starter, Basic, Core, Advanced, and Premium. The Starter level requires an investment of $10, while Premium requires $10,000. 

Fundrise Homepage
Source: Fundrise

Yieldstreet vs. Fundrise: Account Types

Once you get started on your chosen  platform, you might think about creating a retirement account. Both Yieldstreet and Fundrise have IRA options. Yieldstreet also offers a checking account you can use to fund your investments.

Yieldstreet

Yieldstreet offers the following account types:

  • Yieldstreet IRA (YSIRA)
  • Yieldstreet Wallet checking account

See the Main Features section for more details. 

Fundrise

Fundrise offers the following account types:

  • Traditional IRA
  • Roth IRA

See the Main Features section for more details on these accounts.


Yieldstreet vs. Fundrise: Main Features

Now, let’s take a look at each platform’s features. Each one offers quite a few that will appeal to a range of investors. 

Yieldstreet Yieldstreet Fundrise Fundrise
Minimum Investment $2,500 $10 (Starter Portfolio), $1,000 (Basic Plan), $5,000 (Core Plan), $10,000 (Advanced Account Level), $100,000 (Premium Account Level)
Account Fees 0.00% to 2.50% annual management fee (*other fees may apply) 0.85% (Asset Management Fee) and 0.15% (Advisory Fee)
Offering Types Income, Growth and Balanced Funds Debt, Equity and Preferred Equity
Property Types Real estate, art, marine, legal, consumer finance, commercial finance, aviation and more. Commercial Real Estate (CRE), Residential and Single Family
Advertised Returns 10.65% net annualized IRR (2015-2022) 10.1% (Average returns)
Distributions Varies by fund (Prism Fund pays dividends quarterly) Varies by project
Time Commitment 5+ years for Prism Fund (with opportunities to liquidate on a quarterly basis); Varies for individual offerings 5+ years
Promotions None Advisor Fee Waived (*12 months)
Secondary Market
Accreditation Required
Self-Directed IRA
1031 Exchange
Best For Investors looking to diversify their portfolio beyond bonds and stocks Investors looking for a low-cost entry into real estate investing

Yieldstreet

One of Yieldstreet’s signature offerings is its Yieldstreet Prism Fund. The Prism Fund is available to non-accredited investors

When you invest in this fund, your capital is diversified across these asset classes: real estate, corporates, cash, commercial, consumer, legal finance, art, and marine. 

The minimum investment is $2,500, and there’s an annual fee of 1.5%. You can expect a quarterly distribution at an annualized rate of 8%. 

If you’re an accredited investor, there are other options to participate in real estate investing. Commercial, residential, and multipurpose properties are available. Returns come from either equity investments or real-estate backed loans. 

Minimum investment amounts vary; you can buy into the Growth and Income REIT beginning with $5,000. 

The Yieldstreet IRA (YSIRA) is a tax-efficient, self-directed IRA with a flat annual fee. If your account balance is up to $100,000, your fee is $299. If your balance is above $100,000, you’ll pay $399. 

With Short Term Notes, park $2,500 or more for a term, typically 180 days. You’ll earn monthly interest payments at the annualized rate of up to 4%. There are no fees for Short Term Notes. Once the note matures, your principal is paid back.

Yieldstreet’s Structured Notes are one of their most unique offerings. They offer a portfolio of three to ten notes that all reference a single underlying stock. 

The minimum investment is $15,000, and there’s an annual management fee of 1.25%. 

Each Structured Note pays a quarterly coupon and provides downside protection. Investments range from 24 to 36 months. The expected return is 7% to 12% per year. 

Yieldstreet simplifies the process of art investing. You can join in with $10,000 or more and expect an IRR (internal rate of return) of more than 12%. There’s a pool of blue-chip, mid-career, and emerging artists. 

Another alternative investment option is supply chain investing. These offerings give you exposure to programs that supply global manufacturers and suppliers with working capital. By investing in these offerings, you’re investing in Private Business Credit (PBC). 

The Yieldstreet Wallet is a checking account you can use to hold money you want to invest. Once you’ve funded your wallet, you’ll be able to invest instantly. 

Accounts are held with Evolve Bank & Trust, which is FDIC-insured. There’s no minimum balance, and you’ll receive 0.2% annual interest on your funds.

Main Features Overview

  • Yieldstreet Prism Fund: Non-accredited investors can generate income through this diversified fund.
  • Real Estate Investing: Invest in different kinds of real estate properties. 
  • Yieldstreet IRA: Yieldstreet hosts tax-efficient IRAs with a flat annual fee. 
  • Short-Term Notes: Invest $2,500 or more over a short period and earn interest. 
  • Structured Notes: Invest in notes with high potential returns and a short investment period. 
  • Art Investing: Buy into physical art collections or loans backed by art. 
  • Supply Chain Investing: Invest in loans to global manufacturers and suppliers.
  • Yieldstreet Wallet: Keep your funds in this checking account and earn 0.2% interest.
Yieldstreet Portfolios
Source: Yieldstreet

Fundrise

Fundrise is truly a platform that makes real estate available to everyone. Want proof? Just look at their low investment minimums. You can get started with as little as $10. 

Many real estate crowdfunding platforms only allow accredited investors. Fundrise, on the other hand, is available to non-accredited investors. You just need to be a citizen or permanent resident of the U.S. 

With the Dividend Reinvestment Program (DRIP), Fundrise automatically reinvests your dividends without extra fees. 

Open a traditional or Roth self-directed IRA held at Millenium Trust Company. There’s an annual fee of $125, but you can earn a one-year waiver if you invest $3,000 or more. If you maintain an account value of $25,000 or more, you’ll earn an automatically recurring fee waiver. 

If you’re a fan of Fundrise, you can invest in its iPO or Internet Public Offering. This offering lets you buy shares of Fundrise’s parent company, Rise Companies Corp. 

The Investor Goals feature is designed for people working toward a long-term goal, like saving for retirement. The goal tracker will help you monitor how your goal is doing and whether it needs attention. 

Another of Fundrise’s standout features is its eREITs. Members who belong to the Core level and above have access to these funds. 

An eREIT is Fundrise’s version of a REIT (real estate investment trust). These trusts provide access to portfolios of diversified real estate assets.

There are a variety of eREITs available. They’re divided by objective (income, growth, income and growth, balanced) and geographic focus. 

Let’s say you’ve invested in eREIT or eFUND shares and you want to redeem your shares prematurely. Fundrise has a redemption program to let you do so. If you redeem before five years, you’ll pay a flat 1% penalty. If you redeem after five years, there’s no cost.

Main Features Overview

  • Low Investment Minimums: Start investing and get your feet wet in real estate with just $10. 
  • Available to Non-Accredited Investors: You don’t need to be accredited to participate in Fundrise. 
  • Dividend Reinvestment: Automatically reinvest dividends, fee-free. 
  • Self-Directed IRAs: Set up a traditional or Roth IRA. 
  • Fundrise iPO: Buy shares of Fundrise’s parent company. 
  • Investor Goals: Use a goal tracker to work toward a long-term investment goal. 
  • Access to eREITs: Invest in portfolios of diversified real estate assets.
  • Redemption Program: Redeem shares prematurely with limited penalties.
Fundrise How Does It Work
Source: Fundrise

Yieldstreet vs. Fundrise: Investment Options

Each of these platforms has a range of offerings to choose from, whether you’re investing in real estate or something else. 

Yieldstreet

With Yieldstreet, you can invest in alternative assets, including real estate, art, legal finance, marine, and private business credit. 

If you choose a real estate investment, there are both private commercial and residential options. You can also choose between an ownership stake in a property or a loan secured by real estate. 

For those who want a more hands-off investment, choose a diversified fund product. These products allow you to buy into multiple property types across the U.S. with a single investment.

Yieldstreet Art Equity
Source: Yieldstreet

Fundrise

As a Fundrise member, you can invest in a variety of real estate properties. Options include both commercial and residential properties such as single and multi-family rentals, new commercial developments, and more. 

Each member’s portfolio includes a range of high-quality properties. 

If you’re a Core member or above, you also have access to non-registered products such as eREITs.


Yieldstreet vs. Fundrise: Returns

To understand how each of these platforms performs, you can look at their IRR (internal rate of return). This metric shows the profitability of an investment over its lifetime. Investors commonly use IRR to evaluate how real estate and other assets are performing. 

In this section, we’ll cover Yieldstreet and Fundrise’s IRR performance. 

Keep in mind that these IRRs show an overall view. Each product or fund will have its own rate of return. 

Yieldstreet

Yieldstreet advertises a 10.61% net annualized IRR. This rate is for the period from July 1, 2015 to February 5, 2022 and covers all matured investments. 

Fundrise

Fundrise advertises an average return rate of 10.1%. 

In 2021, Fundrise’s client accounts saw an average annual return of 22.99%. The company says investors can expect higher returns over time. Here are the annualized returns for the past few years:

2021: 22.99%
2020: 7.31%
2019: 9.16%
2018: 8.81%
2017: 10.63%

Fundrise Portfolio Value Investing
Source: Fundrise

Yieldstreet vs. Fundrise: Fees & Commissions

Both Yieldstreet and Fundrise pride themselves on their low fees. They also aim to be transparent about their pricing models and how they make money. 

Yieldstreet

Yieldstreet charges an annual management fee between 0% (for Short Term Notes) and 2.5%. 

Some offerings also include annual fund expenses. These expenses are clearly disclosed on each offer’s page. 

Fees for the Yieldstreet IRA program are described in the Main Features section above.  

Fundrise

Fundrise charges 1% per year, which consists of a 0.15% advisory fee and a 0.85% management fee. There aren’t any transaction fees, sales commissions, or fees for features like dividend reinvestment.

Specific projects may include development or liquidation fees. 

For information on fees associated with Fundrise’s IRAs, see the Main Features section above.


Yieldstreet vs. Fundrise: Platform and App

Whether you choose Yieldstreet or Fundrise, you’ll have access to both a website and a free app. 

Yieldstreet

The Yieldstreet site is streamlined and makes it easy to understand your investments. There are plenty of charts and graphs for people who like visuals. 

The Yieldstreet app is available for iOS and Android. You can use it to transfer money, check on your investments, and much more. 

Yieldstreet Art Investing
Source: Yieldstreet

Fundrise

The Fundrise website features a dashboard that shows your current earnings, investment goals, and a visual breakdown of your portfolio. The site navigation is clear and intuitive. 

The Fundrise app is available for iOS and Android. It allows users to perform many of the same functions as the Fundrise site. 


Yieldstreet vs. Fundrise: Customer Support

Both platforms feature extensive educational resources online. Yieldstreet makes it easy to speak to a real human on the phone if you need help. With Fundrise, you may need to reach out in writing. 

Yieldstreet

Yieldstreet offers a few different methods to contact support. You can email, call, or chat with a virtual assistant bot on the website. 

To connect with an associate through the virtual assistant, you’ll need to provide your Yieldstreet login email address. 

For general questions, there’s an FAQ section, resource center, and glossary. 

Fundrise

Premium members have access to priority support and can schedule a call with an agent. Investors from other account levels will need to reach out via email or the website’s contact form. Typical response times are one to two business days. 

There isn’t a direct contact number to call for support. 

The Fundrise website features FAQs and articles that can answer many of your questions. Check out the Getting Started section for help when you first open your account.


Yieldstreet vs. Fundrise: Security

Both companies take security seriously. 

Yieldstreet

Yieldstreet stores your data with its third-party financial provider, SynapseFI. All data is encrypted using best practices for information security. 

You can set up two-factor authentication when you create an account. While this feature is optional, Yieldstreet recommends enabling it. 

When it comes to your money’s safety, Yieldstreet is a regulated investment advisor with the SEC. They must comply with the SEC’s rules and regulations and are audited each year.

Fundrise

Fundrise encrypts your data using an AES bit symmetric key, which is what large commercial banks use. The site uses HTTPS and Transport Layer Security (TLS). For hosting, it uses Amazon Web Services. 

When logging in, you can choose to set up two-factor authentication for an additional layer of security. 

In terms of financial security, Fundrise’s parent company, Rise Companies, Corp., is regulated by the SEC. 


Yieldstreet vs. Fundrise: What We Like (Pros)

There are many reasons Yieldstreet and Fundrise have each won awards in the worlds of FinTech and real estate. Here are some of the highlights of each investing platform.

Yieldstreet

  • Range of alternative investments
  • Yieldstreet Prism Fund—open to non-accredited investors & has a minimum investment of $2,500
  • Self-directed IRA
  • Yieldstreet Wallet checking account
  • Variety of short-term investment options
  • Competitive fees

Fundrise

  • Minimum investment is just $10
  • Open to non-accredited investors
  • Streamlined dashboard
  • Self-directed traditional and Roth IRA options
  • Account levels for every investor
  • 1% annual fees in most cases
Fundrise Business Model
Source: Fundrise

Yieldstreet vs. Fundrise: What We Don’t Like (Cons)

Here are some of the drawbacks of Yieldstreet and Fundrise. 

Yieldstreet

  • Mostly illiquid investments
  • All investments aside from Prism Fund require accreditation
  • Limited real estate offerings 

Fundrise

  • Private eREITs and funds are highly illiquid
  • Customer support not available via phone for most account levels
  • Some members feel they have to complete additional due diligence on properties

Who is Yieldstreet For?

Yieldstreet is for people who want to add alternative investments to their portfolios and diversify outside of stocks and bonds. 

If you don’t reach the income and net worth requirements to be accredited, you’ll be limited to the Yieldstreet Prism Fund. However, this fund will give you exposure to a number of different asset classes, including real estate. The minimum investment is $2,500.

In A Nutshell

  • Minimum Investment: $2,500
  • Fees: 0.00% to 2.50% annual management fee (*other fees may apply)
  • Promotion: None

on Yieldstreet’s website


Who is Fundrise For?

Fundrise offers an accessible entry point into real estate investing for new investors. You don’t have to be accredited, and you can get started with as little as $10. 

The platform has robust features and a range of offerings and account levels to interest experienced investors. 

In A Nutshell

on Fundrise’s website


FAQ Yieldstreet vs. Fundrise

If you’re still wondering which platform is best for you, check out our answers to some common questions about each one.

Do I Need to Be an Accredited Investor to Invest With Yieldstreet or Fundrise?

An accredited investor is someone who can invest in securities that aren’t registered with the SEC. This qualification is based on your income and net worth.

With Yieldstreet, you can invest in the Yieldstreet Prism Fund if you aren’t accredited. To invest in their other offerings, you do need to be accredited. 

You don’t have to be accredited to invest with Fundrise. 

Which Platform is Better: Yieldstreet or Fundrise?

Each site has a lot to recommend it, and the better option depends on your needs. 

If you’re brand new to real estate investing and don’t qualify for accreditation, Fundrise may be the better bet. 

If you have more to invest or want to dip your toe in other alternative investments, like fine art, try Yieldstreet. 

Which Platform is Better for Beginners Between Yieldstreet and Fundrise?

Both options are potentially suitable for beginners. They provide education and guidance that’s crucial for newbies.

If you’re starting out with ten bucks and a dream, Fundrise is the way to go. That’s their minimum investment, and their Starter account level provides the essentials. 


Final Thoughts

If you’re intrigued by real estate or other alternative investments, Yieldstreet and Fundrise are both solid options. These platforms offer exposure to some exciting assets. Real estate, for example, hasn’t always been available to the average investor.

Before you sign up with either, keep in mind that it’s best if you can part with your funds for a few years. Both platforms offer largely illiquid investments. And as with other types of investments, there’s always risk. Do some research and consider how it would affect you if an offering doesn’t perform as expected. 

 Once you’ve chosen a platform and understand your risk tolerance, you’re ready to invest!

Stock Market Playbook

Get our free Stock Market Playbook to learn how to invest your first $500 in the stock market.

Plus our best money tips delivered straight to your inbox.

Scroll to Top
by The Modest Wallet

Our best money tips, daily:

Plus, we’ll send you our Personal Finance Blueprint so you can learn everything you need to know to build wealth.

No Charge. No Spam. Unsubscribe Anytime.