Fundrise opened the door to real estate investing for millions of people who’d never had access before. But if you’re an accredited investor using Fundrise today, or considering it, the platform’s quality isn’t really the issue. What matters is whether your capital could be doing more with an option built specifically for investors like you.
Below, we’ll cover what Fundrise does well, what becomes available when you move into private real estate built for accredited investors, and which alternatives are worth evaluating.
A solid starting point for your first real estate investment
Before platforms like Fundrise existed, investing in real estate meant either buying property yourself or meeting the high minimums of a private fund. Fundrise changed that. With a minimum as low as $10, no accreditation requirement, and fees of roughly 1% annually, anyone can invest in a diversified portfolio of real estate alongside thousands of other investors. The platform handles everything, and most investors can set it up in minutes.
For investors getting started with real estate, or anyone who wants broad exposure without a large commitment, Fundrise is a solid option. Its real estate portfolio has returned roughly 5% to 9% annually in typical years, though individual years have ranged from a loss of about 7% in 2023 to a gain of roughly 23% in 2021.
Fundrise can still be part of your portfolio. But accreditation opens the door to new options worth comparing.
Two higher-return paths that open up once you’re accredited
Being an accredited investor gives you access to a different category of real estate investing. Two main paths open up, and they work in fundamentally different ways.
Accredited-investor platforms: more control over your deals, more responsibility for due diligence
If you like the Fundrise experience but want access to higher-quality deals with better return potential, accredited-only platforms are the closest step up. You’re still browsing and selecting through a platform, but the deals are limited to accredited investors, which opens up property types and structures that open-to-everyone platforms like Fundrise can’t offer.
A few worth comparing:
- EquityMultiple starts at $5,000 and co-invests its own capital on many deals. Its short-term Alpine Note (6.0–7.35% APY, 3 to 9 months) is a popular entry point for investors who want to test the waters before committing to a longer deal.
- RealtyMogul has operated since 2012 and offers both curated individual deals (starting around $25,000) and REITs. The curated approach means fewer deals to choose from, but the selection is more carefully vetted.
- CrowdStreet offers the widest variety of individual commercial real estate deals, with minimums starting at $25,000. The trade-off is more responsibility: sponsor-level due diligence falls on you. CrowdStreet has faced reputational challenges tied to a $63 million sponsor fraud loss, which is one reason many accredited investors have started exploring CrowdStreet alternatives.
Accredited-only platforms work well for self-directed investors who want to evaluate individual deals and build a custom portfolio. The trade-off across all of these platforms: you’re doing more of the work. You pick the deals, you monitor performance, and you carry the due diligence.
Private funds: one team handles everything, from deal selection to management
If you’d rather not pick individual deals at all, private funds take a different approach. A fund manager pools capital from accredited investors and invests it into real estate. You’re choosing a team and a strategy, not individual properties.
A few worth comparing:
- Cardone Capital focuses on large multifamily properties and has built one of the most recognized brands in the space through aggressive marketing. Minimums vary by fund. Note that the SEC has flagged concerns about the firm’s marketing claims, and a class-action lawsuit over projected returns is ongoing.
- BAM Capital specializes in Midwest multifamily, handles everything in-house, and invests its own capital alongside investors. Minimums range from $200,000 to $250,000, which limits access for many investors but reflects an institutional-quality approach.
- DLP Capital concentrates on workforce housing funds and has built a track record in a sector tied to essential demand. Like BAM, DLP is a single firm that owns and operates its deals directly.
Private funds work well for investors who want to delegate deal selection entirely and trust one team to manage their capital. For investors whose primary goal is passive real estate investing, this is often the more natural fit. The trade-offs: higher minimums, longer lockups, and tax reporting that typically involves K-1s rather than 1099s.
Side-by-side comparison
| Fundrise | Accredited-only platforms | Private funds | Freedom Notes | |
|---|---|---|---|---|
| Who can invest | Anyone | Accredited investors | Accredited investors | Accredited investors |
| Minimums | $10+ | $5K–$25K+ | $50K–$250K+ | $25K |
| Target returns | Typically 5–9% | Typically 6–15%+ targeted, depending on deal type | Typically 8–20%+ targeted, depending on strategy and risk | 8–14%* annual fixed, depending on offering |
| How you invest | Platform selects properties for you | You browse and select individual deals | Fund manager selects and manages deals | Fund manager selects and manages deals |
| Tax reporting | 1099 | K-1 (most common) | K-1 (most common) | 1099 |
| Investor relationship | App-based, self-service | Portal-based; some offer advisor access | Varies: portal to direct relationship | Direct line to team |
| Liquidity | Quarterly windows; early redemption penalties | Locked for deal term (typically 2–7 years) | Locked for deal term (typically 3–10 years) | Annual redemption option |
Targeted returns are not guaranteed. Past performance does not guarantee future results.
Six ways to tell whether a fund or platform deserves your capital
Whichever path you’re leaning toward, these six questions will help you compare any option you’re considering.
Is the firm’s capital in the deals alongside yours? A firm that profits only from fees has a different set of motivations than one that loses money if you do.
What’s the return model, and does it match your goal? Some funds target equity upside, where you share in a property’s appreciation when it sells. Others offer fixed income, where you earn a set rate regardless of how the market moves. The right one depends on whether you’re building wealth or generating income you can count on.
How transparent is the reporting, and who verifies it? Self-reported numbers without an independent administrator or third-party portal deserve more scrutiny.
What’s the fee structure? Ask whether you’re paying annual management fees, performance fees, or both. Some firms build their margin into the return rate instead. Know what comes out of your returns before you commit.
How do you exit? Lockup periods, redemption windows, and early withdrawal penalties vary widely. Know the terms before you commit capital.
Who do you talk to when you have a question? If you’re committing $25,000 or more, knowing who picks up the phone matters.
Freedom Notes: what it looks like when your capital starts working harder
We built Freedom Notes for accredited investors who are ready to put their capital to work in private real estate. A lot of our investors came to us after outgrowing the options they started with. They weren’t unhappy. They just knew their money could be working harder.
A fixed rate you know before you invest. Investors may target fixed annual returns ranging from 8% to 14%* annual depending on the offering, payable quarterly or compounded. The rate and schedule are defined before you invest, not after. These investments carry risk, including potential loss of principal.
Simpler reporting with a 1099 at tax time. Most private funds send investors a K-1 at tax time, which can delay your filing and add accounting costs. Flagship Notes generate a 1099. No complicated profit splits. No tax extensions. For investors already managing income from a business, a stock portfolio, and other investments, that simplicity matters.
A relationship, not a login. Every investor has a direct line to our team, and every new conversation starts with education, not a pitch. If Flagship Notes aren’t right for your situation, we’ll tell you. We’ve been operating for more than 17 years and have paid every Flagship Notes investor in full and on time, according to Freedom Family Investments. Past performance does not guarantee future results.
When Freedom Notes aren’t the right fit
Freedom Flagship Notes aren’t for everyone, and we’d rather be clear about that upfront than waste your time.
If you want to pick individual properties and build a custom real estate portfolio, a marketplace platform like CrowdStreet or EquityMultiple would serve you better.
If you’re looking for aggressive equity upside and are comfortable with more risk and longer lockups, a private equity fund could be a better match.
If you need daily liquidity, a public REIT lets you sell your shares anytime during market hours.
And if you’re not yet accredited, Fundrise is a solid place to start. It’s not a lesser option. It’s designed for a different stage.
Not sure which model fits your goals?
A clarity call can help you think it through. It’s a 30-minute conversation to help you understand how Flagship Notes work, compare them to whatever else you’re considering, and give you an honest read on whether this fits your situation, even if the answer is no.
No pressure. No obligation. Just a real conversation about whether this makes sense for you.
Book a clarity call with Freedom Family Investments
Frequently asked questions
Is Fundrise a good investment for accredited investors?
Fundrise is a solid platform for investors who want broad, low-cost exposure to real estate. But it doesn’t offer the higher return targets, direct relationships, or deal types that accredited investors can access through private funds and sponsor-operators.
What’s the difference between Fundrise and a private real estate fund?
Fundrise pools money from thousands of investors into diversified funds open to anyone. Private real estate funds are typically limited to accredited investors. They have higher minimums, and may offer higher return targets and more direct access to fund managers. Some investors also consider real estate syndications, which are single-deal investments with a specific sponsor. The right choice depends on how much capital you’re investing and how involved you want to be.
Can I use a self-directed IRA to invest in Fundrise alternatives?
In many cases, yes. Custodians of self-directed IRAs may allow retirement funds to be invested in alternative assets including real estate, promissory notes, and private placements. Freedom Notes are SDIRA-eligible, but check with the specific company and your IRA custodian before committing capital.
*This material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities. Any offering is made only through applicable offering documents and only to investors who meet applicable suitability and accreditation requirements. Private real estate investments involve significant risks, including illiquidity, loss of principal, lack of diversification, leverage risk, property-level risk, operating risk, sponsor risk, and market risk. Targeted or stated returns are not guaranteed. Past performance, including prior payment history, does not guarantee future results. Investors should consult their legal, tax, and financial advisors before investing.
