Investing in real estate has always been a game of the wealthy, and this endeavour has, most of the time, generated good returns.
But our world has evolved, and with modern technology and time, anyone can invest as little as 10 pounds in real estate.
One such platform that allows investors to invest in real estate with as little as 500 dollars is Fundrise.
This platform diversifies your funds into private, commercial, and residential properties by pooling your money through their investment platform.
Fundrise is only available in the United States, and it is not available in the UK or Europe.
But that does not mean you cannot invest in real estate. Several other alternatives to Fundrise in the UK and the EU allow investors to do so.
So, in this article, we will be going over the entire subject of investing in real estate via such platforms and exploring which is the best option available for you. So, let’s get started!
What is Fundrise and why is it so popular?
Fundrise is an online investment platform that allows anyone to invest in real estate, even with a small amount of money.
In the public markets, you can purchase shares of Real Estate Investment Trusts, generally known as REITs. These REITs generally invest in income-generating real estate by buying and managing buildings or by holding mortgages.
Fundrise offers a concept called eFunds, where the investors’ money is pooled in and used to purchase land, develop and create housing and then finally sell it in the housing market to home-buyers.
Overall, Fundrise offers its investors a hassle-free and efficient way to invest in real estate. Fundrise manages all the time-consuming work and formalities, and you do not have to waste your time and energy.
There is a reason why Fundrise is one of the most popular real estate investment platforms in the United States. From managing your investments to tracking other potential investment opportunities, this platform is truly focused on providing the end-user with a seamless and smooth experience. So, let’s go over some of its features.
Is Fundrise available in the UK and the EU? What are their expansion plans?
As of now, investors in the UK and the EU cannot invest with Fundrise. But, it does plan on going global by creating a worldwide investment platform that allows users to invest in US properties. They plan on expanding their reach by allowing investors from the UK, Canada, and Australia to invest in US real estate.
The Co-founder and CEO of Fundrise, Ben Miller, has disclosed at cpexecutive.com that:
So, with plans to expand its investor base, Fundrise might come to the UK in the coming future. But, this does not mean that the UK and other European investors cannot invest in real estate. Several platforms offer similar features! So, let’s go over the alternatives to Fundrise in the UK and the EU.
Fundrise Alternatives in the UK and the EU
Several real estate crowdfunding platforms, such as Fundrise, operate in the UK and other European countries.
This is still a recent market, so it is essential to choose a platform trusted by many investors, which has good feedback, and that has been in the market for some time. Still, no one can predict these platforms’ future, so it is impossible to name the “best alternative”.
We’ve made a comparison table that includes some leading platforms in the UK to facilitate your choice. They all operate cross-border, meaning that they accept clients from most European countries, including the UK. For a complete list of platforms available in your country, check our list of real estate crowdfunding platforms available by country.
| Platform | Description | Founded In | Fees (per year) | Secondary Market | Account Minimum | Auto-Invest | Amount Invested/Raised |
| Crowdestate | One of the leading real estate crowdfunding in Europe. Founded in 2014, It focuses on re-vetted real estate, business, and mortgage loan investment opportunities. | 2014 | 0% (+ success fee if investment performance > agreed hurdle rate) | Yes | £100 | Yes | 119M€+ |
| Reinvest24 | A real estate crowdfunding platform that allows you to buy shares of residential or commercial real estate collectively with other investors instead of giving out loans. | 2018 | 1% (On Principal Amount) | Yes | £100 | Yes | 12M€ |
| Bulkestate | Differentiates itself from other real estate crowdfunding due to the combination of both lending and group-buying services. Besides, the company has hands-on experience with the due diligence process in the space. | 2016 | 0% | Yes | £50 | Yes | 10M€+ |
| Property Partner | Allows you to diversify your portfolio by investing in the UK real estate market (student, commercial or residential properties). It is regulated by the Financial Conduct Authority. | 2014 | 1.2% to 0.7% (Depends on Portfolio Size) | Yes | £250 | Yes | 140M€ |
| Housers | A real estate investment platform that offers 3 types of investment opportunities: buy-to-let, buy-to-sale and Development Loans. Free 50€ bonus with our link. | 2015 | 0% | Yes | £50 | Yes | 120k€ |
The bottom line
There is no single-best platform – all investment platforms are different, and each has its own advantages and disadvantages. Take a look at the ones you find interesting, explore their website, and decide for yourself.
The secondary market is an important feature, as it allows you to exit a deal if you need the money before the end of the investment.
It’s also important to understand if what you’re buying is debt or equity: Equity-based crowdfunding vs Debt-based crowdfunding. In equity, you earn a percentage of the rent, plus a percentage of the selling value, while when buying a loan, you’ll receive interest.
Some of these platforms’ currency is EUR, so you might be charged significant currency conversion fees upon deposit and withdrawal. An alternative would be to use a low-cost currency conversion service such as Revolut or Wise.
Additionally, you can diversify your risk in real estate crowdfunding investment by investing in several platforms, and choosing deals with different characteristics and different geographies.
Happy investments!
