HoneyBricks vs Fundrise Comparison

Assess their risks, liquidity, investments, returns, timeframes and other terms

Invest in multifamily real estate

Invest in private assets

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Investments
$5,000

The minimum investment amount on HoneyBricks typically starts at $5,000, although some specific projects may require higher minimums.

Investments
$10

Fundrise allows a minimum investment of $10 for taxable accounts and $1,000 for IRAs.


Moderate Risk
3/5

Investing in HoneyBricks involves various risks inherent to real estate and investment platforms, including market volatility, liquidity challenges, regulatory changes, operational uncertainties, economic fluctuations, and technology-related vulnerabilities.

Moderate Risk
3/5

Investing with Fundrise involves risks such as limited liquidity, potential modifications to the share repurchase program, market volatility affecting asset values, the possibility of total investment loss, and regulatory changes impacting operations.


Moderate Liquidity
2/5

HoneyBricks offers a Secondary Market for liquidity, allowing investors to buy and sell assets after a 12-month hold via SPVs and blockchain technology.

Minimum Liquidity
1/5

Fundrise offers liquidity through its share repurchase program, allowing investors to redeem shares quarterly with no penalties or costs.

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High Return
15 %

HoneyBricks targets over 15% annual returns and aims for a cash-on-cash return of over 5% from its real estate investments. These returns are projections based on conservative reviews and are derived from property appreciation and reliable cash flows from high-occupancy assets.

Low Return
4.81 %

Investors on Fundrise can expect returns through dividends and appreciation, with an average income return of 4.81% over 7 years.


Long-term Investment
1-5 years

The investment time horizon on HoneyBricks is inherently long-term, with the expectation that investors may hold their investments for several years to fully realize the potential appreciation and sustained cash flows from multifamily real estate assets. While a secondary market exists to provide liquidity after a 12-month holding period, immediate or short-term exit opportunities may be limited.

Long-term Investment
5+ years

Fundrise is designed for long-term investments, ideally for a period of 5 or more years, due to its focus on strategies aimed at long-term return potential.


Who can invest
International

HoneyBricks is available to accredited US investors and to non-US investors without accreditation requirements.

Who can invest
United States

To be eligible to invest with Fundrise, individuals must meet several criteria: they must be at least 18 years old, have permanent residency in the United States, possess a valid U.S. tax ID, and file taxes in the U.S. The platform is open to both accredited and non-accredited investors.


Moderate Volatility
3/5

The assets on HoneyBricks, like any real estate investments, are subject to market volatility influenced by economic conditions, interest rates, and local market trends. These fluctuations can impact property valuations, posing risks particularly for those seeking short-term gains.

Moderate Volatility
3/5

Assets on the Fundrise platform, such as private real estate and venture capital, typically show lower volatility compared to public stocks and bonds, due to less frequent valuation updates and reduced exposure to daily market swings.


Regulation and audits
SEC Regulated

HoneyBricks adheres to regulations set by the SEC and undergoes necessary audits to ensure transparency and investor protection. Its investment offerings require SEC filings and provide detailed offering circulars to investors.

Regulation and audits
SEC Regulated

Fundrise is regulated by the SEC and must comply with strict reporting, disclosure, and operational standards. It undergoes regular independent audits to verify financial accuracy, legal compliance, and the effectiveness of its internal controls, ensuring transparency and integrity in its operations for investor protection.


Insurance
Yes

HoneyBricks ensures its properties are insured against physical damages and losses, offering a layer of protection for investments. However, this insurance does not cover market volatility, economic downturns, or fraudulent activities that might affect property values. Additionally, coverage limits may not fully reflect current market valuations.

Insurance
No

Investments on Fundrise, including real estate and alternative assets, are not insured by the FDIC or any other government agency, exposing investors to the risk of loss without insurance protection.


Payouts
Dividends

HoneyBricks investors receive dividends from the net rental income of properties after expenses and reserves. These regular cash distributions aim to provide a predictable passive income stream from high-occupancy multifamily real estate investments. The exact amount of dividends may vary with the performance of the assets.

Payouts
Dividends

Dividends are paid quarterly, based on income from portfolio projects, and can be either reinvested or cashed out. Appreciation comes from increases in the value of the investment, reflected in the net asset value (NAV) of shares. Returns start accruing after investment settlement, typically within 5 business days, and can be tracked on the Investor Dashboard.


Withdrawals

Investors on HoneyBricks can potentially get their money back by selling their shares on the platform's Secondary Market after a 12-month holding period, subject to market demand. The timing and success of the sale depend on market conditions, and while there are no HoneyBricks fees for the transfer, blockchain network fees may apply.

Withdrawals

To withdraw funds from Fundrise, investors must submit a liquidation request. Liquidations are reviewed quarterly for most funds, with a waiting period for the eFund. No penalty is charged for liquidating shares from the Flagship, Income, or Innovation Funds, but eREIT and eFund shares held for less than five years may incur a penalty. Liquidations are processed on a "First in, first out" basis.


Extra Fees
No

HoneyBricks charges no fees for initial investments or for transfers on the Secondary Market. Investors may only incur blockchain network fees for transactions executed on the platform.

Extra Fees
Yes

Fundrise charges a 0.15% annual advisory fee, a 0.85% management fee for real estate funds, and a 1.85% management fee for the Innovation Fund. Early liquidation of eREIT or eFund shares before 5 years incurs a 1% penalty.


Taxes
Tax Form

HoneyBricks offers tax-advantaged investing and provides necessary tax documentation to support investors in reporting their investment income.

Taxes
Tax Form

Fundrise investors can expect Form 1099-DIV for eREITs or interval funds with distributions over $10, Schedule K-1 for eFund shares, and Form 1099-B for liquidated shares. Tax documents are issued at the end of January for 1099-DIVs and mid-March for K-1s, available on the investor dashboard. Multiple funds in a portfolio may result in receiving multiple tax forms.

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