If you're looking for a new way to invest in real estate, look no further than Fundrise. This innovative company is shaking up the industry by letting investors put their money into real estate projects for just $10. And the best part? You can do it all from the comfort of your own home. This Fundrise review will go over everything you need to know, so you can grow and diversify your portfolio. So read on to find out why Fundrise is one of the best investment options available today!
How does Fundrise work?
Fundrise is a crowdfunding platform that allows investors to pool their money together to invest in real estate projects. When you invest through Fundrise, you become a part-owner of the property or project that you've invested in. And because Fundrise does all the legwork for you, it's a great way to get started in real estate investing without having to give up a lot of money and time.
So how does it work? First, you create an account and deposit money into it. Then, Fundrise uses that money to invest in real estate projects on your behalf. You can choose to diversify your investments by putting your money into different types of projects, or you can focus on one specific type of investment.
For example, you could choose to only invest in office buildings, or you could choose to invest in a mix of residential and commercial properties. Unlike the stock market, where you buy stocks and ETFs, with Fundrise, you are buying partial ownership in various real estate investments.
Once the projects are completed, you'll start to earn money from your investment through quarterly distributions. And as the property values increase over time, so will your returns.
You can even choose to cash out your investment at any time and receive all of your money back, plus any profits that have been made.
Pros & Cons
- Low minimum investment requirement – You start investing with as little as $10.00
- No accreditation – Fundrise lets any United States citizen invest on its platform regardless of the user's net worth or income
- Diversification – With Fundrise, you can invest in properties all over the country, which helps to diversify your portfolio and protect you from local market fluctuations
- Easy to use: The Fundrise platform is very user-friendly and makes it easy to manage your investments, sell your shares, and see your real-time historical performance just at the click of a button
- Fees – There is a 0.85-1.00% annual fee, which may seem like a lot, but is actually lower than many other similar investment platforms and options.
- Not as hands-on – When you invest in real estate through Fundrise, you're not actually buying the property yourself. This can be seen as a pro or a con, depending on your investment goals.
- Investment liquidity – Unlike the stock market where you can sell your asset quickly, Fundrise investments it can take some time to sell your investment in a property.
Fundrise is a great way to get started in real estate investing with very little money. However, it's important to be aware of the fees and the fact that you're not buying the property yourself. If you're looking for a more hands-on approach, there are other options, which we'll mention later in this Fundrise review.
Why should you invest with Fundrise?
There are a lot of reasons why investing with Fundrise is a great idea. For starters, it's one of the most convenient ways to get started in real estate investing. With just $10 minimum investment, anyone can become an investor. And because Fundrise does all the research and legwork for you, it's a great way to invest in real estate without having to put in a lot of time or effort.
Another reason to invest with Fundrise is that they offer a wide variety of investment options. Whether you're looking to invest in office buildings, residential properties, apartment complexes, or even mixed-use projects, Fundrise has something for you. And because you can choose to diversify your investments, you can minimize your risk while still earning great returns.
Finally, Fundrise is a great option for those who want to earn passive income. With their quarterly distribution payments, you can start earning money from your investment right away. And as the property values increase over time, so will your returns. So if you're looking for a passive income investment, Fundrise is definitely worth considering.
How successful is Fundrise?
Fundrise started in 2012 and has since become the biggest crowdfunding real estate company. Since its inception, the company has generated $7 billion in real estate transactions with over 254 active projects and 131 completed projects. The company has strategically diversified the property types it invests in to ensure dividends can be paid to its investors quarterly, future valuations will be reached, and the potential market downside is mitigated.
What Is The Minimum Investment Requirement For Fundrise?
The minimum investment requirement for Fundrise is $10. You can invest in a portfolio of properties with as little as $10, which gives you the ability to diversify your investments and spread out your risk. However, if you want to invest in their basic, core, or advanced portfolios, it may require more capital since they will be investing in less liquid assets that require more money.
Fundrise currently offers the lowest investment minimum out of all the online-only real estate platforms!
What is commercial real estate investing?
Commercial real estate investing is the process of investing in properties that will be used for businesses. This can include office buildings, retail space, warehouses, and more.
Commercial real estate investing is a great way to diversify your portfolio and earn passive income. And because commercial real estate typically has a higher return than residential properties, it's an especially attractive option for investors.
One of the best things about commercial real estate investing is that you can choose to be as hands-off or as involved as you want to be. For example, if you're looking for a passive investment, you can simply invest your money and let Fundrise do all the work for you.
Or, if you're more hands-on, you can choose to be involved in the property management and day-to-day operations. This is a great way to get started in real estate investing without having to put down a lot of money upfront.
What fees does Fundrise charge?
Just like any other investment, there are fees associated with investing in real estate through Fundrise. These fees include an annual asset management fee of 0.85%, an annual servicing fee of 0.15%, and a closing fee on each sale of a property within the portfolio. While these fees may seem high, it is important to remember that they are all tax-deductible.
Out of all of the known competitors, Fundrise charges the lowest asset management and serving fees at only 1.00% per year!
What is the best Fundrise investment plan?
The answer to this question depends on your investment goals and how much risk you're willing to take. If you're looking for a more conservative investment, the long-term growth portfolio is a good option since it utilizes lower-risk commercial real estate investments. On the other hand, if you're looking for a more consistent, steady income, the balanced investing or supplemental income portfolio may be a better option since they're more liquid assets that produce more dividends.
To learn more about the different types of Fundrise plans, check out their website here or look at the photo below, which illustrates the different kinds of plans their estimated target return profiles.
How trustworthy is Fundrise?
Fundrise is a pretty trustworthy company. It's been around since 2012 and has helped thousands of people invest in real estate and make money consistently. The company is also backed by some big names, like Richard Branson and Tony Hsieh. Additionally, every investment is insured, so you should not worry about your money being stolen or disappearing; however, it is important to understand that this insurance does not cover loss due to negative market conditions.
Is Fundrise legal?
Yes, using Fundrise is a legal way to invest in real estate. The company is headquartered in Washington, D.C., and it is registered with the SEC, which means it's regulated very strictly just like the stock market.
Has anyone lost money with Fundrise?
While it's possible to lose money with any investment, we haven't seen any reports of people losing money with Fundrise. This doesn't mean your portfolio will not go down in value due to the market, but, overall, Fundrise has produced consistent gains for its investors over the past 7 years. They recently announced its 21st consecutive positive quarter meaning Fudrise has produced positive profits for the past 63 months. Even when the stock market is down like it has been in Q1 of 2022, Fundrise produced a positive return of 3.49% compared to the -4.60% of the stock market. Additionally, commercial and private real estate has historically outperformed the stock and bond market over the past 20 years, suggesting this kind of investment traditionally brings less risk than investing in the stock market.
How many people use Fundrise?
Since its launch in 2012, Fundrise has helped over 300,000 people invest in real estate. And with over $600 million in assets under management, it's one of the largest crowdfunding platforms available today.
Average rate of return
To get an idea of how Fundrise has performed in the past, let’s take a look at its historical returns through its commercial real estate, traded REITs, and other various diversified portfolios. According to its website, Fundrise's averaged returns outperformed the S&P 500 in Q1 of 2022 with a positive 3.49% return compared to the -4.60% of the stock market.
|Q1 of 2022||Fundrise|
(all U.S. REITs)
|Dividends (income return)||0.73%||0.68%||0.35%|
|Appreciation (price return)||2.76%||-5.95%||-4.95%|
In terms of risk-adjusted returns, Fundrise is one of the best-performing real estate crowdfunding platforms out there. However, it's important to note that these are historical returns, and past performance does not necessarily indicate future results.
Who can invest in Fundrise?
To be able to invest in Fundrise, you must:
If you have all of these requirements, then you can create an account on Fundrise. After creating an account, you will need to link your bank account so that you can start transferring money into your account on the site. The minimum amount that you can invest is $10.00, but there is no maximum amount.
What types of accounts does Fundrise offer?
Fundrise offers several different types of accounts, including:
Individual accounts – These are perfect for folks who want to invest in real estate without a lot of hassle. You can start with as little as $10, and there is no minimum investment period.
Joint accounts – If you're looking to pool your resources with friends or family members, Fundrise joint accounts let you do just that. You'll need to have at least $1,000 to get started, but you can add up to five people to the account.
Retirement accounts – Fundrise makes it easy to invest for retirement with their IRA and Roth IRA options. You can set up automatic contributions, and there are no fees for account management.
Fundrise retirement account
The Fundrise Retirement Account (FRA) is a new, innovative retirement savings product that allows users to invest in real estate with only $10 as well. The account is FDIC-insured and offers a competitive interest rate, making it an attractive option for those looking to diversify their retirement portfolio.
To open a retirement account, visit the Fundrise website and create an account. Once you have created an account, you will be able to view all of the available investment options, which include a retirement option, and choose the one that best suits your needs. You can also set up automatic deposits into your account, so you can start saving for retirement without having to think about it!
If you are looking for a new way to save for retirement, the Fundrise Retirement Account is a great option to consider. With its low minimum investment and competitive average return rate, it is sure to be a hit for those who are looking for a different way to invest their retirement money. Give it a try today and see how easy it is to start saving for your future!
What features does Fundrise offer?
Direct investments – Fundrise offers the ability to invest directly in commercial real estate projects. These are typically large developments that are not available to individual investors.
Self-directed IRA – With a self-directed IRA, you can invest in real estate and other alternative investments without having to pay taxes on the earnings.
Fundrise IPOs – The Fundrise IPO is a way for investors to get in on the ground floor of new real estate developments before they are offered to most investors.
Goal-based investing – With goal-based investing, you can set targets for your investments and track your progress over time. This is a great way to stay focused on generalized investment goals rather than hyper-specific real estate investments.
What are the investment options with Fundrise?
Fundrise offers a variety of investment options, including:
Estate plans – With this option, you can invest in a portfolio of real estate properties. You can choose to spread your investments across different property types and locations, or you can focus on one specific area.
Commercial real estate – If you're looking to invest in a particular building or development project, Fundrise makes it easy to do so. You can browse through different projects or just simply pick an eREIT to make it easy and simple for you.
Debt investments – Another option for investing with Fundrise is to lend money to developers who are looking to finance their projects. This is a great way to earn passive income, and you can choose to invest in projects that are located in different areas.
Fixed Income – Fundrise also offers a fixed income investment option, which is perfect for those who are looking to diversify their portfolio. With this option, you can invest in a variety of different bonds and earn interest on your investment.
What is a eREIT?
The eREIT is a real estate investment trust that allows you to invest in a portfolio of properties without having to go through the hassle of buying and managing them yourself.
As you can see, there are many different options for investing with Fundrise. Whether you're interested in real estate crowdfunding or lending money to developers, you can find an investment that suits your needs.
Does Fundrise offer a bonus?
For a limited time, readers of this Fundrise review are eligible to get a one-time bonus for new investors. When you sign up and make your first deposit of any amount, you'll receive a bonus of $10.00. This is a great way to get started with investing in real estate without having to put down a lot of money upfront.
How do you open a Fundrise account?
You can open a Fundrise account for as little as $10. Once you create an account, you'll be able to choose which type of investment plan you want: an individual investment plan, a diversified portfolio, or a retirement account.
If you're not sure which type of investment is right for you, don't worry – the Fundrise team will help you figure it out. Once you've selected your investment plan, you'll need to fund your account with a bank account or with a debit card.
Once your account is funded, you can start investing in real estate projects all over the United States. You can also track the progress of each project and see how your investments are performing.
Total Time: 5 minutes
Enter your email address
Choose accreditation status
Choose account type
Choose initial investment amount
Finalize account setup
How much can you earn with Fundrise?
Fundrise offers three different investment plans, each with different return potentials. The Starter Portfolio plan has the potential to earn you up to 12% annually, while the Advanced Portfolio and Income eREIT plans have the potential to earn you up to 20% and 30% annually, respectively.
The minimum investment amount is also different for each plan: $10 for the Starter Portfolio, $1,000 for the Basic Portfolio, $5,000 for the Core Portfolio, $10,000 for the Advanced Portfolio, and $100,000 for the premium portfolio. So depending on how much you're looking to invest, Fundrise has a plan that could be a good fit for you.
|Direct Investment into Open Funds||–||–||✔||✔||✔|
|Potential iPO Access||–||✔||✔||✔||✔|
One thing to keep in mind is that these are estimates – your actual returns may be higher or lower than what is stated here. Also, these returns are not guaranteed – your investments could lose value, so it's important to keep your holdings as long as possible since this is when you will generally see the best returns over a long period of time.
How do you sell Fundrise shares?
If you want to sell your Fundrise shares, you'll need to log into your account on the Fundrise website. Once you're logged in, click on the “Account” tab and then select “Sell Shares.” You'll be able to enter the number of shares that you want to sell and will be given a price quote. After you confirm your sale, the funds will be transferred to your bank account within two business days. There are no fees for selling shares on Fundrise.
Overall, I was really happy with my experience investing with Fundrise. I was able to get started with a very small investment and didn't have to worry about any of the hassles that come with traditional real estate investing. If you're looking for a way to invest in real estate without having to deal with properties directly, I would definitely recommend giving Fundrise a try.
What are the Fundrise alternatives?
Fundrise isn't the only platform that enables real estate investing with crowdfunding. There are a few others worth considering, such as RealtyMogul and DiversyFund, which also allow traditional investors to invest in commercial real estate.
RealtyMogul is a bit more geared towards accredited investors, but still open to non-accredited ones as well. You can start investing with as little as $500 on RealtyMogul. One thing to note is that investments in RealtyMogul are only available to US citizens and residents.
Since RealtyMogul's real estate investment platform is more tailored toward accredited investors, the annual asset management fee is typically higher than Fundrise's, but the returns are typically higher compared to a typical real estate investor.
DiversyFund is another option that's open to both accredited and non-accredited investors. The minimum investment amount is also $500. However, DiversyFund does charge a large commission of 2.00% and has less investment options.
– Lowest minimum investment ($10.00)
– No investor accreditation requirements
– More complex investments that require more individual research
– Available to non-accredited investors
– Highest targeted rates of return
– Relatively short track record
– Available to non-accredited investors
– No bonus
– $500+ minimum investment
So, if you're looking for alternative platforms to Fundrise, these are a few worth considering. Just make sure to do your own research before investing on any platform. And remember, investing in real estate is always a risk so don't invest more than you can afford to lose. Finally, if you're looking for an investment platform that allows you to invest in other alternative assets like art, legal services, and more, we highly recommend you check our our YieldStreet review.
Hopefully, after reading this Fundrise review, you're now looking for a way to invest in real estate without spending a fortune. Fundrise is the perfect option to earn supplemental income with a trusted real estate investment platform.
With just $10, you can get started and begin diversifying your investments. And because Fundrise allows you to invest in many different properties at once, it's a great way to mitigate your risk if an unforeseen market condition were to occur. So what are you waiting for? Sign up today and start investing in some of the country's most promising real estate projects to earn supplemental income.
- $10 minimum investment
- You don’t have to be an accredited investor
- Distributions are usually paid quarterly
- Not a very liquid asset class
- 1.00% annual management fee
- Not as "hands on" as normal real estate investing