Fundrise: The Easy Way to Invest in Real Estate

I’m going to discuss an investment tool called Fundrise today. According to their site it is the first investment platform to create a simple, low-cost way for anyone to access real estate’s historically consistent, exceptional returns. Fundrise is an online investment platform that allows accredited and non-accredited investors to invest in real estate. I’ve been using Fundrise for several years now and had consistent returns, albeit not always as high as the traditional stock market. It has been nice to still have some investments with positive returns for the year even when my stock investments are down. Fundrise offers a variety of investment options, including:

• Equity funds: Fundrise’s equity funds invest in a diversified portfolio of real estate assets, including apartment buildings, office buildings, and retail properties. These funds are designed to provide investors with a steady stream of income.
• Debt funds: Fundrise’s debt funds invest in real estate loans, such as mortgages and construction loans. These funds are designed to provide investors with a higher level of income than equity funds, but they also carry more risk.
• Fundrise Income eREIT: Fundrise Income eREIT is a diversified portfolio of real estate assets that generate income. This fund is designed to provide investors with a steady stream of income with moderate risk.
• Fundrise Growth eREIT: Fundrise Growth eREIT is a diversified portfolio of real estate assets that have the potential for growth. This fund is designed to provide investors with the potential for capital appreciation with higher risk.

It is always important to look at fees associated with any investment as that will eat into your returns. Fundrise has various fee structures as of the date of this post they have a 0.15% advisory fee which means, over a 12-month period, investors will pay a $1.50 advisory fee for every $1,000 they have invested with Fundrise. 

Fundrise’s real estate funds have an annual 0.85% flat management fee. That’s $8.50/year for every $1,000 invested. 

The Fundrise Innovation Fund has an annual 1.85% flat management fee, the equivalent of $18.50/year for every $1,000 invested.

For investors who want to actively shape their portfolio, we have introduced Fundrise Pro. Fundrise Pro is $10/month or $99/year for those who choose to pay upfront.

Fundrise has been in operation since 2012 and has raised over $2 billion in capital with over $7 billion in portfolio value. The company has a team of experienced real estate professionals who manage the investments.

Here are some of the pros and cons of investing with Fundrise:

Pros:

• Access to real estate investments that are typically only available to accredited investors
• Diversified portfolio of real estate assets
• Experienced management team
• Easy to use platform

Cons:

• Minimum investment of $500
• Long investment horizon (typically 5+ years)
  • Low liquidity
• Potential for loss of principal

I want to discuss Fundrise’s platform briefly. It is designed to make it easy for investors to get started with real estate investing. The platform provides investors with access to a variety of real estate investments, including both individual properties and portfolios of properties. Fundrise also provides investors with access to a team of experienced real estate professionals who manage the investments.

The platform is also designed to be transparent. Investors can view information about the individual investments in Fundrise’s portfolios, including the property’s location, the property’s type, and the property’s estimated value. Investors can also view information about Fundrise’s fees, including the management fee and the asset-based fee.

Overall, Fundrise’s platform is a good option for investors who want to get started with real estate investing. The platform is easy to use, transparent, and provides access to a variety of real estate investments.

Here are some additional things to consider before investing with Fundrise:

• Your investment goals: What are your investment goals? Are you looking for income, growth, or a combination of both?
• Your risk tolerance: How much risk are you comfortable with? Real estate investing is a relatively illiquid asset class, which means that it can be difficult to sell quickly if you need cash.
• Your time horizon: How long are you willing to invest for? Real estate investments typically take longer to mature than stocks or bonds.

If you’re still not sure if Fundrise is right for you, I recommend talking to a financial advisor. They can help you assess your individual needs and goals and recommend the best investment options for you.

Fundrise’s minimum investment is $500. This is lower than the minimum investment required for many other real estate investment platforms. Fundrise also has a long investment horizon (typically 5+ years). This is because real estate investments are typically illiquid and can take longer to mature than stocks or bonds.

It is important to note that past performance is not a guarantee of future results. Fundrise’s returns are subject to a number of factors, including the performance of the real estate market, the performance of the individual investments in Fundrise’s portfolios, and the fees charged by Fundrise. With that in mind it is interesting to look at the client returns over the past years according to Fundrise. More information can be seen here.

Overall, Fundrise is a good option for investors who want to diversify their portfolio with real estate investments. However, it is important to remember that it isn’t the only option for real estate investing. And remember real estate is a long-term investment and there is always the potential for loss of principal.