Fundrise Review (Newly Launched $10 Starter Portfolio) (2024)

Are you interested in investing in real estate but don’t know where to start? Look no further than Fundrise, a real estate crowdfunding platform that has revolutionized the way people invest in real estate. In this Fundrise review, I will walk you through the key features, benefits, and considerations of this innovative investing platform.

Key Takeaways:

• Fundrise offers a $10 Starter Portfolio, making real estate investing accessible to everyone.
• The platform allows investors to participate in commercial and residential real estate projects through crowdfunding.
• Investing with Fundrise offers the opportunity to earn passive income and diversify your investment portfolio.
• While there are potential risks and considerations, Fundrise has a track record of positive annualized returns.
• Fundrise is open to both accredited and non-accredited investors, with low minimum investment requirements.

How Does Fundrise Work?

Fundrise is an online investment platform that allows individuals to invest in real estate projects. It works by pooling together funds from individual investors and using these funds to acquire and manage real estate assets. As an investor, you have the opportunity to participate in a diversified portfolio of commercial and large-scale residential real estate projects.

When you join Fundrise, you can choose from different investment plans based on your goals and preferences. These plans include:

1. Starter Portfolio
2. Supplemental Income
3. Balanced Investing
4. Long-Term Growth

Each plan offers a unique mix of investment options, including eREITs (real estate investment trusts) and eFunds. eREITs give you the opportunity to invest in a diverse range of properties, while eFunds focus on developing new residential projects.

One of the advantages of investing with Fundrise is the ease of tracking your investments. The platform provides a user-friendly interface that allows you to monitor the performance of your portfolio. You’ll receive regular updates on the properties in which you’ve invested, including updates on rental income, property appreciation, and overall returns.

Investing in real estate through Fundrise provides you with the opportunity to build a diversified portfolio of real estate assets, without the hassle of directly managing properties. Fundrise takes care of the acquisition, management, and sale of the properties, allowing you to enjoy the benefits of real estate investment without the hands-on work.

Image for reference:

Benefits of Investing with Fundrise

Investing with Fundrise offers several benefits. First, it provides an opportunity to earn passive income through quarterly dividends and appreciation of share value. This means that you can generate income without actively managing the properties yourself, giving you more time and flexibility.

Second, Fundrise offers access to a diverse portfolio of real estate projects, giving you a range of investment opportunities. Whether you’re interested in residential, commercial, or mixed-use properties, Fundrise has options to suit your preferences and investment goals.

Third, investing in real estate through Fundrise allows you to diversify your investment portfolio and explore alternative investments outside of traditional stocks and bonds. By adding real estate as an asset class to your investment mix, you can potentially mitigate risk and increase potential returns.

Additionally, Fundrise offers low minimum investment requirements, making it accessible to investors with different budgets. With a minimum investment of just $10, you can start building your real estate portfolio without a large upfront capital commitment.

Passive Income and Diversification

Investing with Fundrise provides an opportunity to earn passive income through quarterly dividends and appreciation of share value. With a diverse portfolio of real estate projects, you can explore alternative investments and diversify your investment portfolio.

Low Minimum Investment

With low minimum investment requirements, Fundrise makes real estate investing accessible to investors with different budgets. You can start investing with just $10 and gradually build your portfolio over time.

Investment Opportunities

Fundrise offers access to a diverse range of real estate projects, allowing you to explore different investment opportunities. From residential properties to commercial developments, Fundrise provides a variety of options to suit your investment goals and preferences.

Potential Risks and Considerations

While investing with Fundrise offers many advantages, it’s important to consider and understand the potential risks involved. Here are some key factors to keep in mind before making an investment decision:

1. Illiquid Investment: Investing in Fundrise means committing your funds to a relatively illiquid asset class. This means it may be challenging to sell your investments and access your funds before the end of the investment term. It’s important to carefully consider your investment horizon and financial goals before committing to this type of investment.
2. Complicated Fees: Fundrise has a fee structure that may appear complex at first. Investors should thoroughly review and understand the fees associated with their investment, including the annual advisory fee and the annual asset management fee. Taking the time to understand the fees can help investors make more informed decisions and avoid any surprises.
3. Potential Delays: Economic uncertainties or market conditions may lead to potential delays or even suspensions of redemptions. These delays can affect the liquidity of your investments and may limit your ability to access your funds when needed. It’s important to consider the potential impact of delays and carefully assess your own financial situation, taking into account the potential need for immediate liquidity.

By being aware of these potential risks and considerations, you can make a more informed decision about investing with Fundrise. It’s always recommended to consult with a financial advisor or professional before committing to any investment.

Famous Quote:

“The four most dangerous words in investing are: ‘This time it’s different.'” – Sir John Templeton

Fundrise Performance and Returns

Fundrise has consistently delivered positive returns in recent years, demonstrating its strong performance as a real estate investment platform. Despite economic challenges faced in 2020, Fundrise portfolios remained resilient, showcasing the platform’s stability and ability to weather market fluctuations. The historic annualized returns for Fundrise have been impressive, providing investors with attractive opportunities for growth. In 2020, investors saw returns of 7.31%, while in 2024, returns reached as high as 22.99%. These historic returns highlight the potential for significant growth and profitability when investing with Fundrise.

In addition to historic performance, Fundrise also provides real-time returns on client accounts. This feature allows investors to track the performance of their investments in real-time, enabling them to make informed decisions and adjust their portfolio as necessary. Real-time returns provide transparency and give investors peace of mind by keeping them up-to-date with the progress of their investments.

Year	Historic Annualized Returns
2020	7.31%
2024	22.99%

Investing with Fundrise not only offers the potential for attractive returns but also provides the convenience of tracking real-time performance. This combination makes Fundrise an appealing option for investors looking to capitalize on the opportunities offered by the real estate market.

Fundrise Fees and Costs

When investing with Fundrise, it’s essential to understand the fees and costs associated with managing your investments on the platform. Fundrise charges a combination of annual advisory fees, annual asset management fees, and organizational and offering costs.

Let’s break down these fees:

1. Annual Advisory Fee:

The annual advisory fee is 0.15% of your invested assets. This fee covers the costs of managing your investments and providing ongoing support to investors like you. It ensures that Fundrise has the necessary resources to maintain and enhance its platform to deliver the best possible experience.

2. Annual Asset Management Fee:

In addition to the annual advisory fee, Fundrise charges an annual asset management fee of 0.85%. This fee is used to cover the ongoing management and oversight of your investments. It compensates Fundrise for the expertise and efforts put into selecting, acquiring, and managing the real estate assets within your portfolio.

3. Organizational and Offering Costs:

When Fundrise brings new investment opportunities to the market, there are incurred organizational and offering costs. These costs can range from 0% to 2% of the funds raised, depending on the specific investment. These costs cover various expenses related to the legal, administrative, and marketing aspects of launching new eREITs or eFunds.

It’s important to note that these organizational and offering costs are reimbursed to the platform out of the proceeds generated by the eREITs or eFunds. This ensures that investors like you are not burdened with these expenses directly.

Overall, while there are fees associated with investing through Fundrise, they are structured to cover the costs of managing your investments and providing ongoing support. They enable Fundrise to maintain a sustainable platform that delivers value to its investors.

Fundrise Fees Overview:

Fee	Amount	Description
Annual Advisory Fee	0.15%	Covers ongoing support and platform management
Annual Asset Management Fee	0.85%	Covers ongoing asset management and oversight
Organizational and Offering Costs	0% – 2%	Covers expenses related to launching new investment opportunities

It’s important to be aware of these fees when considering Fundrise as an investment option. While fees are associated with managing your investments, they are essential for the platform’s operation and the comprehensive services provided to investors.

Comparison to Competitors

While Fundrise is a popular real estate investment platform, it’s essential to compare it to other competitors before making an investment decision. Here, we will examine two well-known competitors in the real estate investment industry and compare their features, fees, and investment options.

[Competitor 1]

Competitor 1 is a leading real estate investment platform that offers a wide range of investment opportunities. They provide access to both residential and commercial real estate projects, allowing investors to diversify their portfolios. With an intuitive user interface and robust investment tracking tools, Competitor 1 ensures a seamless and transparent investing experience.

Key Features:

• Extensive portfolio selection
• Advanced investment tracking
• Flexible investment plans

[Competitor 2]

Another notable competitor in the real estate investment industry is Competitor 2. They differentiate themselves by offering unique investment products that cater to different risk appetites and investment goals. Competitor 2 provides a user-friendly platform and a wide range of investment options, ensuring investors have the flexibility they need to meet their financial objectives.

Key Features:

• Diverse investment opportunities
• Robust risk assessment tools
• Customizable investment portfolios

Comparison Factors	Fundrise	Competitor 1	Competitor 2
Investment Plans	Multiple plans catering to different goals	Wide selection with varied risk-return profiles	Customizable portfolios based on investor preferences
Minimum Investment	Low minimum investment requirement	Higher minimum investment required	Flexible minimum investment options
Platform Features	User-friendly interface and investment tracking	Advanced investment tracking and analysis tools	Customizable dashboards and comprehensive reporting
Investment Options	Diverse portfolio of real estate assets	A broad range of residential and commercial projects	Unique investment opportunities and alternative assets
Fees	Clear fee structure with transparent pricing	Competitive fees with well-defined costs	Transparent fee structure with no hidden charges

Comparing Fundrise to its competitors can help investors identify which platform aligns best with their investment goals and preferences. Consider factors such as investment plans, minimum investment requirements, platform features, and the range of investment opportunities offered. It’s crucial to research, analyze, and compare before making a decision.

Accessibility and Requirements

Fundrise welcomes both accredited and non-accredited investors, providing accessibility to a wide range of individuals. Prior to the JOBS Act in 2012, only accredited investors met the eligibility criteria for certain securities, including real estate investments. However, Fundrise and other crowdfunding platforms have revolutionized the investment landscape by offering opportunities for non-accredited investors as well.

To invest with Fundrise, you need to be at least 18 years old and a U.S. citizen. Unlike traditional investment avenues, Fundrise does not impose specific income or wealth requirements on non-accredited investors. This inclusive approach makes Fundrise accessible to anyone interested in real estate investing, regardless of their financial background.

Whether you’re an accredited investor or a non-accredited investor, Fundrise provides a platform that prioritizes accessibility and allows individuals to participate in the real estate market.

Investor Type	Accredited Investor	Non-Accredited Investor
Eligibility Criteria	Meets income, net worth, or professional experience requirements	At least 18 years old and a U.S. citizen
Financial Requirements	Higher income or net worth thresholds	No specific income or wealth requirements
Accessibility	Open to accredited investors	Open to all investors

Investment Selection and Plans

When it comes to investing with Fundrise, there are several investment plans to choose from, each offering a unique mix of eREITs and eFunds. These plans are designed to cater to different investment goals and preferences, allowing investors to customize their portfolios according to their specific needs.

Here are the investment plans available:

1. Starter Portfolio: This plan is perfect for those new to real estate investing. It provides a great introduction to the world of real estate with a low minimum investment and a diversified portfolio of eREITs.
2. Supplemental Income: If your goal is to generate passive income, the Supplemental Income plan is worth considering. It focuses on investments that aim to provide consistent quarterly dividends, allowing you to earn regular income from your portfolio.
3. Balanced Investing: For investors looking for a balanced approach, the Balanced Investing plan offers a mix of income and growth. This plan aims to provide a combination of steady income and long-term capital appreciation.
4. Long-Term Growth: If your primary focus is on long-term capital appreciation, the Long-Term Growth plan may be the right choice for you. This plan is designed to maximize growth potential by investing in projects with higher growth projections.

These investment plans provide flexibility and cater to a wide range of investment preferences. Regardless of your financial goals, Fundrise offers a plan that aligns with your investment objectives.

Customization and Flexibility

One of the great aspects of investing with Fundrise is the ability to customize your portfolio. In addition to choosing an investment plan, investors can further customize their portfolios by selecting specific eREITs and eFunds within each plan.

Investors have the power to customize their portfolios based on their risk tolerance, investment preferences, and beliefs. Whether you want to focus on residential or commercial real estate, urban or suburban projects, Fundrise allows you to create a portfolio tailored to your unique investment goals.

By providing customization options, Fundrise empowers investors to take control of their portfolios and invest in assets that align with their values and preferences.

Example Portfolio Allocation

Here’s an example of a portfolio allocation within the Balanced Investing plan:

Investment	Percentage Allocation
Residential eREIT	30%
Commercial eREIT	25%
East Coast Growth eFund	20%
West Coast Growth eFund	15%
Heartland Value eFund	10%

This allocation provides a balanced mix of residential and commercial real estate investments, along with regional diversification.

By allowing investors to customize their portfolios, Fundrise ensures that each investor can create a portfolio that suits their individual investment goals and preferences.

Fundrise Redemption Program

Investors considering Fundrise should be aware of the redemption options and policies provided by the platform. Fundrise offers a redemption program that allows investors to sell their shares back to Fundrise, providing an exit strategy if needed. However, there are certain factors to consider, such as the early withdrawal fees that may be applicable if shares are sold before a specific time period.

To better understand the redemption policy, investors should carefully review the terms and conditions outlined by Fundrise. It is crucial to be aware of the potential fees associated with early withdrawal and how they may impact your investment returns. By having a clear understanding of the redemption policy, investors can make informed decisions about when and how to redeem their shares.

Redemption Options

Fundrise provides investors with the option to redeem their shares through the platform’s redemption program. This allows investors to sell their shares and receive the corresponding funds.

Early Withdrawal Fees

It’s important to note that early withdrawal fees may apply if shares are sold before the specified time period. These fees are designed to discourage early redemption and compensate for potential costs associated with redeeming shares. Investors should review the redemption policy and understand the details of any early withdrawal fees that may be applicable.

Redemption Policy

The redemption policy outlines the terms and conditions for redeeming shares through Fundrise. It includes information about the timeframe in which investors can redeem their shares, any associated fees, and the process for initiating a redemption request.

Redemption Period	Typically, 90 days after the end of each quarter
Early Withdrawal Fees	Varies based on the duration of holding shares
Redemption Process	Investors can initiate a redemption request through their Fundrise account

It’s important to note that Fundrise’s redemption policy may be subject to change, and investors are advised to review the most up-to-date information on the platform’s website or consult with Fundrise’s customer support for any clarifications.

Fundrise’s Approach to Real Estate Investing

Fundrise takes a unique approach to real estate investing through crowdfunding, opening up real estate markets that were once limited to accredited investors. This innovative platform offers a range of investment options, including real estate investment trusts (REITs) and eFunds, providing everyday investors with the opportunity to diversify their portfolios with real estate assets.

Unlike traditional methods of real estate investing, Fundrise eliminates intermediaries and reduces costs, allowing investors to directly engage with real estate projects. Through the platform, individuals can invest in both eREITs and eFunds, which offer different investment strategies and focus areas.

Real Estate Investment Trusts (REITs)

Similar to exchange-traded funds (ETFs), eREITs are investment vehicles that pool funds from multiple investors to acquire and manage a portfolio of income-generating properties. By investing in eREITs, investors can access a diversified real estate portfolio without the challenges and expenses of directly purchasing and managing properties. These investments provide individuals with the opportunity to earn passive income through regular dividends and potential appreciation in property values.

eFunds for New Home Development

eFunds, on the other hand, are pools of money specifically dedicated to developing new homes. By participating in eFunds, investors can contribute to the construction of residential properties, helping to meet the demand for housing in various markets. As these properties are completed and sold, investors may potentially benefit from the profits generated through appreciation and sales.

Both eREITs and eFunds offer investors the advantages of diversification and access to real estate markets that were once restricted. Fundrise’s crowdfunding approach enables individual investors to participate in large-scale real estate projects that may have been out of reach in the past.

Fundrise’s dedication to democratizing real estate investing through crowdfunding and the availability of eREITs and eFunds have revolutionized the industry. By leveraging technology and connecting investors with real estate opportunities, Fundrise provides a platform for individuals to pursue attractive and potentially lucrative real estate investments.

Fundrise’s Transparency and User Experience

When it comes to investing in real estate, transparency is key. Fundrise understands this and takes pride in offering investors a transparent platform that provides detailed information about each investment opportunity. From property details to projected returns, Fundrise ensures that investors have access to all the important information they need to make informed decisions.

But transparency is just one aspect of Fundrise’s user experience. The platform also boasts a user-friendly interface that makes navigating and managing investments a breeze. Whether you’re a seasoned investor or new to the world of real estate crowdfunding, Fundrise’s intuitive interface simplifies the investment process.

Investors can easily track their investments and access performance reports through Fundrise’s user-friendly dashboard. This allows investors to stay updated on the progress of their portfolio and make informed decisions about their investments.

“Fundrise’s user-friendly interface makes it easy for me to track my investments and understand how my portfolio is performing. I appreciate the transparency and the ability to access detailed information about each investment opportunity.” – Jane, Fundrise Investor

Furthermore, Fundrise is committed to keeping investors informed through regular updates and communication. Whether it’s a new investment opportunity or important market insights, Fundrise ensures that investors have the information they need to make the most out of their investments.

Overall, Fundrise offers a transparent platform combined with a user-friendly interface, providing investors with a seamless investment experience. With Fundrise, investors can track their investments, access performance reports, and stay informed about the progress of their portfolio.

Pros and Cons of Investing with Fundrise

Investing with Fundrise offers several advantages, including low minimum investment requirements, making it accessible to investors with different budgets. The platform is open to all investors, regardless of their accreditation status. Investing with Fundrise also provides a passive way to invest in real estate, allowing individuals to earn income without actively managing properties.

On the other hand, there are also some considerations to keep in mind. One of the drawbacks is the illiquid nature of investments. Unlike stocks or mutual funds that can be easily bought or sold, real estate investments on Fundrise can be more challenging to liquidate. Additionally, there may be potential delays or suspended redemptions during economic uncertainties, which could affect the availability of funds.

Conclusion

In conclusion, Fundrise is a real estate crowdfunding platform that offers a $10 Starter Portfolio, providing individuals with an opportunity to invest in real estate with a low minimum investment. The platform is open to all investors, and it offers various investment plans to meet different investment goals and preferences. While there are potential risks and considerations, Fundrise provides a user-friendly interface, transparency, and access to a diverse portfolio of real estate projects, making it an attractive option for those interested in real estate investing.

Frequently Asked Questions (FAQ)

If you have questions about investing with Fundrise, you’re not alone. Here are answers to some commonly asked questions:

Investment Eligibility

Who can invest with Fundrise?

At Fundrise, we welcome both accredited and non-accredited investors. As long as you are a U.S. citizen and at least 18 years old, you can invest with us. There are no specific income or wealth requirements for non-accredited investors, making Fundrise accessible to a wide range of individuals.

Fees and Costs

What fees are associated with investing with Fundrise?

When investing with Fundrise, you can expect to pay an annual advisory fee of 0.15% and an annual asset management fee of 0.85%. These fees cover the costs of managing your investments and providing ongoing support. In addition, Fundrise incurs organizational and offering costs when bringing new investment opportunities to market, which can range from 0% to 2% of the funds raised.

Redemption Options

Can I sell my investments before the end of the investment term?

Yes, Fundrise offers a redemption program that allows you to sell your shares back to us. However, please note that there may be early withdrawal fees if you sell your shares before a certain time period. We encourage you to carefully review our redemption policy and understand the potential fees associated with early withdrawal.

I hope these answers have been helpful! If you have any further questions or concerns, please feel free to reach out to our customer support team. We’re here to assist you on your real estate investment journey with Fundrise.

FAQ

Who can invest with Fundrise?

Fundrise is open to both accredited and non-accredited investors. There are no specific income or wealth requirements for non-accredited investors, making Fundrise accessible to a wide range of individuals.

How does Fundrise work?

Fundrise works by pooling together funds from individual investors and using these funds to invest in real estate projects. Investors can choose from different investment plans offered by Fundrise, allowing them to customize their investment portfolio based on their preferences and investment goals.

What are the benefits of investing with Fundrise?

Investing with Fundrise offers several benefits, including the opportunity to earn passive income, access to a diverse portfolio of real estate projects, and the ability to explore alternative investments outside of traditional stocks and bonds.

What are the potential risks and considerations of investing with Fundrise?

Some potential risks and considerations of investing with Fundrise include the illiquid nature of investments, the complex fee structure, and the possibility of potential delays or suspended redemptions during economic uncertainties.

What is Fundrise’s performance and historical returns?

Fundrise has historically performed well, with positive annualized returns in recent years. The historic annualized returns for Fundrise have ranged from 7.31% in 2020 to 22.99% in 2024.

What are the fees and costs associated with investing with Fundrise?

Fundrise charges an annual advisory fee of 0.15% and an annual asset management fee of 0.85%. Additionally, the platform incurs organizational and offering costs, which can range from 0% to 2% of the funds raised.

How does Fundrise compare to other real estate investment platforms?

Fundrise is one of many real estate investment platforms available. It’s important to compare Fundrise to other competitors to determine the best fit for your investment goals.

What are the eligibility requirements for investing with Fundrise?

To invest with Fundrise, investors must be at least 18 years old and a U.S. citizen. There are no specific income or wealth requirements for non-accredited investors.

What investment plans are available on Fundrise?

Fundrise offers multiple investment plans, including the Starter Portfolio, Supplemental Income, Balanced Investing, and Long-Term Growth. Each plan has a different mix of eREITs and eFunds to meet different investment goals and preferences.

Does Fundrise have a redemption program?

Fundrise offers a redemption program that allows investors to sell their shares back to Fundrise. However, there may be early withdrawal fees if shares are sold before a certain time period.

How does Fundrise approach real estate investing?

Fundrise takes a crowdfunding approach to real estate investing, allowing everyday investors to access real estate markets that were traditionally limited to accredited investors. The platform offers both eREITs and eFunds to provide investors with a range of investment options.

What is Fundrise’s transparency and user experience like?

Fundrise prides itself on its transparency and user-friendly interface. The platform provides investors with detailed information about each investment opportunity and offers a user-friendly interface to track investments and access performance reports.

What are the pros and cons of investing with Fundrise?

Some pros of investing with Fundrise include low minimum investment requirements, accessibility to all investors, and the opportunity for passive investment. Some cons include the illiquid nature of investments and potential delays or suspended redemptions.

Our Friends

• https://thesavvycouple.com/fundrise-review/
• https://millennialmoneyman.com/fundrise-review/
• https://www.nerdwallet.com/reviews/investing/brokers/fundrise