Fundrise Review: A Comprehensive Look at the Real Estate Investment Platform

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Introduction: Fundrise Review

As the world of real estate investing continues to evolve, Fundrise has emerged as a popular platform for investors looking to dip their toes into the property market. Fundrise has also recently added exciting new investment offerings in the private credit and venture capital space. In this comprehensive review, we'll explore the ins and outs of Fundrise, its pros and cons, and whether it's a good investment option for you.

Check out our list of top real estate crowdfunding platforms here and if you are new to real estate, check out our beginner's guide. Now, let's dive into Fundrise!

Key Features:

Pros

• $10 minimum investment for taxable accounts

• Easy-to-navigate website

• IRA account availability

• Multitude investment options including Private Credit and VC

• Low fees - 1% annually

• Fundrise Promo Code - you make $25-$100 for referring a friend

Cons

• Limited liquidity

• Difficulty understanding investment types

• Tax liability

What is Fundrise?

Fundrise Logo

Fundrise is a crowdfunded real estate investment platform that has also recently added private credit and venture capital to their offerings. This allows investors to pool their funds together to invest in diversified portfolios. Launched in 2012, Fundrise has since made a name for itself as one of the best real estate investment platforms, offering a user-friendly experience and a variety of investment options.

Fundrise's Mission and Vision

Fundrise was founded on the belief that everyone should have access to real estate investing. Their mission is to provide a simple, low-cost way for individuals to invest in high-quality, income-producing real estate.

How Fundrise Works

The Fundrise Platform: eREITs and eFunds

Fundrise offers investments in eREITs (electronic Real Estate Investment Trusts) and eFunds (electronic funds). eREITs are diversified portfolios of commercial properties, while eFunds focus on residential properties. By investing in these vehicles, you can gain exposure to a variety of property types and locations without the hassle of managing individual properties yourself.

Investment Process: Account Setup, Portfolio Customization, and Funding

Getting started with Fundrise is straightforward:

1. Create an account: Sign up with your email address and basic personal information.

2. Choose your investment goals: Select your investment objectives, such as generating passive income or long-term growth.

3. Customize your portfolio: Fundrise will suggest a portfolio based on your goals, but you can also adjust the allocation as you see fit.

4. Fund your account: Deposit funds via bank transfer or wire.

Fundrise Performance and Returns

Fundrise has historically delivered strong returns, with an average annualized return of 8-12% since its inception. While past performance is not a guarantee of future results, these numbers compare favorably to other alternative investment options, such as publicly traded REITs or direct property ownership.

How to make money with Fundrise

There are two ways to make money with Fundrise. The most obvious, investing with Fundrise, allows you to grow your investment along side Fundrise. As their investments gain value, your investment gains value.

The second way is through the Fundrise Promo Code, aka Fundrise Invitation Program. Through this program you can earn money for inviting friends to join, but only if they join. Details of the Fundrise Invitation Program are below:

Pros and Cons of Investing with Fundrise

Advantages of Fundrise

• Accessibility: Fundrise has a low minimum investment, making it an attractive option for beginners or those with limited capital.

• Diversification: By investing in eREITs and eFunds, you can spread your risk across various properties and locations.

• Passive income: Fundrise investments generate quarterly dividends, providing a consistent income stream.

• Investment Diversity: Fundrise recently added private credit and venture capital as investment options for their users. Paired with eREITs and now they have one of the most attractive alternative investment platforms

Disadvantages of Fundrise

• Illiquidity: Unlike publicly traded REITs, Fundrise investments are not as easily bought and sold, which may be a concern for some investors.

• Limited control: Investors do not have direct control over the properties in their portfolio and must rely on Fundrise's management team.

• Potential conflicts of interest: Fundrise manages its own investment vehicles, which may create conflicts of interest in certain situations.

Investment Considerations

Keep in mind that your money will be tied up for at least five years with Fundrise. While you can attempt to sell your shares before they mature, you'll need to find a buyer within the Fundrise community and may have to pay a fee.

Fundrise Venture Offerings

Fundrise has recently added venture capital investing for its users. This allows users to invest in pre-IPO companies that Fundrise believes will outperform and provide you upside within their platform. Presently, they have 19 assets within their portfolio.

Fundrise Private Credit Offerings

Fundrise believes that there is a huge opportunity within today's credit market and they've built the technology to take advantage of it, and so can you! You can learn more about private credit in this article.

Fundrise Account Levels

• Starter: $10+ minimum investment, basic account features

• Basic: $1,000+ minimum investment

• Core: $5,000+ minimum investment, additional features like dividend reinvestment, auto-investing, IRA support, and referral bonuses

• Advanced: $10,000+ investment requirement, access to advanced investment strategies and personalized guidance

• Premium: $100,000+ account balance requirement, exclusive investment opportunities, and top-tier service

Fundrise Dashboard Overview

The Fundrise dashboard offers a user-friendly experience, making it easy to understand your investments' performance. You can see your dividends, appreciation, and advisory fees, providing transparency on costs.The Fundrise app is a convenient tool for managing and monitoring your investments on-the-go. With a fully-featured interface, you'll have the same access to tools and visuals as on the website, allowing you to stay up-to-date with your investments from anywhere.

Fundrise Dashboard ROI

Fundrise Dashboard Amazing Visuals

Fundrise Dashboard Risk Mix

Fundrise App Overview

A Fundrise app is an amazing tool that allows you to invest and monitor from your pocket (or where ever you carry your phone).

The app is fully featured, containing the same tools and visuals you expect from Fundrise. I was even able to tour the app without logging in to my account.

Fundrise App Landing Page

They provide a great tour feature the first time you open the app. It walks you through all the major tools available to you.

Fundrise App Account Summary

You get quick access to investor updates.

Fundrise App Investor Updates

You get updates to your current portfolio.

Fundrise App Portfolio Updates

You can view current projects the Fundrise team is working on. These are all potential future investments for you.

Fundrise App Current Projects

You can dive into individual investments you have a stake in.

Fundrise App Individual Investment Breakdown

Better understand your portfolio.

Fundrise App Portfolio Returns

Your Notification Center collects everything you need to know in one place.

Fundrise App Notification Center

Overall, the Fundrise app is a great extension of the website and a useful tool for any modern investor on the go. Go check it out for yourself as it may convince you that Fundrise is your real estate investment tool of choice.

How to get started with Fundrise

Setting up an account is really basic and can be done in a few easy steps. Make sure you are fully committed to investing $500 or more because linking your bank account and transferring money is a part of the setup process.

First, follow this link to open your account. This link will take you to a page where you submit your email address.

Fundrise. What's your email?

From here you start to answer some basic questions about why you want to be a part of Fundrise.

Fundrise, How old are you?

More get to know you stuff. The more honest you are the better off you will be in the end. I would even error on the side of less experienced just so you can get more advice on how to keep your money safe.

Have you invested before?

Next step, where does your advice come from. Hopefully you answer, an Investment Advisor, because you shouldn't be committing money to Fundrise if you don't have a trusted advisor, outside of their team, giving you advice on how to proceed.

Where do you get your advice?

Your reason for investing is probably to make more money, but they want you to get a bit more specific than that. This will help them tailor your experience to meet you where you want to be.

Primary reason for investing?

Answering this series of questions will help Fundrise determine the type of Account to suggest for you. If you are looking to make a quick buck, then they aren't going to offer you some of the longer-term investment options.

How long is your investment timeline?

Make sure to read what they are asking here. Fundrise wants to know how much you plan to invest across all your investments, not just with them. Understanding what part of your wallet share they have helps their team communicate better with you. If you have a ton of money to invest annually, but only a small portion is going to Fundrise then they need to offer you the best possible investment options to move some of that money over to their platform.

How much are you investing annually?

You have now answered all of their questions and they have a suggestion for which account type you should sign up for. If you want to understand the different types of accounts better, read my outline above. Otherwise, take their advice to get started and make adjustments later if the plan isn't for you.

Plan level

Finally, you are preparing to commit your money to their investment platform. The next few steps they will be asking for personal information to get your account setup.

Personal Details Page 1

Personal Details Page 2

Determining your account type, individual or other, will tell Fundrise what other information to collect from you during this part of the signup process.

Account Type?

The last steps are determining how much you want to commit and connecting your bank account to your Fundrise account. After this step you review their lengthy agreeements and finalize your account setup.

Full commitment

At this point, you are fully committed to investing with Fundrise. You will soon own real estate in some part of the developed world. I'm proud of you for taking the leap.

Who is the Ideal Fundrise Investor?

Fundrise is suitable for anyone interested in real estate investing with as little as $500. This relatively low entry point makes it accessible for a wide range of investors, from beginners to more experienced individuals. If you're considering real estate investments, the affordability of Fundrise is a significant advantage.

Frequently Asked Questions

Tax Implications

Fundrise investments are subject to federal and, in some cases, state taxes. Dividends are taxed at ordinary income rates, while capital gains may be subject to long-term or short-term capital gains tax rates, depending on the holding period. Investors should consult with a tax professional for personalized advice.

Withdrawal Process and Fees

Fundrise offers a quarterly redemption program, allowing investors to request withdrawals on a limited basis. However, early withdrawals may be subject to fees and reduced returns. It's essential to consider the illiquid nature of Fundrise investments before investing.

Account Minimums and Investment Increments

Fundrise has a low minimum investment requirement, starting at just $500 for their Starter Portfolio. Subsequent investments can be made in increments as low as $100.

Fundrise Summary: Accessible Real Estate Investing with Solid Returns

Fundrise offers an accessible entry point into real estate investing, making it a viable option for many investors. However, be prepared to commit your investment for an extended period, as withdrawing your funds isn't as simple as with traditional stock or bond investments. You'll either need to find a buyer within the Fundrise community or wait for your investment to mature.

Keep in mind that real estate investments are typically less liquid than stocks or bonds. If you're comfortable with this level of commitment, Fundrise can provide impressive returns on your investment.

Before opening an account with Fundrise, consult with your financial advisor to ensure it's the right move for your current financial situation.