Fundrise

5.0

Real Estate

Build a more perfect portfolio. Get paid frequent dividends + earn more from property appreciation. Introducing the first simple, low-cost real estate investment platform.

Investment risk

Low

Min investment

$500

Target return

9% - 12%

Fees

1%

Overview

With Fundrise, you can invest in a low-cost, diversified portfolio of institutional-quality real estate. They combine state-of-the-art technology with in-house expertise to reduce fees and maximize your long-term return potential.

Your portfolio is powered by high-quality, resilient assets. They pair their extensive network and expertise with the collective buying power of their investor community to acquire high-quality assets ranging from debt to equity, commercial to residential, and more. They follow a "value investing" strategy of acquiring assets for less than what we believe is their intrinsic value, and typically less than their replacement cost. The team then works to increase the value of each asset over time through hands-on management and in partnership with local operators. They've specifically built the Fundrise portfolio with the intention of being able to withstand prolonged periods of economic distress.

😎

Manage your Fundrise account and thousands of other platforms with MoneyMade Portfolio!

Why Invest

  • Frequent Dividends paid out to investors
  • Institutional quality real estate without the high fees
  • Flexible investment minimums, starting from just $500

How you make money

Fundrise’s investments are focused on long-term returns. As a result, your investment will naturally form a J-curve that takes time to play out. There will be an initial period of low expected returns as the properties are acquired and business plans are executed. However, this should contribute to generating higher returns as your investment begins maturing. Following the ramp up stage in which they acquire properties, your investment will act like a dividend-paying stock. Fundrise provides steady monthly dividend income and you can choose to receive your dividends in cash or reinvest them. You will also benefit from the increasing property value over time. This can result in higher dividend payments due to rent increases or a higher sale price when the property is sold.

How Fundrise makes money

For all unaccredited offerings, investors pay a 0.15% annual investment advisory fee (which may be reviewed under certain circumstances). Separately, the funds in their standard portfolios pay a 0.85% annual asset management fee. Altogether, that’s $10/year for every $1,000 invested or just a 1% annual management fee.

Is it Safe?

Fundrise crowdfunded its first property in 2013 and as of 1/31/20 has helped over 130,000 investors invest close to 5 billion dollars in total transactions. Fundrise received over 50 million dollars in funding and is projected to be worth over 800 million dollars. They specifically built the Fundrise portfolio with the intention of being able to withstand prolonged periods of economic distress. Nothing can be guaranteed, but because of their conservative approach and extensive underwriting processes, they believe the Fundrise portfolio is, from a risk-adjusted-return standpoint, well positioned to be able to sustain a severe economic downturn.

 

Although there is always potential for loss while investing in real estate, the expansive portfolio and solid track record of Fundrise should speak to the reliability of the company. Fundrise Advisors, LLC (“Fundrise Advisors”), an affiliate of Fundrise, is registered with the Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940.

Things to know

  • You make money onDividends + Value
  • Fees1%
  • Payout frequencyQuarterly
  • Term of investment60+ months
  • LiquidityModerate
  • Open toAll Investors

Company

  • Country availabilityUS only
  • Assets under management$400M
  • Established2010
  • Mobile ApplicationIOS, Android

Investment Return Calculator

Calculate your estimated return to reach your investment goals.

$

%

years

$

Monthly

Amount invested

$7,000

Total fees

$282

Value after fees

$9,046.35

Any references to past performance, regarding financial markets or otherwise, do not indicate or guarantee future results.

Forward-looking statements, including without limitations investment outcomes and projections, are hypothetical and educational in nature. The results of any hypothetical projections can and may differ from actual investment results had the strategies been deployed in actual securities accounts.

Reviews

5.0
0 Reviews

No comments yet