Fundrise Review 2020: What Is Fundrise and What Are the Returns?Real Estate
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Fundrise is a revolutionary investment platform that gives real estate investment access to those who otherwise wouldn’t have the opportunity to invest.
You don’t have to be extraordinarily wealthy or own millions in assets.
You can start investing in real estate with as little as $500, with impressive returns on your investment.
Anybody Can Invest in Real Estate Now
Most investing platforms requires all investors to be accredited, meaning they have to meet minimum asset or income requirements.
With Fundrise, you’re able to invest without being an accredited investor, which opens up investing to a lot of people who would not have access to real estate investing otherwise.
Featuring aggressive returns of up to 12.5%, Fundrise can help you break into the real estate investing game.
Here’s our comprehensive Fundrise review that will give you the information you need to start investing like a pro.
There’s never been a better time to start investing in real estate.
Through Fundrise, you’ll have access to private real estate investments that only multi-million or billion-dollar investors had access to previously.
Private market real estate can truly diversify your investment portfolio and give you options for supplemental income, balanced growth, and long-term investments.
This Fundrise review will show you how.
What You Get With Fundrise
You really get a lot when you decide to invest with Fundrise.
Top Investment Opportunities
First and foremost, you get access to previously inaccessible real estate investment options, which means you’ll see new ways to invest and grow your money.
You’ll also get superior returns on your investment, up to 12.25% per year at current return rates over a 20-year period.
When compared to traditional investments on the public market, that’s an average of 1.5 times the typical rate of return.
A Team of Experts
Your money will be managed by a team of investment experts that have combined experience of over 75 years in the real estate investing field.
Finally, you’ll get asset diversification.
With dozens of properties to invest in, Fundrise’s private real estate investments can help diversify your portfolio and boost your investment growth.
Fundrise’s Flagship Starter Portfolio
You don’t need a lot of money to start investing in attractive real estate portfolios with Fundrise.
With multiple investment tracks to choose from, you’ll get full control of your real estate investments and the expert advice from the team at Fundrise.
Start Investing With as Little as $500
By far, the most popular Fundrise investment plan — and the one you can invest in with only $500 — is the Starter Portfolio.
This is the investment plan that requires a minimum of $500 to start investing, meaning this plan is extremely accessible for new real estate investors.
Other platforms feature minimum investments such as $10,000 or $15,000 but with Fundrise, all you need is $500.
Aside from the incredibly low initial investment amount, Fundrise offers two features that are also unheard of in real estate investing.
First is the 90-day satisfaction period.
If you’re not completely satisfied with your investment, just let Fundrise know within the first 90 days and they’ll buy your original investment back for its original amount.
What other platforms offer a risk-free real estate investment option?
Fundrise is extremely investor friendly and is a great platform for new and rising real estate investors.
Optional Upgrade to Premium Plan
The second incredible feature that the Starter Portfolio offers is the option to upgrade to a premium plan for free.
Once you’ve invested a minimum of $1,000 with Fundrise through the Starter Portfolio, you can upgrade to one of the previously mentioned plans absolutely free.
The Starter Portfolio is a smart option for anyone new to real estate investing that doesn’t have a large amount of cash up front.
Starter Portfolio Returns
The Starter Portfolio offers impressive annualized dividend yields, currently sitting at 6.32% annually.
Private market real estate investments outperform public income-focused investments, and when compared to public bonds like the Vanguard Bond Fund, the Starter Portfolio from Fundrise more than doubles the annualized dividend yields.
The Fundrise team has more than 48 real estate projects across the country, so whether you’re investing in the starter portfolio or the long-term growth plan, you’ll have access to the same high-quality real estate investment options as everyone else on the platform.
Fundrise’s Advanced Portfolios
In addition to the Starter Portfolio, Fundrise also offers advanced portfolio options.
Supplemental Income Plan
If you’re looking for supplemental income, Fundrise has an investment plan that creates a consistent income stream.
The supplemental income plan features properties that are tailored for growth and innovation in order to increase the investment returns over time.
Currently, the annualized investments average around 10%, and consistent income is generated when the property management team collects rent or interest payments on the property.
Through high dividends and attractive total returns, this plan can build an attractive stream of steady income that you can use for yourself and your family.
The balanced plan builds wealth through diversification and has a nice balance of dividends and appreciation for a very high rate of return.
The plan boasts 98 active projects which creates a truly diverse real estate portfolio.
Currently, the annualized returns sit around 12%, with the portfolio balanced between debt and equity real estate assets.
If you don’t need access to your investment returns quickly, the balanced investment plan is an excellent option.
If you’re interested in maximizing the total return on your investment, the long-term growth plan is right for you.
With over 100 active projects, the long-term growth plan focuses heavily on equity-based real estate investments.
Most of the realized gains come at the end of the project when the asset is sold, but the longevity of the investment means a much higher return than on shorter investment periods.
Long-Term Investment Plan
The long-term investment plan has returns capping around 12.5% annually.
Featuring a low rate of dividends and high appreciation, the long-term growth plan has proven to provide consistent returns over a long investment period, typically 20 years or longer.
Fundrise Historical Performance
Since the foundation of Fundrise, the platform has invested over $1.4 billion in real estate projects, and that number is growing every day.
Taking a look back at the past four years of Fundrise, average annualized returns net of fees are as follows: 2014 saw a 12.25% return, 2015 saw a 12.42% return, 2016 saw an 8.67% return, and 2017 saw an 11.44% return.
These are very strong, consistent investment return numbers that every investor should be paying attention to.
Whether you’re new to real estate investing or you’re a seasoned pro, Fundrise offers solid returns no matter what your investment strategy is.
Another example of the excellent rates of return is the annualized dividend yields for the supplemental income plan, currently sitting at 7.53%.
What certainly helps this impressive investment performance is the incredible diversity of the real estate projects that Fundrise has been part of.
Fundrise real estate investment opportunities are found all over the United States, with some of the top metro areas including Morristown, NJ; Washington DC; Santa Monica, CA; Brooklyn, NY; and Miami, FL.
Who is Fundrise Good For?
While Fundrise is a truly revolutionary investment platform, it isn’t for everyone.
Good for Those with a Long-Term Vision
Fundrise is best for investors interested in long-term gains.
These investment opportunities are not liquid, so if you have to access your investments early, you may end up paying additional fees and penalties for accessing the funds prematurely.
Most of the investment plans are constructed to be held for a minimum of 5 years, but you’ll want to hold on to them for much longer in order to see real returns.
On each of the investment plan pages, Fundrise has a return estimate calculator so you can see how much you’ll get back on your investment by holding onto it longer.
Good for Those Who Want to Diversify Out of Stocks
Fundrise is also ideal for investors who want to add diversity to their portfolio outside of traditional investment options such as the stock market.
These private real estate investments are not tied to the stock market like some publicly traded investments are, meaning true portfolio diversity when you invest with Fundrise.
Good for Those Who Are OK with Some Risk
If you’re not willing to take risks with investments, Fundrise may not be the best option for you.
Since the idea of crowdfunding real estate investments is so new, it hasn’t been tested in a truly volatile real estate market, so it’s unknown how the investments will perform in a real estate downturn.
Real estate investing is complex, even with a simple platform like Fundrise.
Good for Those Who Enjoy Learning About New Investments
Fundrise is great for investors looking to learn as much as they can about investing while still receiving expert guidance along the way.
Each of the plans has a document outlining the investment offerings, fees, and other details about the plan and it is over 200 pages long.
With so much information available, you have to be willing to understand what you’re getting into with a real estate investment.
Fundrise also makes complex real estate investing easy by assessing current real estate holdings and placing them into different investment options, meaning you don’t have to choose individual properties on your own.
This platform is a great choice for a wide range of real estate investors.
The Fundrise Platform
The platform itself is incredibly easy to use and is very beginner-friendly.
Signing up to invest with Fundrise takes just a few minutes and the only information you need is your contact information, email, Social Security number, and funding account.
After signing up, there is a lengthy investor disclosure that you should read so that you understand the ins and outs of the platform as well as any associated investing fees so you’re not surprised later.
Once you set up your funding account, it takes just a few days for your initial investment to fund.
The user interface is simple to navigate and allows you to easily research your investment options prior to funding.
You can also easily track your investments, increase your investment amount, and upgrade or adjust your plan as your investment needs change.
We love the interface because it’s simple to use and doesn’t overwhelm you with investing information.
The Fundrise Mission
The Fundrise mission is to “reinvent the way people invest their money.”
With private real estate investment opportunities starting as low as $500, we can say that Fundrise is doing just that.
Fundrise was founded on the belief that everyone should have access to simpler, more stable investment opportunities, which brings private real estate investments to those who previously did not have access to it.
This platform truly revolutionizes how real estate is invested in and unlocks this lucrative opportunity for countless new investors.
In February 2011, Fundrise filed a patent for real estate crowdfunding, marking the first of its kind in the real estate investment landscape.
Since then, Fundrise has been at the forefront of real estate investment innovation, which allows Fundrise to offer a vast portfolio of real estate investment options to investors all around the world.
Fundrise has also allowed investors to become shareholders in the company through their new internet public offering (iPO), which allows Fundrise to maximize value for investors and shareholders over the long run.
Real estate is no longer an ‘elite investors’ game — with Fundrise, anyone can access private real estate investment portfolios.
Logan is a practicing CPA, Certified Student Loan Professional, and founder of Money Done Right, which he launched in July 2017. After spending nearly a decade in the corporate world helping big businesses save money, he launched his blog with the goal of helping everyday Americans earn, save, and invest more money. Learn more about Logan.