Fundrise Review: Is It Legit?

If you buy through links on our site, we may earn an affiliate commission. This keeps it 100% reader-supported and free of advertisements or sponsorships. Thanks for your support!

When it comes to making money, there are a million and one options to have supplemental income mixed with ordinary income to increase your net worth. You can get a job, start your own business, or invest in various opportunities. No matter your avenue as a real estate investor, your goal is to have a diversified portfolio.

How Fundrise Operates

If you're looking for an investment option that's minimum investment, low-risk and high reward, Fundrise may be the answer.

The interesting thing about Fundrise is that it lets investors buy into private commercial and residential properties by pooling their assets through an investment platform. Since the eREIT is sold directly to investors cutting out middle-men, they can have fees lower than 90% of the competition. is Fundrise legit? You'll see in this Fundrise review. Keep reading to find out!

What is Fundrise?

Fundrise is a real estate investment platform that enables minimum investment with average, everyday investors to get involved in the real estate market through private real estate in supplemental income. When there is a market downturn, Fundrise has an investment team providing investment options with only minimum investment from the investor.

Launched in 2014, Fundrise has quickly become one of the most popular platforms for non-accredited investors even during a market downturn. So what exactly is real estate investing, and why has it outperformed stocks over the last 30 years for investment options?

Real estate investing refers to the purchase, ownership, and operation of real property for the purpose of generating income through investment options. This Fundrise review supports the idea, unlike stocks, which are often subject to volatile market conditions, a real estate investment portfolio tends to be a more stable investment.

And while there are always risks associated with any type of investing, over the long term, real estate investments have proven to be a sound investment that has outperformed stocks. In this Fundrise review, we'll look at minimum investment commercial real estate combined with family homes.

Why Fundrise?

There are several reasons why the real estate investment portfolio has performed so well over the last 30 years with accredited investors. One is that the population continues to grow, which results in increased demand for housing. Another is that as inflation increases, the value of real estate primary residence typically rises as well.

Fundrise provides phone support and delivers a good investment with premium portfolio. As interest rates rise, more people are drawn to invest in real estate as a way to preserve their wealth.

Investing in commercial real estate and others can be a great way to generate income and build long-term wealth. And with this Fundrise review, you can see it's now easier than ever for average investors to get started. Fundrise was founded by Ben Miller.

The company's mission is to make real estate investing accessible to everyone and a solid, good investment. The platform is open to anyone who is a U.S. resident 18 years or older, and the minimum investment is only $10 for the Starter Portfolio.

Within this Fundrise review we found that Fundrise has more than 150,000 accredited investors from all 50 states. The company has raised more than $50 million from venture capitalists, including DCM Ventures, Silver Lake Kraftwerk, and Capital One Growth Ventures. Fundrise has been featured in The Wall Street Journal, Washington Post, TechCrunch, CNBC, and Bloomberg.

How Does Fundrise Work?

Fundrise is an app that allows you to invest in commercial real estate assets and family real estate. The money you invest gives Fundrise the capital necessary to acquire, build, and manage properties. These include things like:

apartment complexes
single-family homes
office buildings
industrial properties
hotels
shopping centers

Fundrise earns returns in a variety of ways, such as:

Buying undervalued commercial real estate and family real estate then renovating the property to raise the rents or property value
Collecting rental income on stabilized properties
Holding mortgages and collecting interest
Acquiring properties that have potential to appreciate in value.

The profits are then distributed from the minimum investment plus to the shareholders. If you're looking for a short-term real estate project, this isn't the app for you. Fundrise is best for long-term investors who want a simple way to get into real estate.

Fundrise E-Reit Explained

Fundrise is a real estate investment trusts company that offers a unique investment vehicle called an eREIT. An eREIT is a public, non-listed real estate investment trust that is regulated by the SEC. The biggest advantage of investing in an eREIT is that they can offer higher returns than traditional REITs.

However, the downside is that you cannot sell your minimum investment whenever you want since they are not listed on the open stock market. Fundrise's website is the only place where you can purchase an interest in their eREIT. Fundrise offers investors the potential to earn great returns on their investment while still having the security of knowing that their money is invested in a stable asset.

How to Make Money With Fundrise

Fundrise a commercial real estate and family real estate investment platform allows people to get paid with a minimum investment strategy of the following:

Via eREITs (Real estate investment trusts)

Via eFunds

The company makes money through quarterly dividends and appreciation on real estate properties in share value when a property is sold. Fundrise allows investors to choose how they want to receive their dividends - through direct deposit or automatic reinvestment back into Fundrise.

While a few years might sound like a long time, in reality, real estate projects have shown to be an overall good investment. Fundrise makes it easy for anyone to start investing in rental properties and get started earning dividends and appreciation in share value.

If you can hold your investment real estate projects for at least 5 years, Fundrise is a great way to make money passively. CLICK HERE to see their current promotions.

Returns and Performance

Fundrise is an investing platform that offers an alternative to the stock market for investors. Fundrise is different from the stock market in a number of ways, but one of the most notable ways is the time horizon for investors.

Fundrise allows investors to have an investment portfolio in a variety of real estate projects with a long-term view, which can provide greater returns than the stock market. Historically, investors who have a longer time horizon have been more successful than those with a shorter time horizon.

This is because a longer time horizon gives an investor more time to weather the ups and downs of the market and take advantage of opportunities that may arise. Fundrise provides an opportunity for investors to take advantage of a longer time horizon and potentially earn greater returns on their investment.

Can You Make Money With Fundrise?

Fundrise averages 60.4% cumulative net return for investors over a 5 year investment period of long term growth. From 2017 to 2022, the average return for Fundrise investments were 10.63%, 8.81%, 9.16%, 7.31%, and 22.99%. This assumes you reinvest dividends back into Fundrise. As always, past results don't guarantee future success. And 2021 was definitely an outlier so don't expect every year to be like this.

You can make money with Fundrise through rental property income, which you'll get in quarterly dividends. The other way to earn returns is when the properties appreciate over time and then are sold. Fundrise does charge a 1% management fee. We do like that they've had consistent positive returns every year.

Fees

Fundrise charges advisory fees, an all-in 1% management fee, which is pretty competitive when compared to other real estate investment platforms. However, some of Fundrise's potential costs are not as transparent. For example, Fundrise charges a 0.85% annual asset management fee, which goes towards the operating costs of the projects.

In addition, Fundrise also charges a 0.15% annual advisory fee, which can be waived in certain circumstances. While the all-in 1% management fee is pretty competitive, it is important to be aware of the potential additional costs that may be incurred when investing with Fundrise.

Hidden Other Fees

Origination fee:

A 0-2% acquisition fee when Fundrise buys a new asset.

Early redemption fee:

1% penalty when you redeem shares within five years of investing. (No fee in the first 90 days.)

Self-directed IRA fees:

An annual asset fee of $125 to Millennium Trust Company

How To Withdraw Money

You can't sell your shares and withdraw the funds anytime you want. Fundrise's investments are meant to be long term, typically five years or more. However, Fundrise does have a redemption plan to sell your shares four times a year (at the end of every quarter).

There is a 0% penalty for Fundrise's Flagship Fund and Income Fund, and a 1% penalty if redeeming within 5 years for Fundrise's eREIT and eFund. When you redeem, the shares you've had for the longest will be liquidated first. This redemption program gives investors some flexibility if they want to withdraw money (with some limitations).

Shortcut:

With Fundrise, after five years of long term growth, you can redeem your shares without paying any fees. If you don't mind tying your money up for a while, open a starter portfolio for only $10.

Fundrise Pros and Cons

Fundrise Pros

No income or accreditation requirements
Just $10 minimum investment to start
90-day money-back promise
Portfolio of properties across the U.S.
Quarterly dividend distributions
Completely passive investing
Available as IRA

Fundrise Cons

Illiquid investments (typically five years or more)
Unknown future performance and returns
Tax liability—regular income tax on earnings
Lack of other fees transparency

How To Get Started

Visit the Website

www.fundrise.com

Pick a Fundrise Portfolio (Starter or Basic Portfolio)

STARTER FUNDRISE PORTFOLIO $10+

BASIC FUNDRISE PORTFOLIO $1000+

The process takes 10 minutes and requires some personal information like your name, address, phone number and Social Security number.Fund Your Account

Earn Money

Investors are paid dividends on a quarterly basis and at the end of investments when the properties get sold through real estate deals.

Is Fundrise Safe?

Fundrise has bank-level security, which means that your personal information is safe. Fundrise portfolios are made up of qualified offerings with balanced investing, regulated by the Securities and Exchange Commission (SEC). They must follow strict reporting requirements. So you get the same sense of transparency as required for public companies. Fundrise also offers a mobile app, which makes it easy to invest on the go.