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Fundrise is a crowdfunding platform for private real estate investing. Unlike traditional real estate investments, which require thousands of dollars in capital, Fundrise users can invest with as little as $10.
Instead of buying a single piece of property by yourself, you and other investors buy shares in a fund that owns or finances multiple apartment buildings, office buildings, single-family homes, hotels, retail space and other properties.
When those properties make money through rental income, mortgage payments or appreciation in value, the profits flow to the fund’s shareholders (including you).
Fundrise prides itself on making real estate more accessible to everyday investors. There’s no income or net worth requirements to get started.
In contrast, many other real estate investment platforms require you to be an accredited investor — defined in US securities law as having a net worth of more than $1 million and an annual income of at least $200,000 for individuals.
Still, Fundrise has drawbacks.
Your money is rather illiquid, meaning you can’t cash out your investments as easily as you can with other asset classes like stocks, ETFs and mutual funds.
Fundrise takes a long-term growth approach to investing, so expect to hold these real estate funds for several years. Otherwise you’ll pay a 1% penalty, and may need to wait at least two months to access the money.
While investors can create a starter portfolio for as little as $10, Fundrise charges several fees, including a combined 1% annual advisory fee and asset management fee.
So is Fundrise a good way to invest in real estate? In this Fundrise review, we break down everything you need to know, including features, investment choices, cost and fees.