Fundrise Investment Plans: A Comprehensive Guide

Fundrise offers a range of investment plans to cater to different risk tolerance and investment goals.

The eREIT plan is a low-risk option that provides a steady income stream through regular dividend payments.

Investors can start with a minimum investment of $500 and earn an average annual return of 8-12%.

Fundrise's eFunds plan is a more aggressive option that allows investors to diversify their portfolio with a minimum investment of $1,000.

Investors can expect an average annual return of 12-15% with this plan.

Fundrise's eREIT and eFunds plans are designed to provide a steady income stream and long-term growth, making them suitable for investors seeking a balanced portfolio.

Fundrise offers three main investment strategies: Supplemental Income, Balanced Investing, and Long-Term Growth. These plans cater to different investor goals and risk tolerance.

The Supplemental Income Plan is designed to earn more income than appreciation, with a return profile that captures mostly income through dividends. This plan is allocated more heavily in debt than equity.

The Balanced Investing Plan offers maximum diversification, suitable for investors with a moderate to long-term investment horizon and those new to investing outside the stock market. Income-focused assets represent 40% to 60% of this plan, while growth-focused assets make up the remaining 40% to 60%.

Fundrise's Long-Term Growth Plan projects annual returns of 9.7% to 11.6%, with about half of the returns coming from income and the other half from appreciation. This plan is suitable for investors with a long-term investment horizon and a comfort level with potential variability year to year.

Investors can also opt for a Goal-Based Investing approach, which lets them choose between Supplemental Income, Balanced Investing, and Long-Term Growth based on their individual goals. The Supplemental Income plan focuses on earning additional passive income, while the Balanced Investing plan prioritizes diversification.

Fundrise offers three main investment strategies: Supplemental Income, Balanced Investing, and Long-Term Growth. Each strategy caters to different investor goals and risk tolerance.

Supplemental Income is designed for investors who want to earn additional passive income, with a moderate-term investment horizon, and may be planning for retirement shortly. This plan is allocated more heavily in debt than equity.

The Supplemental Income Plan will generally be expected to have larger regular dividend payments than other plans. Its potential lump sum payment at the end of each project will likely be smaller than other plans.

Balanced Investing is for investors who want maximum diversification, have a moderate to long-term investment horizon, and may be newer to investing outside the stock market. Income-focused assets represent 40% to 60% in this plan.

The Balanced Investing portfolio is invested in 52 projects, of which 57% are debt and 43% are equity. This diversification helps spread risk and increase potential returns.

Long-Term Growth is for those who want to maximize returns over the life of the investment, have a long-term investment horizon, and are comfortable with more potential variability year to year. Income-focused assets represent 20% to 30% in this plan.

The Long-Term Growth Plan projects annual returns of 9.7% to 11.6% and would put you in 12 active projects in a mixture of risk categories. This plan is ideal for investors who can ride out market fluctuations.

Value Add is a real estate investing strategy that involves acquiring properties that need improvement or leasing up. This process can result in increased property values.

The primary objective of Value Add is growth with net rental income, similar to a growth-income mutual fund in stocks.

High return variability is expected, but the total annualized return is estimated to be between 8% and 12% per year.

The Long-Term Growth Plan is a strategy that focuses on capturing returns from property appreciation over the long-term. This plan is weighted towards eREITs that allow investors to capture gains through potential increases in property values.

It's expected to have smaller dividend payment potential compared to other plans, but it holds the most potential to capture the greatest returns from appreciation at the end of each investment's lifetime. Fundrise's Long-Term Growth Plan is designed to provide investors with a low-risk, long-term investment option.

Fundrise manages over $3.3 billion in assets under management, with over 400,000 active users as of December 2023, demonstrating their success in managing investments. Their AUM has been growing rapidly, and investor signups have been promising.

Investing in the Long-Term Growth Plan can provide a more stable source of returns compared to other investment options. This is because the plan focuses on property appreciation, which tends to be less volatile than other investment markets.

Fundrise's five-year average platform portfolio has yielded a 10.79% return, outperforming the Vanguard Total Stock Market ETF and the Vanguard Real Estate ETF. This is a significant achievement, especially considering the plan's focus on property appreciation.

The Long-Term Growth Plan is a great option for investors who are looking for a low-risk, long-term investment opportunity. With Fundrise's track record of success, it's definitely worth considering.

Debt investing is a key strategy to consider, and Fundrise has a thoughtful approach to it. Fundrise only considers debt investments that offer strong positions to potentially earn income and safeguard against losses.

Debt investing is more senior on the capital stack, making it a safer option. However, it also has lower potential returns compared to other investment strategies.

Fundrise focuses on senior secured debt and mezzanine debt, which provide a strong position for investors. Investor capital is senior to the sponsor or borrower in senior debt investments held by the eREITs, ensuring payment priority.

Private credit is another area where Fundrise excels, offering high-yield loans and fixed-income investments. These debt-related instruments provide higher returns due to their shorter duration and private nature.

In today's rising rate environment, short-term debt provides higher rates of return than long-term securities. Fundrise's Private Credit portfolio invests in specific projects in the form of high-yield preferred equity, offering low fees and flexible minimum investments.

The Fixed Income option is designed to generate steady income through interest income generated by real estate loans and other types of financing. This income is generated immediately and throughout the term of the underlying investments.

You can choose from three Fundrise real estate investment strategies: being a landlord, a real estate flipper, or buying and holding for the long term. Buying and holding can be a great way to earn passive income through rental income and capital appreciation.

Inflation and positive demographics can help real estate appreciate over time, making it a smart investment choice. This strategy requires patience and time, but the returns can be substantial.

Fundrise offers a fix-and-flip strategy, which involves purchasing a property for capital improvement and then selling it for a profit. This strategy requires expertise in remodeling and identifying the right properties at the right time.

If you're short on time or don't want to deal with the hassle of hands-on real estate investing, Fundrise's eREITs offer a passive way to earn real estate returns. These investments are a great option for those who want to diversify their portfolio and earn higher returns.

Fundrise's real estate portfolio is over $7 billion, spread across hundreds of industrial properties, multifamily apartments, and single-family rental homes. The portfolio includes 294 active and 141 completed projects, which have produced significant investor returns.

Here are the four portfolio options offered by Fundrise:

Fundrise's fees are 0.85% in annual management fees and 0.15% in annual advisory fees, adding up to 1% total. This is lower than many other real estate investment options, making Fundrise a great choice for those looking to save on fees.

Fundrise offers a range of investment options to suit different goals and risk tolerance.

You can choose from three investment goals: Supplemental Income, Balanced Investing, and Long-Term Growth.

The Long-Term Growth Plan is designed for those with a long-term investment horizon, and it projects annual returns of 9.7% to 11.6%.

Fundrise also offers four different portfolio options for real estate investments, but the specifics of each are not detailed in the provided article sections.

The Balanced Plan is a mix between the Supplemental Income Plan and the Long-Term Growth Plan. You can also call it Growth & Income.

As an investor, you can consider the Long-Term Growth Plan to be relatively higher risk than the Supplemental Income Plan because it is counting more on capital appreciation for returns. This is why having a portfolio of properties with different target exit dates is important.

Fundrise's Balanced Plan is designed for investors who want maximum diversification, have a moderate to long-term investment horizon, and may be newer to investing outside the stock market. Income-focused assets represent 40% to 60%, and growth-focused assets are the remaining 40% to 60%.

With a Balanced Plan, you can expect a mix of income and growth, making it a great option for those who want to balance risk and return.

Fundrise has experienced significant growth in its assets under management, reaching $1 billion in Q1 2021.

By the end of 2021, their assets under management had more than doubled to over $2.1 billion.

Fundrise's investor base has also expanded rapidly, with over 210,000 investors on the platform at the end of 2021.

As of 2024, Fundrise has over $3.3 billion in assets under management and over 450,000 active investors.

Investors have earned over $226 million in net dividends through Fundrise, demonstrating the platform's potential for generating returns.

One of the key investment strategies to consider with Fundrise is debt investing. Debt investing is more senior on the capital stack, making it a safer option.

Debt investing has lower potential returns compared to other investment types. Fundrise only considers debt investments that offer strong positions to earn income and safeguard against losses.

Senior secured debt is a type of debt investment held by the eREITs, where investor capital is senior to the sponsor or borrower. This means Fundrise investors can receive payment priority.

Fundrise investment plans have several advantages that make them an attractive option for those looking to invest. You don't have to be an accredited investor to get started, making it more accessible to a wider range of people.

One of the benefits is the low investment management fees of up to 1% per year, which is significantly lower than what some other investment platforms charge. This means you get to keep more of your earnings.

Fundrise offers three different investment goals – Supplemental Income, Balanced Investing, and Long-term Growth – which are designed to meet your own investment goals and risk tolerance. This flexibility is great for those who want to tailor their investment strategy to their individual needs.

Here are some key benefits of Fundrise at a glance:

Overall, Fundrise has a solid track record of investment growth, ranging from 8.76% to 12.42% since 2014, which is a promising indicator of their success.

One of the biggest advantages of using Fundrise is that you don't have to be an accredited investor to get started.

You can begin investing with as little as $500, making it accessible to a wider range of people.

Low investment management fees of up to 1% per year can help you keep more of your hard-earned money.

Fundrise offers three different investment goals – Supplemental Income, Balanced Investing, and Long-term Growth – to help you meet your own investment goals and risk tolerance.

These investment options have a solid track record of growth, ranging from 8.76% to 12.42% since 2014.

You can even redeem your investment after just 90 days, which is extremely unusual in the crowdfunding industry.

Fundrise pays distributions quarterly, so you can expect to receive regular income from your investment.

And, if you're interested in diversifying your portfolio, Fundrise now offers investments in high-tech growth companies and private credit in addition to real estate.

Investing in real estate can be a great way to diversify your portfolio, but like any investment, it's not without its drawbacks. Funds can sell out quickly, leaving you without access to the investment.

Your shares in Fundrise's offerings can only be liquidated once per quarter, which may not be ideal if you need to access your money in a hurry. This is something to consider if you're planning to use this investment as an emergency fund.

Dividends from Fundrise are non-qualified, which means they'll be taxed at regular income tax rates. This can eat into your returns and reduce the overall effectiveness of your investment.

Fundrise's management fee is 0.85%.

This fee is relatively low compared to other investment options.

Management and advisory fees total 1%.

To get started with Fundrise, you'll need to have a minimum balance of $500.

Fundrise's pricing is unique compared to other companies that offer real estate ETFs.

You can be a landlord or a real estate flipper, but I personally like to buy and hold real estate for as long as possible to benefit from inflation and positive demographics.

The fix-and-flip strategy can be very profitable if you have the expertise to remodel at a reasonable cost while also identifying the right time in the real estate cycle.

Given the time and money required to achieve the best possible returns, investing in a Fundrise eREIT is a smart solution to earning passive real estate returns.

Fundrise offers a range of real estate investment strategies, including buying and holding, fix-and-flip, and investing in a Fundrise eREIT.

The Fundrise eREIT allows you to invest in a diversified portfolio of properties with minimal time and effort required.

Fundrise has a real estate portfolio greater than $7 billion spread across hundreds of industrial properties, multifamily apartments, and single-family rental homes.

The real estate portfolio includes 294 active and 141 completed projects, which have produced the following investor returns in recent years:

Fundrise's fees are the same for all four portfolios: 0.85% in annual management fees and 0.15% in annual advisory fees, neatly adding up to 1%.

Fundrise offers tax harvesting and portfolio rebalancing services to help you optimize your investment returns.

Fundrise offers a range of account options to suit different investment needs.

You can open a private investment account with as little as $10, making it accessible to those just starting out.

Private investment accounts are designed for regular, taxable investment accounts.

Fundrise also supports IRAs for traditional and Roth IRAs.

To open an IRA, you'll need a minimum initial investment of $1,000.

Annual account fees for IRAs are $125, but they're waived if you contribute at least $3,000 or have a balance of over $25,000.

IRAs are held with Millennium Trust Company, LLC, as the custodian of assets.

Fundrise has managed to grow its assets under management to over $3.3 billion, with over 400,000 active users as of December 2023.

Their five-year average platform portfolio has yielded a 10.79% return, outperforming the Vanguard Total Stock Market ETF by 2.87% and the Vanguard Real Estate ETF by 3.39%.

Fundrise's strong 5-year return has proven that their model of investing in private real estate through a direct, low-cost technology platform is a superior investment alternative to owning publicly traded stocks and bonds.

The returns on Fundrise are much less volatile than the stock market, making it a great way to diversify your investments and reduce risk.

During the March 2020 sell-off, REITs performed worse than the S&P 500, but Fundrise funds outperformed, showing their ability to withstand market fluctuations.

In 2021, Fundrise investors saw outstanding returns, with Income plans up 17.98% and Growth plans up 25.12%.

Their new Flagship Interval Fund was up 28.1% in its first year, and if it had been in operation for the entire year, it would have returned slightly over 40%.

Fundrise's performance has been impressive, especially considering the challenges faced by the real estate market in 2023, with surging mortgage rates and inflation peaking.

eREITs and eFunds are the foundation of real estate investing through Fundrise. They're available only on the Fundrise platform and offer a unique way to invest in real estate.

Fundrise has pioneered the eREIT product, and they currently have seven main eREITs to choose from. Some eREITs are not always available due to excess demand.

Each eREIT has its own focus, such as debt investments in commercial properties or investing in multifamily buildings that will appreciate over time. Here are the seven main eREITs:

You can also invest in eFunds, which are a little more adventurous. eFunds invest in the development and sale of residential real estate in major U.S. cities, like Los Angeles and Washington D.C, where housing supply is in a shortage.

Each eFund and eREIT is invested in a limited liability corporation that conducts the deals. This means that in the unlikely circumstance that Fundrise goes under, there is still an LLC there to manage your investments.