Fundrise News and Investment Opportunities

Fundrise has been making waves in the real estate investment scene, and for good reason. They've managed to simplify the process of investing in real estate, making it more accessible to the average person.

With a minimum investment requirement of just $1,000, Fundrise has opened up a world of opportunities for those looking to diversify their portfolios. This is a far cry from the traditional requirement of tens of thousands of dollars.

Their e-commerce platform allows you to invest in a variety of properties, from residential to commercial, and even infrastructure projects. This level of flexibility is a major draw for many investors.

Fundrise has also made a name for itself by offering a range of eREITs and eFunds, which provide a way to invest in specific asset classes or geographic regions. This allows investors to tailor their portfolios to their individual needs and risk tolerance.

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Fundrise offers a range of investment types, including Real Estate, Private Credit, and Venture Capital. These categories have undergone changes over the years, so it's essential to stay informed about the current offerings.

Fundrise's investment types are categorized into three main groups: Real Estate, Private Credit, and Venture Capital. Within these categories, you'll find subcategories such as Flagship Funds, Strategy Funds, Premium Funds, Regional Funds, and Vintage Funds.

Here's a breakdown of Fundrise's investment types:

Fundrise's investment performance is also worth noting. With an average annual return of 13.3% in just over five years, it's essential to compare these returns with other investments to determine if they align with your goals.

Fundrise has reorganized its investment options over the years, but the foundational investments remain the eREITs.

These eREITs are non-traded, meaning you can't buy them on a stock exchange, but they are regulated by the Securities and Exchange Commission (SEC), similar to public stocks.

Fundrise has created a streamlined process to submit filings to the SEC under the JOBS Act regulations to make their investments available to non-accredited investors.

Fundrise breaks down its investment types into three high-level categories: Real Estate, Private Credit, and Venture Capital.

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Real Estate investments typically involve equity in multifamily apartments, industrial properties, or single-family rentals.

Private Credit investments usually include real estate loans, fixed-income products, or other structured investments that aim to deliver higher yields with lower overall risk.

Venture Capital investments involve pre-IPO private companies and diversified early-to-late-stage startup investing.

Fundrise's investment types include:

Fundrise has managed to grow its assets under management to over $3.3 billion as of 2023, with over 400,000 active investors and 100 employees.

The firm'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.

Fundrise's returns have been impressive, with a historical average return of 7% to 13%. This is especially notable during the 2022 bear market and 2018 downturn, where Fundrise outperformed the stock market and public real estate market.

Here's a comparison of Fundrise's returns to other investments:

Keep in mind that real estate is currently in a freeze/downturn, likely until 2025, but this can be a good opportunity to buy lower.

You can sign up for an account directly on the Fundrise website, and it's free to open an account. Fundrise also offers mobile access, making it easy to stay on top of your investments.

The fee structure is straightforward, with a 0.15% advisory fee for every $1,000 invested, which translates to $1.50 over a 12-month period. Fundrise's real estate funds have an annual 0.85% flat management fee, or $8.50/year for every $1,000 invested.

Investors in the Fundrise Innovation Fund can expect to pay an annual 1.85% flat management fee, equivalent to $18.50/year for every $1,000 invested.

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You can sign up for an account directly on the Fundrise website, and it's free to open an account. Fundrise puts its product on its website, making it easy to find information and understand what's going on.

Fundrise offers mobile access, so you can manage your account on the go. This is a big advantage over some private REITs, where information can be hard to find and buried in the fine print.

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To get started, you'll go through a questionnaire to determine the best strategy for you. Fundrise asks questions like what's your primary reason for investing, if you're an accredited investor, how much you typically invest in a year, and what best describes your investing style.

Your selection doesn't limit what you can invest in; it's only used to create an initial portfolio. Fundrise has streamlined the onboarding process, making it easy for anyone to invest.

Here are the types of questions you can expect to answer when setting up your account:

You can choose both the amount you want to invest and the specific plan that will work best for you.

Fundrise charges a 0.15% advisory fee, which means over a 12-month period, investors will pay a $1.50 advisory fee for every $1,000 they have invested with Fundrise.

The advisory fee is relatively low, but it's essential to understand how it affects your investment over time.

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Fundrise's real estate funds have an annual 0.85% flat management fee, which is equivalent to $8.50/year for every $1,000 invested.

This management fee is applied to the Supplemental Income, Balanced Investing, and Long-Term Growth Plans.

The Fundrise Innovation Fund has a significantly higher annual management fee of 1.85%, which translates to $18.50/year for every $1,000 invested.

This higher fee is associated with the Venture Capital Plan.

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Fundrise limits how much you can invest in its IPO based on your total cost basis on the platform, capping it at 50% of your total cost basis or $1,000, whichever is greater.

You'll receive an email from Fundrise showing how much you're eligible to invest in the latest IPO, which may not be a significant amount in the grand scheme of things.

Investing in Fundrise carries some risks, including the possibility of losing money, especially if you're an aggressive investor. Fundrise was born out of the financial crisis and real estate bubble a decade ago, and another similar crash could be detrimental to these investments.

However, many of these investments provide housing to people, and those people will always need a place to live, making them more stable in the long term.

Here are some key risks to consider:

Fundrise is a platform that manages your investments for you, which is great for most people, but not ideal for active investors who want to perform due diligence on individual properties. EquityMultiple and CrowdStreet are better suited for more sophisticated accredited investors.

Liquidity remains a downside, despite improvements over the years. Ideally, you'd be able to come and go as you please, but that wouldn't be conducive to long-term gains.

If you may need the money in a year or two, Fundrise is not the right platform for you. The penalties on early withdrawals have declined to just 1%, but the real benefits of real estate investing come from long-term holds.

Income from Fundrise dividends is non-qualified, meaning they're taxed as ordinary income. This means you'll incur taxes if you hold them in a non-retirement account. Use a self-directed IRA to avoid dividend taxation.

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Fundrise is constantly innovating, which can sometimes lead to changes you're not expecting or want. They've updated their user interface several times, and while it's getting closer to a permanent version, it's still possible for changes to become frustrating.

All investments carry risks, especially those with higher returns. Fundrise was born out of the financial crisis and real estate bubble a decade ago, and another similar crash would be detrimental to these investments.

Here are the current liquidity rules for Fundrise (as of 2024):

Remember, you'll earn interest on your investment during that time, so you can withdraw your money and still be well ahead. However, the redemption penalties help to encourage long-term investing, which is necessary to benefit from real estate investing strategies.

The IPO investment limits are designed to keep you aligned with your risk tolerance and capital. Fundrise limits your investment based on your total cost basis on the platform.

The maximum investment in the Fundrise IPO is the greater of 50% of your total cost basis or $1,000 at the time of investment. This means you won't be able to invest more than you can afford to lose.

Your current investments will remain unchanged, so you don't have to worry about affecting your existing portfolio.

Fundrise offers a premium membership service called Fundrise Pro that allows investors to actively manage and tailor their portfolios with precision. This service empowers investors to concentrate their investments in specific funds and create custom investment plans that align with their individual preferences and financial goals.

For a monthly fee of $10 or an annual fee of $99, investors can access proprietary data and curated content from leading financial publications to enhance their decision-making process. This level of control and insight into one's investment strategy is particularly appealing for those who wish to play a more hands-on role in their financial growth.

However, this comes with considerations, as the service demands a more engaged and proactive investment approach, which may not suit everyone's style or availability.

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Fundrise offers a wide variety of non-accredited investor funds, with one of the lowest minimums at $500. This makes it an attractive option for aggressive investors who are looking for higher projected returns.

Fundrise has a relatively high projected return of 8-16%, which is attractive to aggressive investors. However, this comes with a trade-off - the company makes it difficult to know and fully understand what an investor is actually investing in before purchase.

The company's website is easy to use, and the on-boarding process is the fastest in the industry. However, conservative investors may find the underwriting standards unsuitable, and sophisticated investors may not like the lack of transparency.

Here's a comparison of Fundrise's returns with other real estate investments:

As you can see, Fundrise outperformed the iShares Global REIT ETF in some years, but underperformed in others.

Fundrise has a wide variety of non-accredited investor funds, with one of the lowest minimums at $500. This makes it an attractive option for those who want to get started with real estate investing with a relatively small amount of money.

One of the benefits of Fundrise is that it has full bankruptcy protection, which can provide peace of mind for investors. However, this protection is only available for non-accredited investors, and accredited investors may not find it suitable.

Fundrise also has a relatively easy website to use, and its on-boarding process is the fastest in the industry. But, sophisticated investors may find it difficult to understand what they're actually investing in before making a purchase.

The fees associated with Fundrise are average, but it doesn't charge a promote, which is a nice plus for investors. Aggressive investors may love Fundrise's higher than normal projected returns, but conservative investors may find the underwriting standards unsuitable.

Here are some specific funds offered by Fundrise:

It's worth noting that Fundrise no longer allows investors to pick and choose which funds they want to invest in, and they can't see which investments they're purchasing until after they've made the purchase.

Investing in real estate through Fundrise can be a great option, but it's essential to compare it with other investments to ensure you're making the best decision for your money.

Fundrise returns can vary depending on the investment goals and what you compare them with. For instance, my five-year average return on my Fundrise investment was 13.3% in just over five years, but it's hard to compare it with other real estate investments or stocks and crypto.

Investing in the S&P 500 index can be a good option, as it has an average annual return of 12.96% over the past three years. However, this is almost 5% per year more than my Fundrise investment paid.

Here's a comparison of Fundrise returns with the S&P 500 index over the past three years:

Investing in the Vanguard Real Estate ETF (VNQ) can also be a good option, but it's essential to compare it with Fundrise. In 2018, my Fundrise return was 7.4%, while VNQ had a return of -5.9%. That's a more than 13% difference between the two investments.

Here's a comparison of Fundrise returns with VNQ over the past few years:

It's essential to consider these comparisons when deciding whether to invest in Fundrise or other options.

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Bitcoin's average annual return for 2018, 2019, and 2020 is an unbelievable 105%.

The cryptocurrency's performance can be quite volatile, as seen in 2022 when it plummeted to -81.02%, only to rebound in 2023 to 156%.

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Investing in Fundrise is a legitimate option for both accredited and non-accredited investors. Fundrise markets to investors under regulation A+, allowing non-accredited investors to participate.

Non-accredited investors have some restrictions, though - they can't invest more than 10% of their income and/or net worth, excluding their house. This means they need to be mindful of their financial situation before investing with Fundrise.

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Fundrise Pro offers a range of benefits for investors who want more control over their portfolios. It's designed for investors who want an active role in managing their Fundrise portfolios.

With Pro, you can create custom investment plans and concentrate your investments in specific funds. This level of customization is perfect for those who want to tailor their portfolio allocations according to their personal preferences.

One of the exclusive tools available to Pro members is Basis™, a proprietary market and portfolio data platform. This gives you access to in-depth data and market research for informed decision-making.

Pro members also get access to curated articles from The Wall Street Journal, among other sources. This is a great resource for staying up-to-date on market trends and news.

A Fundrise Pro membership costs $10/month or $99/year, which is a relatively low cost considering the level of control and intelligence it provides.

Here are some of the key benefits of Fundrise Pro:

Investing in Fundrise is available to both accredited and unaccredited investors under regulation A+.

Non-accredited investors have restrictions on their investments, they can't invest more than 10% of their income and/or net worth (excluding their house).

Fundrise has a definite place in my portfolio and is 100% worth it for me, as it gives me exposure to the commercial real estate market and regular updates on what's going on in my portfolio.

The returns can be potentially healthy, with historical performance showing 8% – 16% return, although with high mortgage rates, the real estate market is in a downdraft currently.

Investing as little as $1,000 – $5,000 in Fundrise's pre-vetted deals can be an efficient way to invest in real estate, with the option to ride the geographic/strategic decisions the eREIT manager chooses.

A big part of building wealth is being involved in various investments so that you can know what's going on with different asset classes, which is exactly what Fundrise does for me outside my IRA.

You can compare Fundrise returns with other investments, such as stocks and crypto, and it all depends on your investment goals.

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Here are some key points to consider:

Fundrise is the leading online real estate investment crowdfunding platform, founded in 2012 and completing the first crowdfunded real estate purchase in the H Street Corridor of Washington, D.C. that same year.

The company has since grown from around 100,000 clients to more than 2 million, and has become one of the top-tier companies in the real estate investing industry, along with other significant platforms like Arrived Homes, EquityMultiple, Realty Mogul, and CrowdStreet.

Fundrise allows investors to diversify and benefit from real estate investments, with a minimum investment requirement of $1,000 – $5,000, and offers eREITs (real estate investment trusts) that focus on Sunbelt single-family and multi-family properties, with the potential to earn 8% – 16% returns based on historical performance.

Fundrise markets to investors under regulation A+, making it available to both accredited and non-accredited investors, with non-accredited investors limited to investing no more than 10% of their income and/or net worth (excluding their house).

Crowdfunding is a way to raise funds for a project or investment by collecting small amounts of money from a large number of people, typically through an online platform. In 2012, Fundrise completed the first crowdfunded real estate purchase in Washington, D.C., raising $325,000 from 175 investors.

The JOBS Act of 2012 set the foundation for equity crowdfunding, which allows for equity exchange, similar to crowdfunding on sites like Kickstarter. Since the passing of the JOBS Act, at least 100 real estate investing sites have emerged, with the top-tier companies doing most of the volume.

Fundrise is a pioneer in real estate crowdfunding, with over 2 million clients since 2017. I'm one of them, currently investing on three different platforms, including Fundrise, Arrived, and EquityMultiple.

Real estate investing through crowdfunding has matured in the past decade, making it as safe and reliable as traditional real estate investments. You can start investing with as little as $1,000 – $5,000 in pre-vetted deals on Fundrise's platform.

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Fundrise focuses on commercial real estate investments, pooling them into eREITs (eReal Estate Investment Trusts) that are open to all investors. Each eREIT has its own geographic and strategic focus, and you can ride the decisions made by the eREIT manager for potentially healthy returns of 8% – 16% based on historical performance.

Crowdsourced investing is a game-changer for real estate investing. Fundrise is a leading online real estate investment crowdfunding platform that allows you to invest in commercial real estate with as little as $1,000.

Since 2012, Fundrise has been innovating the way people invest in real estate, making it possible for anyone to invest in properties online. They completed the first crowdfunded real estate purchase in 2012, raising $325,000 from 175 investors.

Real estate crowdsourcing is a way to invest in real estate around the country without having to physically visit each location. Fundrise allows you to invest as little as $1,000 to $5,000 in various pre-vetted deals on their platform.

Fundrise pools their commercial real estate investments into an electronic Real Estate Investment Trust (eREIT), which is a non-traded security regulated by the Securities and Exchange Commission (SEC). This allows you to invest in a diversified portfolio of properties with a potential return of 8% to 16%.

You can choose from various eREITs offered by Fundrise, each with its own geographic and strategic focus. For example, you can invest in the West, Midland, or East Coast eREIT, or focus on growth or income.

If you're interested in discussing Fundrise deals with other investors, you can join their private investor club, which is free but requires a nondisclosure agreement. This club is restricted to investors with no business connections to sponsors or platforms.

Here are some key facts about Fundrise's eREITs:

By investing in Fundrise's eREITs, you can diversify your portfolio and gain access to properties that might be out of reach otherwise.

Fundrise offers a range of investment types, including Real Estate, Private Credit, and Venture Capital, each with subcategories like Flagship Funds, Strategy Funds, and Premium Funds.

Investors can choose from various plans, such as the Basic diversified portfolio plan, which requires a minimum investment of $1,000, and the Core plan, which requires a minimum investment of $5,000.

Fundrise Pro is a premium membership service that offers advanced features, including proprietary data and curated content, for $10 per month or $99 per year.

Investors can expect returns ranging from 8% to 16% based on historical performance, although high mortgage rates have caused the real estate market to decline.

Here's a breakdown of the investment types and their characteristics:

Investors can also view their portfolio returns, including dividends, capital appreciation, and advisory fees, in the Fundrise dashboard.

Fundrise offers a unique way to invest in real estate, allowing you to invest as little as $1,000 – $5,000 in various pre-vetted deals on their platform.

Historically, Fundrise's eREITs have provided potentially healthy 8% – 16% returns, although high mortgage rates have put the real estate market in a downdraft currently.

You can choose from various eREITs, such as West, Midland, East Coast, Growth, and Income, each with its own geographic and strategic focus.

Low interest rates are likely to stay for the rest of our working lifetimes, making it best to invest in income-producing assets like real estate.

Fundrise's eREITs are non-traded securities regulated by the SEC, similar to public stocks, but with different filing requirements.

Here are some benefits of investing in Fundrise's eREITs:

Investing in real estate crowdsourcing through Fundrise can provide a higher income stream and attract more demand, boosting the principal value of your investment.

In fact, Red State 10%+ cap rates compared to <4% cap rates in Blue cities are too hard to ignore, making it a great opportunity to diversify your portfolio.

Fundrise's diversified private real estate investments can provide a more stable and potentially higher return compared to other investment options.

You can also consider investing in a Fundrise IPO to align yourself with the company and potentially benefit from its growth.

However, it's essential to remember that investing in real estate crowdsourcing is not risk-free, and it's crucial to do your own research and consult with a financial advisor before making any investment decisions.

I've been investing with Fundrise for over five years and I've seen some pretty impressive returns - my average annual return is 13.3%.

Investing in real estate crowdfunding is a great option for those who want to diversify their portfolio without having to physically manage properties. Fundrise allows investors to put in as little as $1,000 to $5,000.

Fundrise focuses on commercial real estate investments, specifically Sunbelt single-family and multi-family properties. This approach has historically provided returns of 8% to 16%.

However, it's essential to compare Fundrise returns with other investments to get a well-rounded picture. Fundrise's five-year average return is 6.9% net of expenses, which is a decent return, especially considering the current market conditions.

Real estate exchange-traded funds (ETFs) have provided impressive returns, especially during the pandemic. However, it's uncertain whether we'll see returns like that again.

Ultimately, the best investment option depends on your personal goals and what you're comparing those returns with.

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Fundrise offers a minimum investment of $1,000 to get started with their eREITs, which is a relatively low barrier to entry.

Fundrise has a minimum account balance of $500 to invest in their Starter Portfolio, making it accessible to a wide range of investors.

Fundrise is a real estate investing platform, not a traditional investment company, and their eREITs are not registered with the SEC.

Fundrise's eREITs are designed to provide regular income and long-term growth through real estate investments, with a focus on diversification and risk management.

Fundrise has a team of experienced professionals managing their investments, including a CEO with a background in real estate and finance.

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