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Fundrise

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Fundrise Reviews 2021: Good Option For Real Estate Investing?

This review will go over Fundrise to see if it really is the best Real Estate course out there.

You’ll learn whether Real Estate is the right online business for you.

And at the end, you’ll find answers to some of the most frequently asked questions regarding Fundrise and Real Estate in general.

But most importantly, you’ll see the exact system many others have used to build their own internet marketing business to over $40,000 a month in mostly passive income. 

This system made them swear off Real Estate for good, because it uses some of the same skills but in a much more powerful and profitable way!

Table of Contents

What Is Fundrise?

Fundrise is a real estate “crowdfunding” platform that allows average non-accredited investors to have access to markets and projects that they would not be able to invest in on their own.

Fundrise, in contrast to other investment businesses that focus on institutional and accredited investors, is dedicated to the interests of small non-accredited investors, and thus offers them the opportunity to invest in real estate using pooled funds.

Consider Fundrise to be a private real estate investment trust (REIT) without all of the fees. If you’re unfamiliar with a REIT, it’s a type of investment vehicle in which you invest in a basket of properties. Consider it similar to an ETF for real estate. It holds a variety of investments within the REIT. As a REIT owner, you receive a small share of the income generated by these properties.

Despite the fact that Fundrise is not a publicly-traded company, you can liquidate your investment up to four times per year with a 30-day notice. This is not the same as a publicly-traded REIT, which you may sell right away.

Fundrise Review: Company Background - Who Is Ben Miller?

Investing in real estate is one of the most secure and profitable investment options available to people. Unfortunately, a lot of investors are limited in their ability to purchase real estate because of sky-high property values.

Fundrise recognized this issue and devised a solution. Using new technology, they created a solution that fits the needs of investors with limited capital. Those with little funds for investing in real estate now have the ability to join a collective pool to generate high returns.

Ben Miller, the company’s CEO and co-founder had spent years working in the real estate industry before launching Fundrise.

He saw numerous inefficiencies in the existing real estate investment model, which was heavily reliant on Wall Street partners. He believed that online technology had advanced to the point where individual investors could invest in real estate without relying on stockbrokers as middlemen.

In 2012, the platform was created and launched. Over the last seven years, it has grown to over 140,000 investors. The firm manages assets worth more than $1.2 billion. Real estate investors do not need to be accredited investors, and you can invest as little as $500. It is popular among millennials and young investors who want complete control over their money.

Fundrise provides a few different investment options. The most popular is their eREIT (electronic Real Estate Investment Trust) option. The eFund is the other option. Aside from these, Fundrise provides a wide range of investment options, from starter portfolios to advanced investing options.

Investing With Fundrise: What Are The Minimum Requirements To Invest?

To get started in investing, all you need is a $10 initial investment. This will invest you in the Starter Portfolio of the service. 

The Starter Portfolio

This is the account that is created by default when you sign up to join. 

You only need to invest $10 in the service’s Starter Portfolio, which is a diversified mix of eREITS and eFunds with underlying real estate projects located across the United States. 

You will receive returns in the form of quarterly dividends as well as an increase in the value of your shares.

If you decide to invest, you will be investing in a 50/50 mix of income eREIT and growth eREIT. You should plan to retain both investments for at least five years, with the option to liquidate once each quarter.

Core Portfolio

With a $1,000 investment, you will be upgraded to the Core Portfolio. There are three plans that an investor can choose from here:

Income Supplement

This portfolio option is used to provide the investor with a consistent source of supplemental income. This is accomplished through property value growth and rental income. It provides a steady income, but the long-term gain is minimal.

Balanced Investing

This option creates a portfolio that is highly diversified and consists of both income-generating and value-appreciating properties. Although the periodic payments are low, investors can accumulate a significant amount of value in their properties over time.

Long-Term Growth

This portfolio consists of properties that have shown the greatest appreciation in value over time, with annual returns as high as 15% per year possible. This portfolio’s investors do not receive a regular income.

If you’re not sure which one is best for you, Fundrise has a three-step questionnaire that can help you decide how to invest.

Investing With Fundrise: What Are The Product Options?

eFund

Fundrise offers e-funds if you’re looking for a slightly different investment. These are real estate investments that are limited to residential property. These investments are single-family homes that are not publicly traded. Unlike the eREITs, eFunds are structured as partnerships and do not pay dividends. This means that when tax time comes around, you’ll get a 1065 K-1 form, which is different from the tax form you’d get if you invested in eREITs.

You’ll still have direct access to the portfolio with the eFund, which saves money. You’ll also be diversified across different areas and types of homes, ensuring a relatively stable investment.

If you choose an eFund over an eReit, you are essentially investing in a real estate project. A liquidity event cannot be expected until the project is completed. You can, for example, invest in a Washington, DC fund or a Los Angeles fund.

Portfolios

Fundrise has recently begun to offer portfolios, including a starter portfolio with a $10 minimum investment fee. There are also plans for passive income, plans for more balanced investing, and plans for long-term growth. On Fundrise’s website, you can see each portfolio’s projected growth over the next several years.

These managed plans are slightly more costly. However, don’t be too concerned about balancing your risk and reward.

Fundrise is open to any American citizen over the age of 18. To invest with Fundrise, you must have a Social Security Number and a minimum investment of $10.

Self-Directed IRA

You can now use pre-tax dollars to invest in Fundrise for retirement planning. (It should be noted that self-directed IRAs can only be used for eREIT offerings.)

Goal-Based Investing

You can now invest in real estate based on your goals rather than the type of investment or location, thanks to their new platform.

As many as seven eREIT funds and dozens of properties are included in Fundrise’s goals-based portfolio. You can choose between a balanced portfolio, a passive income portfolio, and an aggressive growth portfolio. Your eREIT mix will be determined by your objectives.

You may get more information about each eREIT, including details about their assets, leveraging power, and projections for future growth and revenue right from the Fundrise website. 

Fundrise iPO

Fundrise is preparing to sell shares in the company itself through an “internet Public Offering” (iPO). You must have at least $1,000 in your Fundrise account and have chosen one of the advanced plans to be eligible for this investment. This offering allows you to invest up to 25% of your total account balance.

Fundrise Reviews: Is It Safe To Invest With Fundrise?

Many people are hesitant to invest in things that are not traded on the stock exchange. They are concerned about whether it is a scam. To begin, Fundrise files with the SEC (Securities and Exchange Commission) and is audited annually.

And those audits of financial statements are disclosed on the form 1-K, which you can access right now by searching for it. In addition, Fundrise offers a 90-day satisfaction guarantee.

So, if you invest and decide within 90 days that you no longer want to be invested in this, they will refund your money. There are some limitations to this, so you should look into that guarantee for yourself.

Fundrise is concerned about cyber security because of its online financial investment operations. To protect their investors, the platform employs bank-level security. The website employs 256-bit AES symmetric encryption, which is similar to that used by the majority of large commercial banks.

Fund transfers on the platform are safe and secure and are not vulnerable to hacking attempts. Transport Layer Security (TLS) protects every investor’s connection to the website, whether they connect via desktop or mobile device.

Client data is encrypted and distributed across multiple data centers. AWS is used by the company to host its data centers.

The platform has been in operation for nearly 7 years and has a stellar reputation for transparency and security. Throughout the company’s history, there have been no reported security breaches or data leaks from its records.

Fundrise Reviews: Can You Make Money With Fundrise?

Yes, You can! 

You can make money with Fundrise by rental income and receiving quarterly dividends. Another approach to earn returns is to sell properties that have appreciated in value over time.

Fundrise does charge a 1% management fee. The starting point is a $10 investment.

In 2019, the average return on Fundrise investments was 9.47 %. This assumes you reinvest your dividends in Fundrise. As is always the case, past performance does not guarantee future success. It is critical to never invest money that you cannot afford to lose.

But…  

It is unknown how this type of investment will do in a financial crisis such as the 2008 market fall.

And…

There’s a lot that comes along with Real Estate that many people struggle with

Now, don’t get the wrong idea…  

It’s not impossible to make money with Real Estate, but if you’re gonna put in the amount of grueling work to do this business (which, trust us, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.   

The program that helped skyrocket many online businesses to over $40,000+ per month is so simple that making money really does become second nature. 

What Are The Fees To Be Expected In Fundrise?

Fundrise charges an all-in 1% management fee, which is broken down as follows:

Annual asset management fee of 0.85% (that goes towards operating costs of the projects)

Annual advisory fee of 0.15 % (can be waived in certain circumstances)

This is a very reasonable price. Some of Fundrise’s potential costs, however, are not as transparent.

Hidden Fees

  1. Origination Fee:  When Fundrise purchases a new asset, it pays a 0-2% acquisition fee.
  2. Early Redemption or Exit Fee:  Redeeming shares within five years of purchase results in a 1-3% loss. (There is no charge for the first 90 days.)
  3. Self-directed IRA Fees:  A $125 asset fee to Millennium Trust every year

Fundrise Review: Fundrise Pros and Con

Fundrise Pros

  • There are no income or accreditation requirements for investors.
  • You only need $10 to get started as an investor 
  • Money back guarantee for 90 days.
  • A portfolio of properties located throughout the United States.
  • Dividend payments are made quarterly to investors.
  • Investing that is completely passive.
  • Available as an IRA
  • High ROI: From 2014 to 2017, Fundrise boasted average annualized returns ranging from 8.76 % to 12.42 %. This is a fantastic performance, so it’s tempting to capitalize on it.

Fundrise Cons

  • Limited liquidity: Fundrise’s investments have a significant liquidity problem. The majority of its funds are invested in eREITs and eFunds. These are always long-term investments that cannot be sold on the open market. Unlike other investment firms, Fundrise cannot withdraw money from a signed deal. As a result, they have a lengthy process for reclaiming funds.
  • Future performance and returns are unknown.
  • Tax liability—regular income tax on earnings.
  • Transparency in fees is lacking.

Fundrise Reviews: Is It A Good Investment?

It is possible. Fundrise is a specialized real estate investment that, for some, may be the type of investment you’re looking for in your portfolio. It invests in a real estate basket, which has higher risks than other types of investments. However, the rewards can be greater as well.

Fundrise Reviews: Is It Good To Invest In Commercial Real Estate?

While commercial real estate investing entails some risk, the average return has exceeded the stock market over the last three decades. Historically, this form of investing has been restricted to individuals with sufficient capital to acquire and manage properties. However, real estate crowdfunding platforms such as Fundrise have made commercial real estate accessible to the everyday investor.

Is Your Money Trapped in Fundrise?

While Fundrise is geared toward long-term investors (5 years or more), its Flagship Fund allows for penalty-free redemptions every quarter.

Does Fundrise Pay Dividends?

Fundrise has traditionally paid quarterly dividends to its investors. However, dividends, like all investments, are subject to the performance of the underlying assets.

Fundrise Reviews: Is It A Scam?

No! Fundrise is a legitimate company. It is an investment company that complies with SEC regulations.

It is entirely possible to build a profitable, successful Real Estate business… But there are better ways to build a business other than with Real Estate. 

Our #1 pick proves this. Because, unlike Fundrise, it actually provides real proof of real success from real people as recently as a few days ago.

But, when it comes to building a business, you have plenty of options.

And even if you’re dead set on becoming a Real Estate Investor, you’ve got way better options than Fundrise. 

Keep in mind, Real Estate is a great business model, but you could end up leaving way too much money on the table.

Fundrise Reviews: The Bottom Line

Investing in real estate typically necessitates substantial amounts of money. Fundrise enables everyone to enter the world of real estate investing at a small cost and with little risk. It is also a simple option to invest in because it is fully passive.

However, because this is a long-term investment, you should think about it carefully. Can you commit to a five-year investment? It’s important to remember that you may not be able to access it prior to that time.

Diversifying into real estate with Fundrise may be worthwhile if you’re ready to lock up your money and start as a small investor.

What Is Our #1 Recommendation For Making Money Online In 2021?

Where this Fundrise falls short is in scalability. Because in order to make a good amount of money with real estate, you have to own several different houses. And who has that kind of capital to start? But what if you went local?

With Local Lead Generation, you will be getting service requests from multiple sites at every minute of the day from people who are willing to pay a lot of money for what you can provide them.

I was watching a YouTube video once where the host made a comment that it isn’t about making a lot of money from one website… it’s about making a little bit of money from lots of different websites.

So, think of it this way….

What if you could have streams of investment income where you operated 10 rental units that you could charge anywhere from $750-1,000 per month?

That’s $7,500-10,000 per month in passive income!

What If You Invested Into 100 Rental Units?

But instead of spending $Millions to build houses or apartment complexes… you spend a couple hundred dollars to build websites.

You then get those websites ranked in the search engines for specific home-based services that customers are searching for.

Next, you offer your lead generation system to local business owners who are looking for customers and are willing to pay you for their information.

And Then…

BAM!

You’ve just created a Digital Real Estate Investment Empire that is potentially earning you 4-5 figures in PASSIVE INCOME on a monthly basis without spending a single dime on ads.

With conventional digital real estate, you have to compete with thousands, if not millions of others who are selling the SAME product to the SAME customers.

Once the training program is completed you will also have access to a Facebook group much better than the real estate investment group in our opinion. This group is much more active.

Unlike real estate investment, where you’re profiting maybe $250 per property, you could be getting 5-10X THAT.

With Local Lead Generation, the competition is virtually nothing and your profit margins are 85-90%.

Now, you probably have tons of question… so check out how to create Digital Real Estate assets and start building your Digital Real Estate Empire.

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