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Fundrise review

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Invest in real estate trusts to get the benefits of owning a property without the upfront costs or work.

Fundrise is an online real estate investment platform without the upfront and ongoing costs of property ownership. Asset management and advisory fees are clearly listed, but watch out for hidden costs.

0.85%

Annual fee

$500

Minimum deposit to open

8.7%

Average return (minimum)

12.4%

Average return (maximum)

Details

Intro or bonus offerIf you’re under a Starter account and you aren’t satisfied with your investment after 90 days, Fundrise will buy it back for the price you paid.
Minimum deposit to open$500
Available asset typesReal estate
Average return (minimum)8.7%
Average return (maximum)12.4%

How does Fundrise work?

Fundrise creates and gathers real estate trusts and portfolios comprised of residential and commercial properties, allowing users to invest in a diversified mix.

  1. Plan. Choose between one of three plans according to your initial investment:
      a. Starter: $500 minimum, five to 10 projects
      b. Core: $1,000 minimum, 40+ projects
      c. Advanced: $10,000 minimum, 80+ projects
  2. Invest. Choose an investment style to determine which products to invest in:
      a. Starter: Low-risk, low-return portfolio with a low minimum investment
      b. Supplemental income: A consistent income stream
      c. Balanced investing: High diversification to build wealth steadily
      d. Long-term growth: Focus on overall returns over the long term
  3. Earn. After funding your account, you’ll start earning returns through quarterly dividends and appreciation in the value of the shares in your investment.

Who is Fundrise best for?

Fundrise is suitable for a variety of investors:

  • New investors. You can start investing in real estate with as little as $500.
  • Experienced investors. Diversify your portfolio without substantial capital requirements.
  • Long-term investors. Real estate is an illiquid investment but it can provide long-term returns. Plus, Fundrise‘s retirement and IRA accounts can help with retirement planning.
  • Hands-off investors. You can invest indirectly so you won’t need to commit to a downment, maintenance costs or upkeep that real estate investments generally require.

What are the benefits of Fundrise?

You don’t need to be an accredited investor to use and take advantage of Fundrise’s perks:

  • Low minimums. Anyone can start investing with a minimum deposit of $500.
  • Diversification. Portfolios contain a diverse mix of commercial and residential properties that generate revenue differently.
  • Low fees. Fundrise charges advisory and management fees that total 1%, which is lower than most competitors.
  • 90-day satisfaction guarantee. If you’re under a Starter account and you aren’t satisfied with your investment after 90 days, Fundrise will buy it back for the price you paid.

What to watch out for

Any returns you make with Fundrise are taxed as ordinary income along with the following downfalls:

  • Illiquid. Real estate investments are illiquid and Fundrise REITs aren’t publicly traded, so there’s no guarantee that there will be buyers if you want to sell. Plus, you can only request to redeem shares every quarter, but a waiting period and fees may apply.
  • Lack of transparency. Fundrise isn’t specific about your invested projects and the risk tolerances, returns or projections for each investment style. You can find most of this information in the account disclosures during signup, but it isn’t mentioned elsewhere.
  • Hidden costs. Underlying REIT fees, fund development fees, asset origination costs, liquidation charges and early redemption fees aren’t mentioned in the fee schedule.

Compare with other real estate investing platforms

Name Product Minimum deposit to open Available asset types Annual fee
$1,000
Real estate
2%
stREITwise is an online real estate investing company that combines innovative technology and new federal regulations.
$1,000
Real estate
0.25%

1%
PeerStreet is a marketplace that provides access to high-quality real estate loan investments, but you have to be an accredited investor.
$500
Real estate
0.85%
Invest in commercial and residential REITs with as little as $500, but watch out for hidden costs.
$5,000
Real estate
1%
Invest directly in commercial real estate through this crowdfunding platform. ut you’ll pay variable fees depending on the investment type.

Compare up to 4 providers

Fundrise fees and pricing

Fundrise has a straightforward pricing model that’s less expensive than most competitors. Here’s what you’ll pay to use the service:

  • Investment Advisory fee: 0.15% annually
  • Asset Management fee: 0.85% annually

However, underlying REIT fees along with fund development, asset origination and liquidation charges may apply. Your investments may also be subject to early redemption fees depending on how long you’ve owned the shares before selling:

  • Less than 90 days: None
  • 91 days–3 years: 3% of value
  • 3–4 years: 2% of value
  • 4–5 years: 1% of value
  • 5 years+: None

Fundrise reviews and complaints

Fundrise was founded in 2010 in Washington, DC and holds about $660 million in equity and debt investments. It earned its reputation for being the first successful crowdfunding company in the real estate market and has won multiple awards from Forbes.

The company is accredited and holds an A+ rating based on the Better Business Bureau’s internal criteria. Fundrise holds 5-star ratings on both the BBB and Trustpilot with a small number of disputes that were resolved.

How do I sign up?

Sign up for Fundrise in 10 minutes:

  1. Visit the Fundrise website and click Get Started.
  2. Select your plan.
  3. Fill in your personal information, then click Continue.
  4. Confirm your country of citizenship and residence, then click Continue.
  5. Choose your account type, then click Continue.
  6. Fill in your contact information and Social Security number and click Continue.
  7. Choose your initial contribution and fund your account, then click Continue.
  8. Read and agree to all account disclosures and agreements, then click Continue.
  9. Review your information and account details, then click Submit.

Eligibility

  • At least 18 years old
  • US resident
  • US citizen
  • Valid Social Security number
  • Valid US address
  • $500 minimum deposit

Required information

  • First and last name
  • Phone number and email
  • Address
  • Social Security number
  • Bank account information

How do I contact Fundrise customer service?

There are two ways to get in touch with customer service:

  • Email: contact@Fundrise.com
  • Social media:
      • Twitter: @fundrise
      • Facebook: @fundrise

I’m ready to start using Fundrise. Now what?

Now that you’ve signed up, here’s how you can make the most out of the service:

  • Investor profile. Set up your investor profile and any other account information, such as beneficiaries, accreditation, etc.
  • Set up auto-invest. If you plan on investing regularly, set up auto-invest to make recurring contributions.
  • Refer friends. Depending on your account, Fundrise will waive your fees for a specific period of time for each qualified friend you refer.
  • Add two-factor authentication. Visit your account settings page to set up two-factor authentication.
  • Turn on notifications. Get notified when there are new projects, portfolios or other important details.
  • Resources. Take advantage of the Fundrise investor resources to learn about investing, real estate and more.
  • Download the app. Download the Fundrise iPhone app from the app store to manage your portfolio when you’re away from your desktop.

Bottom line

Fundrise is an online investing platform that allows users to invest in real estate without the need for down payments, maintenance costs and other barriers to entry. It has a low minimum investment of $500 and an annual management fee of 1%. But investments are extremely illiquid and early withdrawal fees may apply. Learn about other real estate investing platforms then compare your options if this one isn’t right for you.

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