Fundrise review

Build a real estate portfolio with as little as $10. But is it the right choice for you?

Fundrise is an online platform that lets you invest in private and commercial real estate without the upfront and ongoing costs of property ownership. It offers a low barrier to entry and competitive returns. And while its ongoing fees aren’t excessive, they’re something to consider.

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Details

Annual fee0.15%
Option trade fee$0
Asset typesReal estate
Account typesRetirement
Average return11.78%
Minimum deposit$10

What we think of Fundrise

Widely considered the first company to successfully crowdfund investment in real estate, Fundrise remains one of the most accessible and beginner-friendly real estate investing platforms on the market. It offers:

  • A very low barrier to entry.
  • An easy-to-use modern investment platform.
  • Some of the lowest ongoing fees among real estate investing platforms.

With only 1% in annual fees, Fundrise continues to provide one of the most affordable real estate investing apps on the market. Its user-friendly platform and investor resources make it great for beginners, while its intuitive mobile app will feel natural to the modern investor. And with a $10 minimum, beginners can enter the world of real estate investing without many obstacles.

Plus, with its revamped product offerings, investors have access to quarterly share repurchases. This greatly improves access to liquidity.

These features all makes Fundrise more attractive now than ever before, but there are a couple of areas we think it could further improve. Namely, investors could be hit with more fees than they were expecting on particular holdings. “We could potentially charge other fees, such as development or liquidation fees, for our work on a specific project,” Fundrise says. While these may come infrequently, it could catch investors off guard when they hit. Fundrise’s IRA custodian also charges a $125 annual management fee to Fundrise IRA investors with balances under $3,000.

Fundrise is one of the best real estate investing platforms out there, especially for beginners. It’s highly rated, reputable and cost-effective, and we think it’s a strong option for investors expanding into real estate investing.

How does Fundrise work?

Fundrise allows investors to invest in a variety of debt, equity, commercial, residential and other property types through its proprietary investment products, the eREIT, eFund and the Fundrise Flagship Real Estate Fund.

All of Fundrise’s eREITs are nontraded, meaning they don’t trade on a securities exchange.

Fundrise eREIT

The Fundrise eREIT is a type of online real estate investment trust that invests solely in commercial real estate assets, such as apartments, hotels, shopping centers and office buildings.

Each eREIT pursues a focused real estate investment strategy. One may target a specific geographical location and aim for balance between debt and equity investments, while another may focus on commercial properties across the nation that have the potential to create significant value for investors. A portfolio holding several eREITs, then, can provide significant diversification.

As of May 2022, Fundrise offers the following eREITs:

  • Balanced eREIT
  • Balanced eREIT II
  • Development eREIT
  • East Coast eREIT
  • Growth eREIT
  • Growth eREIT II
  • Growth eREIT III
  • Growth eREIT VI
  • Growth eREIT VII
  • Heartland eREIT
  • West Coast eREIT
  • Fund objective. Appreciation or Balanced
  • Geographic focus. Varies
  • Current dividend. 0.70% to 5.93%*
  • Eligible account levels. Core, Advanced and Premium

* Information accurate as of May 2022

Fundrise eFund

The Fundrise eFund is a portfolio of approximately 89 homes with assets under management of around $95 million. The fund seeks to acquire property to develop and rent single-family housing — attached and detached homes, townhomes and condominiums — targeted to first-time, move-up and active adult homebuyers in Los Angeles, California.

Because it invests in single-family homes, the eFund isn’t structured as a REIT like its other offerings. Instead, it’s structured as an LLC but taxed as a partnership. According to Fundrise, this limits company-level taxes for Fundrise, and taxes are instead imposed at the individual investor level, which allows them to distribute more cash to its shareholders. Distributions of cash by a partnership to a partner are generally not taxable.

  • Fund objective. Appreciation
  • Geographic focus. Los Angeles, California
  • Current dividend. 0%*
  • Eligible account levels. Advanced and Premium

* Information accurate as of May 2022

Fundrise Flagship Real Estate Fund

The Fundrise Flagship Real Estate Fund is an interval fund the company first launched in 2021, and it makes up the core of investors’ portfolios. An interval fund is a type of investment company that offers a limited degree of liquidity to investors by periodically offering to repurchase its shares from shareholders — in this case, quarterly. It also functions as a REIT, like many other Fundrise offerings.

The fund aims to generate income and seek long-term capital appreciation with low-to-moderate volatility and low correlation to the broader markets. It comprises private real estate and publicly traded real estate-related investments, including private commercial real estate such as office, retail, multifamily residential and industrial properties. It also invests in publicly-traded real estate debt and equity securities.

Investors in Starter and Basic accounts only have access to the Fundrise Flagship Real Estate Fund.

  • Fund objective. Balanced
  • Geographic focus. National
  • Current dividend. 0.75%*
  • Eligible account levels. Starter, Basic, Core, Advanced, Premium

* Information accurate as of May 2022

Pricing and fees

Fundrise offers five account levels: Starter, Basic, Core, Advanced and Premium.

The minimum amount required to get started with Fundrise is $10 for its Starter account, making it one of the most accessible real estate investing platforms on the market. To compare, similar REIT investment platforms YieldStreet and DiversyFund both require minimum investments of $500.

All accounts, regardless of level, are subject to a 0.15% annual advisory fee and a 0.85% annual asset management fee, for a total of 1% in annual fees. That’s $10 per year for every $1,000 invested.

Here’s more on the different Fundrise account levels:

Account levelMinimum initial investmentFeesOfferingsAccount features
Starter$10
  • Annual advisory fee: 0.15%
  • Annual asset management fee: Up to 0.85%
Fundrise Flagship Real Estate Fund
  • Dividend reinvestment
  • Auto-invest
  • Access to one Investor Goal type
Basic$1,000
  • Annual advisory fee: 0.15%
  • Annual asset management fee: Up to 0.85%
Fundrise Flagship Real Estate Fund
  • Starter account features
  • IRA investing
  • Access to Fundrise IPO
  • Investor Goals
Core$5,000
  • Annual advisory fee: 0.15%
  • Annual asset management fee: Up to 0.85%
  • Fundrise Flagship Real Estate Fund
  • Nonregistered products
  • Fundrise iPO
  • Basic account features
  • Customizable portfolio
  • Directly allocate to funds
Advanced$10,000
  • Annual advisory fee: 0.15%
  • Annual asset management fee: Up to 0.85%
  • Fundrise Flagship Real Estate Fund
  • Non-registered products
  • Fundrise iPO
  • Plus plans
Core account features
Premium$100,000
  • Annual advisory fee: 0.15%
  • Annual asset management fee: Up to 0.85%
  • Fundrise Flagship Real Estate Fund
  • Non-registered products
  • Fundrise iPO
  • Plus plans
  • Periodic accredited offerings
  • Core account features
  • Priority access to the Fundrise investor relations team

In addition, investors in either eREITs or the Fundrise eFund who sell their shares before five years will be subject to a 1% penalty on the total share value redeemed.

Pros and cons

Pros

Here’s how Fundrise sets itself apart from the competition:

  • Low barrier to entry. Start investing in real estate with as little as $10.
  • Competitive ongoing fees. Fundrise charges 1% in annual fees, which is on the low end compared to the competition.
  • Improved access to liquidity. Quarterly share repurchases give investors a chance to redeem their shares sooner than five years. However, distributions aren’t guaranteed.
  • Account options. IRA accounts are available for higher-tier account levels.
  • Open to all investors. Fundrise offers account levels for both accredited and nonaccredited investors.
  • Easy-to-use website and app. The Fundrise platform feels familiar and is easy to navigate.

Cons

Here’s where Fundrise falls short:

  • Additional costs. You may directly or indirectly take on fund development fees, asset origination costs, liquidation charges and early redemption fees.
  • $125 IRA fee. Investors with balances below $3,000 will be charged a $125 annual asset fee when investing through an IRA.

Alternatives to Fundrise

Fundrise is undoubtedly one of the leading platforms for real estate investing, especially for beginners, but it won’t be the right fit for everyone. Investors looking for alternatives to Fundrise should consider the following:

  • If you want a more liquid real estate investment with a lower buy-in: Consider investing in publicly-traded REITs. These REITs are regulated by the Securities and Exchange Commission (SEC) and are traded like stocks on the major stock exchanges. The minimum investment is just one share at the current going price and you can buy or sell these REITs as often as you like. But since public REITs trade on the major exchanges, they can be affected by the stock market’s volatility.
  • If you want the most control over decision making: Investing in physical real estate may be your best option. Though it requires a much larger upfront investment and may carry substantially more risk, you can also benefit from more tax breaks, more control and the potential for a higher return on your investment.

Alternatively, explore your options for real estate investing platforms by eligibility, asset type, annual fee and average return. Select the Go to site button for more information about a particular service.

1 - 4 of 4
Name Product Eligible investors Available asset types Annual fee Average return
Yieldstreet
Real estate, Other, Art
1%
7% to 15%
CrowdStreet
Accredited only
Real estate
0%
17%
Real estate investing platform that gives investors direct access to individual commercial real estate investment opportunities
RealtyMogul
All
Real estate
1%
Invest directly in commercial real estate through this crowdfunding platform. But you’ll pay variable fees depending on the investment type.
Arrived
All
Real estate
1%
5.21% to 6.42%
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Compare up to 4 providers

Fundrise reviews and complaints

Fundrise feedback across the major review sites is mostly positive, with most of its reviews coming from the major mobile app stores.

Customers give Fundrise a 4.3 out of 5-star rating on Google Play after more than 1,725 reviewers. Meanwhile, nearly 20,000 Apple App store users have rated Fundrise 4.8 out of 5 stars.

As of May 2022, Fundrise is also a Better Business Bureau (BBB) accredited business with an A+ rating. It holds a 3.68 out of 5-star rating based on more than 75 customer reviews. On Trustpilot, Fundrise maintains a TrustScore of 3.4 out of 5 based on over 315 reviews.

Satisfied customers praise the company’s beginner-friendly platform, attentive customer support and frequent investment updates. Customers also highlight the broad range of available investment properties and the company’s transparency regarding its funds. On the other hand, a common complaint among dissatisfied customers is illiquidity and poor fund performance.

It’s important to remember that real estate investing is meant to be a long-term investment. Even though you have access to quarterly share repurchases with Fundrise, holding your investments for several years gives you the best opportunity to see strong returns. This is why Fundrise recommends holding investments for at least five years — it’s a real estate thing, not a drawback to Fundrise.

How to sign up with Fundrise

The process to get up and running with a Fundrise account is quick, and you can complete your application either on the Fundrise website or app.

  1. Visit the Fundrise website or app and select Get Started.
  2. Enter your email and create a password.
  3. Complete the questionnaire to find the account level and investment plan that’s right for you. You need to provide personal information such as your name, age, address, date of birth and Social Security number.
  4. Provide information about your investment experience and goals for investing in real estate.
  5. Enter your initial contribution amount and link a bank account to provide a source of funds.
  6. Complete all necessary agreements and choose whether you want to participate in dividend reinvestment.
  7. Review your application and select Invest Now.

Once you’ve completed the account setup, it can take three to five business days for an investment order to settle. Upon settlement, you’ll begin participating in any potential returns.

Eligibility

  • At least 18 years old
  • US citizen or permanent resident currently residing in the US
  • Valid Social Security number
  • Valid US address
  • $10 minimum deposit

Required information

  • Name, phone number and address
  • Email
  • Social Security number
  • Bank account information

Three ways to contact Fundrise customer service

How to get in touch with customer service:

  1. Online contact form
  2. Email: support@Fundrise.com
  3. 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 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

After more than a decade on the market, Fundrise still leads the real estate investing app space. Its low barrier to entry and ongoing costs is hard to compete with, especially if you’re a beginner to real estate investing.

As with any investment, do your own due diligence to make sure it’s the right fit for you. Take some time to learn about other real estate investing platforms and compare the different ways to invest in real estate so you can make the most informed decision.

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