Fundrise is a unique online crowdfunding real-estate investment platform. The idea of the website is to bring the world of profitable real-estate investments to everyone while cutting out the institutional investment firms that take a cut of the profit for acting as the middle man. Essentially, by cutting out the middle man, Fundrise is allowing you to invest with the people behind the projects. Today, Fundrise has over 80,000 members invested in $3 billion worth of real estate.
To get started, you go to Fundrise.com. If you scroll down their home page, they have a lot of great information available right on that main page. Click the get started tab alongside the log in tab in order to get yourself started with an account. They have to available plans for you to choose from. One plan is the advanced plan, which starts at $1,000 and allows you to pick how you want your real estate portfolio to be balanced. The other plan is a starter plan, which starts at $500 and comes with a free upgrade to the advanced plan if you have $1,000 in your account.
In my opinion, Fundrise’s technology is very user friendly and gives users a different feel to investing. The “fun” in Fundrise is appropriate since it does exactly that – it makes investing fun. It also gives users a chance to get into real estate without having to put in tens of thousands of dollars into it. Not to mention that investors won’t have to wake up in the middle of the night to fix toilets for their tenants. Fundrise will be taking care of all of that for a reasonable fee, which is only a fourth of what the average REIT would take from you. Fundrise will tell you both how much you have made since the last time you logged in and how much you have earned to date. The overall historical investment returns have been nice with annual returns between 7-12% – not bad for just parking your money and collecting a return.
Though the returns are great, your account is not as liquid as a publicly traded REIT. Publicly traded REITs can be sold day to day while a private REIT, like Fundrise, can only be traded once there is a buyer or once Fundrise is willing to buy you out. Also, if you are expecting quick returns, Fundrise may not be for you since their dividends are paid out quarterly. This investment will also require a minimum of $500 to start and a minimum of $100 for deposits moving forward.
- Easy, user-friendly interface
- Good historical returns (7%-12%)
- New kind of way to invest in real estate
- Not as liquid as other assets
- Does require a minimum of $500 to start
Overall, I think Fundrise is a good place to put your money. A private REIT cutting out the middle man is a great idea. Plus, the interface is user friendly and has a great modern feel to it. Although it is not as liquid, it is still better than other fixed asset investments with lower returns. It’s a good way to start of investing in real estate, since it only required a minimum of $500 – which, in a grand scheme of all things real estate, is not a lot of money. So, if you would like to get started with Fundrise, click here. If you would like to learn more about REITs, check out this “The Intelligent REIT Investor” by Stephanie Krewson-Kelly and R. Brad Thomas.
If you’d like to see another review check out our last review on Coinbase here
Also, check back on Friday for a great inspirational story about a man who went from nothing to billionaire!