Fundrise Investment Reviews | Is It Worth Investing?

You might be wary of investing in stocks and options.

You have heard thousands of horror stories about investors losing their entire assets in a single poor trade.

But still, you want to try investing and good news! There are still several choices that you can go into.

One example is real estate investing, which is arguably one of the safest and most profitable investment out there.

Read how you can overcome the huge barrier of investing in real estate in our Fundrise Investment Reviews!

Fundrise Investment Reviews: Rundown

Fundrise is a real estate company that relies on crowdfunding.

It allows normal investors access to private and commercial properties.

That as an average investor cannot normally get into because of barriers like high property value and lack of capital.

It was a established by entrepreneurs Ben and Daniel Miller in 2012.

With a core of “making real estate investing accessible for the masses”.

Fundrise Investment Reviews - Fundrise
Fundrise

Mechanics of Fundrise Investment

Upon signing up, Fundrise will ask you a series of questions and based on your answer, will suggest an account level.

You can accept that plan or go for a different account level.

Whichever plan you choose, your investment is used across a diversified portfolio of real estate projects.

Fundrise will be the one to acquire, identify and manage the investment for you based on your choices.

Fundrise Investment Reviews - Fundrise Investment Account Creation
Fundrise Investment Account Selection

Two methods of returns:

  •  Dividends – revenue that are generated actively through a reliable cash flow.
  •  Investment appreciation – increase of a property’s overall value over time.

Fundrise Investment Key Features

These are the list of the features of Fundrise namely:

  •  Self-Directed IRA  – you can invest in pre-tax dollars that are employed for retirement planning.
  •  Goal-Based Investing – you can invest in real estate based upon your goals rather than types of investment.
  •  eREIT – you can invest in non-traded REIT dealing in numerous commercial real estates. It cuts out middleman commission.
  •  eFund – you can invest in a private fund that deals with multiple commercial real estate properties that focus on growth rather than income.
  • Fundrise iPO – Fundrise company shares sold through an “internet Public Offering” (IPO).

Fundrise Investment Differentiator

Fundrise removes the huge barrier in investing in real estate as it has a low investment requirement.

An average investor can enter the world of real estate investing without having a huge capital.

And Fundrise consistently search and test new properties to add to their roster of assets which ensures diversification.

And lastly, the company clearly states the fees they charge for handling your account.

What People Say About Fundrise Investment

People have different takes on Fundrise.

Here are a few positive example over Better Business Bureau:

MLE

09/22/2020

Happy Fundrise investor for over two years. It is important to fully read and know what you are agreeing to. Fundrise is very communicative, responds to all questions and concerns and constantly keeps you up to date regarding your investments. Fundrise has a right to temporarily freeze withdrawals during unprecedented times and turbulence to protect all investors. There are short term investments, long term investments and risky investments. It’s up to you to distinguish them so you can make informed decisions in case of emergencies. After all, Fundrise did not cause the pandemic, nor did they play any role in the ignored warnings that have caused over 200,000 US citizens to lose their lives. Even early withdrawals from bank CDs will cause customers a penalty. Wishing everyone the best!

John W

09/14/2020

Fundrise is a good tool for long-term investment strategies. I’m a core investor. I feel that their accountability is high, if a little over-marketed and their app/website falls just short of my expectations. In the case of attempting to withdraw monies during the corona pandemic, Fundrise is protecting ALL of their inventors by enforcing their contracted right to deny a withdrawal request. Refer to the 1929-1939 Great Depression for an understanding of what would happen to this company if they agreed to fund every withdrawal request during this time. Fundrise is very communicative, providing frequent updates about new and completed projects. Their support team responds readily and usually provide quality responses. Fundrise did/does advertise 12% average gains and I’ve seen 8% so far. Though I’m only in my second year, so I shouldn’t expect those gains until year five. Their website is easy enough to navigate though there are some pitfalls and areas where the interface is misleading.

And examples of negative reviews as well:

Chase H

07/28/2020

Saying transparency with Fundrise is poor is an understatement. The information Fundrise gives you about your investments is downright dishonest. I have invested with Fundrise for several years. I was frequently updated with successful investment return emails stating >8% ROI on specific projects while my fund consistently grew at far below these rates. My ROI was well under 5%, and that’s just if you take Fundrise’s word for the value of your investment. You can’t actually get out the value they say your account is worth without being penalized most of the time meaning your ROI will very likely be <2% or even negative despite Fundrise hailing all of the “success” of your investments… Do yourself a favor and invest elsewhere.

07/02/2020

I requested full liquidation of my account BEFORE they sent out email regarding COVID measures. I have not received all of my money and they only transferred increments of $250, $235, and $2 but sent me an email before then stating I would receive a little over $800 back. I would like the rest of my money back. Never doing business again with them ever.

Fundrise Investment Pricing

Opening an account in Fundrise requires a relatively low investment of $500 which is their Starter Account.

But if you opt for the Core Account Level or the Advanced or Premium Account.

It allows you to choose three plans.

  1. Supplemental Income – income strategy oriented, which basically focuses on dividends.
  2. Balanced Investing– growth and income combined, which focuses on the underlying asset appreciation.
  3. Long-Term Growth – for bigger returns in the long run by investing in undervalued assets, improving the asset and selling therefore a bigger profit

Fundrise Investment Fees

Even if it says it cuts the costs of a middleman, Fundrise still has a fee for maintaining your portfolio.

Fundrise charges 0.15% in annual advisory fees, to be exact for its unaccredited investors.

The fee is used for various purposes like:

  • Project-level performance reporting
  • Automated dividend distribution system
  • Composite tax management
  • Customer support and investor relations
  • Asset re-balancing and fund administration

How Fundrise Liquidation Work?

Fundrise is a form of long-term investment, as with all REIT.

Prematurely liquidating the investment is allowable but the return will depend of the length of time.

  •  less than 6 months – no redemption
  •  6+ months to 2 years – 95%
  • 2 to 3 years – 96%
  • 3+ years – 97%

Fundrise Pricing

The minimum pricing of Fundrise is $500 which is their Starter Level, but you can choose the other three account levels namely:

Core = $1,000 minimum investment

Advanced = $10,000 minimum investment

Premium = $100,000 minimum investment

Fundrise Investment Reviews - Fundrise Starter Portfolio
Fundrise Starter Portfolio
Fundrise Investment Reviews -  Fundrise Core Level
Fundrise Core Level
Fundrise Investment Reviews - Fundrise Advanced Level
Fundrise Investment Reviews - Fundrise Premium Level
Fundrise Premium Level

Pros and Cons

These are the list of the Pros and Cons of Fundrise.

PROS

  • Low minimum investment of $500
  • It has low fees for managing your portfolio
  • It has diversification in its roster of properties
  • Quarterly dividends and redemption

CONS

  • It is not publicly traded and Fundrise chooses which asset to invest into which means limited liquidity.
  • Dividends are taxed as ordinary income.
  • Investments take a long time to appreciate

Final Thoughts: Is Fundrise Worth Investing?

In our Fundrise Investments Reviews we went through its pros and cons why you should invest in it.

Real Estate Investment Trust are classified as a long-term investment.

And with that in mind, if you go with Fundrise Investment, you are in it for the long run.

Yes there is a quarterly distribution but it is not as liquid as say selling or buying stocks or options.

As it a pioneer in real estate crowdfunding, Fundrise has enabled thousands of small time investors to enter the real estate market.

Which previously is difficult because it requires a huge capital to begin with.

With its low fees and low minimum investment, it leveled out the playing field for the real estate market.

We have further researched the real-estate firm in our Is Fundrise A Scam article and Fundrise Supplemental Income Review. Go check it out!

Real Estate Investment Alternatives

But if you want a bigger return in a lesser period of time, why not try options trading?

We have the perfect guide on how to start your option trading goals!

Optionsplay Review - Join Successful Tradings To Take your Trading To The NExt Level

Fundrise Invesment

$500 Starter Plan
9.2

Data Accuracy

9.0/10

Ease of Use

8.0/10

Education Training

9.8/10

Features

9.8/10

Pros

  • Low minimum investment of $500
  • It has low fees for managing your portfolio
  • It has diversification in its roster of properties
  • Quarterly dividends and redemption

Cons

  • It is not publicly traded and Fundrise chooses which asset to invest into which means limited liquidity.
  • Dividends are taxed as an ordinary income.

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