If you are looking into real estate investing, Fundrise may be the company for you. This company allows new and veteran investors to take advantage of the real estate market, making it easy to invest online. Having an option to invest from the comfort of your smartphone or computer is something that Fundrise wanted to offer their investors when they make the leap and take on the real estate market without requiring all the necessary capital that usually comes with a traditional real estate investment.
The company employs a team working behind the scenes directly with real estate developers and manages clients’ portfolios who are investing with them. Presently, they have invested over $4 billion in the real estate investing market, with dividends and returns.
Where Fundrise Began
Beginning in 2010, Fundrise was one of the few platforms that shifted the investment market to an online platform for crowdfunding in real estate. Because the headquarters is located in Washington, D.C., the company can access many federal resources. With just a few hundred dollars, investors could expand their investment interests into a few different places, diversifying their portfolios. By 2015, Fundrise was ready to introduce a new investment strategy, the eREIT (electronic real estate investment trust). With this option, commercial investing broadens for the average investor and works similarly to mutual fund investments. Since that time, Fundrise has continued to generate a large group of investors and maximize its reach.
Who Are They Compared to Others?
In comparison to other investment companies, Fundrise has changed the game for average investors, giving them an option to take advantage of different ways to invest and choose properties like commercial real estate that they otherwise may not have had access to these investment options. These investments are meant for long-term purposes, so the funds invested in Fundrise will be tied up for at least 5 years. Compared to others in their competitive market, they are easy to use and the most convenient for investing. There are options available for investors to consider, and the low minimum amount of $10 (one of the lowest minimums) is enough to attract investors to the company. Fundrise follows a unique low-fee model, which is why fees are only at 1%, which is significantly lower than their competitors.
What Does Fundrise Offer?
Fundrise offers investors an option to invest, even if you are not accredited. This investment option is passive and meant to generate supplemental income behind the scenes. Quickly going in and making an account with your investment is easy and affordable with Fundrise. There are five different accounts that an investor can open their account with, ranging from Starter, basic, core, advanced, and premium.
For portfolios that include private real estate investments, allocating anywhere between 20% to 30% can increase returns over time, which is ideal compared to a traditional portfolio of stocks and bonds. For those novices to investing, the $10 minimum is more than affordable and allows the risk taken not to be as high.
Products and Services
When you open an account with Fundrise, you gain access to a more diversified portfolio. With these accounts, you can create an account based on how much you are investing in the account and what level your plan will be. They come in:
- Starter ($10+)
- Basic ($1000+)
- Core ($5,000+)
- Advanced ($10,000+)
- Premium ($100,000+)
All accounts come with dividend reinvestment, auto-invest, and registered products. Basic through Premium account offers the flexibility to create and manage your assets and investment goals while allowing account holders to invest via an IRA account. There are additional options of customizing strategy for your portfolio from the Core to Premium accounts and directly having funds allocated to certain investments. At the Premium account level, there is priority access available for account holders, and accredited offerings are available periodically. The Core through Premium accounts has the flexibility to also offer non-registered products in their account plan, which are the eREITs or private fund investments.
For new account holders, there are some fee waivers available once you have been invited and completed the registration of your account with Fundrise. The days for an advisory fee waiver are 90 days for the starter portfolio and basic accounts. For the Core account, you have 180 days of the fee waived. The Advanced account offers a 270-day fee waiver, and the Premium account is 365 days.
At any point after you have opened your initial account, you can upgrade with a larger investment, opening more options and resources available for your investment goals. If you are looking to maximize your real estate investments, you should consider upgrading your account to increase your access.
In addition to offering various account options, Fundrise also offers various information on topics designed to educate investors on the best ways to maintain their investments, process their tax documents, and stay aware of any changes that may affect real estate investing.
How to Get Started with Fundrise
To sign up for an account with Fundrise, simply visit their website and click on Get Started. After answering a few questions, the Fundrise team will open an account and suggest the real investing strategy that may suit you best.
