Fundrise’s mission is “to help smart investors invest smarter.” You may invest in a wide range of high-quality real estate via the organization.
Fundrise claims to lower expenses and maximize your return on investment by using cutting-edge technology and a dedicated team of in-house professionals. Now everyone can invest in real estate as if they were an expert.
You must be at least 18 years old and a US citizen in order to invest with Fundrise. The good news is that you don’t have to be an accredited investor to participate.
Fundrise charges a 0.15 percent yearly investment advice fee for its services. So, let’s assume you put down a deposit of $10,000. Your annual advising fee would be $15.
Meanwhile, there will be a 0.85% annual asset management charge for the funds in basic portfolios. For a $10,000 investment, that will be $85 per year.
If you are looking for a quick fix, Fundrise is not it. At the very least, you should plan on investing with them for five years.
They don’t advocate using them if you aren’t prepared to put in the time and effort. One of the finest methods to invest your money is via real estate, but you must be patient.
There’s no getting around it. It is possible to cash out early if you invest and need to do so (though it is not guaranteed), but you will have to pay an additional cost.
What do previous Fundrise investors have to say? Alan B. said in a five-star rating on their Better Business Bureau page:
“I have been a client since 2018 and have enjoyed dividends each quarter like clockwork.
Fundrise does a wonderful job of providing consistent updates with various projects, and they are extremely selective about the investments that they pursue on your behalf. The iPhone App is also wonderful in its simplicity.”
However, not everyone is so happy. They received some criticism from a Redditor. “I withdrew after three years. My initial $6k grew to $7,384, so I was expecting at least $7k due to the 3% penalty. But they gave me only $4,461,” they said. “WTF Fundrise creeps?”
According to Google reviews, it was tough to withdraw your money from your account.
“Don’t waste your time with this,” said Nick Lopez. “Neat concept, but executed poorly. I went to ask for withdrawal multiple times and kept giving me a run around not to withdrawal.
I eventually got my investment returned to me after waiting a total of six months. It took customer service escalation multiple times to withdraw my money. Every rep kept trying to sweet talk me into leaving my money where it was at, like a car salesman.”
Another Google reviewer named Ken Perry said: “I have been investing with Fundrise for 18 months and have made returns far above my other investments (stock dividends). They are very good at keeping you informed about the deals you are invested in.”
Fundrise seems to be a handy, low-cost, low-risk solution for the little man to invest in real estate. This can work for you if you have the right mindset.
On their website, they make it clear that it is not for people trying to get rich quickly. So take note, everyone!
