Fundrise Review: Real Estate Crowdfunding for as Low as $500
- What is Fundrise?
- How does Fundrise work?
- How much does Fundrise cost?
- Fundrise features
- Who is Fundrise best for?
- Who shouldn’t use Fundrise?
- Pros & cons
- Fundrise vs. competitors
- The bottom line
What is Fundrise?
How does Fundrise work?
Create an account
Fund your account
Disclosures and dividend reinvestment
How much does Fundrise cost?
- Starter Portfolio: The Starter Plan requires an investment of $500 - $1,000 and allocates your portfolio into between 5 - 10 properties.
- Core Portfolio: The Core Plan is for investors who plan to invest between $1,000 - $10,000 and it promises to allocate your portfolio across at least 40 properties.
- Advanced Portfolio: The Advanced Plan is for investors who have more than $10,000 to put towards their portfolio and it will spread your investment into over 80 properties.
- Management fee (O.85%): This fee is charged on an annual basis and goes toward covering the operating expenses of the company’s various real estate assets. It amounts to $8.50 for every $1,000 you have invested in your account.
- Servicing fee (0.15%): this is the fee you pay Fundrise in exchange for having them manage your portfolio. It’s also charged annually and amounts to $1.50 for every $1,000 that you invest.
Redemption request process
Who is Fundrise best for?
Who shouldn’t use Fundrise?
Pros & cons
- Opportunity for passive income. Fundrise offers an investment opportunity that is much less labor-intensive than traditional real estate investing. In particular, those who focus on a growth eREIT, or fund that invests in real estate assets that have the potential to appreciate over time can expect to see regular dividends.
- Low minimum investment. Investors can get started with fundrise for as little as $500. Plus, the investment platform offers the opportunity to automatically invest funds on a recurring basis, which makes it easy to grow your portfolio over time.
- Illiquidity. You must hold your investment with Fundrise for a minimum of five years. Otherwise, you could be subject to a penalty that’s worth up to 3% of your total share value.
- Dividends are non-qualified. Non-qualified dividends are taxed at the same rate as ordinary income, which is higher than some other investment vehicles.
Fundrise vs. competitors
|Crowdfunding Platform||Open to Non-Accredited Investors||Investment Minimum||Holding Period|
The bottom line
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