Fundrise Review: Real Estate Crowdfunding for as Low as $500
- What is Fundrise?
- Pros & cons
- 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
Are You Ready for Retirement? Answer These 20 Questions
Take this quiz from SmartAsset and calculate your time to retirement. Their free tool helps match the right financial advisor for your retirement goals in just 5 minutes. Every advisor is carefully screened before being added to SmartAsset's network. Learn more and get paired with local financial advisors in your area. Get started now.
Take Your Investing To The Next Level
|Name||Motley Fool||Stash Invest||Wealthfront|
|Description||Motley Fool's stock picks have averaged returns of 588% (vs 119% for the S&P). Get your 50% discount for new members.||Start investing with as little as $1 and purchase fractional shares of stock. Get $5 from Stash to make your first investment.||Get a personalized portfolio of diversified, low-cost stocks on autopilot — in minutes. It’s the time-tested way to build long-term wealth.|