• Features: 5/5
  • Ease of Signup: 5/5
  • Investment Minimum: 5/5
  • Return Potential: 4/5
  • Fees: 4/5
  • Customer Service: 3/5

2022's Fundrise Reviews: Features, Fees & More

Fact-checked
  • Features: 5/5
  • Ease of Signup: 5/5
  • Investment Minimum: 5/5
  • Return Potential: 4/5
  • Fees: 4/5
  • Customer Service: 3/5

Best For

Investors seeking long-term investments

STRENGTHS

  • Easy-to-use
  • Low minimums
  • Open to all kinds of investors

WEAKNESSES

  • Annual fees of 1% a year
  • The platform might limit withdrawals during market downturns

If you’re looking for a real estate investment opportunity, Fundrise might be right for you! You just need to check our Fundrise reviews and see what it has to offer to its investors.

In this article, we’ll discuss the main features of Fundrise, the minimum investment required, as well as the potential return on investment. We’ll also take a look at the fees associated with using this platform, and compare Fundrise to some of its main competitors.

So, let’s get started!

What Is Fundrise?

Fundrise is an online real estate investment platform with two distinct goals: to democratize and simplify real estate investing. Although there are several websites where investors can find real estate, Fundrise is one of the few that accepts non-accredited investors. And while most real estate crowdfunding platforms demand significant money commitments from investors, Fundrise stands out from the competition by allowing investor donations as little as $10, in contrast to the $25,000 to $50,000 investment minimums on many rival platforms.

Additionally, the platform offers some of the best real estate deals out there. Fundrise investors can create cash flow and long-term growth through a varied portfolio of commercial real estate, single-family rentals, multifamily properties, and ground-up developments with a sizable portfolio of institutional-quality properties.

How Does Fundrise Work?

As an online real estate investing platform, Fundrise pools money from numerous small investors to create private real estate portfolios (REITs).

When you create a Fundrise account, you’ll be given a selection of real estate investment strategies to choose from based on your preferences in terms of risk, income, and long-term growth:

  • Fixed Income: A lower-risk option that lets you earn a modest income by lending money for real estate.
  • Core Plus: Invest in real estate to increase your income and experience some growth.
  • Value Add: Buy homes that require renovation to maximize your earnings.
  • Opportunistic: A high-risk option to invest in high-return endeavors, such as new developments.

Many Fundrise investment reviews claim that in addition to managing your money, Fundrise will keep adding properties that fit your investment criteria.

Main Features

Let’s take a closer look at the main features of Fundrise:

Fundrise Offerings

Regardless of the type of investor you are, the platform offers a huge variety of investment opportunities. The brain trust behind the platform has examined each of Fundrise’s offers to ensure their value and feasibility. Even if there’s no assurance your efforts will be successful, it’s comforting to know your chosen offering has been examined by qualified individuals and has passed their initial test.

In this part of the Fundrise review, we should mention many of the real estate funds offered by Fundrise are categorized as REITs for taxation purposes. Depending on their investment objectives and account level, investors can distribute their capital across various funds. Access to the primary Flagship Real Estate Fund is available to those with a Starter Portfolio, and you can start using extra offerings like the eREITs, Opportunity Zone Fund, Income Fund, and Housing eFund once your account balance reaches $1,000.

Current Fundrise offerings include: Fundrise Flagship Real Estate Fund, Growth eREIT, East Coast eREIT, Heartland eREIT, West Coast eREIT, Growth eREIT II, Growth eREIT III, Development eREIT, Fundrise eFund, Growth eREIT VII, Balanced eREIT II.

Plans and Portfolios

Apart from the Starter Plan, the portfolios Fundrise offers are Basic, Core, Advanced, and Premium. However, reviews of Fundrise show you might want to think about the Starter Plan if you’re new to investing in commercial real estate.

  • The Fundrise Starter Portfolio is one of their services we truly appreciate. Although investors may have some level of trepidation when considering making a commercial real estate investment, that’s the main goal of this strategy. The $10 minimum investment is required to open the Starter Plan. Despite being a modest investment, Fundrise investor reviews claim it offers an incredible level of diversity. Not only can you invest in commercial real estate, such as office buildings and apartment complexes, but also in single-family homes. Geographic diversification is also provided since the properties in the portfolio are spread throughout the country.
  • You can invest in the Basic Plan with a $1,000 investment. Through this plan, you’ll have access to dividend reinvesting, you can set up and monitor investment goals, and invest automatically. For every person you refer to Fundrise who opens and funds an account, you’ll receive three months free of charge under the Basic Plan.
  • The Core Commitment Strategy has a $5,000 minimum investment. All the elements of the Basic Plan are included in this plan, plus Fundrise’s private eREIT fund and the option to alter your investing strategy. It also includes 3 different investment strategies: Supplemental Income, Long-Term Growth, and Balanced Investing.
  • Investments in the Advanced Plan must be at least $10,000. All the features and advantages of the other three programs are included in this one, but according to reviews on Fundrise, for each friend you introduce to Fundrise, you’ll receive a nine-month cost waiver. However, Fundrise doesn’t specify if the fee waiver applies to friends who enroll in the $10,000 plan only or if it covers all other plans as well.
  • The Premium Plan, which requires a minimum commitment of $100,000, is the last option. Although it’s probably outside the scope of what the majority of blog readers are searching for, it offers one-of-a-kind investment opportunities designed for accredited investors.

A 100% Passive Investment

Instead of purchasing a home directly, you can invest in real estate indirectly and avoid doing any work yourself. Investing in real estate by yourself also requires a lot of labor, including finding good real estate deals, carrying out due diligence on them, securing financing, repairing or renovating real estate, marketing vacant properties, selecting renters, collecting rent, and evicting problematic tenants. However, with Fundrise, you only need to connect your bank account and send money to Fundrise to do the rest.

Multiple Funds

In this section of our Fundrise review, we need to point out there are numerous REITs and funds Fundrise owns and manages. However, the “eREITs” and “eFunds” offered by Fundrise have different restrictions.

There are a variety of properties owned by each eREIT, which occasionally concentrate on a particular geographic region, such the West Coast eREIT. As an alternative, some eREITs, such as the various Growth eREITs, are tailored for a particular investing objective. Investors at the Core level and above have the freedom to choose which specific eREITs to finance.

The fact Fundrise also provides eFunds, which operate differently from eREITs, makes things a little bit more confusing. Nevertheless, Fundrise provides specialized eFunds accessible only to advanced investors.

Long-Term Investments

As Fundrise investment reviews point out, shares can’t be sold on a secondary market and must be redeemed through Fundrise instead. As real estate is a long-term, illiquid investment, you should only invest money you intend to keep invested for at least five years, according to Fundrise’s specific advice. Fundrise will charge you a 1% penalty when buying your shares back if you redeem them within five years, at least on a few shares. When shareholders sell shares in their Interval Fund, a versatile fund that allocates capital where it’s most required, they don’t pay the 1% penalty.

Quarterly Distributions

All investors get quarterly dividend payments from Fundrise. Through a DRIP option, Fundrise also makes it simple to reinvest dividends automatically.

In case you’re wondering “is Fundrise worth it,” we’ll tell you the investment strategy known as “Supplemental Income” provides the largest dividend yield at the expense of higher potential long-term gains. For instance, it returned a total of 17.98% per year in 2021 after paying out a 4.96% yield and 13.02% in appreciation. The Long-Term Growth plan had a better total return of 25.12% while paying a lower dividend yield of 2.92%.

Invest Through Your IRA

To provide investments through a self-directed IRA, Fundrise teamed up with the Millennium Trust Company.

Many reviews on Fundrise claim a third-party custodian is required to manage your investments when you use a self-directed IRA to buy real estate (or anything else). Although there’s a $125 yearly cost for this, Fundrise will waive the annual charge for the following year if you make at least $3,000 in new investments in the current year. In addition, the cost is permanently waived for accounts with a balance of more than $25,000.

Fundrise Education

The customer education section of Fundrise is divided into different subsections:

  • Investing 101: A blog that provides information on private investments for investors.
  • Point of view: Market trends identified by Fundrise analysts and practical financial guidance.
  • Advanced Investing: Comprehensive examination of the real estate market’s current situation and expected future direction.

Moreover, many Fundrise reviews praise its podcast called Onward. Along with valuable advice on how to make the most of the platform’s features, it provides investors with essential information about the state of the real estate market at the time. For providing investors with an auditory way to learn about real estate and the platform as a whole, Fundrise gets high praise.

Mobile App

The Fundrise app is useful and suitable both for iPhone and Google Android platform users. Both apps provide customers with a straightforward mobile dashboard where they can browse new deals, check the status of their current investments, and deposit money to their accounts using their preferred smartphone or tablet.

According to many Fundrise consumer reviews, the quality of a trading platform’s mobile app is becoming increasingly crucial as more people move away from traditional desktop or laptop computers. Fundrise deserves praise for developing a top-notch mobile app, because it’s apparent the company is aware of this trend. Whatever mobile operating system you prefer, Fundrise’s app will work effectively to faithfully replicate the desktop experience.

Feature Rating
Fundrise Offerings 4.5/5
Plans and Portfolios  5/5
100% Passive Investment 4/5
Multiple Funds 4/5
Long-Term Investments 4/5
Quarterly Distributions 5/5
Invest Through Your IRA 4/5
Fundrise Education 4/5
Mobile App 5/5

Ease of Signup

From our personal experience, we can say opening an account with Fundrise and getting started with your investments takes just a few minutes, and many reviews about Fundrise confirm this. You choose an investment strategy, fund the account, and provide your contact information, and the software will then choose and manage the proper funds for you. If you choose investment goals, the platform will monitor your progress and offer suggestions on how to get there, such as whether you need to increase your savings to attain your retirement goal.

Investment Minimum

A $10 initial investment is all Fundrise requires. With this sum, you can purchase the service’s Starter Portfolio, which consists of a variety of eREITS and eFunds with underlying real estate projects spread across the US. Both an increase in the value of your shares and periodic dividends are the returns you get. As for the investment minimum of the other portfolios, take a look at the following:

  • Basic: Select your investment objectives and start an individual retirement account (IRA) with a $1,000 minimum deposit.
  • Core: Create a personalized portfolio with a $5,000 minimum initial commitment.
  • Advanced: Access all fund choices with a $10,000 minimum initial commitment.
  • Premium: The initial minimum investment for accredited investors is $100,000.

Return Potential

In our review on Fundrise, we must point out that each Fundrise offering has a unique amount of risk and a yearly return goal. If the offerings achieve their pro forma aim, almost all of them have lengthy hold periods, during which they should earn passive investor income. However, remember that even real estate investments have a chance of loss. Since the platform’s introduction in 2014, Fundrise offers have paid customers a total of $192,796,267.57 in net distributions, although past success is no guarantee of future success.

Fees

Fundrise charges two annual fees on your portfolio. First, there’s an annual advising fee of 0.15%, which the website claims may be waived in specific circumstances. Additionally, Fundrise assesses an asset under management fee of up to 0.85%. All account tiers are subject to the same annual costs.

Reviews about Fundrise point out that Fundrise may impose extra fees for working on a specific real estate project, such as development or liquidation costs. Before paying out any dividends to investors from the fund’s residual profits, Fundrise would subtract these expenses. However, it doesn’t impose any commissions or transaction costs.

Both the primary Flagship Real Estate Fund and the Income Real Estate Fund allow for penalty-free withdrawals.

As we mentioned, the minimum holding period for private eREITs and Fundrise eFund is five years, and a 1% penalty is incurred if you cash out the shares early.

Customer Service

If you have any concerns, you can email Fundrise or look up the information you need in the help center, but there’s no phone service line for customer care.

Alternatives

In this section of our review on Fundrise, we’ll compare it to its main competitors:

Company Win Lose Best For
Fundrise Provides more liquidity than being the owner of your own real estate property The platform might limit withdrawals during market downturns Investors seeking long-term investments
FarmTogether

Check our full review of FarmTogether

For larger profits, investors may combine investments with one another Doesn’t offer a mobile app Investors seeking to invest in farms
RealtyMogul

Check our full review of RealtyMogul

Non-accredited investors may invest in REIT products Investment fees vary and can be complicated Accredited investors who prefer to invest in private companies
Roofstock Low fees for sellers and buyers A large down payment is required Selling and purchasing single-family rental properties

With a $10 minimum investment and no prior knowledge or sizable down payments required, Fundrise makes real estate investing accessible to everybody.

Is Fundrise Worth It?

As a real estate investment platform, Fundrise allows its investors to start investing for just $10, and at the same time provides an easy way to invest in real estate indirectly, without an obligation of ownership.

With Fundrise, you can avoid the worst of the disadvantages and get the most of the advantages, as it has a low minimum investment and is very easy to use, but you should still consider whether investing is a wise choice for you first!

FAQ

Has anyone made money with Fundrise?

Since 2014, Fundrise investors have earned over $100 million in dividends alone.

Do I need to report Fundrise on taxes?

If you get an annual tax form for your Fundrise investments, you must include any reported income in your tax return even if your dividends were reinvested.

Can Fundrise be trusted?

Definitely yes—according to many Fundrise reviews, it’s a legit platform where you can make real money. The National Council of Real Estate Investment Fiduciaries (NCREIF) estimates private commercial real estate investments produced 10.3% yearly returns on average.

ABOUT AUTHOR

As challenging as she looks, Kristina loves to question things. Her analytical skills give us a fresh look at markets, products and services and her experience as a real estate agent keeps our related topics up to par.