Fundrise Review 2024 (2024)

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Fundrise is one of the best real estate investing apps for non-accredited investors looking to make long-term investments in real estate and venture capital funds. The platform accepts clients regardless of annual income or net worth.

You'll simply need to meet the minimum balance requirements and be able to pay account fees. Prospective users should note, however, that its investments are intended for those with a time horizon of at least five years.

Fundrise Review

Fundrise is an investing platform that lets you invest in commercial real estate projects across the US, Fundrise IPOs, and venture funds. It has an investment team that works directly with real estate developers, manages client portfolios, and handles real estate deals.

Headquartered in Washington, DC, Fundrise offers investors access to real estate projects throughout all 50 states. The platform also provides desktop and mobile access, allowing users to monitor asset growth and review market trends and project alerts.

As mentioned above, one thing to look out for is that — although you can cash out at any time — Fundrise's investments are designed for those with a minimum time horizon of five years. If you're looking for short-term investing, this isn't the platform for you.

The Fundrise mobile app is available on iOS and Android devices.

Is Fundrise Right For You?

Fundrise is available to both accredited and nonaccredited investors looking for the flexibility to cash out at any time. The platform is best for long-term investments with a five-year minimum. It's also great for investors wanting to diversify their investment portfolios with Fundrise IPOs and venture funds.

Moreover, the platform is suitable for both passive and active investors looking for access to either personally customize their own investment plans, or to benefit from Fundrise's automated investing features. You only need a $10 minimum to start investing.

Fundrise: Overall Rating

Fundrise Pros and Cons

With Fundrise you can cash out at any point even if you don't reach the five-year minimum. Many other real estate investing platforms will either charge you a penalty fee for cashing out early or restrict you from doing so. DiversyFund, for example, doesn't allow users to sell shares early.

Is Fundrise Trustworthy?

Fundrise has received an A+ rating with the Better Business Bureau. BBB ratings range from A+ to F, so Fundrise's A+ indicates that the company interacts well with its customers, promptly acknowledges and settles customer complaints, and exhibits trustworthy business practices.

The BBB assigns its ratings by assessing company information from business and public data sources and reviewing any customer complaints filed against the company.These ratings tend to vary per investment app.

Fundrise hasn't elicited any major lawsuits or public scandals since its founding.

How to Invest With Fundrise

Fundriseoffers individual accounts, joint accounts, entity accounts, IRA accounts, and trust accounts. It doesn't offer custodial accounts nor support 401(k)s.

Fundrise-directed Plans

Fundrise offers automatic investing features so your money can be automatically invested in real estate projects and venture capital funds based on your current investment goals, risk tolerance, and other preferences. Fundrise-directed plans are best for hands-off or passive investors.

You can choose one of the three portfolio options:

• Supplemental income: Utilizes a larger percentage of income-focused assets rather than growth-focused assets.
• Balanced investing: Employs an equal blend of both income-focused assets and growth-focused assets.
• Long-Term Growth: Utilizes a larger percentage of growth-focused assets rather than income-focused assets.

Fundrise's growth-focused assets direct more attention to appreciation and pay less attention to dividends. For instance, for Long-Term Growth plans, Fundrise primarily uses growth eREITs and another asset called eREIT XIV.

All three plans also offer IRAs, auto-invest and dividend reinvestment, and discounts for referrals.

Depending on your goals, risk tolerance, and timing of expected returns you can choose one of Fundrise's real estate strategies to build a diverse, resilient portfolio.

Fundrise Pro

Fundrise Pro is best for hands-on investors looking to personally customize their own investment plans. Pro members can directly invest in specific funds, pick and choose their ideal allocations, and update their portfolios as their goals change over time.

As a Pro member, you can also access expert-level data from Basis™ — Fundrise's proprietary property management data warehouse — and leading market research from John Burns Research and Consulting. Moreover, Pro members can access selective paywalled content from leading news sites like the Wall Street Journal.

Now is a great time to take advantage of Fundrise's new exclusive offer and try Fundrise Pro free for the first 30 days.

Self-directed IRAs

Fundrise partners with Millennium Trust Company to provide IRAs and digital investing solutions. You'll need to transfer an existing IRA in order to invest in real estate funds. Once you set up your account, you'll be able to invest in commercial real estate with eREIT products.

It's also important to note that Fundrise's IRAs are currently only eligible to invest in eREITs, not eFunds.

Investment Types

Fundrise lets you invest in real-estate dividends, Fundrise IPOs, real estate trusts, and venture capital. With Fundrise's Innovation Fund, retail investors can now invest in venture capital from high-growth private tech companies with a focus on modern data infrastructure.

With a Fundrise-directed account, you'll be investing in an equally allocated blend of the company's Growth eREITs and Income eREIT II. You'll earn returns through quarterly dividends and appreciation of share value.

Fundrise offers another investment option – itself. You can purchase shares of the company as long as you've got a Basic account level or higher. The firm says it plans to make its IPO available to account holders within their first year of investing.

Since Fundrise has a parent company, Rise Companies Corp., you'll be purchasing a stake in both Fundrise and Rise.

Fundrise Fees

As for fees, you'll pay an annual advisory fee of 0.15%, which means you would pay $1.50 for every $1,000 invested. This is low compared to similar platforms like Yieldstreet, which charges a 1% management fee and up to 0.5% annual administrative expense.

There's a Fundrise minimum to start investing. To be a Pro member, you'll be charged $10/monthly (or $99/yearly). However, to invest in Fundrise IPO, there's a $500 investment minimum.

There's also an annual 0.85% management fee for Fundrise's real estate funds, which means you'll pay $8.50 for every $1,000 invested.To invest in the Innovation Fund, you'll pay an annual flat 1.85% management fee (you'll pay $18.50 for every $1,000 invested).Self-directed IRA accounts charge a 1% annual fee and $125 fee to Millennium Trust Company.

If you redeem any eREIT or eFund investment within a five-year period, you'll be subject to a 1% penalty fee (no fee in the first 90 days). There's a 0% to 2% acquisition fee when Fundrise purchases a new asset.

Fundrise — Frequently Asked Questions (FAQs)

How Fundrise Compares

Fundrise vs. CrowdStreet

Fundriseand CrowdStreet are both popular platforms for real estate assets. But the investing platforms vary when it comes to fees and investment choices.

If you're looking for a low-cost, automated platform that offers REITs, other inexpensive real estate funds, private credit, and venture capital, then Fundrise is a good choice. CrowdStreet has a much higher minimum of $25,000 (up to $250,000 for some offerings), but it offers an array of real estate funds, with the option of managed portfolios. But CrowdStreet is only available to accredited investors — i.e., individuals with a $1 million net worth or $200,000 annual salary ($300,000 for couples).

Fundrise vs. Yieldstreet

Compared to Fundrise, Yieldstreet is a better choice for alternative investments. Besides real estate investments, Yieldstreet also offers fine art, short-term assets, and multi-asset class funds. Yieldstreet isn't the best choice for investors solely focused on automated REIT investing and has a $500 minimum, which is significantly higher than Fundrise. Fundrise is the best choice for low fees, REITs, and automated investing.

Why You Should Trust Us: How We Reviewed Fundrise

Fundrise was reviewed using Personal Finance Insider's rating methodology for investing platforms to examine the different account types offered, pricing, access, ethics, security, and overall customer experience. Investing platforms are given a rating between 0 and 5.

Real estate investing apps generally offer user-friendly sites for education and market access. Some investing platforms are generally better for beginners or passive investors, while others are best for experienced and active traders. Fundrise was evaluated based on how well it performed in each category.