Fundrise is dedicated to online real estate and has complete plans to allow average investors to buy their private commercial and residential properties. It has the benefit of having affordable prices for people with tight funds.
Almost all the company’s assets are bundled on its website. The company’s core products are real estate investment trusts or REITs, the latter of which commonly invest in real estate capable of producing more income.
How does Fundrise work?
When investing in Fundrise, will funds allocate through a combination of the company’s offerings, which are popularly known as eREITs and eFunds. Both are portfolios professionally managed by private real estate assets found in different areas of the United States.
An eREIT is an electronic real estate investment fund. It consists of a digital investment only available on Fundrise.
The system focuses on commercial real estate assets. To invest with them, you need to invest in hotels, apartments, office buildings and shopping malls. ETFs are exchange-traded funds; with eREITs, you have the opportunity to diversify into different properties for a lower price than usual.
When you access investing with Fundrise, you can have a wide range of eREITs for your real estate investments; each has a clear growth and income objective. When they are growth-oriented, they will focus on potential appreciating or increasing value properties.
Now, if they are income and growth-oriented, they have a balanced investment view, they will be both cash flow, and appreciation focused.
Characteristics of Fundrise Investments
To get into the world of investments with Fundrise, you need to know its main features. You can check if it is what you need from them, or you better opt for another choice.
It is available for investors without accreditation
Most real estate platforms ask you to be accredited to invest in them Although many Fundrise products also have this regulation, you can find some options if you are not accredited.
Has lower investment minimums
It is oriented toward average investors; it is unnecessary to have massive capital to be part of its products. It has multiple options adjusted to everyone’s possibilities, something essential nowadays.
It has a comfortable and easy-to-use platform
Thinking of investors who are starting, its platform is easy to handle; you will have your registration finished in 10 minutes. You must read all the terms and conditions; remember that you will be working with investments, and you would rather not skip any rules.
Part of the information requested on the page is the address, social security number, phone number, and how you will deposit your funds. You can choose whether to have them in your account or wire transfer.
Excellent redemption program
As an investor, you will be able to sell your shares back to Fundrise, although it has a 1% fee to the fund if it hasn’t been five years since you purchased the shares. It should also mention that the company can suspend or delay redemptions.
That will only do so in a period of economic uncertainty; they took those steps in March 2020 due to the pandemic and the financial problems caused by the confinement.
Your REITs are not tradable
You cannot trade your REITs on a public exchange; there is no guarantee that there are buyers for these shares. The risks of investing in non-traded REIRs are significant, although there are sometimes some rewards.
Occasionally, you have additional fees
In Fundrise, there is no broker to work as an intermediary; this is a money-saver for the company. Although you can see the additional fees for asset management and advice from the outset, Fundrise also reserves the right to charge any other fees.
Charges can be for development or liquidation fees, as well as for work on specific assets.
Who is eligible for Fundrise?
All U.S. citizens or permanent U.S. residents must be 18 years of age to start investing with Fundrise. The company does not require you to have a specific net worth or be an accredited investor to learn. While it may not always be the best choice for accredited or high net worth investors, other options have higher returns.