Want to try a real estate investing without playing landlord? Fundrise is just the company to do that. You do not to have hundreds of thousands of dollars. Get started with a minimum investment of just $500. A company called Fundrise does all the heavy lifting for you.
Through the Fundrise Starter Portfolio, your money will be split into two portfolios that support private real estate around the United States.
This isn’t an obscure investment, though. You can see exactly which properties are included in your portfolios — like a set of townhomes in Snoqualmie, Washington, or an apartment building in Charlotte, North Carolina.
You can earn money through quarterly dividend payments and potential appreciation in the value of your shares, just like a stock. Cash flow typically comes from interest payments and property income (e.g. rent).
(But remember: Investments come with risk. While Fundrise has paid distributions every quarter since at least Q2 2016, dividend and principal payments are never guaranteed.)
You’ll pay a 0.85% annual asset management fee and a 0.15% annual investment advisory fee.
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Discover the first true alternative to investing in stocks and bonds.
Fundrise is the first service that makes the benefits of private market real estate investing available to you through one simple platform. By combining technology with new federal regulations, they bring the once-unattainable world of private investments directly to you
- Access private real estate assets directly
- Save up to 40% on costs through technology
- Earn better expected returns overall
Invest in private market real estate – the piece of your portfolio you didn’t even know was missing. Now you can invest the way the most successful institutions do.
Fundrise actively identify, acquire, and improve real estate on your behalf. They follow a value investing strategy of buying investments for less that what they believe is the replacement cost, then improving the real estate through hands on management and partnership with local operators.
The team draws on over 75 years and 4$7.5 billion of combined experience to pursue the best results for their investors. Every Fundrise portfolio is made up of our proprietary eDirect™ investments – think of them as online-only, low-cost ETFs for real estate. Each eDirect investment acquires and manages many individual real estate properties, which means you get broad diversification with the click of a button.
You can choose an investment plan to get started, such as the supplemental income, balanced investing, and the long term growth. For the supplemental income, you can create an attractive, consistent income stream by investing primarily in cash flowing real estate.
You earn returns via quarterly dividends, with less appreciation. Invest in an income oriented real estate private equity strategy. You will have a portfolio allocated primarily to debt real estate assets. The team will execute an income oriented real estate private equity business on your behalf.
You acquire assets that generate a consistent cash flow. They invest primarily in assets that generate predictable returns from the moment they make the investment. This could mean lending to the develop of new property, or buying an existing building with tenants in place.
Over time, you realize returns over time via rent or interest payments. Unlike in a growth strategy, where returns are typically back ended when the property is sold, investors in an income strategy can look forward to earning consistent distributions over time as we collect rent or interest payments.
What am I investing in?
You are investing in a diversified portfolio of real estate assets located throughout the United States that our team identifies, acquires, and manages on your behalf. The approximate current allocation is displayed in the Portfolio section above. However, you should expect it to grow and change over time as we acquire more assets, and others are sold or pay off.
How do I earn returns from this investment?
You earn returns primarily in two ways: (A) via quarterly dividends and (B) via appreciation in the value of the shares of your investment. These returns ultimately come from the individual real estate assets in your portfolio – interest or rental income collected, as well as potential appreciation in the property’s value. As a shareholder, you are entitled to your pro-rata portion of any returns. Actual results may vary and there can be no guarantee of enhanced returns due to investing on Fundrise or the use of Fundrise Advisors’ services.
When can I expect a return?
Dividends are typically distributed in the middle of the month following the end of each quarter, e.g. mid-April for dividends earned during the first quarter. You may also receive additional periodic cash distributions as certain underlying properties are sold. The value of your shares is also typically re-calculated on a quarterly or semi-annual basis.
Can I redeem (cash out) my shares?
Real estate is inherently a long-term, illiquid investment. Fundrise is intended for investors who have a minimum time horizon of approximately five years. However, we have adopted a redemption plan whereby an investor may obtain liquidity monthly, following a minimum 60-day waiting period after submitting their redemption request, subject to certain limitations. For more information, please see the offering circulars.
What are the fees?
Projected return and dividend figures displayed on this page are net of fees. The offerings in this plan pay a 0.85% annual asset management fee. In addition, investors pay a 0.15% annual investment advisory fee, which may be waived under certain circumstances. This all-in 1% annual pricing model is up to 40% more cost-efficient than publicly available investments. For a full description of the fees that each investment may incur, please see the offering circulars.
What are eREITs and eFunds?
eREITs and eFunds are the limited liability companies that hold the real estate assets in your Fundrise portfolio. When you invest, you are actually buying shares of these companies, allowing you to diversify into many properties efficiently and at a low cost. The current weighting of eREITs and eFunds in this plan is listed below.
|East Coast eREIT||25.00%|
|West Coast eREIT||25.00%|
What tax documents can I expect to receive?
Investors in the Supplemental Income plan can expect to receive a Form 1099-DIV for each eREIT in the plan’s allocation.