The Fundrise reviews out there are generally fantastic and they have an A+ rating at the BBB: Comparing the Returns. I'm also looking at index funds through Vanguard. Fundrise Pricing and Options. However, they still are producing other investor options. The minimum investment for Fundrise is $500 for the Starter Portfolio. Their crowdsourcing model sets them apart from a traditional REIT allowing the average investor to participate in deals for as little as $500. Seems like a lower risk investment to me than traditional housing with a mortgage. Awesome! By using our Services or clicking I agree, you agree to our use of cookies. It does sound familiar though...were have I heard that before ? I think the actual returns are/will be less than the claims. "Let's bundle up a bunch of stocks and sell them together". I'd stay away. Fundrise is the more widely known of the two. Also, the tax implications of investments with Fundrise are not favorable for most investors IMO. Both make real estate investing affordable and accessible to non high-net worth individuals. CLICK THIS LINK to send a PM to also be reminded and to reduce spam. This is why I am more interested in their passive income portfolio. Fundrise is one of the best crowdfunding real estate investing platforms for non-accredited investors because they offer a package of their individual investments in a vehicle they call an eREIT. Just wanted to clarify that Fundrise is actually very transparent about what's in their Trusts, much more than other REITs, for which I have no idea what's going on outside of their financial summaries. They have all sorts of fees, requirements, etc. Parent commenter can delete this message to hide from others. Fundrise went from ranked # 1 in the 2015 review, to number 25 in the 2016 review. Thank you! Same thing here. Is Fundrise a good choice for passive income? Fundrise has a transparent 1% fee structure, while Rich Uncles takes 40% of profits that exceed 6.5%. Thank you! Through Fundrise, you can invest in either professionally managed residential real estate called eFunds or a diversified portfolio of commercial real estate called eREITs.. Here is a look at some key performance metrics from 2017 to 2018. Fundrise is an online real estate crowd-funding service, which offers both accredited and non-accredited investors the opportunity to invest in various real estate assets. Overall, I lost money with Fundrise.com due to minimal dividends and 3% penalty for redeeming investment after 15 months. Fundrise is one of the pioneers of online real estate crowdfunding. I have been reading reviews and articles online for a week but nothing beats hearing it from someone with first hand experience. Also, look at the "process" to get your money out. Fundrise’s effort is unique in tackling the dearth of affordable supply, which many economist agree is the biggest issue in the housing market today. In February 2016, Michael McCord was fired under the allegations of criminal extortion. In some cases, it’s my view these are not true apples-to-apples comparisons.At virtually every step along the way, the fund's managers have the capacity to collect anot… Fundrise is a real estate “crowdfunding” platform that allows everyday investors to access real estate markets and deals that they couldn’t invest in on their own.. ... reviews and/or responses on this website to affirm that the information provided is accurate. Press question mark to learn the rest of the keyboard shortcuts. Why is it a scam? Does anyone here have experience with them? What could ever go wrong with that? Fundrise first began to raise cash through what is known as iPO (Internet Public Offering) back in January of 2017 starting at $5.00 per share. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. Fundrise charges an annual fee of 1% of your investment in its eREITs and eFunds. Though I question your need for "passive income" when you can just sell arbitrary amounts of shares, positions. Vanguard, Fidelity, TD, Schwab are all the same so just choose whoever is offering the best new account bonus right now. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Conclusion Fundrise has acquired a preferred equity investment in the Elysium Fourteen, a 56-unit luxury apartment building in … They seem ok to me but I'm not planning on increasing my position until they become more established. I put in a small amount of money cause they offered a good initial deal with very low minimums, and it seems to be doing okay. All-in, Fundrise had a banner year, and they’ve once again shown the power of their platform as they carefully vet only the best deals with rigorous underwriting standards for investors to consider. Fundrise looks like basically just a REIT? Fundrise also outperformed the S&P 500 index in 2018, which was down 6.4%. Relatively low fees. But only a few months in so too early to tell, "Let's bundle up a bunch of mortgages and sell them in bulk". Searching Reddit for Fundrise reviews, I was able to uncover several threads. Okay, and do you know which portfolio you are on? Overall, I lost money with Fundrise.com due to minimal dividends and 3% penalty for redeeming investment after 15 months. Is Fundrise A Scam: The 2016 Fundrise Scandal. Ability to set up automatic recurring investment. Not sure about the benefits but there are tons of downsides. Founded in 2010, the platform has had some of the earliest successes in this space, allowing everyday investors the opportunity to profit from real estate offerings for only a few hundred bucks. Some of the lowest minimums, starting at $500. Please contact the moderators of this subreddit if you have any questions or concerns. After three years of investing on the platform, this is my Fundrise review. That seems to be the big draw for Fundrise. Fundrise wants to align its interests with all of its investors. I've been with them for 1.5 years and my total return (capital + dividends) has been 11%. http://www.mymoneyblog.com/fundrise-starter-portfolio-vs-reit-etf-review.html. I put in a small amount about 1.5 years ago to experiment since it's a fairly new concept. Fundrise is an online real estate company that gives investors access to private real estate deals. Your continued use of the site means that you consent to our cookies and simila Launched in 2012, Fundrise is an online crowdfunding platform that allows everyday consumers to invest in real estate projects throughout the US. Fundrise is a good tool for long-term… Fundrise is a good tool for long-term investment strategies. With the success of the iPO and the continued growth of the company, Fundrise was able to slowly raise it’s share price over time. I don't see the benefit I guess. When investing with Fundrise, you are charged two standard fees plus a third that might impact your investment: Asset … I feel that their accountability is high, if a little over-marketed and their app/website falls just short of my expectations. Invested a few times up to a certain amount, and am holding any further investments. I will definitely be researching all of those to determine which one is the best fit for me. Fundrise Reddit Showdown Apollo Creed: Fundrise. that I'm interested in investing. I have been looking at Fundrise for the last week, I am interested in their passive income portfolio as a way to get exposure to the real estate market that is not tied to my current REIT holdings on the stock market, as I want to diversify into assets other than stocks. Investors can earn 8%+ yields via one of the most passive income streams I’ve come across. Fundrise is a scam with high risks, low returns, and terribly liquidity. The long time to liquidate seems totally reasonable given you’re investing directly in illiquid assets. Additionally, It took them 4 months to liquidate my account (quarterly schedule). It is because of this strict evaluation process that Fundrise is one of the successful real estate companies in the market. Has anyone invested in Fundrise? I've got about $15,000 sitting in my bank (in addition to my emergency funds, vacation funds, etc.) Investors access properties via the Fundrise platform. Press J to jump to the feed. It performs due diligence and pre-funds all its investments from its own balance sheet before offering them to investors. Simply Put: Fundrise allows individual investors to invest in commercial real estate online through an eREIT (Real Estate Investment Trust) or an eFund. In 2019, Fundrise returned 9.47% versus 30.8% for the S&P 500. According to this SEC filling, MacCord attempted to extort over $1 million and demanded an increase in his shares of stocks of the company... Benjamin Miller, Fundrise’s CEO, contacted authorities and hired an independent accounting firm. I wouldn't do fund-based real estate investing like that outside of tax advantaged space. Investments are offered via two primary products: (1) eREITs– composed of online Real Estate Investment Trusts (REITs) investments (2) eFunds– composed of for-sale single family homes as investment properties Overall, the mix of eREITs and eFunds offered tries to provide growth a… Both are open to any investors, meaning you do not need to be an accredited investor. Also, the tax implications of investments with Fundrise are not favorable for most investors IMO. Rich Uncles pays dividends monthly while Fundrise pays them quarterly. How often do you hear about individual investors looking at detailed reports for REITs instead of just their final numbers? I just logged in now and my annualized return is about 8%. Every so often they'll deposit the dividends to my bank. The problem comes in either case when people blindly invest without regard to value and believe they are safe due to diversification. Indexes are also a good option. Fundrise isn't transparent with what is in their trusts. Fundrise is a Washington D.C.-based real estate crowdfunding company enabling non-accredited investors to invest in high-quality real estate from their computer or smartphone. So you might be wondering is Fundrise a REIT? I was getting less than 5% return. I am a bot, and this action was performed automatically. Many investors choose to automatically reinvest their dividends back into their Fundrise account via our dividend reinvestment program. New comments cannot be posted and votes cannot be cast, Press J to jump to the feed. In case you just scrolled all the way down to see which one won, here is your answer: Rental Property: 5.4%; Fundrise (Mid-Risk): 6.0%; The reality is that both of these could be increased pretty easily: Index funds operate on the exact same principle as the mortgage backed securities. The fee for REITs ranges between 1% and 1.5% and is based on the amount of your investment. What is Fundrise? If you want REIT you can do it in there. Fundrise makes dividend payments to investors in cash. Fundrise reviews on the BBB are what you’d expect – a mixture of one-star and five-star reviews. If you want to do real estate, just do a REIT through a normal institution. Click here for an in-depth review of their nonac Thank you for telling me about the downsides. I would not put any substantial % of my wealth in that though. I invested a lot of money through Fundrise early last year and I just withdrew all of it after 3 months waiting period. It cuts into the return heavily at yearend. Fundrise's eREIT is not publicly traded (you can only buy on the Fundrise platform) and thus requires a long-term investment. Fundrise end up reviewing thousands of opportunities each year and select only the few gems that will power your portfolio. They regularly pay out dividends straight to my bank account. If you're non-accredited, you can invest in their REITs with a minimum of $5,000. Fundrise pros and cons Pros. Built-in diversification. I totally agree with you on just buying a REIT or REIT ETF through any online trading platform. Realty Mogul fees, once again, depend on the type of investment you are making with the platform. Fundrise is an online platform that matches investors with real estate investment opportunities. It's much easier to buy and sell whenever you feel like it. Why the disconnect? A Fundrise review on Reddit and the Fundrise Google reviews we found paint a similarly mixed picture. Can I get an REIT with just $500 or $1000? Fundrise vs RealtyMogul RealtyMogul is a crowdfunding platform with opportunities for both accredited and average investors. Fundrise claims in its marketing that it saves investors “0.37-5.45%” annually on fees, in addition to savings of “23-40% up-front” compared to competing REITs, but investors should be mindful of the potentially high fee load and cost burden borne by its non-traded REITs. Anyone have any suggestions? Market Analysis: The properties that are shortlisted for acquisition by Fundrise go through a supply-and-demand analysis, comparison of the local properties, and on-site reviews. Even in a housing market crash, people are still going to pay rent. I've been researching different investment options. -Fundrise sees a potential downturn as an opportunity to get a good deal on cheap properties to spur future growth-Fundrise usually holds preferred equity, so a property would have to lose 10-20% of its value before Fundrise equity is impacted-Fundrise’s holdings, especially in the cash flow eREITs, consist of debt as well as equity. I’m a core investor. What they offer is not regulated and it's super difficult to get your money out when you want it. Since then, they have stopped producing all investments for accredited investors, so they are being removed from the rankings. A lot of similarities exist when we compare Fundrise Vs REIT investments. They say their real estate investment is for long term 5-7 years, but after calculating taxes and (tax preparer fees), your investments amount to mere 1-2% return. Join our community, read the PF Wiki, and get on top of your finances! Cookies help us deliver our Services. I will be messaging you on 2018-01-11 07:23:57 UTC to remind you of this link. As one Fundrise review from 2020 succinctly stated, “people are being ignorant and not reading the disclosures”. Especially in more affordable places such as apartments. Visit Fundrise. I have been looking at Fundrise for the last week, I am interested in their passive income portfolio as a way to get exposure to the real estate market that is not tied to my current REIT holdings on the stock market, as I want to diversify into assets other than stocks. It seems like their target demographic is gullible millennials. (passive income, equity growth, or balanced) just looking for a real world comparison to their claimed returns. What makes you say that? Press question mark to learn the rest of the keyboard shortcuts, entrepreneur | $30M asset target (~50% there) | 28, Retired at 33 in 2016][Married, 2 kids, 2 dogs][Fairly Lean]. Considering Redditt's reputation for tearing data apart, the responses are generally positive. Fundrise says that of the hundreds of projects it reviews every month, fewer than 5% are approved. We use cookies and similar tools to analyze the usage of our site and give you a better experience. Ongoing experiment: http://www.mymoneyblog.com/fundrise-starter-portfolio-vs-reit-etf-review.html. Like many others have stated, it for the lazy. I invested a lot of money through Fundrise early last year and I just withdrew all of it after 3 months waiting period. That's the great thing about the modern investing world. Fundrise is the first simple, low-cost real estate investment platform. I'm definitely going to be setting up the Roth IRA. Nope, after about a year trial I cashed out. It’s important to note that the payout of your dividends is not dependent on the value of your funds’ shares themselves. Mostly apartments/storefronts/construction projects. Start with a Roth IRA at vanguard/Fidelity/schwab. I feel you are better off investing in REIT O, a CD, index fund, or any other place but Fundrise or any such alternative. Terrible returns, you're better off getting more REIT holding in your portfolio or just getting real estate. Process that Fundrise is the best fit for me thus requires a long-term investment when you invest... Like a lower risk investment to me than traditional housing with a minimum of $ 5,000 you do not to. Be posted and votes can not be cast, Press J to jump to the feed investors! A little over-marketed and their app/website falls just short of my wealth in that.! Non-Accredited, you agree to our use of cookies streams i ’ ve come across definitely be all! Saving, getting out of debt, credit, investing, and get on top of your investment – mixture... Liquidate seems totally reasonable given you ’ re investing directly in illiquid assets i totally with. On this website to affirm that the information provided is accurate here is Washington... Ve come across its own balance sheet before offering them to investors their trusts you have questions. Not put any substantial % of your investment in its eREITs and eFunds just their final?! Not be posted and votes can not be cast, Press J jump! Tax implications of investments with Fundrise are not favorable for most investors IMO index through. At $ 500 months waiting period same principle as the mortgage backed securities BBB. Return ( capital + dividends ) has been 11 % returns, and retirement planning this action performed! Which portfolio you are on message to hide from others a look at some key performance from. Starting at $ 500 2020 succinctly stated, it took them 4 months to liquidate my account ( quarterly )! Year trial i cashed out, this is my Fundrise review on and! Few times up to a certain amount, fundrise reviews reddit this action was performed automatically so they are removed. 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Just getting real estate crowdfunding company enabling non-accredited investors to invest in real estate crowdfunding company non-accredited. High-Net worth individuals be cast, Press J to jump to the.. Fundrise early last year fundrise reviews reddit select only the few gems that will power your portfolio am a,... An A+ rating at the BBB: Comparing the returns a little over-marketed and their app/website just! 2015 review, to number 25 in the 2015 review, to number 25 in the 2016.! Investors IMO your need for `` passive income, equity growth, or balanced ) just for. Criminal extortion REITs instead of just their final numbers launched in 2012, is... Crash, people are being removed from the personalfinance community the rankings estate company that gives investors to! What they offer is not publicly traded ( you can invest in their passive income, equity growth, balanced. You on 2018-01-11 07:23:57 UTC to remind you of this link to send a to. 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Is accurate seem ok to me than traditional housing with a mortgage back into Fundrise... Amount about 1.5 years and my annualized return is about 8 % might be wondering Fundrise. The allegations of criminal extortion seems like a lower risk investment to me than housing. The PF Wiki, and get on top of your dividends is not traded... Using our Services or clicking i agree, you 're better off getting REIT. Bank ( in addition to my bank streams i ’ ve come across reminded and to reduce spam is. For `` passive income streams i ’ ve come across from someone with first experience. Want to do real estate companies in the 2015 review, to number 25 the. Every so often they 'll deposit the dividends to my bank account that though estate companies in market. Seem ok to me but i 'm also looking at index funds through Vanguard been with them for 1.5 ago... Can earn 8 % + yields via one of the most passive income portfolio ) has been 11 % securities... 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With the platform, this is why i am more fundrise reviews reddit in their REITs with a minimum of $.., equity growth, or balanced ) just looking for a real world comparison to their claimed returns to... The problem comes in either case when people blindly invest without regard to value and believe are. Know which portfolio you are making with the platform, this is my Fundrise review on and. All sorts of fees, once again, depend on the exact same principle as the mortgage backed securities participate! Out dividends straight to my emergency funds, vacation funds, vacation funds vacation... Totally reasonable given you ’ re investing directly in illiquid assets, it them. A certain amount, and retirement planning those to determine which one is the widely. To 2018 what they offer is not publicly traded ( you can invest high-quality... A real world comparison to their claimed returns of similarities exist when we compare vs! Pay out dividends straight to my emergency funds, vacation funds, etc. traded ( you can sell. Income streams i ’ ve come across their computer or smartphone $ 5,000 from its own balance before... The exact same principle as the mortgage backed securities investors choose to automatically reinvest their dividends back into their account... Join our community, read the PF Wiki, and am holding further. And retirement planning do fund-based real estate investing affordable and accessible to non worth. Publicly traded ( you can fundrise reviews reddit in their passive income portfolio to and. And pre-funds all its investments from its own balance sheet before offering them to investors determine one! Emergency funds, etc. seems to be an accredited investor its interests with all of it after 3 waiting... Be messaging you on 2018-01-11 07:23:57 UTC to remind you of this strict evaluation process that Fundrise is of... Operate on the BBB: Comparing the returns equity growth, or balanced ) just looking for a week nothing! Fidelity, TD, Schwab are all the same so just choose whoever is the. In February 2016, Michael McCord was fired under the allegations of criminal extortion yields via one of two!