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Fundrise Review 2024: Invest In Real Estate With $10?

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Real estate has always been an excellent investment option for people wanting to grow their wealth over time. However, many people face the challenge of not knowing where to invest, what to invest in, and how much to invest. That’s where Fundrise comes to the rescue.

One of the best and easiest options for investors to get into real estate is REITs (Real Estate Investment Trusts). These types of real estate investments offer investors a chance to diversify their portfolios while reducing risk. Fundrise is among the most popular online platforms providing real estate investment services and makes it easy to invest in REITs.

In this Fundrise review, we’ll have a critical look at the tool and its features. We also check out other aspects of the platform and find out if it’s worth trying.

FUNDRISE REVIEW 2024 | Passive Income With $10? 🏠💸
Fundrise

Overall Rating 4.4

The Modest Wallet Overall Rating (Our Rating Methodology)

Bottom Line: Fundrise is an online real estate platform that allows investors access to a portfolio filled with dozens of real estate projects — each one carefully handpicked and proactively developed with the goal of growing their net worth.

Account minimum

4.5

Account fees

4.5

Investment selection

4.0

Liquidity

4.0

Features and tools

4.5

Ease of use

4.5

Security

4.5

Customer support

4.5

Best for:

  • Long-term real estate investors
  • Accredited and non-accredited investors
  • Portfolio diversification

Pros:

  • Access to commercial real estate
  • Quarterly redemptions and distributions
  • Low fees and account minimums

Cons:

  • Distributions are taxed as ordinary income
  • Investment liquidity

What Is Fundrise?

Fundrise is an innovative, Internet-based crowdfunding investment platform offering everyone access to assets traditionally reserved for institutional investors. The company was founded in 2012 by Benjamin Miller and Dan Miller.

Although Fundrise is most closely associated with its managed real estate offerings — including its eREIT shares — it now allows users to invest in private debt and equity in emerging tech companies. The non-traditional categories available through Fundrise give non-accredited investors more ways to diversify their portfolios with opportunities for consistent cash flows and capital appreciation.

Fundrise currently has over 393,000 and an investment portfolio worth over $7 billion. Despite this company’s size and rapid growth over the past decade, it’s essential to note that Fundrise explicitly focuses on long-term investors (or, in their words, they favor the “tortoise” approach to investing).

Fundrise Homepage
Source: Fundrise

How Does Fundrise Work? 

Fundrise strives to make investing on its platform as personalized and intuitive as possible. To achieve this goal, this website takes a tech-focused approach, allowing each investor to specify their risk tolerance and capital commitment using its tiered account levels.

After you set up an account and explain your investment goals, Fundrise will devise the optimal portfolio with assets such as real estate, private credit, or equity in high-growth tech companies. 

Investors have the freedom to review their portfolio both on Fundrise’s desktop layout and mobile app, and they’re free to make contributions automatically or manually. For its service, Fundrise charges a 0.15% advisory fee and a 0.85% flat management fee yearly, and it charges a 1% penalty for withdrawals before five years for specific asset categories (e.g., eREITs and eFunds)

Account Minimum

Investors could start with as little as $10 in Fundrise if they opt for the platform’s Starter plan. However, there are different minimum deposit requirements for the other four account types (i.e., Basic, Core, Advanced, and Premium). Also, if investors rollover an IRA into Fundrise, they must contribute at least $1,000. 

Requirements To Open an Account 

First off, Fundrise is only available to US residents over the age of 18. If you meet these qualifications, you must share know-your-customer (KYC) information (such as your phone number, email, home address, birth date, and social security number) to set up an account.

However, since Fundrise is open to non-accredited investors, you don’t have to worry about submitting tax forms to prove this status. 

How to Open a Fundrise Account

Fundrise boasts that it only takes five minutes to set up an account, and this site’s intuitive UI/UX makes it super easy to get started.

The only thing that might trip you up when setting up a Fundrise account is if you don’t remember your SSN offhand. Otherwise, it’s pretty straightforward to follow these steps and get on Fundrise: 

  1. Visit Fundrise.com and click the “Get Started” tab in the top right-hand corner. Alternatively, you could download the official Fundrise mobile app and enter your info on your phone. 
  2. Type an email address and a strong password for your account.
  3. Fill out Fundrise’s questionnaire on your investment experience and risk tolerance. This info will help Fundrise design your optimal portfolio. 
  4. Fundrise will suggest the account tier for your goals, but you have the final say on whether you want Starter, Basic, Core, Advanced, or Premium, depending on your preferences. 
  5. Share additional KYC information, including your legal name, SSN, and birthday. 
  6. Choose your initial contribution and select whether you want Fundrise to auto-invest funds regularly. 
  7. Connect your bank account via Plaid (or enter manually) to submit your first deposit. 
  8. Review final legal documents, decide whether to reinvest dividends and agree to the terms.
  9. Verify your email address.
Fundrise Sign Up
Source: Fundrise

Fundrise Features

Fundrise started out offering non-accredited investors a simple way to get into the real estate game, but it continues expanding on this initial offering. While real estate deals remain Fundrise’s foundational feature, this platform is quickly becoming a “super app” for those interested in multiple alternative investment strategies.

Minimum Investment$10 (taxable accounts) and $1,000 (retirement accounts)
Account Fees0.85% (Asset Management Fee), 0.15% (Advisory Fee), 1.85% (Innovation Fund), $10 per month (Fundrise Pro) *other fees may apply
Time Commitment5+ years
Offering TypesReal Estate (Debt and Equity), Private Credit and Venture Capital
Property TypesCommercial Real Estate (CRE), Residential and Single Family
Advertised Returns5.29% (Average returns)
DistributionsVaries by Project
Regions Served50 States
Secondary MarketNo
Accreditation RequiredNo
Self-Directed IRAyes
1031 ExchangeNo
SupportContact Form and Email ([email protected])

Real Estate

Providing non-accredited investors with real estate investment opportunities was Fundrise’s only offering when it launched, and it continues to be the platform’s central value proposition.

The Fundrise team now has billions of dollars worth of real estate under management in categories such as multi-family apartments, single-family rentals, and industrial properties spread throughout the USA with varying risk profiles.

Fundrise also groups these real estate opportunities in managed funds — or “eREITs” — where investors can inspect the properties they invest in and read about Fundrise’s strategy for each holding.

While real estate isn’t the only opportunity on Fundrise, this platform emphasizes helping investors add this asset category to their portfolios with products like its eREITs and eFunds (the latter primarily focused on infill industrial real estate opportunities)

Fundrise Real Estate Strategies

Fundrise uses a combination of real estate strategies with different risk levels and expected annualized return rates.

Fundrise employs them “to build well-rounded, resilient portfolios targeted to deliver strong results” that suit their investor’s strategy and risk profile. The four strategies are Fixed Income, Core Plus, Value Add, and Opportunistic.

Fixed-IncomeCore PlusValue AddOpportunistic
ObjectiveProvide real estate-backed loans or similar structured financingAcquire and operate stabilized, cash-flowing real estateAcquire real estate that needs improvements and/or lease-upAcquire and redevelop the real estate, often from the ground up
Time horizonTypically begins earning interest immediatelyBegin earning income shortly after the acquisitionIt takes several months to a year to begin seeing returnsOften two years or more to begin seeing returns
Source of returnsInterest incomeRental income with some growthGrowth with some rental incomeGrowth
Expected total annualized return4-8%6-8%8-12%10%+
Expected variability of returnsLowModerateHighVery High

Venture Capital 

One of Fundrise’s newest offerings for investors is private equity and venture capital in some of the hottest tech firms via its Innovation Fund.

You’ve probably already heard of a few names in Fundrise’s venture capital portfolio, including the likes of Canva, Twilio, and Inspectify. Currently, Fundrise is most focused on hi-tech themes such as artificial intelligence, development operations, and data infrastructure, which they believe has the potential to outperform.

For investors interested in diversifying away from their real estate holdings, they can put their money to work in pre-IPO companies with Fundrise’s Innovation Fund. 

Fundrise Venture Capital
Source: Fundrise

Fixed Income

For investors more focused on consistent yield, Fundrise offers the option to put money to work in the private credit market.

Thanks to Fundrise’s sterling reputation with multiple banks and capital brokers, it has grown its private loans portfolio in recent years to offer clients a way to take advantage of the current high-interest rate environment.

While private loans aren’t as liquid as public income strategies like bonds, they often come with more favorable and flexible returns for lenders, making this option most attractive for those prioritizing consistent cash flows.

Fundrise Pro

While Fundrise is designed to be a straightforward and hands-off experience for investors of all skill levels, that doesn’t mean you can’t add a personal touch to your portfolio.

For an add-on monthly fee of $10 (or $99 annually), you can upgrade your account to “Fundrise Pro,” which gives you bonus customization options to tweak your account’s composition.

The two significant features you get with a Fundrise Pro subscription include “direct investment” and “custom plans,” which allow you to make specific one-off contributions to funds you like and design a portfolio composition you want.

So, if you’d prefer to tell Fundrise what to invest in rather than relying on their best judgment, the extra fee to “go Pro” may be an attractive option. 

Fundrise iPO

Rather than list public shares on the stock market, Fundrise’s parent company — Rise Companies Corp. — decided to offer its users the first opportunity to own a stake in their business.

With the Fundrise iPO (or “Internet public offering”), anyone who has invested at least $500 in Fundrise for at least one year can buy shares in Rise Companies Corp. at pre-arranged intervals.

Fundrise says it will contact users eligible for iPO shares throughout the year and give them one week to decide whether they want to take advantage of this opportunity. The minimum investment for Fundrise iPO shares is $500, and investors can’t spend more than the principal they’ve invested in Fundrise.

While Fundrise iPO shares give investors privileged access to a high-growth company, remember these shares are highly illiquid and speculative assets. 

Mobile App

Fundrise made it even easier to manage your portfolio with mobile apps for both Android and iOS devices.

In addition to monitoring your investments, this highly-reviewed app makes it easy to set auto-invest features, make deposits, or request withdrawals in the palm of your hands.

No matter what account tier you choose on Fundrise, you can download this app and take advantage of all the features you get on your desktop setting free of charge

Dividend Reinvestment

The Fundrise Dividend Reinvestment Program (DRIP) enables you to reinvest dividends automatically without any extra charges. This is a great feature, as the money you earn can be reinvested to help you make more money.

Self-Directed IRA Accounts

The platform allows you to invest with traditional or Roth IRAs held at Millenium Trust Company. While it’s an excellent option for people planning for retirement, keep in mind that the platform charges an annual fee of $125 in addition to their standard fees.


Fundrise Performance 

No investment firm can guarantee future returns, but Fundrise takes great pains to explain its strategies and research trends and publish transparent reports on its historical performance.

While payouts differ from user to user, most people will receive them in one of two ways: dividends or returns. While dividends are more recurring, returns from the increased value of an asset usually make for a larger percentage of your overall returns.

According to Fundrise’s analytics from 534,374 accounts, the average return for clients is 51.5% at the five-year mark (which is the first year investors could withdraw funds without paying penalties). These returns rise to 67.3% after six years and 78.9% after seven years, but they’re significantly lower for shorter durations (e.g., 3.1% for one year, 15.5% for two years, and 31.3% for three years)

Remember that these rates are averages for all investment tiers and constantly change due to new market dynamics. Fundrise also releases more detailed quarterly reports on their portfolio versus benchmarks like the S&P 500 and public REITs for more context into their performance.  

FundrisePublic U.S. REITsS&P 500
20221.50%-25.10%-18.11%
202122.99%39.88%28.71%
20207.31%-5.86%18.40%
20199.16%28.07%31.49%
20188.81%-4.10%-4.38%
201710.63%9.27%21.83%

Fundrise Pricing and Fees

Fundrise charges a 1% annual fee for its popular real estate-managed funds, which includes a 0.15% advisory fee and a 0.85% management fee.

Optionally, investors pay a 1.85% management fee to invest in pre-IPO offerings through Fundrise’s Innovation Fund, and they can add an extra $10 per month (or $99 per year) if they want access to Fundrise Pro.

For those who want to rollover their IRA onto Fundrise, remember there’s a $125 annual custodial fee paid to Fundrise’s partner Millennium Trust Company. However, you could get this fee waived for one year if you deposit over $3,000 or waive the fee each year if you have over $25,000 in your IRA account.


Fundrise Security

Your data is safe as the platform uses bank-level security and AES bit symmetric key encryption to ensure there are no hacks or attacks. Besides, every connection to Fundrise is encrypted and secured via HTTPS and TLS (Transport Layer Security).

In addition, all investors can also enable two-factor authentication. At the same time, app users may use Face Unlock and fingerprint authentication to add another layer of account security.

The platform also has multiple secure data centers. It stores all its data and uses Amazon Web Services for its hosting, providing a significant layer of security.


Fundrise Customer Service

It can be challenging to get in touch with the company unless you become a Fundrise Pro member. 

While Pro members get priority support and the opportunity to schedule a call, investors who are not part of this plan are limited to the website’s contact form or sending an e-mail with a typical response time of one or two business days. 

While there are some great resources and FAQs on the website, the platform does not advertise a direct contact number to speak to a team member. Regular business hours are between 9:00 am and 5:00 pm ET.


Fundrise Ease of Use

Fundrise has a simple and clean UI/UX on its desktop and mobile app, and clients don’t typically report issues navigating the pages on this platform.

There are thousands of positive ratings for the Fundrise app on the App Store and Google Play, with average scores in the 4.5 – 4.8 range. Fundrise is also an accredited business with the Better Business Bureau (BBB) and has an A+ rating. 

However, Fundrise has lower average scores on Trustpilot of 2 stars out of 356 reviews, and its average BBB score is 3.88 out of 5, plus 17 complaints in the past 12 months. Many people who complain about Fundrise report issues with withdrawals, account freezes, or frustration over low yearly earnings.

Although Fundrise didn’t respond to comments on Trustpilot, it sent messages and resolved problems with reviewers on the BBB.


Fundrise Pros Explained

  • Low minimum investment: You only need $10 to open a Fundrise Starter account, which is one of the lowest minimum requirements in the crowdfunding real estate niche. While other account types and IRA rollovers have higher minimum deposits, Fundrise makes its platform extremely accessible with this $10 option. 
  • Open to non-accredited investors: In addition to its low minimum requirements, Fundrise welcomes non-accredited investors for even greater accessibility. While accredited investors get extra features on Fundrise, you don’t have to have this high status to take advantage of this crowdfunding site.  
  • Easy-to-use dashboard: Fundrise’s desktop UI/UX is highly intuitive and easy to navigate, and it’s easy to find the specific funds and investments Fundrise puts your money into. Also, the highly-reviewed Fundrise mobile app for iOS and Android offers another convenient way to manage this account. 
  • Fundrise automatically diversifies your money: While you choose your overall risk profile and investment preferences, you don’t have to worry about selecting specific assets when opening your Fundrise portfolio. Unless you opt for higher-tier plans or Fundrise Pro, Fundrise will automatically distribute your money into investments for a hands-off experience. 
  • Dividends can be reinvested: All Fundrise investors can automatically reinvest their dividends to compound their earnings potential. Regular dividend redistributions both augment cash flows and potential price appreciation. 
  • Auto-investing is available: If you’d like to set your “Fundrise funding” on autopilot, use the “auto-invest” feature. Select how much and when you want to deposit from your linked bank account to add money to your investments consistently.  
  • Investors can invest in Fundrise through their first-of-its-kind iPO: Fundrise gives members who hold at least $500 on the platform for a year the rare opportunity to get in on the ground floor with iPO investing. While this is an optional feature, it gives Fundrise users the first chance to become part owners in Fundrise’s parent company, Rise Companies Corp. 
  • Self-directed IRA investing is supported: Fundrise works with Millennium Trust Company to help clients rollover their retirement accounts and use tax-advantaged funds to invest on its platform. Whether people have Roth, Traditional, or 401(k)s, there are ways to put this money to work on Fundrise’s platform. 
  • The redemption program allows investors to redeem shares prematurely: While Fundrise doesn’t encourage users to pull out funds prematurely, it doesn’t bar users from withdrawing money sooner if they need it. You’ll have to pay an extra penalty and wait for a quarterly buying period, but it’s possible to get your money out of Fundrise earlier. 
  • Only 1% in annual fees: If you stick with Fundrise’s real estate offerings like eREITs, there’s only a 1% fee each year to use this site. Plus, there are many instances where you could get part of these fees waived, such as through special codes or referrals.

Fundrise Cons Explained

  • Investments on Fundrise are illiquid: Because the assets on Fundrise are on the private market, there are fewer buyers compared with public REITs or stocks. While Fundrise sets aside quarterly buyback periods to increase liquidity, it can take months to liquidate your shares and receive cash from your account. 
  • No individual deals are available: Fundrise offers a few ways to customize your portfolio composition, but you can’t choose individual deals through this platform. Fundrise decides where to invest and (unless you opt for a Pro account) arranges the assets in your account, which may not be the most attractive option for people who enjoy personalization. 
  • Investors have to do the due diligence themselves: You can find many transparent reports and articles on Fundrise’s investment activities, but investors are responsible for screening the assets in their portfolio and determining whether they feel comfortable with these investments. 
  • Customer support is only available via email: Aside from Premium members, it’s not easy to contact Fundrise’s customer support team. You can send emails for ticketed support, but you often have to wait a few business days to get a response from a Fundrise employee.

Fundrise Alternatives

While Fundrise is open to everyone, Roofstock and CrowdStreet are some good alternatives. Nonetheless, no option out there is as easy to use and reliable as Fundrise.

Fundrise vs. Roofstock

Roofstock is open to all as well and doesn’t have an investment minimum. In contrast to Fundrise, Roofstock investors can directly invest in turnkey single-family rental properties using property management services to handle operations. However, they can also invest in custom portfolios that are similar to Fundrise’s private REITs. 

At Roofstock, you can browse the available listings and place offers based on your personal preferences. Once your offer is accepted, the platform charges a fee of 0.5% of the purchase price or $500, whichever is higher. As soon as you own the rental property, you will earn rental income. You can also resell the property on the platform and deploy that money in a 1031 exchange. Read our full Roofstock review to learn more.

Fundrise vs. CrowdStreet

Another option for getting direct access to commercial real estate investment opportunities is CrowdStreet. However, the investment opportunities on the platform are only available to accredited investors. The crowdfunding platform allows you to invest in diversified funds, individual deals, or a professionally managed investment portfolio if you meet the criteria.

The minimum investment is a steep $25,000, which would let you easily enroll in Fundrise’s Advanced account level. If you invest on CrowdStreet, you don’t need to pay any account fees like on other platforms but other fees depending on the deal, ranging from 0.5% to 2.5%. Read our full CrowdStreet review to learn more.

FundriseCrowdStreetRoofstock
Our Rating

4.4

3.8

4.1

Fees1.0% per year0.50% to 2.5% (Funds); Project fees vary0.50% Setup Fee
Account Minimum$10$25,000$0
PromotionAdvisory fee waived (*12 months)NoneNone
HighlightAccess to private real estate deals
Access to commercial real estate investment opportunities
Invest in real estate with single-family rentals
Best ForLong term investorsHigh net-worth individualsLong term investors

Compare Fundrise

Find out how Fundrise stacks up against the competition.


Who Is Fundrise Best For?

The platform is suitable for all kinds of investors, including big and small one. Non-accredited investors benefit in particular as they often can’t join other real estate crowdfunding platforms. Plus, the investment minimum to $10 will massively help new investors with small account balances. 

Fundrise offers a wide variety of account levels to meet your needs and allows you to diversify your portfolio through real estate investments outside of stocks and bonds. The platform is also perfect for investors who want to invest long-term and don’t mind locking up their money for more than five years.

And even if you need to cash out funds early, you can do so, although you have to accept a small penalty fee.


Fundrise Review FAQ

Although we have covered Fundrise’s offering in detail, you might have some additional questions. We have compiled the most frequently asked questions below and provided an answer to each. 

Is Fundrise Safe?

The company keeps your data safe using multiple bank-level encryption methods such as AES, HTTPS, and Transport Layer Security. Moreover, investors can apply two-factor authentication, face unlock, or fingerprint authentication to secure their accounts.

Does Fundrise Offer a Mobile App?

Fundrise is ahead of its competition as it is one of the few crowdfunding platforms with a mobile application. As a result, you can easily manage your investments on the go and get the same level of access as with a web browser.

How Do You Withdraw Money from Fundrise?

To withdraw your money from the platform, you must submit a redemption request for your shares on the Fundrise dashboard. There, you will also see how long the withdrawal process takes.

However, keep in mind that all early eREITs and eFunds redemptions are subject to a penalty if you haven’t held your shares for more than five years. 

What Are Fundrise’s Historical Returns?

Fundrise has a solid track record with positive returns each year and the annualized average return is 5.29% from 2017 to 2022. However, most investors earn a little bit more or less depending on the eREITs and eFunds they are invested in.

Besides, the annual returns of real estate fluctuate. While Fundrise generated 22.99% in 2021, it only generated 1.5% in 2022.

Is Fundrise a Safe Investment?

No investment is truly safe, but Fundrise works hard to mitigate the risk for their eREITS and eFunds. Moreover, less-liquid real estate tends to perform better in downtimes and provides better protection than securities like stocks or bonds as they aren’t directly correlated. 

Can I Lose Money with Fundrise?

You could lose money with Fundrise if you redeem your non-introductory shares earlier than the regular hold period of five years. This is because you will have to pay a penalty of up to 3%.

However, if you lock up your money for five or more years and compromise on liquidity, it’s unlikely that you will lose money as Fundrise has generated a positive return every year so far.

In A Nutshell

Fundrise

on Fundrise’s website


Final Thoughts

Fundrise is an excellent platform for all investors who want to enjoy good returns from private real estate investments. It’s considered a pioneer in the industry and is known for being the first to introduce new services and products. Investors can choose from five account levels to match their current investor profile.

Fees are low, and you can start with as little as $10, which is fantastic for investors who want to get a feel for commercial real estate. Moreover, Fundrise automatically diversifies your money for you and allows you to reinvest dividends. 

Give Fundrise a try if you’re serious about earning money. You can receive quarterly dividends and make money from capital appreciation.

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