Have you been thinking of investing in real estate? If that is the case, we can guarantee you that you have landed up in the right place. It is common knowledge that to invest in real estate one needs to come into the market with heavy capital. However, this reality has changed over time. Now, you can start investing in real estate and earning profits from the investment, even if you don’t have a massive base of capital. Fundrise is a company, which deals in real estate. Through Fundrise, small-scale investors can buy shares in real estate. The following article mainly aims at providing the reader with a Fundrise review for guiding them through investing online in real estate.
What is Fundrise?
Fundrise was founded in 2010 and has its headquarters in Washington DC. It is often described as the pioneer in the field of online real estate investment. It is a crowdfunding based platform where investors can buy shares in real estate companies, projects, etc and all of this can happen online. Fundrise allows investors with less capital to buy shares in real estate projects which have a bright prospect. Fundrise has developed a lot since then. In the year 2015, it introduced the electronic Real Estate Investment Trust, which is known as eREIT. This was a revolutionary introduction in the field of real estate investment. Launching such an innovative medium of real estate investment surely turned some heads and within a small time, it became well known throughout the USA.
While it can get extremely difficult to invest in real estate if you are just starting off and have little experience, the eREIT concept developed by Fundrise can come to your rescue. Fundrise allows a client to invest in any property situated in any state in the USA. Being a leading player in the field of real estate investment, Fundrise has a strong team of experts who take care of the deals and maintain the relationship between investors and project heads.
Fundrise Features
Fundrise has been in the news for quite some time and it is important to have knowledge about the things that are possible with the help of it. That is why it is important to know about the features –
- There are no investor requirements in the case of Fundrise. Non-Accredited investors are also allowed to invest.
- The minimum amount of investment is fixed at a meager amount of $500.
- The advisory fee is 0.15% and the fee for asset management is fixed at 0.85%. There might be other fees at certain levels of the investment, depending on a number of factors.
- Fundrise offers different kinds of investment such as e-REIT, Interval Funds, and eFunds.
Various types of property such as commercial, residential, single, or family are available via Fundrise. - Fundrise is designed with the view of earning profits and growing over a long period of time. It is meant for investments that will earn heavy returns over an elongated period of time.
- Fundrise serves investors on properties and projects across all 50 states of the United States of America.
- The Fundrise website is well-built and investments can be conducted via the website itself.
- Email and phone can be used to get in touch with Fundrise and seek help.
Advantages of Fundrise
Now that you know about Fundrise and how it works, you must be thinking is Fundrise worth it? To help you with this confusion, we have included this part in the Fundrise Review. Read on to find out the advantages of using Fundrise –
- One of the major advantages of Fundrise is the fact that there is a very low bar for minimum investment. This particular feature is extremely advantageous for people who are just starting off with real estate investment. It also acts well with people who want to explore the possibilities in the field of real estate but have a low budget to start off with.
- The Fundrise website which can be used both on a computer and a mobile phone is extremely easy to use. Users can just visit the website and navigate to the available projects and invest in whichever one they seem is the best for them. It is a hassle-free procedure, which does not require any previous experience.
- Fundrise can be used by all sorts of investors. It doesn’t matter if you have any prior experience in investing or if you are related to real estate investment. There is no need for a past record for you to invest in Fundrise. If you are a completely new person in this field, there is no need for you to worry. You can simply visit the Fundrise website and get started with your career in real estate investment.
A few more Advantages:
- Fundrise’s advantages do not stop here. Once you make an investment in quality real estate via Fundrise, your assets will need management. Fundrise charges only 0.85% of your total asset cost as their annual fee for the management. This rate is reasonable and affordable in nature.
If you are someone looking to invest in commercial real estate, you might know that investing in such real estate projects requires a lot of money. However, Fundrise allows you to make an investment in commercial real estate projects with a comparatively less amount of money. This is possible because Fundrise is a crowdfunding platform. So, if a share for a commercial project is $4000, if you are on Fundrise, you can invest in a part of the share. - Fundrise has a redemption scheme. This is extremely advantageous to the investors. Because of this, an investor can sell some of the investments early if need be. This allows the investor with security that their money is not stuck in the system for long.
Disadvantages of Fundrise
Although Fundrise is an amazing platform for investors keen on real estate but has a low budget, there are certain Cons to it as well. Let us look at some of them –
- The foremost disadvantage is the fact that investors cannot invest in one particular property deal. Because it is a crowdfunding platform, each eREIT or each deal will have multiple owners. Due to this, it is also not possible to leave a particular deal or investment at one go.
- Because Fundrise provides a wide array of deals and shares, it is normal to invest in a number of projects. This might make it difficult for an investor to retract from a position. It also becomes difficult to keep track of all the investments because a person is not the sole owner of the shares.
Fundrise has, in a way, brought a massive change in the concept of real estate investment. It has successfully changed its idea from being an expensive and c to a form of investment that is available to everyone and anyone can invest given the fact that it has low minimum investment. However, any sort of investment has risks that are unavoidable. One should navigate through this properly before making an investment.
