Fundrise Reviews - What Is It?
WARNING: DO NOT USE Fundrise Until You Read This Review!
Is it a Scam? Does It Really Work?
Fundrise is a company that allows gaining direct access to powerful, private market of real estate investments in a simple way. Its eDirect technology claims to represent a good alternative to investing in the stock market. Actually, this technology is well-combined with new federal regulations, which is why it might be the biggest change in the industry. Investors are expected to enjoy up to 30-40 percent higher annual returns than those offered by the traditional public stock. According to the official website, this has become possible due to the invention of the mutual fund. Fundrise is said to revolutionize the investment industry and to rebuild it with low-cost advising. The company claims to have invested over $1.2 billion in real estate since its foundation. Can it really help to build a better financial future? We are going to find an answer to this question by discussing what we have learned during our research. So, if you are interested, keep reading.
The Fundrise investment process works in a simple way. First of all, you will need to open a free Fundrise account and choose one three investment goals. The first one is supplemental income. It will be a good option for those who prefer low variability, have a moderate time horizon, and are interested in a consistent passive income stream. The second one is long-term growth, the most suitable for those who are looking for some income but would like also to earn higher returns in the long run, with moderate expected variability. The third possible goal is balanced investing that involves low variability and moderate-to-long time horizon. It focuses on broad diversification. Depending on your goal, Fundrise will allocate your investment across a combination of Exchange Commission (SEC) and their Securities. The latter are regulated eFunds and eREITs defined as "portfolios of private real estate assets" on the area of the USA. You are promised to get the same leveraging and purchasing power offered mainly to large institutions. You will be able to enjoy reasonable fees.
Customer Reviews - Does Fundrise Really Work?
As a matter of fact, there are not many customer reviews about the company on different websites on the Internet. In fact, HighYa contains only four testimonials from its readers. However, the overall feedback about Fundrise is very positive, since the company received an average rating of five stars. Common compliments referenced their open communication, transparent business model, consistently high returns, and property diversification and ease of use. The company is based in Washington, DC, and seems to have similar feedback on other websites online. It has an A+ Better Business Bureau rating without any closed complaints. It is important to mention that Fundrise has been in business since 2011; however, they've recently reconstructed their brand and separated themselves from the "real estate crowdfunding platform". The company is headed by founder and CEO Ben Miller, who also co-founded the Popularise real estate crowdsourcing website, according to his biography. He is also a principal at US Nordic Ventures and a managing partner at WestMill Capital. In general, he has financed over $500 million worth of property.
As it was already mentioned, Fundrise involves eREIT. In a few words, it is an electronic Real Estate Investment Trust that is similar to a mutual fund or an exchange-traded fund (ETF). It gives an opportunity to investors to diversify their investment across many different sources. eREIT represents such real estate assets, as hotels, apartments, retail, and office buildings. The company focuses on commercial real estate properties of sub-institutional size and institutional quality. It enhances the value of each property via opportunistic lending and equity ownership. Cash Flow contains rental income, potential profits, and interest payments. eREITs are offered to investors online, and provide consistent cash distributions every three months, as well as extra returns at the end of each investment (usually after five years). An eFund (electronic fund) is a diversified portfolio of residential real estate. As the Fundrise website claims, examples include townhomes, single-family detached homes, and condominiums designed for first-time and active homebuyers. The eFund process includes a few steps. Buying property, the company pays attention to high-growth neighborhoods in large cities. Then the company constructs these properties depending on projected homebuyers' needs. After that homes are sold and investors get the profits. Let us take a look at the actual investors' reviews available online.
"I have positive experience with Fundrise. I started working with them about three months ago and I am happy with the professional approach of the company, as well as responsive representatives. If I have any issues or questions, they are open to respond any time. Everything is comprehensive and well documented. Overall, their operations run very smoothly and working with the company is a good investment for me."
"I have been cooperating with fundrise for four years already. Every investment brought me at least 10% annually. I have learned a lot of useful information about real estate market from their education section. So far, I am pleased with my experience with this company. They are transparent about my investments and provide supporting information. I like good communication and being informed about the progress of your portfolio development."
"I have been with Fundrise for two years already and I have got about 10% returns on a consistent basis. I have nothing bad to say about the company. It is easy to put money in and develop my account. I didn't think it would be that easy. It's all backed up by real properties such as apartment buildings, senior facilities, condos, hotels, townhomes, and places created to generate revenue. I do recommend them to everyone."
My Final Summary
Based on what we have learned about Fundrise by analyzing their official website, as well as by reading customer feedback online, it appears that the company offers low fees, unique products, traditionally higher-than-stock-market returns, and a transparent, user-friendly experience. Overall, the company has a very positive reputation with customers who highly appreciate the concept that allows them to invest along risk/growth preferences. I believe that they are able to represent high-quality real estate investing service, since the investors' needs align with their offerings. With this in mind, I would recommend Fundrise to all people who would like to earn money by investing into real estate.
Fundrise Pricing and Rates
eFunds and eREITs are offered to accredited and non-accredited investors through the official website of the company. These carry a $1,000 minimum investment and do not presuppose any broker or selling commissions. You can find a complete description of potential fees in their Offering Circulars. You are expected to pay up to a two% asset origination/acquisition fee, as well as a 0.85% annual asset management fee. People using both the management system and investment services will pay a 0.15% annual investment advisory fee. The direct-to-investor model is expected to help you save 20-40% compared to traditional options.