Type:
Real Estate
Focus:
Debt & Equity

Overall:

Platform Provided Due Diligence:

Platform Fees:

Quality of Deals:

WebsiteFundrise

Fees - .3% annual management fee

Phone - (202) 584-0550

SEC REG - USES 506(c)  and 506(b)

Fundrise is crowdfunding platform for real estate investment with a unique focus on involving local investors with opportunities close to home. Benjamin and David Miller founded the company in August of 2012 to give everyone the opportunity to invest in real estate. This amazing platform is now raising in hours what once took months and best of all—these are local investors.

By investing in the Project Payment Dependent Notes, issued by the Rise Companies Corp., the parent of Fundrise LLC, both accredited and in some cases, non-accredited investors can take part in return of the real estate market. Every investment opportunity is vetted and comes with a complete projection of returns and a distribution schedule specific to that project.

Fundrise also allows investors to gather together into investor networks that can follow and work with specific real estate companies. By allowing investors to pool their resources and fund opportunities with a stable of entrepreneurs they trust, Fundrise makes it easier and more efficient for great investors and great companies to connect in mutually beneficial ways.

Fundrise raised over $31 million dollars in its first round of funding, with this infusion; Fundrise is broadening far beyond its roots in Washington and is now beginning to offer crowdfunded opportunities nationally. Fundrise charges different fees for each Project Payment Dependent Note, though they range typically from 0-3%. Fundrise utilizes 506b, which does allow a limited number of non-accredited and self-certified investors to fund projects.

Due Diligence & Discussions

Share your experience. Rate and comment!

Christopher Changprai

Jun 25, 2019

My ratings are based on the fact that this platform is meant to provide RE institutional investment quality to non-accredited investors at low investment minimums.  I applaud them for doing this.  They switch to the eREIT format to my dissappointment but it makes more sense in order to mass market the product.  They also offer funds and a QOF.  The online platorm is easy to use and provides detailed portfolio performance tracking.  They have great due diligence reports on the projects but you have to request it directly since they don't publish it on the site.

I never invested in a competing platform so I can't make any specifc comparison.   Fundrise did have better deals and returns than Realty Mogul when I reviewed it 3 years ago.  Nonetheless, Realty Mogul seem to have pivoted their offerings and is similar to Fundrise.  The only comparison I would have, based on non-accredited investments and my personal experience, is to compare the performance to directly purchasing rental real estate.  My IRR has been 9% to 11% in this rental arena which is in line with returns from Fundrise products.  While direct RE investments has the benefit of depreciations write-offs, it is a lot more work to manage and exit an investment.  

Overall, I am happy with their service and product and have been recommending them to my non-accredited friends or the ones seeking low investment minimum.

-Chris  

James Hartley

Nov 01, 2017

Easy, beginner friendly REIT for non-accredited investors, but agree with other comments that accredited investors can find better deals elsewhere.

Friends who used to use the platform mentioned good double-digit returns, but those days are probably over with the REIT model.

R D

Aug 24, 2017

I agree with the comments below.  Too bad they switched to their eREIT model and abandoned their earlier business.

Jack Reidy

May 02, 2017

I still think Fundrise has the best website for RE Crowdfunding compared to its peers. However, the transition to the REIT format has me looking elsewhere for opportunities.

I had 10 notes on their site with 8 completely closed with an annualized return in the upper teens.Very happy with the individual opportunities but not interested in the eREIT.

 

James Bobbett

Feb 19, 2017

I made two preferred equity deals in 2015 with Fundrise that are both working well. Unfortunately they don't do those anymore and have switched to a REIT model. My limited investigation of that convinced my I could probably do better elsewhere.

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Fundrise Fundrise
Rated 2.8/5 based on 16 customer reviews

WebsiteFundrise

Fees - .3% annual management fee

Phone - (202) 584-0550

SEC REG - USES 506(c)  and 506(b)

Fundrise is crowdfunding platform for real estate investment with a unique focus on involving local investors with opportunities close to home. Benjamin and David Miller founded the company in August of 2012 to give everyone the opportunity to invest in real estate. This amazing platform is now raising in hours what once took months and best of all—these are local investors.

By investing in the Project Payment Dependent Notes, issued by the Rise Companies Corp., the parent of Fundrise LLC, both accredited and in some cases, non-accredited investors can take part in return of the real estate market. Every investment opportunity is vetted and comes with a complete projection of returns and a distribution schedule specific to that project.

Fundrise also allows investors to gather together into investor networks that can follow and work with specific real estate companies. By allowing investors to pool their resources and fund opportunities with a stable of entrepreneurs they trust, Fundrise makes it easier and more efficient for great investors and great companies to connect in mutually beneficial ways.

Fundrise raised over $31 million dollars in its first round of funding, with this infusion; Fundrise is broadening far beyond its roots in Washington and is now beginning to offer crowdfunded opportunities nationally. Fundrise charges different fees for each Project Payment Dependent Note, though they range typically from 0-3%. Fundrise utilizes 506b, which does allow a limited number of non-accredited and self-certified investors to fund projects.