Indeed… I wouldn’t worry about this too much. Fundrise has 130,000 user investors and more than $1 billion of assets under management.
In many ways, though, it’s still a developing company.
I am curious and optimistic about this as a bold, accessible model for low-stakes real estate investment, and well worth a $500 gamble. Real estate can be a great way to earn supplemental income, so it’s worth a try.
Also, keep in mind that distributions are taxed as ordinary income. That may be higher than the 15% tax rate on dividends.
Now, let’s answer a few common questions you may have about Fundrise.
Can You Make Money With Fundrise?
Yes, you can make money with Fundrise. Just in case you missed it, take a look at the Fundrise Performance section.
Typical returns for most investors are between 9% and 11%. If you invest in stocks at all, you know that return is on par with what you would get in a bull market.
It’s worth noting however that these numbers are averages, so your results could be different. Every property is different.
Still, results look relatively strong across the board.
Is Fundrise a Good Investment?
In general, Fundrise is a good investment. The average 10-year stock market return for the past 140 years is 9.2%.
Considering Fundrise’s returns either match or beat that number, it certainly looks strong.
It’s also good to have real estate in your portfolio for diversification purposes. The housing market doesn’t typically influence the stock market, and vice versa.
Of course, the Great Recession is a notable exception. But, in general, having real estate in your portfolio can help during a bear market.
People still need a place to live regardless of the stock market, after all.
Having strong returns and making your investment portfolio more well-rounded, Fundrise is indeed a good investment.
How is Fundrise Doing?
Things are going well for Fundrise. Since 2012, it has invested more than $4 billion and has more than 130,000 individual investors.
As you can see, Fundrise is doing quite well and continues to grow and expands its operation.
Fundrise is definitely an interesting concept. By providing short term loans to major developers (1-3 years, early repayment accepted), then making those investments available to Average Joe investors, they’ve made a true innovation in the crowdfunding investment marketplace.
I have yet to use Fundrise for more than a couple of months, so I can’t speak to the long term user experience. However, more experienced Fundrise users say that liquidity can be a problem.
It’s conceivable that as this model takes hold, there will be more and more investments available. In the meantime, the investments I’ve seen have seemed strong and trustworthy, and I have no complaints.
But the night is young….we’ll definitely update this review as we learn more.
Try Fundrise out for yourself. It’s the cheapest and easiest way to get equity stakes in major real estate development, without having to sink millions into a single project.
Real estate is a great way to earn passive income.
Plus, real estate is a great investment if you want a diversified portfolio. Stocks and mutual funds are great, but the stock market can be volatile at times.
Real estate can be somewhat illiquid, but owning stocks also helps in that regard.
You can also buy stable real estate debt from your self-directed IRA or other account. Try Fundrise and let us know your experience.
It fills a unique spot in the investment landscape and we’re excited to see how it develops. Just be sure to do your due diligence before becoming a real estate investor.
Click for Fundrise pricing and details.