We all want to get the highest possible returns on our investments. But, this isn’t ever guaranteed and there are a lot of barriers to investing in big-ticket assets like real estate. If you’ve always wanted to invest in residential and/or commercial properties but the thought of having to save up thousands of dollars for a down payment has been holding you back, then you can’t afford to overlook the latest tech-driven investment platform, Fundrise.
As one of the few companies offering high-quality real estate investments to everyday investors, Fundrise is truly a unique platform with impressive figures to its name. Fundrise has 80,000 individual investors, $3 billion worth of real estate in its portfolio, and 4.98/5.00 star review average with the Better Business Bureau.
To determine whether investing in homes, office buildings, and other investment properties is a good option for your own portfolio, here are some things to consider about the company and our Fundrise Review.
How is Fundrise Unique?
Instead of saving tens of thousands of dollars to invest in your own property, Fundrise lets starter investors begin with just $500, or $1,000 for an “advanced portfolio”. Fundrise supports many different investment accounts, including personal, joint, and some entity accounts. You can even invest money using funds from your IRA account!
But what makes Fundrise truly unique is that they were the first company to offer low-fee, diversified real estate investments for the average person. Whereas individuals were previously limited to stocks, bonds, and mutual funds, Fundrise makes it simple for individuals to access private market real estate, which has historically performed better compared to public investment options.
Investing in Real Estate
According to Forbes, public stocks typically underperform private investments. This is due to the fact that public stocks come with an auction liquidity premium, which means you’re paying approximately 20-30% more for an asset simply because you purchase it through a public market rather than a private market.
With Fundrise, an asset class that was once limited to the richest investors is now readily available to everyday investors. The company has essentially cut out the middleman and offers high-quality real estate opportunities. You can invest in some of the many properties Fundrise manages without the exorbitant expense that comes with traditional investment management.
What is eDirect Investing?
Fundrise’s eDirect technology combines secure, cloud-based software with investment and programming professionals to create an autonomous investment platform. Referred to as “full stack financial integration,” this Fundrise technology is incredibly advantageous for investors. It offers greater affordability and efficiency in comparison to traditional advisors and fund managers.
Fundrise also abides by SEC regulations, offering utmost transparency for its investors through annual audits and consistent financial reports made public. The company estimates its eDirect investment technology produces an average of 4.1% greater returns on investments in comparison to other forms of technology-driven capital formation. This suggests that Fundrise is an excellent alternative investment to protect your portfolio from market swings.
Investment Plan Options
Fundrise offers three primary investment plans, supplemental income, balance investing, and long-term growth. Each plan comes with its own unique advantages, such as the supplemental income plan’s dividends-driven, private equity strategy, or the growth-oriented strategy that prioritizes equity real estate assets that appreciate in value over time.
Fundrise is completely transparent about its investment options and includes vital information to help you decide which plan is right for your investment needs. They include the average age of investors with that particular plan, its popularity among Fundrise users, and the average dollar amount individuals have invested in those plans.
Once you decide on a plan, you’ll get access to a full range of data, charts, graphs, and other informative resources to help you track your portfolio’s performance and reallocate funds, as needed.
Should You Invest with Fundrise?
Fundrise presents an incredible opportunity for investors who want to jump into the real estate market without having tens or hundreds of thousands of dollars to invest upfront. The tech-driven platform is also ideal because you don’t have to put much effort into managing your investments. Plus, you can save money with the low-fee structure compared to traditional investment advisors.
Ultimately, if you want higher returns on your investments, highly efficient portfolio management, and access to quality, diversified investment options in the private real estate market, then Fundrise is your best bet.
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