Is Fundrise Legit?

Is Fundrise Legit

What Is Fundrise?

Fundrise is a real estate investing platform headquartered in Dupont Circle, Washington, DC. It launched its first offering in 2012 and currently offers access to more than 276 real estate projects. These include apartment, commercial, and single-family properties. Both accredited and non-accredited investors can use the platform.

Fundrise has a very low minimum investment of just $10. Thus, making it one of the more accessible options for the average investor. Additionally, you can choose from increasingly customizable accounts depending on your initial investment (and level of expertise), so you can tailor your investment to your needs. Fundrise has traded more than $7 billion worth of real estate assets and, as of 2022, has more than $3.3 billion in assets under management.

Can You Really Make Money With Fundrise?

Fundrise’s portfolio has a healthy mix of fixed income (32.3%), core plus (32.5%), value add (24.7%), and opportunistic (10.5%) investments. This ensures you will make money and earn a steady income in the short term while adding value and generating long-term wealth with opportunistic investments. We recommend checking out our in-depth breakdown of the best Fundrise investment strategies.

Fundrise’s real estate portfolio currently has 276 active real estate projects. Most of its allocation is weighted towards apartments (40.2%) and single-family (42.3%) properties. Commercial (14.8%) and other types (2.8%) of properties account for the last 17.6%.

Does Fundrise Pay You Monthly?

No – Fundrise pays dividends quarterly, more specifically, in the middle of April, July, October, and January. Keep in mind that dividends that are not set in stone will fluctuate. This is based on the performance of the underlying assets. There’s no minimum quarterly dividend.

Can You Lose Money With Fundrise?

Yes – as with any other type of investment, there’s always the risk of losing part or all of your investment. Real estate, in general, is significantly less volatile than stocks and other types of securities, and it's very rare for it to lose value over time. Fundrise returns have only increased over time.

Another metric to consider is the historical returns. Despite not being indicative of future performance, historical returns can serve as an indicator. These can help you get a feel for the risks associated with the industry.

What Is The Average Return Of Fundrise?

The average returns for all investors for the last five years range from 5.4% to 22.99%. Using data gathered from more than 440,000 investors over the years, Fundrise estimates that the longer you hold your investments, the higher the expected returns. After the first year, they estimate 11.5% dividends on your initial investment, and by the 6th year, they estimate 86.2% of your initial investment.

Dividends are paid quarterly (April, July, October, and January). Keep in mind Fundrise is designed for the long-term investor, like most real estate investments. If you can’t afford to hold your assets for at least five years, investing in Fundrise – or real estate as a whole – may not be for you. In our full Fundrise review, we consider this and other factors so you can decide for yourself if it’s the right platform for you.

If you decide this is not your platform, here are some Fundrise competitors.

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