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Fundrise is a real estate platform for investing in alternative asset funds such as private real estate, private credit, and venture capital. The platform accepts clients regardless of annual income or net worth.
$10
0.85% for real estate (additional 1% and $125 for IRAs)
- Available to non-accredited investors
- Low minimum account size requirements
- Varying risk and volatility options
- Passive income
- Investments are illiquid
- Illiquid investment options
- Not ideal for short-term investing
Fundrise is one of the best real estate investing apps for non-accredited investors looking for affordable crowdfunding investment options. The platform accepts clients regardless of annual income or net worth.
Fundrise- Consider it if: You're looking for an easy and inexpensive way to start investing in real estate.
- Awards: Listed in Forbes Fintech 50 list twice
Introduction to Fundrise
Fundrise is among the best real estate investing apps for beginners and non-accredited investors seeking affordable alternative investment options like real-estate and venture capital funds.
Non-accredited investors can use Fundrise to diversify their portfolios and get exposure to the real estate market without buying properties or becoming landlords. You can access the platform on desktop or mobile to easily monitor asset growth, review market trends, generate passive income, and set project alerts.
You'll simply need to meet the minimum balance requirements and be able to pay account fees. Prospective users should note, however, that its investments are intended for those with a time horizon of at least five years.
Fundrise allows you to cash out anytime, even if you don't reach the five-year minimum. This is rare for a real-estate investment platform. However, you can still be charged a 1% penalty on early withdrawals from certain fund options.
Fundrise: Overall Rating
| Features | Insider rating (out of 5) |
| Fees | 4.50 |
| Investment selection | 4.50 |
| Liquidity | 3.00 |
| Ethics | 5.00 |
| Access | 3.50 |
| Customer service | 3.50 |
| Overall score | 4.05 |
How Fundrise Works
Fundrise offers personal investment, joint, IRA, entity, trust, and advisor-assisted accounts.
Fundrise Plans
After opening an account and filling out a short questionnaire, Fundrise recommends one of its four plan options:
- Supplemental income plan: Invests primarily in private credit (80%) and real estate (20%) to generate consistent dividend payments with low volatility. It's best for retired and near-retired individuals looking to increase their current cash flow. This plan includes the Income Real Estate Fund.
- Balanced investing plan: Invests primarily in growth-oriented assets, such as real estate (90%) and private credit (10%) to grow wealth and diversify one's investment portfolio. It's best for investors interested in earning consistent, short-term income and benefitting from long-term capital appreciation.
- Long-term growth plan: Invests solely in real estate assets likely to appreciate in value over time. It's best for investors looking to diversify their portfolios with alternative investments while earning long-term returns. This includes the Flagship Real Estate Fund.
- Venture capital plan: Invests in various pre-IPO private technology companies, including AI and data infrastructure companies. This plan option is likely to fluctuate over the short term but offers risk-adjusted results over the long term. It's best for investors with a long time horizon. This plan includes the Innovation Fund.
Fundrise compares its offerings to mutual funds for alternative assets. It offers risk-adjusted returns with quarterly liquidity.
Fundrise Pro
A Fundrise Pro membership allows you to customize your investment plans, invest in specific funds, pick and choose their ideal allocations, and update your portfolios as your goals change over time.
As a Pro member, you can access expert-level data from Basis™ — Fundrise's proprietary property management data warehouse — and leading market research from John Burns Research and Consulting. Moreover, Pro members can access selective paywalled content from leading news sites like the Wall Street Journal.
IRAs
You can open a traditional, rollover, or Roth IRA and invest in the same Fundrise-directed plan options as a general investing account. Fundrise's IRA custodian is Inspira Financial Trust, LLC.
Fundrise IRAs charge a $125 annual fee, but you can get that waived by:
- Investing in $3,000 or more each year
- Investing and maintaining a balance over $25,000
Fundrise Fees
Fundrise requires a $10 minimum for a general investing account with a 0.15% annual advisory fee. To be a Pro member, you'll be charged $10/month (or $99/year). IRAs require a $1,000 minimum.
Management fees vary by fund option. Fundrise real estate funds charge an annual 0.85% management fee. To invest in the Innovation Fund, you'll pay an annual flat 1.85% management fee. IRAs charge a 1% annual fee and a $125 annual fee.
Pros and Cons Fundrise
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Fundrise Trustworthiness
Fundrise has received an A+ rating with the Better Business Bureau and is an accredited business. BBB ratings range from A+ to F, so Fundrise's A+ indicates that the company interacts well with its customers, promptly acknowledges and settles customer complaints, and exhibits trustworthy business practices.
The BBB assigns its ratings by assessing company information from business and public data sources and reviewing any customer complaints filed against the company.
On August 22, 2023, The SEC settled charges with Fundrise originally filed against the business in 2016, claiming that Fundrise violated compliance requirements related to working with content creators. Fundrise neither admitted nor denied these allegations but agreed to pay a $250,000 civil penalty.
Fundrise vs. Other Real Estate Investing Platforms
Fundrise vs. CrowdStreet
Fundrise and CrowdStreet are great for short-term real estate assets and other alternative investment options. However, they differ regarding fees and access.
Fundrise is best for investing in cost-effective real estate, private credit, and venture capital funds. It's also the best for non-accredited investors, as most of Fundrise's investment options are available to all investors regardless of accreditation status. Crowdstreet only accepts accredited investors and has much higher minimum requirements.
Crowdstreet is better for those interested in automated, tailored portfolios of commercial real estate investments. Investors aren't charged fees to register or access real estate listings. But you must be accredited and meet the $25,000 minimum to open an account.
Fundrise vs. Yieldstreet
Like Fundrise, Yieldstreet is a popular real-estate investing platform for accredited and non-accredited investors. Although they offer real-estate assets, the platforms differ regarding investment options, minimum, fees, and access.
Compared to Fundrise, Yieldstreet is a better choice for overall alternative investing. In addition to real estate assets, Yieldstreet offers fine art, short-term notes, multi-asset class funds, and more. However, its minimum investment is significantly higher than Fundrise's (Yieldstreet requires a $10,000 minimum). Non-accredited investors can only invest in Yieldstreet's Alternative Income Fund.
Therefore, Fundrise is the better (more affordable) option for non-accredited investors who can access most of Fundrise's investment options.
FAQs
Fundrise is a good investment platform for low-cost real estate, private credit, and venture capital funds for short-term cash flow and long-term appreciation. Non-accredited investors can access most of Fundrise's investment options. However, investing in assets like real estate is highly illiquid, and your investment is not guaranteed to work out. Fundrise is not a good option for beginner investors.
Fundrise's fees include an annual 0.85% annual management fee and a flat 1.85% management fee for the Innovation fund. IRAs charge a 1% annual fee and a $125 annual fee. A Pro membership charges $10 per month.
Yes, you can withdraw your money from Fundrise at any time, even if you don't meet the five-year minimum. You can still be charged a 1% penalty on early withdrawals from certain fund options. Withdraw money by placing a standard liquidation request on the Fundrise platform with your account. Once the liquidation request is processed, you can get your funds sent back automatically.
Why You Should Trust Us: How We Reviewed Fundrise
Fundrise was reviewed using Business Insider's rating methodology for investing platforms to examine the different account types offered, pricing, access, ethics, security, and overall customer experience. Investing platforms are given a rating between 0 and 5.
Real estate investing apps generally offer user-friendly sites for education and market access. Some investing platforms are generally better for beginners or passive investors, while others are best for experienced and active traders. Fundrise was evaluated based on how well it performed in each category.
