Are you looking for a real estate business opportunity that will fit your needs?
We’ll see if Fundrise is a great resource and if it’s the best real estate course available.
In the end, you’ll find answers to some of the most frequently asked questions regarding Fundrise and Real Estate in general.
But most importantly, you’ll see the exact system many others have used to build their own internet marketing business to over $40,000 a month in mostly passive income.
This system made them swear off Real Estate for good, because it uses some of the same skills but in a much more powerful and profitable way!
Fundrise is a course that teaches you about real estate investing.
If you’ve read my other articles on real estate investing, you’ll know there are 3 primary ways to invest:
Wholesaling, buy-and-hold, and flipping.
While they each have their pros and cons, there is a ton of potential for success investing in real estate.
Real estate has created some of the largest fortunes in world history.
That being said, you should take some time to seriously think about something:
Is now the best time for YOU to get into real estate investing?
Because despite the potential upside, investing in properties or land takes a lot of capital, and is very labor intensive.
That means if you:
- Have less than 3 hours per day, OR
- Aren’t sitting on $20K+ in disposable income
This may not be the best time for you to start investing in physical real estate.
Don’t get me wrong, real estate investing can be an amazing way to protect your assets while generating cash – but there’s a time and a place for it.
But there’s good news!
All you need is a system to generate you the cash (& free time) you need to be ready for real estate investing.
My preferred method of getting there is by becoming a Digital Landlord
It takes the benefits of real estate investing, but removes many of the barriers (& annoyances), like:
- Small cash flow on properties
- Having to take out debt
- Dealing with repairs and upkeep
- Dealing with tenants
The cool part is that the income is mostly recurring (AKA semi-passive).
You could make anywhere from $2,000-$10,000+ per month doing it.
You can build it as big (or small) as you feel like, without the annoyances I listed above.
If that sounds interesting, you might want to think about becoming a Digital Landlord.
Then, you can take the profits and start investing in physical real estate a year or two from now.
If you wanna see what Fundrise looks like on the inside, keep reading.
What Is Fundrise?
For non-accredited investors who lack market access and the funds to fund their projects, Fundrise is a huge help as a real estate “crowdfunding” platform.
Because Fundrise is focused on small non-accredited investors rather than institutional or accredited investors, they can invest in real estate through pooled funds.
Consider Fundrise to be a private real estate investment trust (REIT) without all of the fees. If you’re unfamiliar with a REIT, it’s a type of investment vehicle in which you invest in a group of properties. Consider it similar to an ETF for real estate or mutual fund. It holds a variety of investments within the REIT. As a REIT owner, you receive a small share of the income generated by these properties.
Despite the fact that Fundrise is not a publicly-traded company, you can liquidate your investment up to four times per year with a 30-day notice. This is not the same as a publicly-traded REIT, which you can sell right away.
Fundrise Review: Company Background – Who Is Ben Miller?
Real estate investing is one of the safest and most profitable investment forms. On the other hand, high property values prevent many people from investing.
Fundrise recognized this issue and devised a solution. Using new technology, they created a solution that fits the needs of investors with limited capital. Those with little funds for investing in real estate now have the ability to join a collective pool to generate high returns.
Ben Miller, the company’s CEO and co-founder had spent years working in the real estate industry before launching Fundrise.
He saw numerous inefficiencies in the existing real estate investment strategy, which was heavily reliant on Wall Street partners. He believed that online technology had advanced to the point where individual investors could invest in real estate without relying on stockbrokers as middlemen.
In 2012, the platform was created and launched. Over the last seven years, it has grown to over 140,000 investors. The firm manages assets worth more than $1.2 billion. Real estate investors do not need to be accredited investors, and you can invest as little as $500. It is popular among millennials and young investors who want complete control over their money.
Fundrise provides a few different investment options. The most popular is their eREIT (electronic Real Estate Investment Trust) option. The eFund is the other option. Aside from these, Fundrise provides a wide range of investment options, from starter portfolios to advanced investing options.
Investing With Fundrise: What Are The Minimum Requirements To Invest?
What’s needed to get things going? Start investing with just $10, and you’ll be off to a good start! The price quoted is for the Starter Portfolio service.
The Starter Portfolio
This is the account that is created by default when you sign up to join.
You only need to an initial investment of $10 in the service’s Starter Portfolio, which is a diversified mix of eREITS and eFunds with underlying private real estate assets located across the United States.
You’ll receive returns in the form of quarterly dividends as well as an increase in the value of your shares.
If you decide to invest, you will be investing in a 50/50 mix of income eREIT and growth eREIT. You should plan to retain both investments for at least five years, with the option to liquidate once each quarter.
With a $1,000 investment, you’ll be upgraded to the Core Portfolio. There are three plans that an investor can choose from here:
This portfolio option is used to provide the investor with a consistent source of supplemental income. This is accomplished through property value growth and rental income. It provides a steady income, but the long-term gain is minimal.
This option creates a highly diversified portfolio and consists of both income-generating and value-appreciating properties. Although the periodic payments are low, investors can accumulate a significant amount of value in their properties over time.
This portfolio consists of properties that have shown the greatest appreciation in value over time, with annual returns as high as 15% per year possible. This portfolio’s investors do not receive a regular income.
If you’re not sure which one is best for you, Fundrise has a three-step questionnaire that can help you decide how to invest.
Investing With Fundrise: What Are The Product Options?
So, you’re looking to buy a residential property. Investing in non-traded single-family homes can be done with E-funds through Fundrise. Unlike the eREITs, eFunds are structured as partnerships and do not pay dividends. This means that when tax time comes around, you’ll get a 1065 K-1 form, which is different from the tax form you’d get if you invested in eREITs.
You’ll still have direct access to the portfolio with the eFund, which saves money. You’ll also be diversified across different areas and types of homes, ensuring a relatively stable investment.
If you choose an eFund over an eReit, you are essentially investing in a real estate project. A liquidity event cannot be expected until the project is completed. You can, for example, invest in a Washington, DC fund or a Los Angeles fund.
Fundrise has a variety of portfolios to choose from. One of the options is a low-cost portfolio that requires only a $10 investment at the outset. There are also plans for passive income, plans for more balanced investing, and plans for long-term growth. On Fundrise’s website, you can see each portfolio’s projected growth over the next several years.
These managed plans are slightly more costly. However, don’t be too concerned about balancing your risk and reward.
Fundrise is open to any American citizen over the age of 18. To invest with Fundrise, you must have a Social Security Number and a minimum investment of $10.
You can now use pre-tax dollars to invest in Fundrise for retirement planning. (It should be noted that self-directed IRAs can only be used for eREIT offerings.)
You can now invest in real estate based on your goals rather than the type of investment or location, thanks to their new platform.
As many as seven eREIT funds and dozens of properties are included in Fundrise’s goals-based portfolio. You can choose between a balanced portfolio, a passive income portfolio, and an aggressive growth portfolio. Your eREIT mix will be determined by your objectives.
You may get more information about each eREIT, including details about their assets, leveraging power, and projections for future growth and revenue right from the Fundrise website.
Fundrise is preparing to sell shares in the company itself through an “internet Public Offering”(iPO). You must have at least $1,000 in your Fundrise account and have chosen one of the advanced plans to be eligible for this investment. This offering allows you to invest up to 25% of your total account balance.
Fundrise Reviews: Is It Safe To Invest With Fundrise?
There is no need to worry about whether or not Fundrise is a scam because it is registered with the SEC and undergoes annual audits as part of its compliance requirements. So, it’s out of the question to invest in anything not traded on the stock market.
And those audits of financial statements are disclosed on the form 1-K, which you can access right now by searching for it. In addition, Fundrise offers a 90-day satisfaction guarantee.
So, if you invest and decide within 90 days that you no longer want to be invested in this, they will refund your money. There are some limitations to this, so you should look into that guarantee for yourself.
Fundrise is concerned about cyber security because of its online financial investment operations. To protect their investors, the platform employs bank-level security. The website employs 256-bit AES symmetric encryption, which is similar to that used by the majority of large commercial banks.
Fund transfers on the platform are safe and secure and are not vulnerable to hacking attempts. Transport Layer Security (TLS) protects every investor’s connection to the website, whether they connect via desktop or mobile device.
Client data is encrypted and distributed across multiple data centers. AWS is used by the company to host its data centers.
The platform has been in operation for nearly 7 years and has a stellar reputation for transparency and security. Throughout the company’s history, there have been no reported security breaches or data leaks from its records.
Fundrise Reviews: Can You Make Money With Fundrise?
Yes, You can!
You can make money with Fundrise by rental income and receiving quarterly dividends. Another approach to earn returns is to sell properties that have appreciated in value over time.
Fundrise does charge a 1% management fee. The starting point is a $10 investment.
In 2019, the average return on Fundrise investments was 9.47 %. This assumes you reinvest your dividends in Fundrise. As is always the case, past performance does not guarantee future success. It’s critical to never invest money that you can’t afford to lose.
It’s unknown how this type of investment will do in a financial crisis such as the 2008 market fall.
Now, don’t get the wrong idea…
It’s not impossible to make money with Real Estate, but if you’re gonna put in the amount of grueling work to do this business (which, trust us, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.
The program that helped skyrocket many online businesses to over $40,000+ per month is so simple that making money really does become second nature.
What Are The Fees At Fundrise?
There is an all-inclusive 1 percent management fee for Fundrise, with .85 percent of that going toward operating costs and .15 percent going toward the annual advisory fee. Though, the advisory fee can be waived in certain circumstances.
This is a very reasonable price. Some of Fundrise’s potential costs, however, are not as transparent.
- Origination Fee: When Fundrise purchases a new asset, it pays a 0-2% acquisition fee.
- Early Redemption or Exit Fee: Redeeming shares within five years of purchase results in a 1-3% loss. (There is no charge for the first 90 days.)
- Self-directed IRA Fees: A $125 asset fee to Millennium Trust every year
Fundrise Review: Fundrise Pros And Con
- There are no income or accreditation requirements for investors.
- You only need $10 to get started as an investor
- Money back guarantee for 90 days.
- A portfolio of properties located throughout the United States.
- Dividend payments are made quarterly to investors.
- Investing that is completely passive.
- Available as an IRA
- High ROI: From 2014 to 2017, Fundrise boasted average annualized returns ranging from 8.76 % to 12.42 %. This is a fantastic performance, so it’s tempting to capitalize on it.
- Limited liquidity: Fundrise’s investments have a significant liquidity problem. The majority of its funds are invested in eREITs and eFunds. These are always long-term investments that cannot be sold on the open market. Unlike other investment firms, Fundrise cannot withdraw money from a signed real estate deals. As a result, they have a lengthy process for reclaiming funds.
- Future performance and returns are unknown.
- Tax liability—regular income tax on earnings.
- Transparency in fees is lacking.
Fundrise Reviews: Is It A Good Investment?
If you’re looking for a way to invest in real estate, Fundrise could be the answer. On the other hand, real estate is more volatile than other investments. However, as the saying goes, the higher the risk, the higher the reward.
Fundrise Reviews: Is It Good To Invest In Commercial Real Estate?
While commercial real estate investments entails some risk, the average return has exceeded the stock market over the last three decades. Historically, this form of investing has been restricted to individuals with sufficient capital to acquire and manage properties. However, real estate crowdfunding platforms such as Fundrise have made commercial real estate accessible to the everyday investor.
Is Your Money Trapped In Fundrise?
While Fundrise is geared toward long-term investors (5 years or more), its Flagship Fund allows for penalty-free redemptions every quarter.
Does Fundrise Pay Dividends?
Fundrise has traditionally paid quarterly dividends to its investors. However, dividends, like all investments, are subject to the performance of the underlying assets.
Fundrise Reviews: Is It A Scam?
So, time for the $1,000,000 question – is Fundrise a scam?
No, not technically. You can 100% make money with this program, though it’s not nearly as simple as they make it seem.
As with most businesses, there is A LOT of work to be done up front & no guarantee of you being successful.
Not to mention the profit margins are typically pretty small.
Don’t get me wrong, I’m a big proponent of front-loading work now, so that you can reap the rewards later.
But if I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.
I’d rather put in that same 3 months of work (in my spare time) & build a handful of Digital Rental Properties that each produce $500-$2,000 checks every single month afterward (AKA recurring income).
And the cool part is that you can do it in a lot less time than 3-months (I personally did it in my first 2 weeks of being a Digital Landlord).
Unlike physical real estate, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.
All you need is an internet connection.
Some of my friends are Digital Landlords that run their 6-figure businesses from:
- Camping trips at national parks
- Beachfront in Hawaii
- On the road in a camper-van (with a pet pig!)
They focus on living an enjoyable life first, and focus on income second. All thanks to this program.
They can take weeks or months off, and money keeps rolling in.
Living happily is the top priority.
If the thought of living perpetually at your dream vacation spot interests you, being a Digital Landlord might be for you!
Fundrise Reviews: The Bottom Line
Investing in real estate typically necessitates substantial amounts of money. Fundrise enables everyone to enter the world of real estate investing at a small cost and with little risk. It is also a simple option to invest in because it is fully passive.
However, because this is a long-term investment, you should think about it carefully. Can you commit to a five-year investment? It’s important to remember that you may not be able to access it earlier than that.
Diversifying into real estate with Fundrise may be worthwhile if you’re ready to lock up your money and start as a small investor.
What Is My #1 Recommendation For Making Money Online In 2022?
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet-bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
It’s worth noting that I FULLY endorse real estate investing as a way to grow wealth, and that’s why I invest my own money in commercial and residential real estate.
That being said, my #1 recommendation for making real money online as a beginner is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie, or you’ve been around the block before but have never had that “big win” to propel you forward, becoming a Digital Landlord is for you.
Time: If you’ve got a spare hour-or-two each day, you can do this. If you want to drop everything and go all-in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
Real estate investing is a FULL TIME JOB. If you stop finding deals, your money dries up.
Ownership & Control: Unless you’re buying your properties in cash, you don’t technically own the properties – the lender does.
If you miss a single payment, the property can be taken from you.
Why pour your soul into a business that could be taken away from you at the drop of a dime?
When you’re a Digital Landlord, you literally own all of the assets, which means you have ultimate control.
Ongoing costs: With real estate, profit margins are actually pretty slim. Real wealth is made in owning the assets, and owning A LOT of them.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with real estate investing, you would need twice as many properties, or double your profit margins on each property. And I can guarantee you , that’s a lot harder than a few clicks & a phone call.
Make Money Helping Real People: When you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If we can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put FOOD on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other opportunities Fundrise, which might make you money.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.