Fundrise
Community Rating
- Fees: 0.15% advisory fee for all Fundrise assets plus 0.85% for real estate funds, 1.85% for innovation funds, and $10 per month for Fundraise Pro1
- Minimum Investment: $10 (brokerage accounts), $1,000 (IRAs)2
Fundraise. “What Is the Minimum Initial Investment?”
- Accredited Investors Only: No
Why We Chose It
Best Overall:
Fundrise offers online access to a wide range of real estate debt and equity investments with a low initial investment requirement. Investors supporting Fundrise also have the opportunity to become owners through the initial public offering (IPO). Unlike competitors with lengthy required capital lock-up periods, Fundraise provides quarterly redemption windows.
Best for Beginners:
Novice investors interested in crowdfunded real estate opportunities will find the low $10 minimum for brokerage accounts and $1,000 for individual retirement accounts (IRAs) particularly appealing.
Best for Low Fees:
Fundrise boasts transparent and competitive fees compared to other platforms in the industry.
Pros & Cons
Low $10 investment minimum
Broad diversification among investment plans
Transparent platform
Quarterly redemption opportunities
Early liquidation is subject to penalties
Quarterly liquidity is not guaranteed
Complex investments require investor due diligence
Phone-based customer service requires an email request for a callback
Overview
At Fundrise, beginning investors can invest in alternative assets for just $10, a rare low investment minimum. The platform structure presents vast diversification for small investment amounts. The quarterly investment option adds to the fundraisers’ consideration of the best real estate investment platform. The expansive portfolio of underlying investments is both positive and negative. There’s excellent diversification of assets and complex information regarding the underlying holdings.4
Fundrise investors choose an investment plan from four options: Supplemental Income, Balanced Investing, Long-Term Growth, and Venture Capital. Each plan has a goal: income through startup or venture capital investing. The assets within the plan are allocated among income and growth-focused real estate and debt assets. The venture capital plan offers a path to invest in startup companies. Within each plan, there are scores of investments from across the U.S. The debt investments finance commercial real estate projects or startup companies (in the venture capital plan).5
Those seeking greater control over their investments can sign up for Fundraise Pro for a reasonable fee of $10 a month.6 This plan provides greater customization and is suitable for more experienced investors.
Founded in 2010, Fundrise is headquartered in Washington, DC, serving over 385,000 investors.7
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