Today I’m shifting my focus to an investing app called Fundrise. I’m going to give you the basics on this program and my overall opinion. If you want to get into the nitty gritty, their website is: www.fundrise.com
What Is Fundrise?
Fundrise is the first online investment platform to create a simple, low-cost way for anyone to invest in real estate. They say they’re “on a mission to build the best investing experience ever by minimizing fees, improving long-term return potential, and unlocking access for everyone.”
Does It Cost Anything To Start Investing?
There are various ‘levels’ of investment:
- Starter: $500
- Core: $1,000
- Advanced: $10,000
- Premium: $100,000
With your investment they basically create a diversified portfolio of real estate projects that they acquire, identify, and manage on your behalf. You pay an annual advisory fee of 0.15% for managing your account. There is also an annual 0.85% asset management fee on the Starter account. They don’t charge any transaction fees, sales commissions or additional fees for enabling features on your account, such as dividend reinvestment or auto-invest.
After your initial investment you can invest $100 or $100,000, it’s totally up to you.
What Do These Levels Provide?
With a Starter membership you can’t really choose how your money is invested or which projects you invest in. It’s very basic. If you are a Core member or above you unlock different plans that you can tailor to your own goals:
- Supplemental Income
- Balanced Investing
- Long Term Growth
Personally, I went for Supplemental Income because my goal is to be self reliant with multiple streams of income. I am only a Core member right now, but I am seeing a little bit of growth every day.
Here is my overview on the webpage. As you can see, I have invested $1,100 since Nov. 6th and have $3.74 in net returns. That doesn’t seem like a lot but it is currently Nov. 21st, barely two weeks since my initial investment. That’s actually not bad for such a small investment.
I have a few other long term investments that aren’t getting this much return. Hell, I’ve had a CD for a decade and it’s accrued about that much interest at this point!
You Get Lots of Updates
I like that I also recieve project updates on the properties in my portfolio. Sometimes the projected return changes depending on these updates, like if an apartment complex will be finished ahead of schedule your return may go up. I had one go up because they sold quicker than expected, which is pretty sweet. Of course, it could go down as well if problems arise but that’s just how investing goes.
There’s So Much More To It
There are so many details in investing that I’m not really getting into that here. The Fundrise website is very informative and it’s pretty easy to get a hold of them if you have questions the FAQ’s don’t answer.
Honestly, all that info about eRit’s, tax info and all those things make my head swim. All I really want is a simple, easy to understand platform that gives my the basic info I need to decide whether my investments are making money or not. I believe Fundrise provides that much, at least.
What’s The Verdict?
To me, Fundrise provides everything I’m looking for in an investment app. It has both afull service app that lets me check my investments on the go as well as a well made and easily navigated website with easy to understand readouts and the information I want at my fingertips.
The initial investment amount can be steep for some, including me, but the returns seem to be worth it if you’re a long term investor. If you want oodles of money right now, look elsewhere unless you already have a ton of money to invest up front.
Overall, I like Fundrise. So far they’ve provided what they promised: a relatively low cost way to invest in real estate projects that gives very real returns over time.
- Relatively low cost
- Higher yield than many long term investments
- Constant updates of the projects in your portfolio
- Easy to understand, help if you have questions
- App and website
- Initial investment may be a lot for people on fixed incomes
- You can’t invest in a specific project
I hope you found this review informative. If so, let me know below!
Catharyn – The Rebel Entrepreneur