Investing in commercial real estate is certainly an appealing option as it is one of the best ways to grow your money without requiring high fees, labor cost, or huge capital reserves. Especially for the past decades, real estate is performing well compared to stocks. Let us look in this guide about what is fundrise and what makes this fundrise review stand out of the investment options.
So, what’s Fundrise?
Fundrise is an online real estate investment platform which allows both wealthy and non-wealthy investors to invest in their money. In fact it is an innovative method of investment that utilizes crowdfunding which will be pooled with other investors to buy residential and commercial properties.
This company was founded in 2010 and it offers the investors with a bundle of opportunities for prospective investors that include eFunds and eREITs of the fundrise. If you are the one who is carrying out the thought of lacking money for investing in real estate, then this real estate crowdfunding of Fundrise gives you a great way.
Ben Miller, who is the founder of the company, started Fundrise with the intention of making real estate investment an accessible opportunity to everyone. His mind was occupied with the question why should only a company hold the rights to invest in real estate, but not the public. This induced him to enter into the field and thus allowed communities with the right of investing in themselves.
How does fundrise work?
Fundrise offers the investor with the best possibilities to access real estate and property deals and the great part is they don’t have to spend hundreds or thousands of dollars. An additional benefit that captures investors’ attraction and acquires great fundrise review is it doesn’t have any accredited investor requirements; the term is applicable only to premium investors. And also the investors can enjoy the benefit of no high front load fees.
This investment platform is open to all and the eligibility is he/she should be a U.S. resident and be 18 or older in age. The minimum investment requirement is just $500.
Fundrise review – is it a good investment?
Although Fundrise is an online platform that lets a person become a real estate investor easily, still the person should be prepared enough with his own due diligence. He should understand that every investment carries its own risks and underlying costs.
The major products from fundrise are real estate investment trusts, or REITs. These are the ones that let the investor to invest in income-producing real estate, they can buy either by buying & managing buildings or simply by holding mortgages. The company mentions its products in the term of “eREITs.”
eFunds are also offered by the company, in which the pooled or crowdfunded money of investors is used to purchase land, develop housing and can sell it to the required home buyers. The efunds also useful in buying its Interval Fund which is the one that carries the benefits of higher liquidity and great diversification properties compared with other funds.
Ways in which fundrise can return the investors
- The investors can earn returns by buying undervalued real estate, making it value-added by renovating those properties. This will raise the rents of the property or value of the property.
- stabilized properties can yield the investor with rental income
- Investors can collect the interest for the holding mortgages
- He/she can buy properties which possess the potential of high appreciation value.
Opening a Fundrise Account
There are some five options with fundrise. In order to get started, you have to pick one option from this. There are three most expensive plans with which the investor can choose for Supplement Income, long-term growth benefits, or balanced investing option.
The other two cheapest plans of the company let the investment be done right away. No matter what the plan is chosen, the investors don’t have the choice of selecting specific investments.
Pros and cons of Fundrise
Benefits
- Great option as it is available to non-wealthy and non-accredited investors
- Low and minimum account size requirements
- God choice for passive investing
- It is a kind of high diversified investment
Disadvantages
- Investments are not liquid
- Carries complex fee schedule
- Doesn’t favor people looking for short-term investments
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