Fundrise is a platform for investing in real estate projects, similar to buying a real estate investment trust. We invested in it last year. Performance this year for when we invested is 4.8%. This is not terrible, considering markets have crashed by double digits lower. It’s not great either. Returns will change depending in when you invested and how much. Last year was phenomenal, as real estate prices soared.
SmartAsset describes the difference between Fundrise and REIT’s.
This also makes real estate investing possible for more people. Rather than requiring the full capital necessary to purchase a property, Fundrise has lower minimums that make real estate investing accessible to newer or lower-budget investors.
SmartAsset
Fundrise does have automated investments as low as $10 using their app, which is great for new investors. Investors with larger amounts have a greater opportunity to choose their funds and risk profiles.
Pros:
Decent returns
Low minimums
Transparent
Can be added to an IRA
Choos to re-invest dividends or cash them out
Cons:
Due to the illiquid nature of real estate, there is a time delay of 3 months if you want your money back
Fees can be present too
We’ll continue adding money until we get to the magic level of $5k. Real estate is under pressure, as high prices, high interest rates, and the strong dollar drag affordability down to the worst levels in decades.
If you have interest in Fundrise, check out our link. You’ll get some free shares for joining.
Join me on Fundrise:
Sincerely yours,
smilingdad
smilingdad 