Investing in Real Estate Through Fundrise
Fundrise is an innovative investing app that simplifies real estate investment, allowing users to easily track and manage their portfolios.
When it comes to venturing into the realm of real estate investment, navigating the complexities can often be a challenging endeavor. However, Fundrise, an innovative investing app, has emerged as a solution that aims to simplify the process. Since its establishment in 2012, Fundrise has gained attention in the industry, boasting a valuation of $500 million and managing over $2.5 billion in assets. The user-friendly app provides a variety of portfolios, real-time project updates, and a performance chart to enable investors to conveniently track their returns. In this article, we will explore Fundrise's features, limitations, and notable competitors to provide a comprehensive overview of this platform.
Background
Fundrise is a revolutionary investing app that makes it easy for anyone to invest in real estate. Founded in 2012 by brothers Ben and Dan Miller, the app has grown to over $2.5 billion in assets under management (AUM). Fundrise is currently valued at $500 million and is backed by notable investors such as Morgan Stanley and Revolution Growth. It has been featured in top publications such as Forbes, Bloomberg, and The Wall Street Journal.
The app is designed to be user-friendly and allows users to choose from several different portfolios depending on their investment strategy. The app also provides a newsfeed with updates on the projects that the user is invested in, a performance chart for tracking returns, and a breakdown of the user's portfolio. The map feature allows users to see exactly where their investments are located. Fundrise charges a 1% asset management fee on any money invested.
How it Works
Fundrise is an easy to use investing app that allows anyone to invest in real estate. Once the user has chosen a portfolio, they can add funds to the account from their bank or PayPal. The user is then able to invest in a variety of real estate projects with minimal effort and money. The app provides a newsfeed with updates on the projects that the user is invested in, a performance chart for tracking returns, and a breakdown of the user's portfolio.
Advantages
Fundrise is a great option for beginners who want to get involved in real estate investing but don't have the capital or experience to do it on their own. The app is user-friendly and allows users to choose from several different portfolios depending on their investment strategy. It also provides a newsfeed with updates on the projects that the user is invested in, a performance chart for tracking returns, and a breakdown of the user's portfolio. The map feature allows users to see exactly where their investments are located.
- User-friendly with several different portfolios to choose from
- Newsfeed with updates on the projects that the user is invested in
- Performance chart for tracking returns
- Breakdown of the user's portfolio
- Map feature allows users to see exactly where their investments are located
- Low investment capital requirements
- Low management fee
Disadvantages
Fundrise does have some drawbacks. Investing in real estate is a long-term venture and it can take years to realize returns. There is no guarantee of returns and real estate investments can be risky. Additionally, Fundrise's investments are illiquid, which means that they can be difficult to sell. Investors should be prepared to hold their investments for the long term.
- Real estate investments are a long-term venture
- Real estate investments can be risky
- Investments in funds are illiquid
- No guarantee of returns
Performance
Fundrise has shown impressive returns over the past three years, compared to public stocks and Real Estate Investment Trusts (REITs).
2022 - 1.50% (stocks -18.11%, REITS -25.10%)
2021 - 22.99% (stocks 28.71%, REITS -5.86%)
2020 - 7.31% (stocks 18.40%, REITS -5.86%)
In 2022, the overall return was 1.50%, with stocks experiencing a decline of 18.11%. In 2021, their clients enjoyed an average positive gain of 22.99%, primarily driven by strong performance in stocks at 28.71%. In 2020, the return stood at 7.31%, with stocks performing well at 18.40%. On average, the income return across across the lifetime of their funds was 5.29% per year.
Conclusion
Fundrise is a great option for anyone looking to get involved in real estate investing. The app is user-friendly and provides a host of features such as a newsfeed with updates on the projects that the user is invested in, a performance chart for tracking returns, and a breakdown of the user's portfolio. Additionally, Fundrise only charges a 1% management fee and offers low investment capital requirements, so it's easy to get started with low amounts of risk.
Fundrise is not the only investing app in the real estate space. Other notable real estate crowdfunding platforms who have raised considerable venture capital include Crowdstreet, YieldStreet, Roofstock, and Realty Mogul.
In July 2022, Fundrise announced the launch of its Innovation Fund, which will invest in early-stage real estate technology companies. The fund is led by Fundrise CEO Ben Miller and has raised $100 million in funding.