And theres no income or net worth requirements to get started.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
Interested in real estate investing? Here are four ways toget started with less than $500.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
Still, Fundrise has drawbacks.
Fundrise takes a long-term growth approach to investing, so expect to hold these funds for 5+ years.
Otherwise, you could pay a 1% penalty.
While investors can create a starter portfolio for as little as $10, Fundrise charges several fees.
Real estate investment trusts, or REITs, are the primary investment option on Fundrise.
An REIT is a bunch of income-producing commercial real estate properties bundled together.
(Like how an ETF or mutual fund bundles several stocks into a single share.)
Fundrise calls its products eREITs.
Your real estate funds generate quarterly dividends, and they have the potential to grow in value over time.
Returns from eREITs and eFunds ultimately come from the individual real estate assets inside your portfolio.
This includes interest or rental income collected, as well as potential appreciation in the propertys value.
Fundrise will tailor your specific portfolio allocation based on your personal investment goals and strategy.
There are no penalties for liquidating shares in any of those funds.
What is Fundrise Pro?
Fundrise created Fundrise Pro to cater to investors who want more control over their portfolios.
How Do You Withdraw Money from Fundrise?
Its like owning a home.
Fundrise says its platform is best suited for investors who hold their investments at least five years.
Youll also undergo a minimum 60-day waiting period before the shares are sold.
Fundrise reviews liquidation requests for the Flagship Fund, Income Fund, Innovation Fund and eREITs quarterly.
Final note: Fundrise reserves the right to suspend redemptions, particularly during turbulent market conditions.
Fundrise most recently flexed this restriction from March 2020 to July 2020 in response to the Covid-19 pandemic.
Fundrises Fees
Fundrise has a 0.15% annual advisory fee.
This fee is similar to what youll find at most robo-advisors.
Its the fee the company charges to manage your portfolio.
Fundrise doesnt charge any transaction fees or sales commissions on its funds.
Its low fees are a big selling point for many investors.
However, other Fundrise costs may be less apparent.
Fundrise Retirement Account
Fundrise offers the option to open atraditional or Roth IRA.
you’re free to also choose to roll over an existing IRA or 401k.
Thats right $125 a year plus a 1% annual fee.
Thats in stark contrast to most brokerage firms and robo-advisors nowadays.
Fundrise Review: Pros and Cons
Frequently Asked Questions
Yes, Fundrise is legit.
Its also important to understand the companys redemption process before you get started.
double-check youre investing money you wont need for at least a few years.
However, Fundrise outperformed the S&P 500 in 2018.
Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
