Fundrise is an online investment company that allows you to invest in real estate by joining a pool. Also, this is the first platform that allows people to invest in real estate online. The company was founded in 2010, and since then, it has been making it easy for investors to invest in real estate online. With the help of this platform, you will not only understand the investment risks, but you will be able to learn almost every aspect through this platform.
Fundrise: Pros & Cons
I hope now you have a basic idea about Fundrise, it is time to learn the pros and cons. See, there are a lot of online investment companies that offer you online investment. Now, the decision is up to you whether you want to use this platform or you want to use other platforms.
- The minimum investment is low, you don’t have to invest a lot of money. The main reason behind it is that there are pools where many investors join and then invest in a particular asset.
- The platform is open to all sorts of investors. You don’t need to have a lot of experience. A person who wants to step into the investment is always welcome.
- The website of the platform is simple and easy to use. If you are using an investment platform for the first time, don’t worry. You will learn everything automatically.
- There are IRA accounts that are available, and you can use them as well.
- The investment is highly illiquid. This means it will be tough for you to liquid your cash. So, most of the time, your investment will be there on hold.
- Though the platform is easy to handle, there are a couple of things that are still difficult to understand. And the most confusing part is the fees.
- There are some complex investments where investors need to do due diligence.
The platform offers a couple of features that you will not find on other platforms. Here are the features that you must know.
The best thinking about this platform is that you don’t need to invest a lot of money on the platform. There are other platforms that allow you to invest, but you need to invest money in a lot, and that can not be given by small investors. But this platform allows small, medium, and large investors.
The Platform Is Easy To Use
You will find many similar platforms where you will find almost every small to large feature so that you can invest in real estate online. But Fundrise is one of the best platforms for both beginners and experienced investors. The user interface is simple and easy to use.
There is a redemption option that allows you to sell your shares back to Fundrise. In that case, you need to pay only 1% of the total investment to Fundrise. If you hold the asset for five years, then there is no need to pay anything.
The platform doesn’t allow trading on public exchange. And main reason is that these are highly illiquid. Sometimes there are potential risks in non-traded REITs, and there are rewards as well.
Other than liquid options, investors can take part in eFunds and eREITs. This feature allows its users to get their funds quarterly. Also, you don’t have to pay any shares to the platform. You can add liquidity as well. This means you can hold your asset, or you can sell the asset as well.
The platform’s aim and focus are to make it easy for investors and real estate. The main reason is to omit any third party or broker, basically, there is no middleman in the investment. But the platform sometimes charges some additional fees to its users. But you will get the same return out of it.
Frequently Asked Questions (FAQs):-
Here are some questions and answers regarding Fundrise that you may find interesting.
Ans: Yes, the platform allows its users to make money through rental income with Fundrise. And you will get the money on a quarterly basis. There is also another way to make some money. You can also earn some money once properties are sold over time.
Ans: Fundrise is an online investment company that is specialized in real estate investment. Investors on this platform buy residential and commercial properties by pooling their assets. And the process can be done through this investment platform.
Ans: The platform is a legitimate investment platform that allows you to invest in real estate. The is secured with the Securities and Exchange Commission as an adviser. And it is registered under the Investment Advisers Act of 1940.
Ans: The platform offers dividends in the middle of the month after every quarter-end, these months are April, July, October, and January. Most times, the dividends are expected to fluctuate most of the times, and the company does not provide a guarantee of any dividends.
Ans: The fee of Fundrise is only 1% annually, but REIT’s annual fee is much less than Fundrise. But when it comes to the investment model of Fundrise, the process is simple. But the return yields are lower than the public REIT. Both platforms are almost the same, but which one to choose depends on the portfolio you want.
I think now it is easy for you to understand almost everything about Fundrise. If you compare this platform with other similar platforms, you will find that the platform is one of the best platforms for investing in real estate. You must know that the platform is best for long-term investment. If you want diversification outside of bonds and stocks, then this is the ideal one.If you have any other questions, feel free to let us know in the comment section below.
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